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(conoco) Interoffice Communication To Distribution From Oate J. K. McCrary, Ponca City,Oklahoma July 27, 1984 Subject VCM Cost ProfilesReport--Review Issue Attached is the review issue of the VCM Cost Profiles Report. We will be scheduling a meeting to review this document in the near future, Please call me at ETN 442-5503 if you are interested in attending. iii Process Engineering Department Pjc Enc CC: Houston R. Y. Elliot J. G. Dopper F. J. Endelman W. J. Ritter G. W. Inbody R. J. Anderson R. D. Gamblin E. A. Vogelfanger J. A. Hall Ponca City D. E. Michels R. W. Churns Lake Charles R. A. Conrad R. Bryan CCR 00005 681 TABLE I VCM c6st profiles SUMMARY Plant Location MM LB/YR _________ Typical Nameplate Capacity Operating Rate* MANUFACTURING COST ?/LB VCM Total Total Cost Coat at at Typical Variable Capacity Rate B. F. Goodrich Dow Vista Shell B. F. Goodrich PPG No. 2 Georgia Pacific Dow Borden Formosa Plastics Shell PPG No. 1 Ethyl Formosa Plastics Dow Borden La Porte, TX ^ Plaquemlne, LA Lake Charles, LA ' Deer Park, TX ^ , Calvert City, KY ^ Lake Charles, LA Plaquemlne, LA Oyster Creek, TX Gclsmar, LA ^ Point Comfort, TX^ Norco, LA I.akc Charles, LA naton Rouge,. LA Baton Rouge, LA v/ Freeport, TX ^ Gclsmar, LA ^ . 1,0001,250* 670 1,120 -1,000 > 1 .2> 500 1,000 700 300 530 840 400 300 300 200 300 820 1,015 500 650 735 475 600 510 290 295. 300 3152 190 125. 903 100 14.94 15.14 15.08 15.22 15.44 15.81 15.81 15.14 15.54 15.32 15.42* 15.81 15.53 15.45. 15.14* 22.77 16.19 16.60 16.68 16.53 17.08 17.60 17.04 17.17 18.29 17.14. 16,82 18.87 18.10 18.17 18.61* 24.25 16.46 16.94 17.23 17.47 17.67 17.69 17.85 17.92 18.38 18.58 19.35 19.69. 19.71 21.97. 22.87* 27.21 Total 10,410 7,010 - - - Production Weighted A. verage 4 870 650 15.34 17.00 17.64 Notes: *Data front R. Y. Elliot. Based on 1983 production estimates. ^Plant was permanently shut down In 1983. Excluded from production weighted average. ^Acetylene based VCM process. Excluded from production weighted average. Production weighted average manufacturing cost * sum [(operating rate) x (cost)] c. total production Dow shut down 450 MM pound capacity at Plaquemlne in 1984. Total manufacturing cost at 800 MM pound VCM C*\po. i,tLj von. CCR 0 0 0 0 0 5 6 8 2 VCM COST PROFILES: Manufacturing Costs VARIABLE COST FIXED COST COST(CENTS/LB VCM) CCR 0 0 0 0 0 5 6 8 3 OPERATING AT NAMEPLATE CAPACITY VCM COST PROFILES: Manufacturing Costs VARIABLE COST FIXED COST COST(CENTS/L0 VCM) 20 SO, OPERATING AT NAMEPLATE CAPACITY o i-- LLt CO xo Co LcJ __ I CD bCO VCM COST PROFILES: M anufacturing Costs OPERATING AT TYPICAL PROOUCTWN RATE CCR 000005685 VCM COST PROFILES: M anufacturing Costs VARIABLE COST FIXED COST CCR 000005686 OPERATING AT TYPICAL PRODUCTION RATE (conoco) Interoffice Communication To J. G. Dopper, Vista Chemical Co. From G. J. Fryar Oats October 8, 1984 Subject VCM Cost Profiles The VCM Cost Profiles activity was undertaken to provide the business area and marketing a "tool" to assist in evaluating sales opportunities for VCM and PVC. The ultimate objective vas improvement of sales margins through a better understanding of our competitive position in industry. Basic requirements for this "tool" were formulated with Fred Endelaan, Bill Ritter* and others and consisted of: 1. Accurate concise descriptions of competitive VCM producers, with site/process/transportation/feedstock idiosyncracies noted. 2. Detailed manufacturing cost buildups reflecting the idiosyncracies of item 1, but using standard unit costs for all producers in the first edition. 3. Flexibility in report format and microcomputer software to allow simple and rapid .updating either as the need arose or on a prescribed fre-- quency. The broad philosophy statement above recognized the needs that you and the sales staff have in bidding competitively against Dow and others in the international arena with U.S. origin VCM. It also recognized the domestic possibilities in PVC sales which might be accrued using VCM from a Vista plant historically operated at higher relative capacity levels (thus lower unit costs) than those of competitors. The cost buildups for all domestic VCM producers were entered on a diskette for use with Vista's IBM microcomputers. It was envisioned that you, for example, would be able to call up this information within seconds of identifying a need. Similarly if you recognized a need to revise input raw material costs for current or future projections, those changes could be made in seconds. It was anticipated that "master" versions of the software and hard-copy work would be maintained and periodically updated by Bill Ritter's group, although it may now be desirable for Jeff McCrary to handle this effort for the short term. For the VCM Cost Profiles activity to reach its full potential of service to you and the marketing staff, the following actions must all take place: 1. A coordinator (i.e. Ritter or McCrary) must be designated as the clearing house for maintenance of the system and scorage of industry VCM intelligence. CCR 000005687 J. G. Dopper Page 2 October 8, 1984 2. Intelligence gathering sources (plant personnel, sales people, your self, etc.) trust communicate information to the coordinator in timely fashion. 3. You, and whoever else you feel necessary, need to be acquainted with use (not necessarily maintenance, though) of the software program. (This should require no more than 15-20 minutes.) 4. A working policy must be established to govern frequency of updates, verification of intelligence reports, and responsibility for mainte nance. Those of us involved in developing the original scope also envisioned that this concept should ultimately be expanded to cover selected products in the other business areas also. An excellent foundation currently exists for extension to the PVC area for example. An invitation was extended to me to present the views expressed in this letter at the introductory meeting held at Timbervay on September 20. Unfortunately, other developments concerning the Justice Department consent decrees precluded my attending the meeting. I firmly believe the VCM Cost Profiles are a valuable piece of work, but more importantly, can be a valuable tool with minimum maintenance effort. Chief Process Engineer Chemicals and Coal Division Process Engineering Department Ik cc: Visxa Chemical Co. K. McCrary ,_Tinberway D. E. Michels, Ticberway W. J. Ritter, Timberway R. Bryan, L.C. VCM Plant CCR 000005688 I f CCR 00056q9 TABLE OF CONTENTS TABLE OF CONTENTS VCM COST PROFILES LIST OF TABLES......................................................................................................................... LIST OF FIGURES......................................................................................................................... EXECUTIVE SUMMARY .................................................................................................................... INTRODUCTION .............................................................................................................................. ANALYSIS ........................................................................................................................................ BASES AND ASSUMPTIONS.......................................................................................................... VCM PRODUCERS.............................................................................................................................. TECHNOLOGY DESCRIPTIONS ..................................................................................................... REFERENCES.........................................'....................................................................................... APPENDIX A................................................................................................................................... APPENDIX B................................................................................................................................... Page No. ii iii 1 2 3 7 9 97 105 108 136 OCR 000005690 i Table No. I II LIST OF TABLES VCM COST PROFILES Title Summary Technology Impact on VCM Manufacturing Cost Page No. & 135 CCR 000005691 ii LIST OF FIGURES VCM COST PROFILES Figure No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Title Block Flow Diagram--Borden (Acetylene Feed)-- Geismar, Louisiana Block Flow Diagram--Borden (Ethylene Feed)-- Geismar, Louisiana Block Flow Diagram--Conoco--Lake Charles, Louisiana Block Flow Diagram--Conoco (Air Feed Oxychlorination)--Lake Charles, Louisiana Block Flow Diagram--Dow--Freeport, Texas Block Flow Diagram--Dow--Oyster Creek, Texas Block Flow Diagram--Dow--Plaquemine, Louisiana Block Flow Diagram--Ethyl--Baton Rouge, Louisiana Block Flow Diagram--Formosa Plastics--Point Comfort, Texas Block Flow Diagram--Formosa Plastics--Baton Rouge, Louisiana Block Flow Diagram--Georgia-Pacific--Plaquemine, Louisiana Block Flow Diagram--B. F. Goodrich--Calvert City, Kentucky Block Flow Diagram--B. F. Goodrich--LaPorte, Texas Block Flow Diagram--PPG (400 MM Lbs VCM/Yr)-- Lake Charles, Louisiana Block Flow Diagram--PPG (500 MM Lbs VCM/Yr)-- Lake Charles, Louisiana Block Flow Diagram--Shell--Deer Park, Texas Block Flow Diagram--Shell--Norco, Louisiana Page No, 11 16 21 24 29 34 39 44 49 55 60 65 71 78 82 88 93 OCR 000005692 iii List of Figures Page 2 Figure No . 