Document ykZj40kvG0Z6m5r9xQ6OvNem4

EXHIBIT XIII C. . Shoridia, " Attached ts the coat estimate and detail requested &y you. The accuracy of this estimate is dependent upon development of proposed bases at compositions indicated from preliminary investi gations. Many of tha proposed formulations havs :ofc been ground but are prad Loted results from work with similar pign^r.ts and vehicls systems. Some of the highly pigmented bases may ha\s to be altered in scale-up grinding o:* for stability considerations. The latter is believed particularly important for standardised Intermediates. At the time of the estimate, per our discussion, it v<as estimated that "Luc3 to" would replace 5C# o? the "Du* o" production before Universal bases could be developed and a3lia The* convor sion cost for bases required for "Dueo" ware rot considered be cause of the following} 1. Reduction of "49 Process" grind cycle. 2. Reduction of filtration expense canned by excessive grit in many "49 Process" produeve 3. Increased tinting strength which pxoba.ilv will re sult in raw materials (pigment) savings. These considerations will offset a portion of grinding for the "Dueo" intermediate. In the attached calculation the following basic assumptions were made: 1. universal base could be ground at rates (gallons per hour) equivalent to those of present 'Dulux". 1 Du.iux 100 t ar.d "LucIte" intermediates because of more desirable dispersion properties, such es wetting, etc. 2. Could replace 42-line (including 33-line and 732-line which is being replaced by 42-lin?) and 7^1!-line 'Oulux" short oil dispersions and 901 "line "Luclte' Intermediate, 3. 50^ of "Duso" products will be replaced by similar "Lucite" products. 4. The advsntage of dlsnersing interred'etaJ for "Duro1 will off-set its gr.'ndjing cost. [ Cont *d 'lL 5. All Intermediates are ground "47 Process" 6. Based on 1956 production figures. ' There le no detailed savings calculation at this time which would Include savings resulting from the following: 1. Overall simplification (elimination of intermediates). 2. Increased capacity; decrease storage and inventory. 3. Decrease dispersion equipment requirement (less grind ing and volume grinding for each color. Leas washing, scheduling and materials handling; decrease investment and depreciation costs. 4. Savings in conversion process, such as from ball mill to "47 Process". The calculation presented is a savings resulting from in creased pigment concentration of the proposed bases over existing intermediates. This results in less grinding volume. The conver sion cost is based on a Philadelphia figure of 0.029 dollars per pound and a weighted average weight per gal. for the Intermediates of 11.0 pounds per gallon. On this basis a savings of $266,000 per year for the Division will be realized. If the conversion cost of the required "Duco" intermediate is subtracted the savings Is re duced to 203,000 dollars per year. It is believed here that the magnitude of the savings re sulting from adoption of Universal bases will be greater than $230,000 if all costs were considered In more detail. J. R. MARSHALL JRMieod DUP030001411 % E Cont *d WOSSTfFfSm?,. 3XM01S fOTiSBT BASBS Pirioca - SATKOS : ;! ; Mlif: tel: v::;-v-:'! `* P1 V p oQH 3 II l to' a! a !i SQ * >* 41 Si i ,! % la J& <bs S is 3 ai, ito 3 :JISB , * *a-4 a# <11 e1 *1 SI a 11 31I Ip : \ * !Ml h ifs II; all IJ 1 III: ____ iQ. 746.0 3000.0 10.4 58 34.0 30 20.2 108.7 <23,0 383.0 185.8 '. * 50 790.0 205.0 58 13.9 i -.4.0 BO 20,2 rn.OiBo.'t J>6 1 ? ___22.4 -5^3 - 10 5.0 ill is ..8,6 -3>.o - -- L_10_ 284 "Ts.a 17.9 1C 8.0 031f s.o J&. 8.0 13 8.0 25 8,6 .rAi. 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