Document mmRgrpedK7byr4DBxmKQyV3Eg

REQUEST AND AUTHORITY FOR CAPITAL EXPENDITURES / RETIREMENTS DIVISION OR COMPANY Qrgani 'C: .Chemicals Pivision. LOCATION J.O. CONTROL POINT Chicago Plant 097 Purchetse and install a SemiBulk Material Handling System REPORTING CLASSIFICATION DATE APPROVED | JOB ORDER NO. D1 s u mma r y o f a mo u n t s DESCRIPTION LOCAL CURRENCY ESTIMATED PROJECT COST DISMANTLEMENT EXPENSE U.S. DOLLARS 5117,349 TRANSFER EQUIPMENT GROSS AMOUNT FOR APPROVAL $117,349 1 LESS TRANSFER EQUIPMENT LESS SALVAGE OR TRADE-IN ALLOW. RETIREMENT DATA COST AMOUNT DISMANTLEMENT LESS SALVAGE TOTAL - CHAR/GE RESERVE DESCRIPTION AND REASONS REQUIRED ECONOMIC JUSTIFICATION 6-YEAR AVG. NET SALES NET SAVINGS BEFORE TAXES NET AFTER TAXES % ROI (ON TOTAL INVEST.) PAYOUT YRS, REV. 1 2 3 4 5 6 REVISIOI1 DETAIL (c r o s s AMTS.) DATE ; AMOUNT CUM. AUTHORIZATION Funds of ---------------------------------------------------------------------------------------------------------------------$117,349 are requested to purchase and install a Semi-Bulk Systems material handling system for the PVC lead heat stabilizers manufactured at the Chicago Plant. c rAWAjvr j x> Description and Reasons Required Proposed Work and Cost i\ Funds of -------------------------------------------------------------------------------------------------------------------------$117,349 are requested to purchase and install a Semi-Bulk Systems packing and shipping system for the PVC lead heat stabilizer manufacture at the Chicago Plant. Present Situation All Cyastab lead heat stabilizers are currently packed 50 lbs. in a four ply kraft paper bag which has been the standard throughout the industry. As a result of OSHA and EPA regulations which strictly control lead dust cpncentrations and disposal of lead in their landfills, our customers are asking for a type of packaging which eliminates dusting and the need for disposing of a lead contaminated container. The air pallet will accomplish this. At this writing both Hammond Lead and NL Industries offer the air pallet as a shipping container and some stabilizer customers are moving in this direction. Justification Messrs. Anderson, Bokros, Johnson and Gaffney have witnessed demonstrations of the filling and discharge of the air pallets with Cyastabs with essentially no dust emissions. Successful air pallet unloading trials have been conducted at Pigment Department customers with enthusiastic response generated by the demon strations . The Pigment Department at Bound Brook has installed an air pallet filling and discharge system for internal use. Lead stabilizer customers are moving in the direction of a shipping.and unloading system to minimize or eliminate air borne lead dust generation x and disposal of lead contaminated bags and the air pallet, currently being offered by Hammond Lead and Associated Lead is being touted as the desirable system. If Cyanamid is to remain competitive in the market and maintaining our sales position we must offer the option of a semi-bulk packaging system to our customers. t c rAivA jvr x JE> Commercial Factors This order supports a plant budget for lead stabilizers as follows: Budget for 1979 Sales-Pounds Sales-Dollars ' Profit on Sales 8,650,000 $4,512,000 1,548,000 (34%) Sales-Pounds 6,419,200 First nine (9) months of 1979 Sales-Dollars $4,404,900 Profit on Sales 1,195,500 (27.1%) Details of Proposal It is proposed to purchase and install a Semi-Bulk Systems filling unit adjacent to the plant Nauta mixer which, with the installation of addi tional screw conveyors, will allow the packaging of all Cyastabs (except the lead phosphites) through this single unit. Due to heat stability problems, lead phosphite cannot be packaged in this system. It is also proposed to purchase and install an air pallet unloading system to enable the plant to handle material should it be returned. An existing dust collector will be used to exhaust dust from the filling operation. It is proposed that 200 air pallets be purchased. This would allow for approximately 66 pallets (133,000 lbs.) to be held in inventory, and like amounts to be at customers or in transit to and from customers. Production Factors This proposal will not alter product quality or output. Contingent Future Commitments This proposal will not require additional funds to complete. Alternatives Considered Packing Cyastabs in plastic bags instead of paper bags. C STA ATA JVT JT jr> Risks No operating risks are involved. Concise, Summary The installation of a Semi-Bulk air pallet system will offer our customers an alternative in packaging which will help eliminate lead dust in the work area and the need to dispose of a lead contaminated container. I I - ----- --r-- ; 0,01*- *0*7 REV. 7/62 7/62 DETAIL. SHEET IHEET NO. . JOB ORDER NO. COMPANY American Cyanamid Company ITEM ' OR CODE NO. DESCRIPTION LOCATION Chicago EQUIPMENT OR MATERIALS 11-27-79 ENG. MECH. SVC. 1 Pallets 2 Conveyor 3 Filling system 4 Dust Collector 5 Unloading system 6 Freight charges 7 Tax 8 Escalation 68,200 3.000 16,428 1,500 3,085 1.000 4,536 9,100 3.500 2.500 3.500 i;ooo 69,200 3.000 19,928 4.000 6,585 1.000 4,536 9,100 106,849 9,500 1,000 117,349