18 19 20 21 22 23 24 25A&B 26A&B 27A4B 28A&B 29A&B 30 31 Title Process Flow Diagram--Acetylene Feedstock Technology Process Flow Diagram--Ethyl Technology Process Flow Diagram--B. F. Goodrich Technology Process Flow Diagram--Mitsui Toatsu Technology Process Flow Diagram--PPG Technology Process Flow Diagram--Stauffer Technology (Air Feed Oxychlorination) Process Flow Diagram--Stauffer Technology (Oxygen Feed Oxychlorination) Manufacturing Costs at Nameplate Capacities Manufacturing Costs at Typical Production Rate Variable Cost Summary Fixed Cost Summary Paw Materials and Fixed Costs Overview Fixed Cost Versus Nameplate Capacity Manufacturing Costs Versus Production Rate Page No. 108 109 L10 111 112 113 114 115 118 122 125 128 131 132 CCR 000005693 IV EXECUTIVE SUMMARY V f CCR 000005694 EXECUTIVE SUMMARY VCM COST PROFILES Page 1 An analysis of the manufacturing costs of the U.S. VCM producers and of the competitive position of Conoco in the U.S. was made by PED at the request of F. J. Endelman, Conoco Chemicals Business Research. This study provides insight into: 1. Important technology factors affecting the manufacturing costs of U.S. VCM producers assuming equal unit costs for raw materials, energy, and labor for all producers. 2. The competitive position of Conoco in the U.S. VCM market again assuming equal unit costs for raw materials, energy, and labor. 3. Prospects for Conoco in VCM. Raw materials currently constitute 80 percent of the VCM manufacturing cost for Conoco. Fixed costs (in--plant) account for only 10 percent. However, fixed costs can vary greatly from plant to plant and, therefore, affect manufacturing costs. Staffing variations as a result of plant capacity; number of parallel plant trains; and, in some cases, technology are the major constituents of fixed costs. Actual feedstock and supply prices strongly affect the variable portion of manufacturing costs. This report assumes identical prices for each VCM producer. Further study should be made to determine the effects of regional prices on the applicable VCM producers. Price differences on a regional or producer specific basis can dominate technology factors when determining actual production costs. The manufacturing cost for Conoco's VCM plant is 16.68 cents per pound VCM in a sold-out VCM market and 17.23 cents per pound VCM at 500 million pounds per year or "typical" production rate. The Conoco VCM plant ranks fourth in manufacturing costs among the thirteen active VCM plants in a sold-out market and third at typical production rates. Conoco's manufac turing cost is below the production-weighted industry average cost of 17.00 cents per pound VCM sold-out and 17.64 cents per pound VCM at typical production rate. 000005695 CCR INTRODUCTION S' CCR 000005696 INTRODUCTION VCM COST PROFILES Page 2 Conoco Chemicals' Business Research office commissioned this analysis of manufacturing costs for VCM producers. The objective of this work is to provide insight into: L. Important factors affecting the manufacturing costs of VCM producers. 2. The competitive position of Conoco in Che VCM market. Four factors exhibit the major effects on the manufacturing cost of VCM. They are: Plant Capacity Feedstock Prices Number of Parallel Trains Technology Manufacturing costs were determined for each U.S. VCM producer. These costs include the effects of plant capacity, process technology, and parallel process trains. The effect of differences in feedstock price as a function of market price and plant location is not considered. The manufacturing costs were prepared assuming equal feedstock unit prices for all producers. Plant capital investment and working capital costs are not included in the buildups. The basis of calculating manufacturing costs is that raw material, energy, and labor unit prices are the same for each producer. Further competitive analysis may show this to be untrue. Regional or producer specific raw material and energy costs may dominate technology factors when determining actual production costs. The term "Manufacturing Costs," when used in this report, refers to the sum of fixed and variable costs only and excludes depreciation and amortization costs and other ex-plant costs. The erm "Typical Production Rate" refers to an estimate made by Rebecca Elliot of the 1983 annual VCM production. CCK 000005697 ANALYSIS i r CCR 000005698 Page 3 ANALYSIS In this report, the manufacturing costs for all U.S. VCM plants is calcu lated. This calculation does no.t^consider regional or producer specific differences in the unit prices of feedstocks, energy, labor, or any other component of manufacturing cost. The manufacturing cost at typical operating rate and at nameplate capacity is shown in Table I for each U.S. VCM plant. Variable manufacturing cost, nameplate capacity, and typical operating rates are also shown. Table I is arranged in order of increasing manufacturing cost at typical operating rates. Variable Cost CENTS PER LB VCM MANUFACTURING COST At Nameplate At Typical Capacity Rates Conoco Lowest Cost Producer Weighted Average 15.08 14.94 15.34 16.68 16.19 17.00 17.23 16.46 17.64 At typical operating rates, Conoco's manufacturing cost (17.23c/Lb VCM) is the third lowest behind B. F. Goodrich, La Porte, Texas (i6.46c/Lb VCM) and Dow, Plaquemine, Louisiana (16.94c/Lb VCM). Conoco is 0.41 cents per pound VCM lower than the production weighted average cost (17.64c/Lb VCM). At nameplate capacity, Conoco's manufacturing Cost (16.68c/Lb VCM) is the fourth lowest behind B. F. Goodrich, La Porte, Texas (16.19c/Lb VCM); Shell, Deer Park, Texas (16.53c/Lb VCM); and Dow, Plaquemine, Louisiana (16.60c/Lb VCM). Conoco is 0.32 cents per pound VCM lower than the produc tion weighted average cost (17.00c/Lb VCM). Conoco's variable manufac turing cost (15.08c/Lb VCM) is second lowest railing only B. F. Goodrich, La Porte, Texas (14.94c/Lb VCM) and is 0.26 cents per pound VCM lower than the production weighted average (15.34c/Lb VCM). The effect of fixed costs, particularly labor, on the variation of total manufacturing costs among VCM producers outweigh the effects of other cost differences such as raw material conversions (see Figures 29A and B in Appendix A). Excluding values from the Borden acetylene-based plant, the industry wide range in variable costs due to variations in material yields and technology differences is about 0.6 cents per pound VCM. However, the range of fixed costs is 2.25 cents per pound VCM. Fixed costs correlate strongly to plant size (see Figure 30 in Appendix A). Larger plants can operate more efficiently in this area. The number of parallel trains in a plant is also important. A single train plant can operate at approximately 0.4 cent fixed cost lower Chan similarly sized dual train plant. A comparison of manufacturing costs, both at nameplate capacity and at typical operating rate, shows the effect of economies of scale. All of the plants, except PPG No. 2* with manufacturing costs below 18 cents per pound VCM have typical operating rates above 500 MM pounds per year. All of the plants, except PPG No. 2, above 18 cents per pound VCM have typical operating rates below 500 MM pounds per year. The two leading producers CCR 000005699 Analysis Page 2 Page 4 both have nameplate capacities of at least 1,000 MM pounds per year with typical operating rates above 80 percent of capacity. The lower cost producers (below 18 cents per pound VCM at typical production rates) are B. F. Goodrich (La Porte and Calvert City), Dow (Plaquemine and Oyster Creek), Conoco, Shell (Deer Park), PPG No. 2, and Georgia Pacific. At nameplate capacity this group is joined by Shell (Norco) and Formosa Plastics (Point Comfort). The higher cost producers (above 18 cents per pound VCM at typical production rates) are Borden (both Geismar Plants), Formosa Plastics (Point Comfort and Baton Rouge), Shell (Norco), PPG No. 1, Ethyl, and Dow (Freeport). Of this group, Shell (Norco), Dow (Freeport), and Ethyl were shut down, presumably permanent2y, during 1983. A comparison of variable costs shows differences between the various VCM technologies. Technology differences show a range of 0.38c/Lb VCM in raw material, 0.25c/Lb VCM in by-product credit, 0.26c/Lb VCM in processing supplies, and 0.49c/Lb VCM in utilities. The range in variable cost is Q.87c/Lb VCM. The lowest variable cost plant is the B. F. Goodrich plant at La Porte, Texas, which employs B. F. Goodrich oxychlorination technology and Stauffer technology elsewhere. Next are the Stauffer oxygen based oxy plants: Conoco, Shell (Deer Park), and Dow (Plaquemine, Oyster Creek, and Freeport). Following these are Formosa Plastics (Point Comfort) with Mitsui Toatsu technology, B. F. Goodrich (Calvert City) and Formosa Plastics (Baton Rouge) with B. F. Goodrich technology. Shell (Norco) and Borden using Stauffer air based oxychlorination technology, and Ethyl's plant at Baton Rouge using Ethyl technology. The two PPG plants and the Georgia Pacific plant use PPG technology which has the highest variable cost. The Borden acetylene based VCM plant has the highest apparent variable cost. Presumably it continues to operate because its raw material costs are lower than those assumed in this report and because of integration (HC1 transfers) with Borden's ethylene based VCM plant. The basis of this report includes common feedstock and other supply prices. The results of vertical integration or favorable contracts, however, are lower manufacturing costs due to lower prices for ethylene, chlorine, or natural gas. For instance, a one cent per pound reduction in the ethylene price leads to a manufacturing cost reduction of almost 0.5 cents per pound VCM. A five dollars per ton reduction in the chlorine price leads to a manufacturing cost decrease of over 0.15 cents per pound VCM (ethylene and chlorin^price variances of at least this much may be seen in the Gulf Coast). A natural gas contract at 50 cents per MSCF, such as is held by PPG and Georgia-Pacific, would decrease manufacturing costs more than 0.8 cents per pound. Feedstock and supply prices are important factors in VCM production costs and should be considered in a thorough market analysis. The Borden acetylene feedstock plant in Geismar, Louisiana, appears to be a poor competitor due to the large acetylene cost. If Borden receives natural gas at 50 cents per MSCF, the manufacturing cost at the plant would be approximately 13 cents per pound rather than the 26.3 cents per pound VCM shown in Figures 25A and B. Borden had a low cost natural gas contract with Texaco that terminated in 1982. The plant raanufacturing cost buildup and the current operating rate hint that Borden may still receive a limited supply of natural gas at a lower-than-market price. CCR 000005700 Page 5 Analysis Page 3 EPA emission compliance is dictating capital investments for sime plants for continued market presence. This factor figures in the decisions for some of the plant closings this year. The only remaining plant in operation without compliance may be Formosa Plastics in Baton Rouge. The outlook for Conoco in VCM has improved this year. Three plants have s.mt down in 1983, lowering the U.S. to:al VCM capacity 1,340 MM pounds VCM per year, to 9,070 MM pounds VCM per year. Conoco EPA emission compliance was met this year through the VCM modernization project. This respited in slightly improved v.ariaole costs over previous years of air-based operation. Although poor market conditions are bad for all VCM producers, Conoco's presence may be sheltered by several high cost producers. 