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# OAR Box 

# 1477 Prepped by Ollie Stewart



### Document

Number: 

# 23 ) ll-J-1 4 Docket Number: 

# A-94-5 2

Printed 7/31/2008 11:18:29 AM Sheet 23 of 36P. 2 

# XERXES 6 2 T

# '

CORPORATIO N



### VI AFA X AN D MAI L Januar y10 , 200 0 Mr
. Keit h Barnet

t Offic e of Ai rQualit

yPlannin g an d Standard s Emissio n Standard s Divisio n (MD-13 ) Organi cChemical s Grou p Researc h Triangl e Park , N C 2771 1 RE : SBREF

AMeetin g Follow-u p Dea rKeith : Th e issue s that Xerxe s an d Profor m are mos t concerne d about , an d whic h were addresse d durin g m

ybrie f presentatio n o n Decembe r14 , 1999 , are as follows : 1
. Th e cost alon e t o accuratel ymonito rth e regulation s i s estimate d a t $30,00 0 - $40,00 0 annually , pe rplant
. Xerxe s has seve n plants
. Thi s wil l require managemen t personne l wit h th e time , training , skil l an d abilitynot onl yt o kee p accurat e records , bu t als o a managemen t informatio n syste m t o advis e th e plan t managemen t of th e MAC Timplication s o n th e business
. Thi s cost cannot b e passe d alon g t o ou rcustomer s becaus e ou rcompetition , whic h use s lo wcarbo n stee l t o produc e barg e cover s an d undergroun d stee l tanks , woul d b e a

t a significan t advantage
. Moreover , we are competin g wit h foreig n stee l that has bee n dumpe d int o ou rmarkets , makin g th e competitiv e situatio n eve n worse . 2
. Th e 95 % capture technolog ycoul d not b e achieve d wit h th e larg e component s suc h as Proform' s barg e cover s (23 ' x33 ' molds)
. Th e mol d siz e create s a situatio n wher e th e materia l i s applie d b ya n impregnator , whic h travel s ove rth e mold , plu s gu n boom s whic h pivo t ove ran d awa yfro m th e mol d surface
. I n addition , th e mold s are mounte d o n carts , whic h trave l fro m statio n t o station
.

CORPORAT E OFFICE/790 1 XERXE S AVENU E SOUTH , MINNEAPOLIS , MINNESOT A55431-128 8 PHON E (612 ) 887-189 0 FAX (612 ) 887-187 0P. 3

Page Two SBREFAMeeting

Follow-up January 10, 2000
3
. Xerxe s an d Profor m believ e tha t th e 10 0 TP Ythreshol d fo ra smal l busines s i s no t realistic , no t economicall yfeasible , an d no t capable o f financing
. N o lendin g institutio n wil l financ e suc h a n expensiv e projec t agains t a lo wcapitalize d plant
. Th e threshold , therefore , shoul d b e raise d t o 20 0 TP Yo rabov e befor e i t wil l b e realistico rmak e an yeconomi csense . Base d o n th e propose d MAC Tfloor s a s currentl ydrafted , Xerxe s believe s i t ca n mee t th e MAC Tfloor s i n fou rtan k plants , bu t woul d fal l short i n thre e othe rplant s (se e attache d Tabl e A)
. Th e tabl e i s base d o n th e production dat a a s o f Novembe r30 , 1999
. I n makin g ou rcalculations , Xerxe s use d th e bes t availabl e flowchoppe rtechnolog yfo rthos e activitie s wher e suc h us e ha s prove n suitable
. Eve n thoug h flowchoppe rtechnolog ywas no t actuall yuse d durin g th e dat a tim e perio d fo ral l plants , Xerxe s use d th e flowchoppe rpoin t value s wher e w e verifie d tha t i t was practica l t o us e suc h technolog yi n ou roperation
. Xerxes ' composit e plan t poin t valu e margi n i s extremel ythi n i n term s o f meetin g th e MAC Tfloor s a s currentl yproposed
. Eve n whe n Xerxe s implemente d th e us e o f flowchoppe r technology , w e wer e unable t o mee t th e requirement s i n thre e o f ou rplants
. Xerxe s ha s no t bee n abl e t o us e th e flowchoppe rtechnolog yi n vertica l tan k mandrels
. A s a result , thi s hamper s Xerxes ' abilit yt o mee t MAC Tan d make s averagin g essentia l t o ou roperation s an d MAC Tcompliance
. Xerxes ' abilit yt o compl ywit h th e propose d standar d i s i n question
. Therefore , th e opportunit yt o us e a calendar-base d composit e poin t valu e i s critical
. Ou r averag e order-to-shi p tim e i s 3 t o 5 weeks
. Wit h marke t surge s an d n o contro l ove rou rcustomer' s produc t order s an d options , Xerxe s ha s n o assuranc e tha t i t coul d mee t a rollin g 1 2 mont h averag e belo wth e MAC Tfloors
. Give n ou rnorma l marke t shippin g times , orde rsurge s an d seasona l fluctuatio n ove ra calenda r year , th e calendar-base d composit e poin t valu e approac h woul d b e essential
. On e reaso n wh yXerxes ' plan t composit e poin t value s (usin g th e propose d MAC Tfloo rse t fort h i n Tabl e B hereto ) ar e margina l i s th e lo wpoin t valu e o f 12 4 fo rth e "C R Manua l Resi n Application. " W e us e han d lay-u p t o assembl e ou r tank s an d ad d accessorie s suc h a s fittings , monitors , manways , tops , baffles , pipe s an d fla t bottoms
. Thi s resi n ha s th e sam e HA P conten t a s use d i n makin g th e tan k itself
. Th e lo wpoin t valu e o f 12 4 use d fo rth e "C R Manua l Resi n Application, " therefore , i s no t realisticfo ra typica l corrosio n fabricato rsuc h a s Xerxes , tha t manufacturer s larg e tank s an d ducts. Th e "C R Manua l Resi n Application " databas e wa s se t b ya fa n manufacturer , whic h appear s t o conduc t fa rmor e han d lay-u p usin g a muc h lowe rHA P conten t resin
. Thi s typ e o f singl e produc t manufacturin g ha s n o relationshi p t o Xerxes ' bondin g o f accessorie s t o it s larg e tanks.P. 4

