Document zbp7MDXbnv1vpkjpYZ382qbB6

REQUEST AND AUTHORITY FOR CAPITAL EXPENDITURES / RETIREMENTS 5IVISI0N 0 COM B AN V Organic Chemicals Dept. J.O. CONTRCU *01 NT Chicago Plant 097 JOB TITLE Purchase and install 30 H.P. air classifing mill. BEP3HTIN4 CLASSIFICATION OAT C APPROVED JOtt OBOtB NO. A-3 3/12/78 i SUMMARY OF AMOUNTS CC-3952 DESCRIPTION LOCAL CURRENCY L'.S. DOLL An ESTIMATED PROJECT COST DISMANTLEMENT EXPENSE $47*649 4,498 RANSPER EQUIPMENT CROSS AMOUNT FOR APPROVAL 0.52,147 LESS TRANSFER EQUIPMENT LESS SALVAGE OR TRADE-IN ALLOW. 1 RETIREMENT DATA AMOUNT C3ST d is ma n t l e me n t 4.463 4,498 LESS SALVAGE TOTJ.L- CHARGE RESERVE j 8.961 DESCRIPTION ANP REASONS REQUIRED NET CASH REQUIRED 'eoF-3y27i ** __ !J2^JAZ ECONOMIC JUSTIFICATION REVISION DETAIL d r o s s a mt s ., NET SALES | 6-VCAB AVC. 500, ^ - REV.*| C.ATS AM'S UN T CLM. AUTHOR: ZA7IO 150.NET SAVINGS SEFORE TAXES 2 NET AFTER TAXES 74, 3 % ROI (ON TOTAL INVEST.) j 19% 4 PAYOUT YRS. j .6 5j I 61 Funds of------------------------------------------------------------------------------------------------------ $52,147 are requested for the purchase and installation of a 30 H.P. Mikro air classifing mill and a Mikro-Pulsaire dust collector. SUMMARY OF ESTIMATED COST Dareils on GOF-3027 ITEM NO. DESCRIPTION See attached ESTIMATE HO. 9*fAHTJM<5 OATS March, 1978 MATERIALS LABOR C0M?^triON >AT t December, 1970 ENGINEERING TOTAL 38,952 11,695 1,500 52,147 ( NET CASH REQUIRED ITEM NO. ACCOUNTING TREATMENT Dr, $31,956 PF&E (132) | jJ yJ.'|OJO X X ix1L j Cr. $ 4,463 FF&E (632) Dr. $ 4,463 Res. for Depr. (632) Dr. $ 4,49S Res. for Depr. (432) Dr. $ 1,855 Expanse as incurred 38,952 11,695 1,500 52,147 RSC0MMEN0ATI0N5 AND APPROVALS <c h e c k s o a; DEPR. RATE NAME P f.C. APPP. OA TE 7 1/4% 7 1/4% PWCj CCT s p o h s o a )/: : __ 2-/ -;/ ,-k y\ k-;~"v V 1 A-;CaUHTlHC POST AUDI T PERIOD r ECONOMICS jA*PRvED BY SR. CONTROLLER LCmEC* BOUtESl.:' J K h'rtrti.tykU---. ^,3/H/7K POST AUDI T QUi DATE j __________ L_____ OtST*!6JTON ^ CEkdtAL nAMACe* . N*/ Vi v-P^.5l W4//3 -kkk- j ! r ' C YAA'A ;\<I Z X OC-3952 3/12/78 Page 2 of 13 Descriptions and Reasons Required A. Proposed Work and Cost Funds of---------------------------------------------------------------------------552,147 are requested for the purchase and installation of a 30 H.P. Mikro air classifying mill and a Mikro-Pulsaire dust collector. B. Present Situation The CYASTABS (lead heat stabilizers) produced at the Chicago Plant are utilized primarily in the PVC insulation for the wire and cable industry. Cyanamid's tribasic lead sulfate (CYASTAB 810) contains hard particles in the range of 60-100 microns, which causes serious problems in high speed wire extrusion: excessive plugging of the extrusion screen paks and spark failures. Western Electric has removed approval of CYASTAB 810 in their wire compounds"1, resulting in a business loss of approximately 1,000,000 pounds per vear, with a N.S.V. of $500,000. The hard particles originate in the reactor. The existing mill (Mikropul 3TH--14 years old) yields a product meeting our current specifications of 0.20& maximum particles retained on a 325-mesh screen (44 microns). This amount of hard particles, however, is no longer acceptable to Western Electric, who demands no particles on a 325-mesh screen. C. Justification Extended trials on the Mikropul ACM pulverizer using both CYASTAB 810 and 908 shows that this piece of equipment will successfully grind and classify the stabilizers so that there will be no hard, large gritty particles 2. Microscopic determination of the milled and classified product from these trials show no particle larger than 35 microns, which is well below the customer*s specification of no particles larger than 44 microns (325 mesh). Installation of this mill-classifier will assure a product which will be acceptable to all wire and cable manufacturers, including those which use the Western Electric PVC formulations, and allow us to recover the 1,000,000 pounds per year 810 business recently lost. "See appendix #1. o See appendix #2 and #3. N14467.01 CYWI 24-0006847 C FA.VAMT r CP 2- - . 