1983 has seen three plant closings. The Borden acetylane feedstock plant, Formosa Plastics in Baton Rouge, and the older (400 MM pounds VCM per yaai;) PPG plant are all candidates for closing and may not survive the next market shakeout (see Figure 31 in Appendix A). The Borden ethylene based VCM plant is also a high cost plant is not supplied by captive feedstocks. The prospects for a major expansion at Conoco, however, do not appear as bright. Several comapnies are better prepared for expansion of VCM capacity in terms of both required investment and turnaround time. The Dow plant in Plaquemine, Louisiana, is prepared for a 400 MM pounds VCM per year expans^gn "when the market is ready," requiring a relatively small investmentBorden is preparing a conversion to oxygen feedstock in oxychlorination and expansion to 450 or 600 MM pounds VCM per year in their ethylene-feedstock plant, to ix>-rove their variable and fixed cost:?, and to feed expanded PVC ouerai. ror.s The Shell Norco, Louisiana, plant is prepared for startup opcshort notice, although EPA compliance investments are still outstanding.'B. F. Goodrich have a partially complete 1,600 MM pounds per year VCM pl^pt in Convent, Louisiana, where construction work was postponed in 1981. J` The four examples above total up to 3,440 MM pounds VCM per year additional capacity in various stages of preparation. In addition, B. F. Goodrich are presently considering a 500 MM pounds VCM per year expansion at La Porte, Texas: and Formosa Plastics have d^gcussed plans for a new chlorine/EDC/VCM complex in Baton Rouge, Louisiana. OCR 000005701 TABLE I VCM COST PROFILES SUMMARY Plant Location B. F. Goodrich Dow Conoco Shell B. F. Goodrich PPG No. 2 Georgia Pacific Dow Borden Formosa Plastics Shell PPG No. 1 Ethyl Formosa Plastics Dow Borden La Porte, TX Plaquemine, LA Lake Charles, LA Deer Park, TX Calvert City, KY Lake Charles, LA Plaquemine, LA Oyster Creek, TX Geismar, LA Point Comfort, TX Norco, LA Lake Charles, LA Baton Rouge, LA Baton Rouge, LA Freeport, TX Geismar, LA Total Production Weighted AA verage 4 MM LB/YR Typical Nameplate Operating Capacity Rate 1,000 1,250 670 1,120 1,000 500 1,000 700 300 530 840 400 300 300 200 300 820 1,015 500 650 735 475 600 510 290 295 300 3152 190 125. go2 100 10,410 7,010 870 650 MANUFACTURING COST c/LB VCM Total Total Cost Cost at at Typical Variable Capacity Rate 14.94 15.14 15.08 15.22 15.44 15.81 15.81 15.14 15.54 15.32 15.42^ 15.81 15.53 15.45 15.14:: 24.80J 16.19 16.60 16.68 16.53 17.08 17.60 17.04 17.17 18.29 17.14. 16.82^ 18.87 18.18 18.17 18.6H 26.28J 16.46 16.94 17.23 17,47 17.67 17.69 17.85 17.92 18.38 18.58 19.35^ 19.69. 19.71 21.97 22.87. 29.24J - 15.34 17.00 - 17.64 Notes: ^Data from R. Y. Elliot, Conoco Chemicals. Based on 1983 production estimates. ^Plant was permanently shut down in 1983. Excluded from production weighted average. ^Acetylene based VCM process. Excluded from production weighted average. Production weighted average manufacturing cost = sum [(operating rate) x (cost)] total production Page 6 CCR 0 0 0 0 0 5 7 0 2 ASSUMPTIONS CCR 000005703 BASES AND ASSUMPTIONS VCM COST PROFILES Page 7 1. Unit prices for feedstocks, by-products, processing supplies, etc, are assumed to be identical for each VCM producer for this study. The price bases are the August 1983 and September 1983 Chemicals operating statements (Blue Books). No discounts are provided for captive supply or market situations. 2. Amortization, depreciation, ex-plant costs, and revenue taxes are not included in the development of manufacturing costs for each VCM producer. All references to manufacturing costs in this report include only in-plant fixed and variable costs. These costs are exclusive of business overhead, R&D, or interest costs. 3. Information for this report was obtained from: a. Vendor-supplied confidential information. b. EPA publications. c. Publicly available literature. d. Personal contacts and correspondence both inside and outside Conoco. e. SRI Report, "Vinyl Chloride." When specific information was not available, costs were generally assumed to be equal to those at the Conoco VCM plant. For example, the variable cost for the Dow plants is assumed to be the same as the variable cost at the Conoco VCM Plant. 4. This study is confined to battery limits and offsites. Plant loca tion, land, storage facilities, and product transportation are not considered. 5. All royalty fees are assumed to be capital expenses. None are included in the manufacturing cost buildups. 6. All feedstock purities are identical to those for the Conoco VCM plant at Lake Charles. 7. Plant operator staffing is based on information from vendor files when available and on policies at the Conoco VCM plant. The VCM Plant has nine operators per shift plus two breakers and eight laboratory technicians. Staffing is scaled according to the number of units in each plant.8 8. Salaried labor costs are a percentage of the operating labor costs. This percentage is the proportion present at the Conoco VCM plant (considered not part of a complex). Salaried labor costs are dis counted 10 percent for the VCM producers located in a complex. CCR 000005704- Page 8 Bases and Assumptions Page 2 9. Maintenance labor costs are scaled from the Conoco VCM plant costs based on the number and size of process units. Maintenance rates for VCM producers using fluidized bed oxychlorination reactors take into account the process differences from the fixed bed process used at Conoco. Maintenance material costs are calculated in a similar manner (see Appendix B). 10. Contract maintenance costs are scaled from the Conoco VCM plant costs based on size and number of units. This value includes casual and roving maintenance labor costs. 11. Benefits costs are a percentage of payroll based on the Conoco VCM plant. The payroll value used includes all permanent company employees at the plant such as roving crews for turnaround maintenance work within a multiplant complex. 12. Operating supply costs are a fixed percentage of operating labor. The basis is the percentage for the Conoco VCM plant. 13. Insurance, clearances, and taxes are assumed to be equal to those at the Conoco VCM olant on a basis of cost per pound of nameplate produc tion capacity for each plant. All of the U.S. VCM plants, except B. F. Goodrich (Calvert City, Kentucky) are located in Louisiana and Texas. 14. The Conoco VCM Plant has a 600 psig to 150 psig back pressure turbine driving its propylene refrigeration compressor. Replacing this turbine with an electric motor would reduce steam consumption and increase electricity consumption with a net savings in utilities. Further analysis is required to determine the magnitude of this savings. Other Stauffer licensed plants and the Dow plants are in a similar situation. It is not known whether a similar savings could be made in other plants. VCM PRODUCERS V CCR 000005706 TABLE OF CONTENTS VCM PRODUCERS VCM COST PROFILES Page 9 Borden (Acetylene)--Geismar, Louisiana ............................................................. Borden (Ethylene)--Geismar, Louisiana ............................................................ Conoco--Lake Charles, Louisiana ............................................................................ Dow--Freeport, Texas .......................................................................................................... Dow--Oyster Creek, Texas ................................................................................................ Dow--Plaquemine, Louisiana ........................................................................................... Ethyl--Baton Rouge, Louisiana ................................................................................. Formosa Plastics Corp.--Point Comfort, Texas ............................................. Formosa Plastics Corp.--Baton Rouge, Louisiana ......................................... Georgia Pacific--Plaquemine, Louisiana ..................................................... B. F. Goodrich--Calvert City, Kentucky ............................................................. B. F. Goodrich--LaPorte, Texas................................................................................. PPG No. 1--Lake Charles, Louisiana....................................................................... PPG No. 2--Lake Charles, Louisiana................. ..................................................... Shell--Deer Park, Texas ................................................................................................ Shell--Norco, Louisiana................................................. Page No. 10 14 19 27 32 37 42 47 53 58 63 69 75 81 86 91 qq5707 OCR 000 Page 10 VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION BORDEN (ACETYLENE FEED) GEISMAR, LOUISIANA BACKGROUND DATA Startup Year Capacity 27 2fi Between 1957 and 1965 ' (formerly Borden-Uniroyal jont venture under the name of Monochem, Inc., Borden became sole owner in 1982). 