Page Three SBREFAMeeting

Follow-up January 10, 2000
Therefore , Xerxe s recommend s that , unde rth e corrosio n classification , th e C R Manua l Resi n Applicatio n poin t valu e shoul d b e th e sam e a s th e C R Mechanica l Resi n Applicatio n poin t value
. Xerxe s i s particularl yconcerne d ove rth e potentia l impac t o f produc t change s an d wha t i s mean t b y"reconstruction. " Ou rproduct s ofte n chang e ove ra perio d o f time
. You rpresen t rule s o f th e 50 % o f th e cos t t o buil d a ne wfacilit ysize d fo r th e ne wproduc t ma yb e reasonabl e t o som e industries ; however , sinc e mos t Xerxe s facilitie s hav e a lo wcapita l cost , i t i s no t fai rt o ou rcompany . W e kno w tha t ne wproduc t opportunitie s ar e a wa yo f lif e fo rou rbusiness
. W e canno t b e restricte d b yrule s tha t d o no t provid e a practica l solutio n o rflexibilit yt o buil d ou r product s o rconver t ou rfacilities , a s needed
. I hop e tha t th e foregoin g explain s ou rposition
. I f not , pleas e cal l m e fo ran yneede d clarification
. Than k yo u fo rth e opportunit yt o mee t wit h you rgrou p an d expres s ou rconcerns . Your s truly , Nei l C
. Olse n V P - Manufacturin g Operation s & Material s Managemen t NCO/lm w Attachmen t

n/MAC T Followup.do cP. 5 

### TABL E A 

# MAC TComplianc e

Anaheim , C A Avon , O H Hagerstown , M D Lakeland , F L W . Memphis , A R Seguin , T X Tipton , I A Weighte d Averag e MAC T Poin t Valu e (Ib/ton ) 165. 9 184. 1 175. 0 181. 3 133. 8 187. 2 174. 0 Weighte d

Averag e MAC TFloo r (Ib/ton ) 185. 2 182. 1 183. 6 178. 2 135. 8 185. 5 186. 6 Weighte d

Percen t o f MAC T Floo r ( % o f floor ) 89. 5 101. 1 95. 3 101. 7 98. 5 100. 9 93. 3

Usin g ou r latest calenda r yea r data .
•Applie d bes

t availabl e technolog y to al l plants , eve n thoug h they di d no

t hav e th e equipment .Tabl e 1 . Existin g Sourc e MAC T Floor s Fo r Ope n Moldin g an dCentrifuga l Castin g

O Q U J

- J 

### m < i Sourc e

Ope n Moldin g

Centrifuga l Castin g Process/Produc t Grouping s Corrosio n Resistan t

(CR ) Mechanica

l Resi n Applicatio n No n C RMechanical Resi n Application-Unfille d No n C RMechanical Resi n Application-Fille d Manual Resi n Application-Toolin g Mechanical Resi n Application-Toolin g C RManua l Resi n Applicatio n No n C RManual Resi n Applicatio n C RFilamen t

Windin g No n C RFilament

Windin g Toolin g Ge

l Coatin g Pigmente dGe

l Coatin g Clea r Productio n Gel Coatin g NonC R C R Existin g Source s MACT Floo r 19 0 10 4 14 4 9 7 25 6 12 4 7 6 16 3 17 8 39 4 26 5 50 4 39 6 53 6 Require dHAP

Content ' 48. 3 andF C 37. 1 an dF C 33. 9 3 6 50+%andF C 4 0 32. 3 4 2 4 5 3 8 3 0 44 35. 5 4 8 Facility whichset s floor"

A n Cor Industria l Plastic s Inc . (4 2 an

d 50 % FC ) Custo mFiberglas s Molding . Inc . Hydr o Systems , Inc . (42. 6 andCF ) Norto n Performanc e Plastics(4 7 and VB ) Prestigiou s Accessorie s Inc . (43 ) Hartzell Fan , Inc . CDRSystem s Cor

p (3 5 andVB ) Industria l Fiberglas s Specialties , Inc . Wate r Heate r Innovations , Inc. . Marbl e Creation s U . S . Fiberglas s Product s Inc . Laminate dProduct s Inc Henderson , Blac k

& Gree n Inc . Average of

Rave n andFibercas t

' Represent s th e HAPconten t require dt o meet

th e poin t value . Wher

e F C i s show n it

i s assume d100 flo

w coater s are als o used . b Wher e th e facilit

y representin g th e floor

meet s the poin t

value usin g aresin/ge l coa t wit hadifferen

t HA Pcontent than i s show n in th e previou s column , the resi n HA P conten t andother control s use dat

th e facilit y are shown i

n parenthesis . F C = Flo w Coater , V B = Vacuu

mBagging , C F= Carbo n Filter s