0C-3S52 3/12/78 Page 3 of 13 A new dust collector must be purchased as the millclassifier requires a collector with a capacity greater than the existing dust collector in the plant. D. Commercial Factors This order supports a 197S Heat Stabilizer Sales Budget as follows: Sales-Pounds Sales-Dollars Profit on Sales 7,950,000 $3,985,000 1,071.000 (25.8%) Sales-Pounds 7,709,000 1977 Data Sales-Dollars $3,587,000 Profit on Sales 909,000 (25.3%) E. Details A mikropul model 30 mill-classifier and a new Mikropulsaire dust collector will be installed in place of the existing 3TH mill and dust collector located in the sulfate-phthalate marafacturing area. The 3TH mill will be placed on the corporate scrap equipment list and the existing dust collector will be relocated to increase ventilation either on the P & S dryer or the large litharge kiln. F. Production Factors Installation of the Mikropul mill-classifier will enable the plant to meet customer demands for a smaller particle size. This mill has the capacity to handle present and all future sales demands. Also, the new mill is expected to cut airborne lead concentrations in the milling area. G. Contingent Future Commitments This proposal will not require additional funds to complete. H. Alternatives Considered Install a classifying screen at the discharge of the existing 3TH mill. CYWI 24--0006848 C VAJVA JW X X> -3- OC-3952 3/12/78 Page 4 of 13 Screening trials of the CYASTAB run at Rotex and Sweco were unsuccessful* Double milling of CYASTAB in the existing mill did not reduce the hard particle content significantly and did aggravate the shop's airborne dust condition. All attempts to eliminate hard particles by modifying wet processing conditions were unsuccessful* I* Risks No operating risks are involved. J. Concise Summary The purchase of a new classifier-pulverizer mill will enable the plant to regain the lost sulfate stabilizer business and prevent future loss of phthalate product line by meeting our customers* new specifications* lAivu'v.wr-.k CYWI 24-0006849 003952 3/12/73 Page 5 of 13 ECONOMIC JUSTIFICATION CHICAGO PLANT $000 1st Year Subsequent Years Annual Sales CYASTAB*5 810 Western Electric Less: Cost of Production Manufacturing Profit (30.6%) Less: Costing Depreciation Job Order Expense Net Earnings Before Taxes Taxes @ 51% Investment Tax Credit 10% $ 500 347 153 3 2 148 75 5 $ 500 347 153 3 _____ 2 150 77 Net After Taxes Costing Depreciation . 78 3 73 Cash Flow 81 76 Payout 48 ----- = 6 years 81 Incremental ROI 6-year average 74 48 ROI on Total Investment (6-year average) * 154% New PPS Existing PPE Accounts Receivable Inventory $48 210 63 73 Total Investment $394 19% ROI N14467.02 CYW X 24-0006850 CYWI 24-0006&51  SAtaa-REV. 15.72 ^10.72 1 ' TO: FILE LOCATION: FROM. Leigh C. Allen SUBJECTEFERENCE: Western Electric CYASTAB S10 n m wiv<*> t\ Bound Brpak7*`N5ctobeV-l. 1977 FP.I.C..B. " ' ''1 `-v: i'V'O o Wt i 5 COPY TO. { 6^ * * 003952 3/12/78 Page 7 of 13 Messrs. R. F. Anderson w. Conner J. Druzbachy J. A. Cingras S. R. Harvey G. A. Menghi M. Nichols J. A. Zebrowski BE r.K EE EE BE HO AK BB In order to ascertain the exact details of the reported rejection of CYASTAB 810 by Western Electric for their 646 wire compound, the writer contacted Fred Marks of the Norcross, Georgia location. Mr. Marks confirmed.the fact that CYASTAB 810 has been removed from the _____ approval list for both the 646 and 647 formulations. The reason given for the removal was an exceptionally high spark failure in the wire extruded from recent shipments of Pantasote compound. The problem asserted itself most in.the Atlanta Wire Plant where automatic equipment rejects reels of wire after a certain number of spark failures. The. Pantasote compound in question was generating 100% scrap in terms cf rejected reels, and as a consequer.ce, the material was rejected and turned back to Pantasote. Unfortunately, as a result of subsequent discussions with Pantasote, the problem was