300 MM Pounds VCM/Year^ Expansions/Modernizations None Environmental Status Not known. The plant is assumed to be in compliance. MARKET POSITION Feedstocks/Supplies Acetylene 29 Captive (Geismar, Louisiana). The facility has a limited supply of low price natural gas. Hydrochloric Acid Probably obtained by both burning chlorine and use of captive by-product from the adjacent Borden ethylene-based VCM plant. Product Use TECHNOLOGY/EQUIPMENT2 All product is used captively for PVC production (Geismar, Louisiana; Illio^glis, Illinois; Leominster, Massachusetts). The production rate was 33 percent of capacity during 1983. Acetylene hydrochlorination technology with fixed bed reactors using mercury (on carbon) catalyst. This technology is considered obsolete because of rising acetylene prices and future availability. Future existence of plant is undoubtedly related to the reginal availability of acetylene based upon low energy costs and the variable costs of incremental production. CCR OO00570a FIGURE 1 VC!1 COST PROFILES BLOCK FLOW DIAGRAM BORDEN (ACETYLENE FEED) CEISMAR, LOUISIANA2" Page I I 6 0 -fS0 vca cost profilot Page 12 25-Jun-84 HAMUFACTURIN6 COSTI Capacity* Bxden(acityltf>#)eieart LA 300 101 lbs VCH/yeer tfiied and variablt costs only RAN MATERIALS Acitylono Chlorine KC1 units lb lb lb units/ lb VCR 0.4217 0.0001 0.6172 cents/ unit 30.0000 5.B337 4.2843 HR units/ year 126.51 0.02 183.16 H 1 per year 63236.5 1.1 7932.7 cents/ ref lb VCR codes 21.0655 1 U) 0.0004 1 2.6442 1 SUBTOTAL BYPRODUCTS Stcas Light Ends Tars nibs 0.0000 480.4822 lb -0.0241 1.4760 lb 0.0000 -1.7500 0.00 -7.23 0.00 71190.2 0.0 -106.7 0.0 23.7301 0.0000 -0.0356 0.0000 I 1 1 SUBTOTAL PROCESSIK6 SUPPLIES Catalyst Caustic Nitrogen Aasonia-Aain* Sulfuric Acid Lieestone Cooling Mater Chess Vasteeater Treatint 6as Baste Treatment Carbon Rise Chea 1 Suppls lb 0.0003 1000.0000 lb 0.0044 12.1123 NSCF .0000 70.2443 lb 0.0000 108.8134 lb 0.0000 3.2810 U 0.0138 0.9293 lb 0.0000 108.2371 MCf lb 0.0010 125.0000 0.15 1.32 .00 0.00 0.00 4.74 0.00 0.00 0.30 0.00 -106.7 1473.7 139.9 3.0 0.0 0.0 44.0 0.0 0.0 0.0 371.3 0.0 -0.0356 0.4919 0.0533 0.0010 0.0000 0.0000 0.0147 0.0000 0.0000 0.0000 0.1238 0.0248 2 l 1 l 1 I 1 1 l 1 2 SUBTOTAL UTILITIES Electricity Steal Natural 5as Fuel Oil Nater ktti 0.0430 3.7223 nibs 0.0001 480.4822 HSCF .0000 293.6351 HSal 0.0000 0.0000 Hgal 0.0040 52.4000 13.30 0.02 .00 0.00 1.19 2033.8 502.5 72.1 2.8 0.0 623.5 0.7094 0.1675 0.0240 0.0009 0.0000 0.2078 1 1 1 1 SUBTOTAL 1200.9 0.4003 VARIABLE COST SUBTOTAL LABOR Salaried Operating Raintenance Benefits 74338.2 BB8.0 1074.0 300.0 368.4 24.8042 0.2960 0.3580 0.1000 0.1228 l 1 i l SU8T0TAL RISCELLANEOUS Operating Supplies Raint Materials Contract Labor Insurance Clearances Taxes Hiscellaneout CCR 000005710 2630.4 286.3 480.0 180.0 76.2 340.5 247.2 201.3 0.8768 0.0954 0.1600 0.0600 0.0254 0.1135 0.0624 0.0671 l i l 2 2 2 2 SUBTOTAL 1811.5 0.6038 FIXED COST SUBTOTAL 4441.8 1.4806 PLANT RANUFACTURINS COST EXCLU0IN6 OEP b AH0RT 7B780.0 26.2848 (1) Actual acetylene price for Borden is undoubtedly far Less than die value shown. Actual price is probably related to low energy prices and incremental variable costs of an adjacent acetylene plant. VCM PRODUCERS VCM COST PROFILES NOTES FOR MANUFACTURING COSTS BORDEN (ACETYLENE FEED) GEISMAR, LOUISIANA 1. SRI Process Economics Program, "Vinyl Chloride." 2. Same as Conoco 02--based VCM Plant. Page 13 * CC* 005?li VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION BORDEN (ETHYLENE FEED) GEISMAR, LOUISIANA Page 14 BACKGROUND DATA Startup Year 31,32,34 1975 Capacity 300 MM Lbs VCM/Yr Expansions/Conversions The plant has added organic recovery/ incineration facilitie^to meet environmental emissions regulations. An expansion and conversion of oxychlorination to oxygen feedstoc^ is planned (Stauffer technology design). Environmental Status Plant igcineration of oxychlorination vent stream. MARKET POSITION Feedstocks/Supplies Ethylene Chlorine Purchased (Exxon or Shell) 30 Purchased (Olin, Occidental) 30 Product Use All piUUUCL is used C b pciveiy ror rvu production fGt i.smar, Louisiana; Till 1 -i r- T 1 1 1 ( T A Atw 1 A A M A A A A A UII A rate was 97 percen t of capacity during 1983. CCR 000005712 Page 15 Plant Information Borden (Ethylene Feed) Geismar, Louisiana Q If) TECHNOLOGY/EQUIPMENT ' Section Direct Oxych1o rination Technology Stauffer Stauffer 33 Oxy Vent Jacobs/RhonePoulenc Type Subcooled Fixed Bed Air Feed Wash EDC Purification 34 Cracking VCM Purification Incineration Stauffer S tauf fer Foster Wheeler Stauffer - - " - Trains 1 1 Notes - 1 The oxychlorination vent under goes EDC recovery and incinera tion. 1- 1- 1 1- 1 These are In addition to the oxychlorination vent incinerator CCft 000005713 FIGURE 2 VCM COST PROFILES BLOCK FLOW DIAGRAM BORDEN ( ETHYLENE FEED) GEISMAR, LOUISIANA75'33 vci cost profiles Page 17 25-Jun-84 RAM MATERIALS Ethylene Chlorine Oxygen MMUFACTUR1M COST! Capacity: Borden(tftylene)8eiMr, LA 300 HN lb* VCH/year tfixed and variable cost* only units lb lb tb units/ lb VCM 0.4750 4.6602 0.0000 cents/ unit 20.7440 5.8337 1.4449 MM units/ year 142.50 198.06 0.00 H 4 per year 29560.2 11554.2 0.0 cents/ ref lb VCM codes 9.8534 1 3.8514 1 0.0000 1 SUBTOTAL BYPRODUCTS Steae Light Ends Tars SUBTOTAL PROCESSES SUPPLIES Catalyst Caustic Mitrogen Aesonia-Aeint Sulfuric Acid Lieestone Cooling Mater Chees Hasteeater Treatint Sas Haste Treatient Hydrogen Rise Chii l Suppls SUBTOTAL UTILITIES Electricity Steae Xatural Gas Fuel Oil Mater SUBTOTAL Nibs -0.0009 lb -0.0082 lb -0.0154 "*---- ---- lb 0.0001 lb 0.0167 RSCF 0.0405 lb .0000 lb 0.0005 lb 0.0132 lb 0.0003 scf lb 0.0000 480.4822 1.4740 -1.7500 579.0000 8.5013 70.2443 108.8134 3.2810 0.9293 108.2571 16.3B39 kbh 0.0820 3.7223 mb* 0.0021 480.4822 NSCF 0.0013 293.6351 HSal 0.0000 0.0000 ffgal 0.0009 22.6924 -0.26 -2.47 -4.61 0.04 5.01 0.14 .00 0.15 3.97 0.08 0.00 0.00 0.00 24.61 0.63 0.38 0.00 0.26 41114.4 -1251.3 -36.5 80.6 -1207.2 251.4 426.3 98.0 2.6 5.0 36.9 87.6 0.0 53.9 0.0 0.0 961.6 916.2 304B.5 1122.3 0.0 59.7 5146.7 13.7048 -0.4171 -0.0122 0.0269 1 l 1 "<M024" 0.0836 0.1421 0.0327 0.0009 0.0017 0.0123 0.0292 0.0000 0.1796 0.4000 0.0424 1 1 l l 1 1 1 I 2 3 1 0.5246 0.3054 1.0162 0.3741 0.0000 0.0199 1 4 1 1 1.7156 VARIABLE COST SUBTOTAL LABOR Salaried Operating Maintenance Benefits SUBTOTAL MISCELLANEOUS Operating Supplies Naint Materials Contract Labor Insurance Clearances Taxes Miscellaneous 46015.5 1227.8 1648.9 1176.6 740.2 4793.4 439.5 792.3 1340.7 76.2 340.5 247.2 201.3 15.5425 0.4093 0.5496 0.3922 0.2467 5 5 5 5 1.5778 0.1465 0.2641 0.4469 0.0254 0.1135 0.0824 0.0671 5 5 5 1 1 1 1 SUBTOTAL FIXED COST SUBTOTAL 3437.6 B231.1 1.1459 2.7437 PLANT MANUFACTURING COST EXCLUDING DEP l AMORT 54246.6 18.2862 OCR 000005715 VCM PRODUCERS VCM COST PROFILES NOTES FOR MANUFACTURING COSTS BORDEN (ETHYLENE FEED) GEISMAR, LOUISIANA Page 18 1. Same as the Conoco air-based VCM plant. 2. The plant also incinerates the oxy vent stream, No steam or HC1 recovery. 3. No acetylene hydrogenation. 4. No recycle EDC bypass. 5. Four less operators. Maintenance factors scaled from Conoco air-based plant costs. 000005716 CCR VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION CONOCO LAKE CHARLES, LOUISIANA Page 19 BACKGROUND DATA Startup Year Capacity 1968 (originally a Stauffer-Conogo joint venture with Stauffer operators) 670 MM Lbs VCM/Yr Expansions/Modernizations Conversion of oxychlorination section to oxygen feedstock in 1983. Plans for expan sion to 1,000 MM pounds ^r year were canceled September 1981. Environmental Status Met through oxychlorination conversion to oxygen feedstock process. MARKET POSITION Feedstocks/Supplies Ethylene The plant uses a captive source (Lake Charles, Louisiana) .^The ethylene is lower than pipeline grade. Chlorine Contract with PPG (Lake Charles, Louisiana) Negotiating a contract with Diamond Shamrock (Deer Park, Texas). Oxygen Obtained by contract with Big Three. By-Products Lisht ends are sold to Vulcan Materials (Geismar. Louisiana). Tars are shipped to PPG (we pay them to dispose)(Lake Charles, Louisiana). Some anhydrous HC1 is used in production of MeCl. Aqueous HC1 (muriatic acid) is sold as reagent. Product Use All VCM is used captively for PVC production (Aberdeen, Mississippi, and Oklahoma City, Oklahpma). The plant production rate was 75 percent of capacity during 1983.A The plant was shut down two months during 1983 for conversion of the oxychlorination section to oxygen feedstock. CCR 000005717 Page 20 Plant Information Conoco Lake Charles, Louisiana TECHNOLOGY/EQUIPMENT Section Technology Direct 12 Oxychlorinacion Stauffer Stauffer Mash EDC Purification Stauffer Stauffer 37 Cracking VCM Purification 12 Incineration Selas Stauffer Conoco ^2^2 Hydrsenacion Secondary Waste ^ Water Treatment BFC Conoco Type Suhcooled Fixed Bod Oxygen Feed - - - Trains 1 1 1 1 2 1 2 1 1 Notes Fixed speed recycle ethylene compressor. Oxy EDC bypasses acid wash. Recycle EDC bypass of light ends column (approximately 80 percent). Caustic VCM dryer. Recover steam, muriatic acid. One serves as standby. pH, BOD, and solids controlled. CCR 000005718 FIGURE 3 VCM COST PROFILES BLOCK FLOW DIAGRAM CONOCO " LAKE CHARLES, LOUISIANA Page 21 vet cost profilis Page 22 23-Jun-M MANUFACTURING COSTI Capacity! Caiweo(o2based) Lake Charles,LA 670 IW lbi VCH/year Mixed and variable costs only RAN MATERIALS Ethylene Chlorine Oxygen units lb lb lb units/ lb vcr 0.4430 0.4127 0.1301 cents/ unit 20.7440 5.8337 1.444? nit units/ year 311.53 410.31 100.37 If t per year 64427.9 23947.? 1433.1 cents/ ref lb VCR codes 9.0400 1 3.3743 l 0.2109 1 SUBTOTAL BYPRODUCTS Steae Light Ends Tars nib *0.0008 480.4822 lb -0.0033 1.4740 lb -0.0129 *1.7300 -0.52 -3.57 *8.44 90028.9 -2492.0 -52.7 151.4 13.4371 -0.3719 -0.0079 0.0226 7 1 1 SUBTOTAL PROCESSING SUPPLIES Catalyst Caustic Nitrogen Aieonia-Aiine Sulfuric Acid Lieestone Cooling Mater Chens Mastenater Treatent Sas Maste Treatment Hydrogen Rise Chen l Suppls SUBTOTAL UTILITIES Electricity Steae Natural Sas Fuel Oil Mater -2393.1 lb 0.0001 ib 0.0060 N5CF 0.0007 lb .0000 lb 0.0004 lb 0.0043 lb 0.0002 MCf lb 0.0002 ------.........