Preview

Diamond Chemicals

Powerful Essays
Open Document
Open Document
3403 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Diamond Chemicals
Diamond Chemicals:

Merseyside and Rotterdam Projects

[pic]

Group 5

Edi Suryanto

Gressiadi Muslim M

Fahmiansyah

Rudianto Nugroho

Wibowo Kristianto

MAGISTER OF BUSINESS ADMINISTRATION

FACULTY OF ECONOMICS AND BUSINESS

GADJAH MADA UNIVERSITY

2011

Diamond Chemicals: Merseyside and Rotterdam Projects

Diamond Chemicals is a leading producer of polypropylene, the polymer used in a variety of products (ranging from medical products to packaging film, carpet fibers, and automotive components) and is known for its strength and elasticity.

Diamond Chemicals is producing polypropylene at Merseyside, England and in Rotterdam, the Netherlands. Both factories are identical in size, age, and plant design. Merseyside is a factory built in 1967. Merseyside production process is the production process that are old, the best semi-continuous, and therefore has a total workforce of more than the other plant competitors.

Diamond Chemicals is under pressure from investors to improve the financial performance due to economic slowdown worldwide and also the accumulation of common stock of the company. Revenue per share has fallen to 30 Euros at the end of 2000 from around 60 Euros at the end of 1999.
The managers of the two mills member reporting to James Fawn, executive vice president and manager of the Intermediate Chemicals Group (ICG) from Diamond Chemicals. James Fawn, executive vice president of the Intermediate Chemicals Group (ICG) Diamond Chemicals and John Camperdown meets its financial analysis, to review two proposals for capital expenditures that are mutually exclusive. Plant manager at Liverpool and Rotterdam have been independently compiling spending proposals, each of which will increase the output of polypropylene from their respective factories by 7 percent. The staff of Diamond Chemical analyses the strategy to see that the increased capacity of the company 's output by 14 percent is not possible, but half of that number
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    blue nile case analysis
    • 921 Words
    • 4 Pages

    blue nile case analysis

    There is no threat of substitute products to diamonds, but if we look at business model as a product then there is intense competition because everyone is offering similar shopping experiences.…

    • 921 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Victoria Chemicals
    • 933 Words
    • 4 Pages

    Victoria Chemicals

    Secondly, the proposal of this project is to increase production of Polypropylene and modifying the Merseyside plant would certainly increase production but there are several other factors to be considered in this project.…

    • 933 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Polypropylene Research Paper
    • 428 Words
    • 2 Pages

    Polypropylene Research Paper

    Polypropylene (PP), also known as polypropene, is a thermoplastic polymer used in a wide variety of applications including packaging and labeling, textiles (e.g., ropes, thermal underwear and carpets), stationery, plastic parts and reusable containers of various types, laboratory equipment, loudspeakers, automotive components, and polymer banknotes. An addition polymer made from the monomer propylene, it is rugged and unusually resistant to many chemical solvents, bases and acids.…

    • 428 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Victoria Chemical Plc (A)
    • 691 Words
    • 3 Pages

    Victoria Chemical Plc (A)

    Victoria Chemicals, a major company in the chemical industry, was the number one producer of polypropylene, a polymer used in various everyday items. Victoria Chemicals at the end of 2007 was in a financial slump and was under pressure to improve their financial performance. Due to this financial slump, Lucy Morris, the Plant Manager at Merseyside Works, proposed a GBP12 million project to help modernize the production line of polypropylene by remodeling and relocating tank-car unloading areas to streamline the process, refurbishing polymerization tanks to achieve higher pressures and throughput, and renovating the plant to increase energy savings and extrusion throughput. The predicted benefits of this project are there would be a lower energy requirement that equates to 1.25% of sales, a 7% increase in manufacturing throughput, and an increase in gross profit margin from 11.5% to 12.5%. There were some concerns over the project as well. The Transport Division projected they would need to spend GBP2 million with the project, and it should be included with the outlay of the project. The marketing department believed that this project would cause the Merseyside plant to cannibalize sales of the Rotterdam plant. The Treasury Staff believed that a hurdle rate of 7% should be used instead of 10%. The Assistant Manager believed that the production line of EPC, a product Victoria was the leading supplier, should be renovated as well.…

    • 691 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Victoria Chemicals
    • 788 Words
    • 4 Pages

    Victoria Chemicals

    Victoria Chemicals is facing pressures from investors to improve its financial performances. The plant manager is currently considering whether to accept a GBP 12million initial outlay project to renovate its polypropylene production line at Merseyside plant. The benefit of the plant is the lower energy requirement of production and a greater manufacturing capacity.…