flagged as being one cf hard gritty particles in the 81C, as a consequence Mr. Marks has elected tc , remove the 810 from the Western approval list. In order to be reinstated on the approval list, we will have tc go through the complete approval process including the preparation and submission of a 2,000-pound lot of PVC compound for a plant trial at Norcross, followed by a subsequent full scale plant trial. Assuming success at this point. Western will reinstate our approval for the 646 and 647 formulations. Laboratory evaluations conducted both here and in the Chicago plant laboratories have indicated that there is a certain percentage of hard, gritty particles in our product, which apparently are not present in the National Lead counterpart. Efforts are currently underway to find a source of these aggregates, and to develop procedures to eliminate them from our final product. The following steps are being taken at the Chicago plant: a. Several batches of 810 are being prepared according to ..the normal plant operational procedures. These batches are - being sampled at each point, in the process from litharge to / finished product in order to provide a reading on the possible >*: r? - ' N14467.04 CYWI 24-0006S52 FILE OC-3952 3/12/78 Page 8 of 13 2- - October 21, 1977 source of the aggregates as it is not known at this time whether or not these aggregates are with us from the original litharge production or whether they are generated in one of the manufacturing steps, for example, in the drier. Samples taken on the production runs will be examined microscopically for aggregate size and content. Preliminary review will be done at the Chicago plant with samples being forwarded to the Bound Brook laboratory. This phase of the program is currently underway, we anticipate receiving samples from the Chicago plant before the end of the week. b. From the above production of normal batches, materials will be run through the current mill with a smaller screen size to see whether or not we can effect a reduction in the number cf aggregates via this procedure. c. Also in conjunction with Item A a portion of our `standard production will be forwarded to an outside firm to evaluate the possibility of utilizing particle size reduction equipment to eliminate the aggregates in our product. Material has been selected for this, and should be forwarded to the selected company by the end of this week. d. One batch will be made without lauric acid or phthalic anhydride additions to determine what effect these two additives have on this agglomeration tendency. e. A batch will, be prepared with a higher operating temperature in the reactor to determine whether or not the early precipitation of lauric acid or phthalic anhydride is causing a problem in the reaction whereby the precipitated or crystallized material is cementing together particles of lead stabilizer causing aggregates of material. f. We will be attempting to determine whether or not calcium stearate can be substituted into the process for either lauric acid or a portion of the phthalic anhydride. There is sons evidence that increasing the overall basicity of the end treatment of our product would help the overall Brabender thermal stability of the material. It is known that National Lead uses barium stearate in their process as it is indicated in their patents that this is the case. Fortunately, there is three years left remaining on this patent so barium stearate is not a possibility for our process. Steps D, E, and F should be completed by the end of .October. Based on the information generated above, we should be in a fairly good position to (a) pinpoint the source of our particulates in our CYASTAE 810, and (b) have a pretty good handle on how we can go about removing these aggregate materials, and that point will be in a position to recommend any necessary process changes to management for their consideration. mjaatfcj.iiUi rorcMTTV CYWI 24--0006853 FILE 003952 3/12/78 Page 9 of 13 -3- October 21, 1977 Going beyond the 810 disqualification