---- 487.BOOO 12.1123 0.07 4.04 70.2443 108.8134 3.2810 0.9293 108.2571 0.44 0.02 0.28 2.84 0.15 0.00 14.3838 574.00 0.11 0.00 ------------ -- 495.8 489.4 324.8 23.4 9.0 26.4 147.4 0.0 6.8 17.6 0.0 rsrr m 0.0818 3.7223 Ribs 0.0021 480.4822 MSCF 0.0014 293.4351 H6al 0.0000 0.0000 Ngal 0.0008 22.4924 54.84 1.40 0.92 0.00 0.56 2041.2 6713.7 2707.9 0.0 128.1 -0.3572 0.0740 0.0730 0.0485 0.0035 0.0013 0.0040 0.0250 0.0000 0.0102 0.0026 0.0248 ------- 6 1 1 l 1 1 1 9 8 1 1 0.3047 1.0020 0.4042 0.0000 0.0191 1 7 J l SUBTOTAL VARIABLE COST SUBTOTAL LABOR Salaried Operating Maintenance Benefits SUBTOTAL MISCELLANEOUS Operatinq Supplies Hamt Materials Contract Labor Insurance Clearances Taxes Miscellaneous ..... 11590.9 --...------------ --- -ioowT 1444.8 1773.0 1146.4 687.3 5073.3 472.4 1352.4 1918.8 149.9 760.6 552.2 449.4 1.7300 15^0769* 0.2189 0.2646 0.1711 0.1026 0.7572 0.0705 0.2019 0.2864 0.0254 0.1135 0.0824 0.0671 1 1 3 2 1 3 3 1 3 4 5 SUBTOTAL 5675.8 0.8471 FUED COST SUBTOTAL 10749.3 1.6044 PLANT MANUFACTURIN6 COST EXCLUDING DEP fc ARORT 111537.0 16.6813 CCR 000005720 VCM PRODUCERS VCM COST PROFILES NOTES FOR MANUFACTURING COSTS CONOCO (OXYGEN-BASED) LAKE CHARLES, LOUISIANA Page 23 1. The actual value was taken from the September 1983 operating statement. 2. The September 1983 operating statement shows benefits are 15.67 percent of permanent payroll. 3. Manufacturing costs were prorated for 48 weeks at the September 1983 rate and four weeks at the turnaround rate. Turnaround maintenance costs were obtained from J. R. Holcomb and J. H. Brunson, Lake Charles VCM Plant. 4. Based on the average of August and September 1983 operating statement values. 5. From the July 1983 operating statement. 6. Catalyst requirements and price from S. J. Reynolds, Lake Charles VCM Plant. 7. The total steam consumption. Includes the purchased steam value from the September 1983 operating statement, the incinerator steam production of 14,000 pounds per hour, and the oxychlorination steam production rate of 0.0007741 M pounds per pound VCM from "Process Flow Diagrams--VCM Modernization Project," A. G. Loudon, December 3, 1982. 8. The value was calculated from the September 1983 operating statement, including credit for 14,000 pounds per hour of steam production. The effective recovered HC1 value is zero. 9. The secondary waste water treatment chemicals costs were included in the operating supplies fixed costs. They should be valued at approxi mately 0.0060 cent per pound VCM, according to J. H. Brunson, Lake Charles VCM Plant. CCR 000005721 FIGURE 4 VCM COST PROF ILES BLOCK FLOW DIAGRAM CONOCO (A IR-BASED) LAKE CHARLES, LOUISIANA o -4 ro M Page 24 vc* cest prefile* Page 25 25-Jn-S4 MANUFACTURING COSTI Capacity: ConocoiairbastdlLake Charles, LA 670 AH lbs VCH/year tfixed and variablt costs only RAH MATERIALS Ethylene Chlorine Oxygen units lb lb lb units/ ib ven 0.4720 0.6602 0.0000 cents/ unit 20.7440 2.8337 1.4449 NN units/ year 318.23 442.33 0.00 H * per year 66017.8 25104.4 0.0 cents/ ref lb ven cedes 9.8534 1 3.8314 1 0.0000 l SUBTOTAL BYPRODUCTS Steae Light Ends Tirs 91822.2 13.7048 Nib -0.0009 4B0.4822 -0.58 -2794.6 -0.4171 2 lb -0.0062 1.4760 -5.52 -81.5 -0.0122 1 lb -0.0154 -1.7300 -10.29 180.0 0.0269 1 SUBTOTAL PROCESSING SUPPLIES Catalyst Caustic Nitrogen Aaaonia-Aairte Sulfuric Acid Liaestone Cooling Water Chess Hasteuater Treatmt 6as Haste Treatment Hydrogen disc Che* t Supple lb 0.0001 379.0000 lb 0.0167 8.3013 HSCF 0.0005 70.2443 lb .0000 109.0134 lb 0.0005 3.2810 lb 0.0132 0.9293 lb 0.0003 108.2571 scf lb 0.0002 16.3838 0.10 11.20 0.31 0.01 0.34 8.87 0.18 0.00 o.n 0.00 -2696.1 561.4 952.1 218.8 3.8 11.3 82.4 195.6 0.0 -18.3 17.6 0.0 -0.4024 0.0838 0.1421 0.0327 0.0009 0.0017 0.0123 0.0292 0.0000 -0.0273 0.0026 0.0424 3 1 i I 1 1 l 6 4 1 1 SUBTOTAL UTILITIES Electricity Steal Natural Gas Fuel Oil Hater fcHh 0.0820 3.7223 Klbs 0.0020 480.4822 RSCF 0.0013 293.6351 MGal 0.0000 0.0000 Mgal 0.0009 22.6924 54.97 1.33 0.83 0.00 0.59 2026.6 2046.2 6411.2 2506.4 0.0 133.3 0.3203 0.3034 0.9569 0.3741 0.0000 0.0199 1 3 1 1 SUBTOTAL 11097.0 1.6563 VARIABLE COST SUBTOTAL LABOR Salaried Operating Haintenance Benefits 102249.8 1466.0 1773.0 1146.4 687.3 15.2790 0.2189 0.2646 0.1711 0.1026 2 2 2 2 SUBTOTAL MISCELLANEOUS Operating Supplies Maint Materials Contract Labor Insurance Clearances Taxes Miscellaneous 3073.5 472.6 1352.4 1918.8 169.9 760.6 532.2 449.4 0.7372 0.0703 0.2019 0.2864 0.0254 0.1133 0.0824 0.0671 2 2 2 2 2 2 2 SUBTOTAL 3673.8 0.8471 FIXED COST SUBTOTAL 10749.3 1.6044 PLANT MANUFACTURING COST EXCLUDING DEP 1 AMORT 112999.1 16.8B34 CCR 000005723 VCM PRODUCERS VCM COST PROFILES NOTES FOR MANUFACTURING COSTS CONOCO CAIR-BASED1 LAKE CHARLES, LOUISIANA Page 26 1. Based on Che 1980 operating statement cumulative value. 2. Based on the Conoco oxygen-based value and an IOC by J. G. Cole, "Variable Cost--Oxychlorination Revamp," April 16, 1982. 3. The catalyst loading and price were obtained from S. J. Reynolds, Lake Charles VCM Plant, and the 1980 operating statement. 4. The value was calculated using the 1980 operating statement (Blue Book), and a value for waste heat boiler steam recovery of 14,000 pounds per hour. No net value for HC1 was recovered. 5. Based on 1980 operating statement figure adjusted for a credit for the 80 percent recycle EDC bypass steam.6 6. The secondary waste water treatment chemicals costs was included in the operating supplies fixed costs. It was valued at approximately 0.0060 cents per pound VCM according to J. H. Brunson, Lake Charles VCM Plant. 000005724 CCR Page 27 VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION DOW FREEPORT, TEXAS BACKGROUND DATA Startup Year Capacity 27,42 Between 1950 and 1957 200 MM Lbs VCM/Yr6 Expansions/Modernizations The plant initially produced EDC only by direct chlorination. HC1 by-product from cracking was used in chlorinated hydrocarbon production^or sold to acetylene-feedstock VCM producers. Considerable EDC capacity along with oxychlorination have been added since startup. The oxychlorination system has probablygbeen converted to oxygen feedstock process. Environmental Status Probably met through conversion of the oxychlorination process to oxygen feedstock. MARKET POSITION Feedstocks/Supplies Ethylene Chlorine Caustic Captive Captive Captive (Freeport, (Freeport, (Freeport, 30 Texas) 30 Texas) Texas) By-Products 1,300 MM pounds per year of additional EDC capacity are available for captive use and merchant sales. EDC production continued after VCM was shut down. Chlorinated hydrocarbon and HC1 by-products can be used captively in solvent production. Product Use No major captive use for VCM. 30 Plant production was at 45 percent of capacity the first three quuaarrters of 1983. VCM production was shut down September 1983. This shutdown is probably permanent. CCR 000005725 Page 28 Plant Information Dow Freeport, Texas TECHNOLOGY/EQUIPMENT6 Section Direct 8 Oxychlorination Technology Stauffer or Dow Dow Wash 10 EDC Purification 9 VCM Purification 37 Cracking 41 Incineration Stauffer or Dow Stauffer or Dow Stauffer or Dow Selas 40 C H Hydrogenation 22 Dow Type Subcooled Fixed Bed Oxygen Feed Trains 1 Notes I May have originally been Stauffer oxy technology. Oxygen feedstock conversion is Dow technology. 1 Hydrogenation of chloroprene over palladium catalyst. 1 Aluminum chloride reactor and separation column for removal of butadiene. 2 2 Freeport has several interchange able incinerators present. Steam and HC1 recovery. 1 Actually use a noncatalytic process with oxygen addition, converting C H to VCM. 22 CCR 000005726 FIGURE 5 VCM COST PROFILES BLOCK FLOW DIAGRAM D O W 2-5 FREEPORT, TEXAS Page 29 vci cot profiIn Page 30 25-Jun-B4 NAMffACTURIM COSTS Capecityi 9om Freeport, TI 200 HR lbs VCH/ytar Ifixtd ud variable costs only Mi MATERIALS Ethylene Chlorine Oxygen units lb lb lb units/ lb VCH 0.4630 0.6127 O.lSOl cents/ unit 20.7440 5.8337 1.4449 HH units/ year 93.00 122.54 30.02 H 1 per year 19291.9 7148.6 433.8 cents/ ref lb VCK codes 9.6460 1 3.5743 1 0.2169 1 SUBTOTAL BYPRODUCTS Still Light Ends Tvs Nibs -0.0008 480.4622 lb -0.0053 1.4760 lb -0.0129 -1.7500 -0.13 -1.07 -2.59 26674.3 -743.9 -15.7 45.3 13.4371 -0.3719 -0.0079 0.0226 1 1 1 SUBTOTAL PROCESSING SUPPLIES Catalyst Caustic litroqen Aaaonia-Aeine Sulfuric Acid Lieestone Cooling Natar CHms Nasteuater Treatent 6as baste Triatamt Hydrogen Rise Chen t Suppls lb 0.0001 687.8000 lb 0.0060 12.1123 NSCF 0.0007 70.2443 lb .0000 106.8134 lb 0.0004 3.2810 lb 0.0043 0.9293 lb 0.0002 108.2571 esef lb 0.0002 16.3838 -714.4 -0.3572 0.02 148.0 0.0740 1 1.21 146.1 0.0730 1 0.14 96.9 0.0485 1 0.01 7.0 0.0035 1 0.08 2.7 0.0013 l 0.85 7.9 0.0040 l 0.05 50.0 0.0250 l 0.00 0.0 0.0000 l 2.0 0.0102 1 0.03 5.2 0.0026 1 0.00 0.0 0.0248 1 SUBTOTAL UTILITIES Electricity Sttaa Natural Sas Fuel Oil Natlr kHh 0*0018 3.7223 Nibs 0.0022 480.4822 NSCF 0.0014 293.6351 NGal 0.0000 0.0000 Ngal 0.000B 22.6924 16.37 0.44 0.28 0.00 0.17 466.0 609.3 2122.7 BOB. 3 0.0 36.2 0.2670 0.3047 1.0613 0.4042 0.0000 0.0191 1 2 1 1 1 subtotal 3578.6 t.7B93 VARIABLE COST SUBTOTAL LABOR Salaried Operating Maintenanci Benefits 30204^5 1011.9 1359.1 1089.5 640.9 TzViuz 0.5060 0.6795 0.5448 0.3205 3 3 3 3 SUBTOTAL MISCELLANEOUS Operating Supplies Naint Materials Contract Labor Insurance Clearances Taxes Miscellaneous 4101.4 379.0 640.9 1258.9 SO.B 227.0 164.8 134.2 2.0507 0.1B95 0.3204 0.6295 0.0254 0.1135 0.0824 0.0671 3 3 3 1 1 1 1 SUBTOTAL FIXED COST SUBTOTAL 2855.7 6957.1 1.4278 3.47BS PLANT MANUFACTURING COST EJCLU0IN6 OEP \ AMORT 37161.5 18.6147 CCR 000005728 VCM PRODUCERS VCM COST PROFILES NOTES FOR MANUFACTURING COSTS DOW FREEPORT, TEXAS Page 31 1. Same as the Conoco oxygen-based VCM plant. 2. No recycle bypass steam. 3. Thirteen less operators. Maintenance costs were scaled from the Conoco VCM Plant. CCR 0OOOO5729 VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION DOW OYSTER CREEK, TEXAS Page 32 BACKGROUND DATA Startup Year Capacity Expansions/Modernizations Environmental Status MARKET POSITION Feedstocks/Supplies Ethylene Chlorine 1969' 700 MM Lbs VCM/Yr' The oxychlorination system was modernizedg ^ from air-based to oxygen-based feedstock. * Compliance was met through the oxychlorina tion conversion to the oxygen feedstock process. 30 Captive (Freeport, Texas) Captive-. (Oyster Creek, Texas, and Freeport, Texas)J Caustic Captive (Oyster Creek, Texas) By-Products The plant produces chlorinated hydrocarbon by-products which are used captively in solvent production. Product Use They have no major captive use for VCM. 30 73 percent of plant capacity.' The 1983 production rate was CCR 000005730 Page 33 Plant Information Dow Oyster Creek, Texas TECHNOLOGY/EQUIPMENT6 Section Direct 3 Oxychlorination Technology Dow Dow Mash 10 EDC Purification 9 VCM Purification 37 Cracking Incineration Dow Dow Dow Selas - 40 ^2^2 HydroSenaCion Dow Type Subcooled Fixed Bed Oxygen Feed - - - Trains 2 2 Notes 1 or 2 1 or 2 1 or 2 4 2+ 1 or 2 Hydrogenation of chloroprenc over palladium catalyst. Aluminum chloride reactor for removal of butadiene. Oyster Creek has several interchangeable incinerators present. Steam and HC1 recovery. Have patented a noncatalytic process with oxygen addition, converting C2H2 to VCM` 000005731 CCR FIGURE 6 VCM COST PROFILES BLOCK FLOW DIAGRAM DOW*5 OYSTER CREEK, TEXAS v/l UJ l\> Page 34 vca cost profiIt* Page 35 23-Jun-84 RAMIFACTURIM8 COST! Capacity* Dm Oyotor Crook, TX 700 Ml lb* VCH/year (fixed and variable cost* only RAH MATERIALS Ethylene Chlorine Oxygen units !b lb lb units/ lb VCR 0.4490 0.4127 0.1501 cents/ unit 20.7440 3.8337 1.4449 RH units/ yaar 325.50 428.89 105.07 R S per year 67521.7 23020.2 1318.2 cents/ ref lb VCR codes 9.6460 1 3.3743 l<m 0.2169 1 SUBTOTAL BYPRODUCTS Sttaa Light End* Tars Ribs -0.0008 4B0.4B22 lb -0.0053 1.4740 lb -0.0129 -1.7300 -0.54 -3.73 -9.05 94060.0 -2603.6 -53.1 138.4 13.4371 -0.3719 -0.0079 0.0226 1 1 1 SUBTOTAL PR0CESS1M6 SUPPLIES Catalyst Caustic Nitrogen Aeaonia-Aaine Sulfuric Acid Liaastone Coolinq Hater Cheas Hasteuater Treatant 6as Haste Treataent Hydrogen Rise Chea It Suppls lb 0.0001 687.8000 lb 0.0040 12.1123 RSCF 0.0007 70,2443 lb .0000 106.8134 lb 0.0004 3.2810 lb 0.0043 0.9293 lb 0.0002 108.2571 asef lb 0.0002 16.3B38 0.08 4.22 0.48 0.02 0.29 2.99 0.16 0.00 0.11 0.00 -2300.3 518.1 511.3 339.3 24.6 9.4 27.B 174.9 0.0 7.1 18.3 0.0 -0.3372 0.0740 0.0730 0.0485 0.0035 0.0013 0.0040 0.0250 0.0000 0.0102 0.0026 0.0248 1 l l 1 l 1 1 1 1 1 l SUBTOTAL UTILITIES Electricity Steaa Natural Sas Fuel Oil Hater m Ribs RSCF H6al Rgal 0.081B 0.0022 0.0014 0.0000 0.0006 3.7223 480.4822 293.6351 0.0000 22.6924 57.29 1.35 0.96 0.00 0.59 1630.9 2132.6 7429.4 2829.1 0.0 133.9 0.2670 0.3047 1.0613 0.4042 0.0000 0.0191 1 2 1 1 1 SUBTOTAL 12324.T" U7893 VARIABLE COST SUBTOTAL LABOR Salaried Operating Maintenance Benefits 105715.6 1609.3 2161.2 2267.0 1151.3 15.1362 0.2299 0.3087 0.3239 0.1645 3 3 3 3 SUBTOTAL HISCELLANEOUS Operating Supplies Haint Materials Contract Labor Insurance Clearances Taxes Miscellaneous 7188.8 696.3 1694.3 2619.6 177.8 794.5 576.8 469.7 1.0270 0.0995 0.2420 0.3742 0.0234 0.1135 0.0824 0.0671 3 3 3 1 1 l I SUBTOTAL 7029.0 1.0041 FIXED COST SUBTOTAL 14217.8 2.0311 PLANT MANUFACTURING COST CXCLUDXN6 HP l AMORT 119933.4 17.1673 CCR 000005733 VCM PRODUCERS VCM COST PROFILES NOTES FOR MANUFACTURING COSTS DOW OYSTER CREEK, TEXAS Page 36 1. Same as the Conoco oxygen-based VCM plant. 2. No recycle bypass steam. 3. Maintenance costs were scaled from the Conoco VCM Plant. CCR 000005734 VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION DOW PLAQUEMINE, LOUISIANA Page 37 BACKGROUND DATA Startup Year Between 1957 and 1965. 27,28 Capacity Expansions/Conversions Environmental Status MARKET POSITION 1,250 MM Lbs VCM/Yr, expanded From 250 MM ., /v 2,30,7 Lbs/Yr The original plant sold by-product HC1 to^an acetylene-based VCM producer in the area. An oxvchlorination section was added, and VCM capacity was 4n<?r^4se;i Co 450 MM pounds per year by 1978.J,,,"" Expansion to 1.250 MM pounds VCM per year and conversion of oxychlorination to ojfy^n feedstock also occurred in 1978.This expansion included partial completion of an additional 400 MM pounds per year of VCM capacity to be^rought on stream "when the market is right.M'1'' Met through conversion of^oxychlorination to oxygen feedstock process. Feedstocks/Supplies Ethylene Captive (Plaquemine, Louisiana) Chlorine Captive (Plaquemine, Louisiana) Caustic Captive (Plaquemine, Louisiana) Captive feedstocks are^glso available for the additional 400 MM pounds VCM per year capacity. By-Products EDC is produced for captive use (PCE/TCE, vinylidine chloride) 30 and merchant sales. Chlorinated hydrocarbon by-products are also used captively in solvent production. 0005735 CCA 00 Page 38 Plant Information Dow Plaquemine, Louisiana Product Use 30 They have no major captive u^e for VCM. percent of capacity in 1983." / 79 TECHNOLOGY/EQUIPMENT ' ' * The production rate was 83 Section Technology Type Trains Notes Direct 8 Oxychlorination Dow Dow Subcooled Fixed Bed Oxygen Feed 3 3 - Wash 10 EDO Purification 9 VCM Purification ,,Crac,king34,37 Dow Dow Dow Selas/Foster Wheeler 39,41 Incineration Dow 40 Hydrogenation Dow -2 - - 2 Hydrogenation of chloroprene over palladium catalyst. - 2 Aluminum chloride reactor for removal of butadiene. 7 Selas built five cracking furnaces in 1964, 1965, and 1967. Foster Wheeler built two furnaces for 1978 expansion - 3 or 4 All units are interchangeable between steam and HC1 recovery. - 2 Steam and HC1 recovery have patented a noncatalytlc process wleh oxygen addition, converting to VCM. CCR 000005736 FIGURE 7 VCM COST PROFILES BLOCK FLOW DIAGRAM DOW'*'5 PLAQUEMINE( LOUISIANA Page 39 vca cast profiles Page 40 23-Jyn-04 MNUFACTURIJK C08TI Capacity! Don PlaoBteiae.U 1290 Ml lbt VCM/year Mixed and variable costs only RAH MATERIALS Ethylene Chlarin* Oxyqen SUITOTAL BYPRODUCTS Stiu Light Ends Tars units lb lb II units/ lb VCN 0.4430 0.4127 0.1501 nibs -0.0008 lb -0.0053 lb -0.0129 cents/ unit 20.7440 S.B337 1.4449 480.4822 1.4740 -1.7500 III units/ year 581.25 745.88 187.63 M * per year 120574.5 44478.8 2711.0 167964.3 -0.97 -4.67 -16.16 -4*49.3 -98.4 282.8 cents/ ref lb ven codes 9.6460 1 3.5743 1 0.2169 1 13.4371 -0.3719 -0.0079 0.0226 1 1 I SUBTOTAL PROCESS!* SUPPLIES Catalyst Caustic Nitrogen Aaeonia-Aeint Sulfuric Acid Liosstonc Cooling Hattr Chaos Hastanatar Traatont 6as Haste Trsataant Hydrogen Rise Chao 4 Suppls SUBTOTAL UTILITIES Electricity Stoat natural Sas Fuel Oil Hatar SUBTOTAL lb lb HSCF lb lb lb lb scf lb lci nibs nscf H6al Hgal 0.0001 0.0040 0.0007 .0000 0.0004 0.0043 0.0002 0.0002 487.8000 12.1123 70.2443 108.8134 3.2BI0 0.9293 I OB.2571 14.383B 0.0818 0.0022 0.0014 0.0000 0.0009 3.7223 480.4822 293.4351 0.0000 22.6924 0.13 7,54 0.86 0.04 0.51 5.34 0.29 0.00 0.20 0.00 102.31 2.76 1.72 0.00 1.05 *4464.8 925.1 913.1 605.9 44.0 16.0 49.7 312.3 0.0 12.8 32.8 0.0 2912.3 3808.2 13264.7 5052.0 0.0 239.0 22344.0 -0.3372 0.0740 0.0730 0.0483 0.0035 0.0013 0.0040 0.0250 0.0000 0.0102 0.0026 0.0248 1 I 1 1 1 1 1 1 l 1 1 0.2670 0.3047 1.0613 0.4042 0.0000 0.0191 I 2 1 1 1 1.7893 VARIABLE COST SUBTOTAL LABOR Salaried Operating Maintenance Benefits IBB777.8 1903.3 2554.1 2435.B 1350.4 15.1362 0.1323 0.2045 0.2109 0.1080 3 3 3 3 SUBTOTAL MISCELLANEOUS Operating Supplies Maint Materials Contract Labor Insurance Clearances Taxes Miscellaneous SUBTOTAL 8445.6 481.3 2507.0 3045.7 317.3 1418.8 1030.0 838.B 9838.9 0.6736 0.0345 0.2006 0.2437 0.0254 0.1135 0.0824 0.0671 3 3 3 I 1 1 1 0.7871 FIXED COST SUBTOTAL 18284.3 1.462B PLANT HAMUFACTUR1NS COST EICLUDIN6 DEP % AMORT 707062.3 16.5990 CCR 000005738 VCM PRODUCERS VCM COST PROFILES NOTES FOR MANUFACTURING COSTS DOW PLAQUEMINE, LOUISIANA Page 41 1. Same as the Conoco oxygen-based VCM plant. 2. No recycle bypass steam. 3. Maintenance costs were scaled from the Conoco VCM Plant. CCR 000005739 VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION ETHYL BATON ROUGE, LOUISIANA Page 42 BACKGROUND DATA Startup Year 1948 Capacity 300 MM Lbs VCM/Yr Expansions/Modernizations Environmental Status MARKET POSITION EDC production began in 1948 through direct chlorination. An EDC expansion and the start of VCM production began In 1958. Another EDC expansion (oxychlorination gtartup) and VCM expansion occurred in 1966. This plant is not in hydrocarbon emission compliance. Incineration of oxychlorination vent is required.'' This may have been a factor in their decision to shut down. Feedstocks/Supplies Ethylene Chlorine Caustic By-Products 30 Purchased from Exxon or Shell. ^ Captive (Baton Rouge, Louisiana) Captive (Baton Rouge, Louisiana) Anhydrous HC1 is used for methyl i^loride and tetraethyl lead produc tion (oxy unit does not operate). Chlorinated hydrocarbons are uged in solvent production. Merchant EDC sales continue after shutdown. Product Use Formerly had 275 MM pounds per year of captive VCM use. 175 MM pounds per year Baton Rouge PVC Plant (S/n November 1983) and 100 MM pounds per year DelawarnCitv, Delaware plant (sold to Georcia Pacific September 1983).Production was at 65 percent of capacity until,it was shut down November 1983. This shutdown is probably permanent.1 0005 CCR 00 Page 43 Plant Information Ethyl Baton Rouge, Louisiana TECHNOLOGY/EQUIPMENT3 Section Direct 30 Oxychlorination Technology Ethyl Ethyl Type Subcooled Fluidized Bed Air Feed Wash EDC Purification 39 VCM Purification 34 Cracking Incineration Ethyl Ethyl Ethyl Foster- Wheeler CH Hydrogenation 22 Trains Notes 2 2 This unit does not normally operate. HC1 from cracking is used in MeCl/TEL produc tion. The oxy vent stream is not in compliance with EPA emissions regulations. 