issue, my discussions with Mr. indicated that he is seriously considering a formulation change from a sulfate containing material to a phthaiate containing product. The original formulation for this application was based on lead phthaiate as the heat stabilizer, however, the switch to the sulfate was made because of a potential cost savings. Marks indicated that they felt they could possibly swing back to the phthaiate, at reduced loadings, and effectively eliminate the spark failure and dispersion problems associated with the Tribasic lead sulfate containing formulations, while effecting no change in overall formulation cost. The impression left with the writer as a result of this discussion, was that Western will, in fact, be making the switch, and relatively quickly. In fact, it is a speculation of the writer that the willingness of BFGoodrich to now evaluate our CYASTAB 908 in their plant, and BFGoodrich's indication that they would need 1,000:2,000 pounds of material relatively quickly upon plant approval, may be an indication that the requests for trial compounds based on the phthaiate containing stabilizer have already been issued to BFGoodrich for preparation. We, therefore, should stay on top of the 908 plant evaluation at EFGccdrich, in order to insure ourselves of a position in Western Electric's phthaiate containing formulation should the above speculation, ir. fact, be true. LCA/jel 4-5 Leigh C. Allen ` - ***- "St- CYWX 24-OOOee54 ^gvuis/y "A OC-3952 3/12/78 Page 10 of 13 Bound Brook January 24, 1973 Mr. J. A. Glagras Bound Brook Leigh C. Allen Mikro-ACH Pulverizer R. F. Anderson F. 3. Dorf it. C. Gaffney S. R. Harvey it. G. Thompson Jo A. Zebrovskl iib EB uG/?J * B3 BiJ We hare recently completed a second extended mill trial on the above grinding equipment to ascertain whether or not this type of apparatus will produce lead stabilisers with a particle site suitable for the wire and cable industry* As you are aware, our existing grinding facilities produce a product which contains many, fairly sizable, hard particles which cause problems in high speed wire extrusion. The investigation Into the Mikro-ACH Pulverizer was initiated as a result of complaints on our product in this regard. As a result of the two trials on both C7ASTAB 908, and CYASTAB 310, we have concluded that the Mikro-ACM Pulverizer is indeed a piece of equipment which will successfully grind and classify oar products such that we will eliminate the problem of hard, large, gritty particles in the final material. The air classification system on this piece of equipment Is quite sophisticated, and goes one step beyond the usual screening apparatus associated with fine grinding of powders. The system virtually eliminates the possibility of large particles passing through the system as a result of equipment malfunction, a hole in the screen, or a loose fitting screen pack. Preliminary review of CYASTAB 810 via the microscope at Mikro Pulverizer Corporation during the actual trial, revealed particles no greater 35 microns present in the finished product. Our current production normally ranges up to 60 to 100 micron particles, so a definite improvement in size and size classification has occurred. In addition, the impression of those people viewing these particles was that the 35 micron particles were quite soft and friable. We will be screening some of this material through a 325-mesh screen and reviewing, microscopically, the residue retained on the screen. During the previous mill trials, however, the screening through the 325-mesh screen left essentially nothing on the screen for analysis. We would hope that the similar circumstance would occur in this latter trial. In' general, we conclude that the Hikro-ACM represents a viable approach to obtaining a product which will be suitable for all wire and cable extrusion procedures including those utilised by Western Electric. The installation of this mill should significantly upgrade our CYASTAB 310 product line as well as the phthalate product line. N14467.05 CYWI 24-0006855 Hr* J. A. Gingraa OC-3952 3/12/78 Page 11 of 13 -2- January 24, 1978 It is understood diet a No. 10 Mikro-AGH Is available for rental immediately. We would of course, be looking towards the purchase of a larger unit, namely, the Mikro-ACM :k>. 