1 2 None Alumina VCM drying. May be using CC1 or other 4 cracking reaction promoter. Probably run two incinerators with one as a standby. CCR 000005741 HCL to TEL, MECL FIGURE 8 VCM COST PROFILES BLOCK FLOW DIAGRAM ETHYL--BATON ROUGE, LOUISIANA3 Page 44 vet cost profiles Page 45 25-Jun-M MANUFACTURING COSTI Capacityi ethyl Raton Rouge,LA 300 RA lb VCR/yer Ifixed ant variable costs only RAN HATERIALS Ethyl wo Chlorine Oxygen units lb lb lb units/ lb VCR 0.4133 0.4123 0.0000 cents/ unit 20.7440 3.8337 1.4449 HH units/ year 143.03 183.73 0.00 N 1 per year 30009.2 10719.4 0.0 cents/ ref lb ven codes 10.0297 1 3.3731 1 0.0000 SUBTOTAL BYPRODUCTS Stcan Light Ends Tars SUBTOTAL PROCESSING SUPPLIES Catalyst Caustic Nitrogen Aanania-Aeine Sulfuric Acid Limtonc Cooling Rater Chens Rasteuater Tnatint 6as Raste Treateent Hydrogen Rise Chit l Supple Ribs -0.0010 480.4822 lb -0.0211 1.4740 lb -0.0222 -1.7500 lb 0.0001 414.3333 lb 0.005$ 10.4720 RSCF 0.000? 70.2443 lb .0000 108.8134 lb 0.0004 3.2610 lb 0.0000 0.9293 lb 0.0003 108.2571 0.4124 lb 0.0000 17.3800 -0.29 -4.33 -4.44 0.04 1.43 0.21 0.01 0.12 0.00 0.08 123.72 0.00 0.00 0.00 40808.4 -1404.4 -93.4 114.4 -1381.3 172.9 174.1 145.4 9.8 4.0 0.0 87.7 14.9 2.0 0.0 0.0 13.6029 -0.4681 -0.0311 0.0389 1 1 l -0.4604 0.0576 0.0587 0.0485 0.0033 0.0013 0.0000 0.0292 0.0496 0.0066 0.0000 0.0458 5 1 1 1 l 1 1 3 1 1 l SUBTOTAL UTILITIES Electricity Stcae Natural Sas Fuel Oil Rater kRh 0.0403 3.7223 Mlfas 0.0023 480.4822 RSCF 0.0021 293.4331 HGal 0.0000 0.0000 Hqal 0.0010 22.4924 27.15 0.49 0.43 0.00 0.30 412.8 1010.4 3331.2 1838.7 0.0 48.1 0.3006 0.3349 1.1104 0.6196 0.0000 0.0227 1 1 I 1 SUBTOTAL 4248.6 2.0895 VARIABLE COST SUBTOTAL LABOR Salaried Operating Maintenance Benefits 46308.6 941.2 1259.9 1438.4 635.5 15.5326 0.3137 0.4200 0.4861 0.2118 4 4 4 4 SUBTOTAL MISCELLANEOUS Operating Supplies Paint Materials Contract Labor Insurance Clearances Taxes Miscellaneous SUBTOTAL FIXED COST SUBTOTAL 4295.0 340.2 927.0 1584.3 76.2 340.5 247.2 133.6 3650.9 7945^9 1.4317 0.1134 0.3090 0.5281 0.0234 0.1135 0.0824 0.0452 4 4 4 3 5 5 5 1.2170 2~6486 PLANT MANUFACTURING COST EICLUDIN6 DEP l AMORT 54234.5 18.1812 CCR 00000574-3 VCM PRODUCERS VCM COST PROFILES NOTES FOR MANUFACTURINGS COSTS ETHYL BATON ROUGE, LOUISIANA Page 46 1. Same as the BFG plant in Calvert City. 2. The steam stripper runs basic. No limestone is required. 3. No steam recovery system. Factored from the BFG plant in LaPorte, Texas. Same as the Conoco VCM Plant. i CCR 00000574-4 VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION FPC POINT COMFORT, TEXAS Page 47 BACKGROUND DATA Startup Year Capacity aa 1982 530 MM Lbs/Yr19 Expansions/Modernizations A chlorine/EDC/VCM cg^plex in Baton Rouge is under consideration. Environmental Status Compliance is provided by incineration of vent gas streams and waste water stripping. MARKET POSITION 30 Feedstocks/Supplies Ethylene Purchased from Arco for the oxychlorination process only. EDC Purchased from Arco to supplement captive EDC from the Baton Rouge plant. Caustic Captive source for process and waste neutralization. Product Use All VCM is used captively at Point Comfort and Delaware City, Delaware. The VCM plant operated at 55 percent of nameplate capacity in 1983.' CCR 000005745 Page 48 Plant Information FPC Point Comfort, Texas tq 20 TECHNOLOGY/EQUIPMENT * Section 30 Direct Chlorination Technology Mitsui Toacsu Oxychlorination Mitsui Toatsu Oxygen EDC Wash Mitsui Toatsu EDO Purification EDC Cracking VCM Purification Incineration Mitsui Toatsu Mitsui Toatsu Trane Water Treatment Tvoe BLR Fluidized Bed Oxygen Bed Caustic Trains 1 1 1 1 1 1 Notes This unit did not operate in 1983. Only oxy EDC is washed. Washed EDC is dried by azeotrope distillation before purification. Can bum No. 2 fuel oil. No waste heat or HC1 recovery. One of the steam plant boilers is set up as a backup incinerator. Primary treatment consists of catalyst precipitation and steam stripping. Secondary treatment facili ties Include biological treatment. CCR 00000574-6 FIGURE S VCM COST P R O F ILE S BLOCK FLOW DIAGRAM FPC PO INT COMFORT, TEXAS Page 49 < c7 vci cost profiles Page 50 23-Jun-M MANUFACTURING COSTS Capacity FORMOSA PLASTICS Point Cohort, TI 330 HP lbs VCR/year tfiied Md variable costs only RAM MATERIALS Ethylene Chlorine Oiygen units lb lb lb units/ lb VCR 0.4494 0.4002 0.1428 cents/ unit 20.7440 5.B337 1.4449 RH units/ year 248.78 318.11 73.48 R 1 per year S1407.3 18557.3 1093.4 cents/ ref lb VCR codes 9.7372 l 3.3014 1 0.2043 SUBTOTAL BYPRODUCTS Steal Light Ends Tars Ribs -0.0010 480.4B22 lb -0.0121 1.4740 lb -0.0134 -1.7500 -0.34 -4.42 -7.21 71238.2 -2372.0 -94.8 124.1 13.4450 -0.4833 -0.0179 0.0238 2 3 3 SUBTOTAL PROCESSING SUPPLIES Catalyst Caustic Nitrogen AMonia-Anine Sulfuric Acid Liustone Cooling Mater Chess Nastenater Traatint Gas Haste Trsatient Hydrogen Rise Chei fc Suppls lb 0.0001 345.7000 lb 0.0153 7.BIOS HSCF 0.0007 70.2443 lb .0000 108.8134 lb 0.0004 3.2B10 lb 0.0000 0.9293 lb 0.0002 10B.2571 0.0000 0.0000 lb 0.0000 14.3B3B 0.03 a.ii 0.37 0.02 0.22 0.00 0.12 0.00 0.00 0.00 0.00 -2540.7 193.8 433.4 254.9 17.3 7.1 0.0 132.0 0.0 0.0 0.0 0.0 -0.4794 0.0344 0.1195 0.0485 0.0033 0.0013 0.0000 0.0249 0.0000 0.0000 0.0000 0.0248 4 5 4 4 4 4 7 3 6 9 SUBTOTAL UTILITIES Electricity Steaa Natural Gas Fuel Oil Mater kHh Ribs HSCF Mai Ngal 0.0793 0.0025 0.0020 0.0000 0.0009 3.7223 460.4822 293.4351 0.0000 22.4924 42.04 1.33 1.0S 0.00 0.48 1240.5 1545.0 4344.4 3081.4 0.0 108.2 9.2588 0.2953 1.2012 0.3814 0.0000 0.0204 10 1 1 t SUBTOTAL VARIABLE COST SUBTOTAL LABOR Salaried Operating Maintenance Benefits 11121.1 "sisn 1433.1 1724.4 1222.7 484.7 2.0983 15*3227" 0.2704 0.32SB 0.2307 0.1294 11 12 13 14 SUBTOTAL NISCELLANEOUS Operating Supplies Raint Raterials Contract Labor Insurance Clearances Taies Riscellaneous 3049.1 444.2 1134.0 1334.8 134.4 401.4 434.7 432.5 0.9544 0.0880 0.2143 0.2340 0.0254 0.1135 0.0824 0.0814 19 15 14 17 17 17 18 SUBTOTAL 4344.4 0.8412 FIXED COST SUBTOTAL 9433.5 1.B174 PLANT MANUFACTURING COST EXCLUDING DEP 1 ARORT 90712.4 17.1404 CCR 000005748 Notes for Manufacturing Costs FPC Point Comfort, Texas Page 52 16. Includes $938,000 yearly maintenance costs, $277,000 casual turnaround labor, and $197,000 for turnaround contract costs. 17. Same as Conoco VCM Plant.' 18. Conoco miscellaneous charge minus the difference in turnaround rental charges. 19. Twenty-seven percent of operating labor based on the Conoco plant (in cludes 0.006 cent per pound for secondary waste water treatment). CCS 0O0Q5 750 VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION FPC BATON ROUGE, LOUISIANA Page 53 BACKGROUND DATA Startup Year Capacity 1968 300 MM Lbs/Yr6 Expansions/Modernizations Environmental Status This plant was buii.t in 1968 by Allied Chemical Company using BFG technology. gl purchased the plant from Allied in 1976. ICI was planning a modernization for 1981 until, 1980/ old the plant to FPC in This plant may st:L 11 be out of compliance regarding.hydrocarbon emission regulations.''*'* During the first quarter in 1983, $25 MM of improvements were made at the Baton Rouge complex.This work may have included improvements for pollution control. MARKET POSITION Feedstocks/Supplies Ethylene Chlorine Purchased from -Exxon. 30 30 Captive (Baton Rouge, Louisiana) Caustic Captive (Baton Rouge, Louisiana) Product Use Excess EDC is transferred to the Point Comfort plant. All product VCM is used captively. CCR 000005751 FIGURE 10 VCM COST P R O F ILE S BLOCK FLOW DIAGRAM FPC 5 0 BATON ROUGE, LO U IS IA N A Page 55 Page 57 VCM PRODUCERS VCM COST PROFILES i [ NOTES for manufacturing costs , FPC I BATON ROUGE, LOUISIANA 1. These values were taken from the BFG Calvert City cost buildup unless noted otherwise. 2. Based on BFG "Oxy Process: Standard Economic Data," August 1979, and Norsk Hydro VCM Evaluation, March 1974. 3. Neutralization Cost: 0.0009 Lb 100 percent NaOH at 7.5 Cents/Lb. 4. Assumed no vent gas incineration. 5. Subtracted 0.0064 KWH per pound VCM from Calvert City rate for no catoxid process. 6. Eighty-three percent of operating labor. 7. Based on seven 0SBL/ISBL operators, three miscellaneous personnel, and two lab analysts per shift. 8. Based on thirty 0SBL/ISBL maintenance men (82 percent of Conoco maintenance labor). 9. 15.67 percent of payroll. Includes benefits for 75 percent of casual turnaround labor for roving crew benefits. 10. Twenty-seven percent of operating labor. Subtracted 0.005 cent per pound VCM for not having biological treatment facilities. 11. Fifty-nine percent of Conoco maintenance material. 12. Includes $820,000 yearly maintenance, $243,000 turnaround labor, and $129,000 contract labor. 13. Based on the Conoco plant. 14. Subtracted 0.09 pound steam per pound VCM from the Calvert City buildup for not having a waste water stripper. 15. Conoco miscellaneous charge minus the difference in turnaround rental costs. CCR 000005755 VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION GEORGIA PACIFIC PLAQUEMINE, LOUISIANA Page 58 BACKGROUND DATA Startup Year Capacity Expansions/Modernizations Environmental Status MARKET POSITION Feedstocks Ethylene Chlorine Supplies Caustic Fuel Gas Utilities By-Products Heavy Organics 1981 1,000 MM Lbs/Yr None Compliance is provided by incineration of vent gas streams and waste water stripping.' Purchased from Shell and Dow.^ Captiv^source from the Plaquemine chlorine plant. Captive source of caustic for process and waste neutralization. Georgia Pacific posgjbly has long-term low price gas contract. This will significantly reduce steam costs. The Plaquemine complex contains chlorine, caustic, VCM, PVC, methanol, phenol, acetone, and ammonia operatiog^.^Utilities ate common among various units. 9 PPG is pa^d to dispose of tars from Georgia Pacific."