30. 1c is suggested that va seriously consider, however, the rental of this .Jo. 10 Pulverizer for immediate installation and usage in the Chicago plant. This will provide us not only with an immediate capability of producing a product suitable for all applications, but will also allow us a chance to review the performance of this apparatus on an actual production scale prior to delivery of the actual commercial unit. A third advantage is chat the Hikro Pulverizer system, is a completely enclosed system which is not prone to dusty emissions, and as a consequence, the institution of this A<21 will help to minimize the air quality problems In the plant environment. LCA/Jel 2-1 Leigh C. Allen e CYWI 24-0006856 grass' avaMjaim3& To: H. C. Gaffney Location: CG Plant From: j. F. Daly Location: BB Extension: Subject: Grinding Trials at Mikropol, Summit, New Jersey Date: 1/19/78 Reference. Page 12 of I JAM. 2 6 1973 Copy to: L. C. Allen R. F. Anderson F. B. Dorf S. R. Harvey B. Terzic - CG Plant In our first trial with the air classification mill on November 23, 1977, we had an unweighable trace on 325 mesh - up to 50 microns We also noted a tendency for the ground material to accumulate in the output section. A second series of trials was run on January 17, 1978. In this series we intended to try for a slightly finer grind, about 40 microns maximum. We also wanted to determine whether the accumulation in the output section would continue to increase and plug the system, and if so, in how long. Further, we wished to confirm that CYASTAB 908 was easier to grind than CYASTAB 810 as had been observed previously and check throughput rates for both 908 and 810. All work was dene in these trials and the November series on a 10 ACM. We would be purchasing a 30 ACM, having three times the capacity. We started with 810. The first set of conditions tried resulted in a very fine grind, about 13 microns. This resulted, however, in the system plugging up after 50 pounds had been run. Two more sets of conditions were then tried on 20-pound runs, resulting in grinds of 25 and 35 microns. The conditions for 35 microns were selected for a longer run. In this longer run the system plugged up after 1200 pounds were run. The plugging was caused by packed powder in the output section and broke up easily. Injection of compressed air into the output chamber would free this build-up and permit continuous operation. In addition, while the 10 ACM has a right angle discharge, the outlet of the 30 ACM is straight, which would have less tendency to plug. We should order our ACM with fittings for air injection. Next, a run was made with 908 using the same set of conditions as the long 810 run. A grind of 26 microns maximum was achieved, and no appreciable build-up was seen after 527 pounds were run. NA 939 SEV. 7-77 ^T7-77 N14467.06 CYWI 24-0006857 K. C. Gaffney 2- - OC-3952 3/12/78 Page 13 of 13 11/19/78 Throughputs are summarised below: Material 810 908 Maximum Size, Microns 35 26 10 ACM (Actual) 1200 900 Pounds Per Hour 30 ACM (Calculated) 3600 2700 60 ACM (Calculated) 7200 5400 Two minor points were noted during the runs: one shut-down, there is a tendency for dust to blow back, from the feed hopper. There is also a tendency for material to hang up in the dust collector hopper. A lid for the feed hopper and a vibrator on the output of the dust collector would be advisable. In summary, we are quite satisfied that this equipment will do the job. Subject to confirmation of the above results by the Microscopy Group in Boutid Brook, we can proceed with ordering. JFD:sb CYWI 24--0006358 Debit/Credit Note CYASVAfifliD American Cyanamid Company Wayne, NJ 07470 TO: a a /______________________ J*6 fit* ACCOUNTING MONTH O-fil NO. N14467.07 CYWX 24-0006859