^ CCR 000005756 Plant Information Georgia Pacific Plaquemine, Louisiana Page 59 Product At full PVC production, 70 percent of the VCM is used caotjAvelv for PVC feedstock. The remainder is sold in the merchant marker.' Tn 1983, Georgia Pacific controlled 10.5 percent of the VCM merchant market share while operating at 60 percent of plant capacity/ TECHNOLOGY/EQUIPMENT 54 Section 6 Technology Type Trains Notes Direct Chlorination^ PPG BLR 1 High alloy construction. Oxychlorination 51 52 EDC Wash ' 51,52 EDC Purification EDC Cracking * PPG PPG PPG - Fluidized Bed Oxygen Feed Caustic - 2 Reactors are of inconel construction. Recycle ethylene is caustic scrubbed. 2 Only oxy EDC is washed. Washed EDC is dried by azeo trope distillation before purification. 1- b Have four cracking furnaces and two quench columns. VCM Purification PPG - 1 HCl is removed by a two column absorber-stripper system. Incineration -- 2 One vent gas and one liquid waste incinerator. Primary Water Treating - - - Water is neutralized before steam stripping. CCS 00005757 FIGURE 11 VCM COST PROFILES BLOCK FLOW DIAGRAM GEORGIA PACIFIC57 PLAQUEMINE, LOUISI ANA CP Page 60 Page 61 vet cost profiles 25-Jun-04 MANUFACTURING COST! Cipicityi GEORGIA PACIFIC Plaqueeine, LA 1000 m lbs VCK/ynr (fixed ind wiiDli coits wily RAH MATERIALS Ethylene Chlorine Oiygtn units lb lb lb units/ lb VCH 0.4754 0.6326 0.1367 cents/ unit 20.7440 5.8337 1.4449 HH units/ year 475.40 632.60 136.70 M * per year 98617.0 36904.0 1975.2 cents/ ref lb VCM codes 9.8617 1 3.6904 1 0.1975 SUBTOTAL BYPRODUCTS Steae Light Ends Tars Nibs -0.0010 480.4822 lb -0.0208 1.4760 lb -0.012S -1.7300 -0,99 -20.80 -12.60 137496.1 -4736.8 -307.0 220.3 13.7496 -0.4757 -0.0307 0.0221 1 1 1 SUBTOTAL PROCESSING SUPPLIES Catalyst Caustic Nitrogen AMonia-Aiini Sulfuric Acid Lieestone Cooling Hater Che#* Histeeater Treatent Sas Haste Treatment Calciue Chloride Disc Chee t Suppls -4843.3 -0.4843 lb 0.0007 72.3000 0.70 lb 0.0031 B.B431 5.10 HSCF 0.0007 70.2443 0.69 lb .0000 108.0134 0.03 lb 0.0004 3.2810 0.41 lb 0.0000 0.9293 0.00 lb 0.0002 108.2571 0.20 0.24S7 243.70 0.0234 23.60 lb 0.0013 17.3800 1.30 0.00 507.3 451.0 484.7 32.6 13.3 0.0 216.3 39.0 77.3 225.9 0.0 0.0508 0.0451 0.0485 0.0033 0.0013 0.0000 0.0217 0.0390 0.0773 0.0226 0.0248 1 1 i 1 1 I 1 1 1 1 SUBTOTAL UTILITIES Electricity Steae Natural 6a< Fuel Oil Hater kNh Mlbs NSCF Rfial Ngal 0.0737 0.002B 0.0019 0.0000 0.0008 3.7223 480.4822 293.6351 0.0000 22.6924 75.73 2.82 1.90 0.00 0.84 2048.0 2818.9 13549.6 5579.1 0.0 190.6 0.3343 0.2819 I.35S0 0.5579 0.0000 0.0191 1 1 1 1 SUBTOTAL 22138.2 2.2138 VARIABLE COST SUBTOTAL LABOR Salaried Operating Maintenance Benefits 136839.1 1433.1 1726.6 1474.6 764.4 15.8134 0.1433 0.1727 0.1475 0.0764 2 3 4 5 SUBTOTAL MISCELLANEOUS Operating Supplies Maint Materials Contract Labor Insurance Clearances Taies Miscellaneous 3398.7 466.2 1738.1 1927.3 234.0 1133.0 824.0 432.4 0.5399 0.0466 0.1758 0.1928 0.0254 0.1135 0.0824 0.0452 6 7 8 9 9 9 10 SUBTOTAL FIXED COST SUBTOTAL PLANT HAMUFACTUfttNS COST EXCLUDING DEP l AMORT 6617.2 12213.9 um* n 0.6817 1.2216 17 nw CCR 000005759 VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION B. F. GOODRICH CALVERT CITY, KENTUCKY Page 63 BACKGROUND DATA Startup Year 1964 Capacity 1,000 MM Lbs/Yr Expansions/Modernizations Integrated EDC/VCM production began at Calvert City in 1964. The original plant oroduced 280 MM oounds oer vear VCM. TTrf s plant was expanded in 1966. 1968, and 1975 give a current capacity of 1,000 MM pounds per year VCM.J-v/ A modernization of EDC/VCM facilities was scheduled for 1983. to In 1981, BFG completed chlorine and EDC plants at Convert, Louisiana, This was the first phase of a chlorine/VCM/PVC complex. In 1983, the VCM and PVC facilities were postponed ^definitely during initial con struction. Environmental Status MARKET POSITION 30 Feedstocks/Supplies Ethylene Chlorine Caustic EDC Vent pasJU and liauld are catalvticallv incinerated. water is steam stripped. wastp. streams Process waste Captive (Calvert City, Kentucky) 30 Captive (Calvert City, Kentucky) 30 Captive (Calvert City, Kentucky) up to percent is imported captlvel from the Convent, Louisiana, EDC Plant. 000S76l FIGURE 12 VCM COST P R O FILE S BLOCK FLOW DIAGRAM B. F. GOODRICH10 CALVERT C IT Y . KENTUCKY RECYCLE HCI Page 65 vet CMt profiles Page 66 25-Jen-94 RANUFACTUMM COSTI Capacity! B. F. Goodrich Calvert City, KY 1000 m lbs VCH/year Ifixed mi variable coats only MV MATERIALS Ethylene Chlorine Oiygen SUBTOTAL BYPRODUCTS Stew Light Ends Tars SUBTOTAL PROCESSING SUPPLIES Catalyet Caustic Nitrogen Aeaoma-Aaine Sulfuric Acid Liaestone Cooling Voter Cheat Hasteeater Treatent 6as Haste Treataent Hydrogen Rise Chea l Suppls units lb lb lb units/ lb VCR 0.4804 0.4092 0.0000 Ribs lb lb -0.0013 0.0000 0.0000 lb lb HSCF lb lb lb lb lb 0.0001 0.0043 0.0007 0.0001 0.0004 0.0000 0.0003 0.4124 0.7182 0.0003 cents/ unit 20.7440 5.8337 1.4449 480.4822 1.4740 -1.7300 414.5833 10.4720 70.2443 10B.B134 3.2810 0.9293 108.2371 14.3838 MM units/ year 480.40 409.20 0.00 R * per year 99454.2 35938.9 0.0 139193.1 -1.27 0.00 0.00 -4102.1 0.0 0.0 0.14 4.25 0.49 0.05 0.41 0.00 0.27 412.40 718.20 0.28 0.00 -4102.1 374.3 447.0 484.7 34.4 13.5 0.0 292.3 4.4 154.2 45.9 0.0 ceets/ ref lb VCR codes 9.9454 1 3.5539 1 0.0000 13.5193 -0.4102 0.0000 0.0000 2 3 3 -0.4102 0.0574 0.0447 0.0485 0.0054 0.0013 0.0000 0.0292 0.0044 0.1542 0.0044 0.0458 4 5 6 6 6 6 7 8 4 9 SUBTOTAL UTILITIES Electricity Steae Natural 6as Fuel Oil Hater SUBTOTAL Wh Nibs HSCF M6al Mgal 0.0970 0.0023 0.0021 0.0000 0.0010 VARIABLE COST SUBTOTAL LABOR Salaried Operating Haintenance Benefits SUBTOTAL HISCELLANEOUS Operating Supplies Haint Materials Contract Labor Insurance Clearances Taxes Miscellaneous SUBTOTAL FIXED COST SUBTOTAL PLANT MANUFACTURING COST E1CLU0TM6 SEP l AMORT 3.7223 480.4822 293.4351 0.0000 22.4924 94.99 2.31 2.11 0.00 1.00 2294.8 3410.3 11099.1 4195.7 0.0 224.9 21132.0 152519.8 2204.8 2454.4 2302.0 1183.0 8344.2 457.0 2143.6 2534.4 254.0 1135.0 824.0 444.7 8014.9 14341.1 14B8B0.9 0.4220 0.3410 1.1099 0.4194 0.0000 0.0227 10 1 1 1 2.1132 15.4443 0.2205 9.2454 0.2302 0.1183 11 12 13 14 0.8344 0.0457 0.2144 0.2537 0.0254 0.1135 0.0B2I 0.0445 19 15 14 17 17 17 IB 0.8015 1.4341 17.0604 a oooo^1 VCM PRODUCERS VCM COST PROFILES NOTES FOR MANUFACTURING COSTS B. F. GOODRICH CALVERT CITY, KENTUCKY Page 67 1. Values obtained from the Norsk Hydro evaluation (March 1974) and Badger Design (May 1974) unless noted otherwise. Chlorine conversion includes recycle HC1 from Catoxid Unit. 2. Includes 0.974 pound steam from oxy, 0.118 pound from catoxid, and 0.18 pound returned to battery limits. 3. All chlorinated hydrocarbon waste are sent to Catoxid for HC1 recovery and recycle to the oxy reactors. Catoxid yield for HC1 recovery equals 67 percent. 4. Includes 0^00013 pound oxy catalyst at 365.7 cents per pound plus 8.71 x 10 pounds dehydrogenation catalyst at $11.95 per pound. 5. 0.005 pound 100 percent solution at 7.501 cents per pound plus 0.00125 pound flake at 23.35 cents per pound. 6. Usage based on the Conoco plant. 7. Caustic Cost for Neutralization: 0.0009 Pound 100 Percent Caustic at 7.501 Cents/Pound. 8. Includes 0.0038 cents per pound VCM for CaCO^ neutralization, 0.0676 cent per pound VCM for incinerator operating cost, and 0.0848 cent per pound VCM for fuel gas. Incinerators do not have waste heat recovery. 9. Solvent for Vent Gas Absorber/Stripper System: 0.00014 Gallon Aromatic Solvent at 150 Cents/Gallon plus 0.0248 Cent/Pound VCM for Conoco Miscellaneous Costs. 10. Includes 0.0064 KWH for catoxid process, 0.0186 KWH for cooling water tower offsites, and 0.0085 KWH for lighting and building utilities. BFG has large refrigeration duty on vent condensers due to air-based process. 11. Eighty-three percent of operating labor. 12. Based on twelve ISBL, three OSBL, and three miscellaneous operators per shift plus two lab analysts per shift. 13. One-hundred Seventy-four percent of Conoco maintenance labor due to multiple trains. CCR 000005765 Page 68 Notes for Manufacturing Costs B. F. Goodrich Calvert City, Kentucky 14. Includes 15.67 percent of the turnaround labor under contract mainte nance as benefits for a roving crew. 15. One-hundred fifty-nine percent of Conoco's maintenance material. 16. Includes $1,745.7 M yearly maintenance, $516.8 M casual turnaround labor, and $274.1 M for turnaround contract costs. 17. Based on cents per pound VCM from Conoco plant. 18. Includes turnaround rentals. CCR 000005766 VCM PRODUCERS VCM COST PROFILES PLANT INFORMATION B. F. GOODRICH LaPORTE, TEXAS Page 69 BACKGROUND DATA Startup Year Capacity 1978u 1,000 MM Lbs/Yrft Expansions/Modernizations BFG purchased thig-,plant from Diamond- Shamrock in 1981. Expansion to 1,500 MM poundscpgp ygar is under considera- t:.on. Environmental Status Compliance is provided bv vent eas incineration and waste water stripping. MARKET POSITION Feedstocks 30 Ethylene Purchased from Phillips. Chlorine Supplied by Diamond-Shamrock. By-Products Heavy Organics PPG is pa4 for disposing of heavy organics.''*' Product Use Merchant sales account for 30 percent of,the VCM product use. The plant operated at 82 percent of capacity^-in 1983 prior to a November- December shutdown for inventory control. They are negotiating toll processing for other companies. CCR ^00005767 VCM PRODUCERS VCM COST PROFILES NOTES FOR MANUFACTURING COSTS GEORGIA PACIFIC FLAQUEMINE, LOUISIANA Page 62 1. Variable costs are the same as for the 1981 PPG 500 MM pound per year plant. 2. Eight-three percent of operating labor, based on the Conoco plant. 3. Based on eight ISBL/OSBL operators, three miscellaneous personnel, and two lab analysts per shift. 4. Based on 41 maintenance men. 5. 15.67 percent of payroll, plus benefits for 75 percent of the casual turnaround labor for roving crew. 6. Twenty-seven percent of operating labor plus 0.006 cent per pound VCM for secondary waste water treatment facilities. 7. One-hundred-thirty percent of Conoco maintenance materials. 8. Includes $1,429,000 yearly maintenance, $325,000 for casual turnaround labor, and $173,000 for turnaround contract costs. 9. Based on the Conoco plant. 10. Conoco miscellaneous charge minus the difference in turnaround rental charges. CCR 000005760