    • 788 Words
    • 4 Pages
    Better Essays
    Read More
  • Powerful Essays

    Debeers - Diamond Industry
    • 3535 Words
    • 15 Pages

    Debeers - Diamond Industry

    The diamond industry currently produces US$13 billion worth of rough diamonds each year, leading to the employment of 10 million people globally from mining to retailing. 70% of rough diamonds are sold for industrial purposes with the remaining 30% “gem quality” being distributed to experts for cutting, polishing and jewellery manufacturing. The global jewellery market has increased three-fold in the last 25 years and is currently worth US$72 each year. Jewellery diamonds are unjustifiably expensive given that they are not actually scarce. The DeBeers cartel is singularly responsible for the price being so high as a result of restricting supply and aiming to increase demand. This paper will begin by describing the evolution of the DeBeers involvement in the evolution of the diamond industry.…

    • 3535 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Enhancing Power Electronic Devices with Wide Bandgap Semiconductors
    • 1339 Words
    • 6 Pages

    Enhancing Power Electronic Devices with Wide Bandgap Semiconductors

    Diamond is the ultimate material for power devices because of its more than ten-fold better electrical properties; however, the diamond manufacturing process is still in its infancy. Considering…

    • 1339 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Better Essays

    DeBeers Case Analysis and PEST Analysis
    • 2420 Words
    • 9 Pages

    DeBeers Case Analysis and PEST Analysis

    The most important of the problems we are faced with are due to Political issues in the United States and elsewhere. Due to war in western Africa, diamonds are beginning to flow from the war torn fields of Sierra Leone and Angola, and in Russia, mines are being controlled locally as opposed to in collaboration with De Beers. These challenges alone pose a threat to the power that De Beers currently holds over the diamond industry. Due to these challenges, we initiated a branding campaign attempting to brand De Beers diamonds to the consumers. This…

    • 2420 Words
    • 9 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Synthetic Diamonds in Nanotechnology
    • 295 Words
    • 1 Page

    Synthetic Diamonds in Nanotechnology

    Diamonds may serve another purpose other than being fashionable ornaments. Scientists at the Ohio University have experimented how electrons flowed through diamonds. What they found was that electrons passing through diamond performed a magnetic effect wave, similar to the wave performed at sports games. Known as spin, this effect may have the capability of transmitting data through computer circuits with the use of synthetic diamond wiring. With characteristics such as being “hard, transparent, electrically insulating, impervious to environmental contamination, resistant to acid and does not hold heat as semiconductors do”, diamonds become a great candidate for spin to occur. It was concluded that diamond remitted spin better than the metals found in computers today.…

    • 295 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    The Crown of Diamond: Overview
    • 687 Words
    • 3 Pages

    The Crown of Diamond: Overview

    <b>1. Author?</b><br>Sir Arthur Conan Doil.<br><br><b>2. Setting?</b><br>Baker Street, Threadneedle street, and Streathham in London England.<br><br><b>3. Identify the theme of your book?</b><br>The theme is to never misjudge people until proven guilty.<br><br><b>4. Story?</b><br>One morning, a well-known gentleman went into a bank in London, and was received immediately by Mr. Alexander Holder, head of the bank. He asked for a loan of fifty thousand Pounds. Mr. Holder asked him to present collateral to cover that large sum of money; the man showed him a crown that belongs to the country. Knowing the risk, Mr. Holder agreed to lend the gentleman that large sum of money if he pays it back in a few days. After the gentleman left Mr. Holder decided to keep the crown all the time near by him, so he took the crown to his home in Streatham. There he lived with his only son Arthur and his niece Mary who was an orphan. He told them about his story with the crown of diamonds. When the father was going to sleep, Arthur asked for two hundred pounds. He refused to give him thinking his son was spoiled by his rich friends who had nothing to do except watch horses. Before going to sleep, he went to check that all windows and doors were locked. He saw Mary at a side window at the hall. She closed it quickly, and Holder noticed that she looked anxious. After he went to sleep, he heard some noise that woke him up; he waited until he heard it again coming from his sitting room. He jumped out of his bed and saw his son holding the crown broken from the side and three diamonds were missing. In grief, he accused Arthur of being a thief and a liar. Meanwhile Mary came in and seeing the crown fainted. Arthur asked if he could leave for five minutes but Holder refused and called the police to take his only beloved son to jail. The police searched the house but could not find anything and advised Holder to get the help of Mr. Holmes the famous detective.<br><br>Mr. Holder went to Mr.…

    • 687 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    De Beers Environmental Impacts
    • 1894 Words
    • 8 Pages

    De Beers Environmental Impacts

    References: Alessandro Bertoni & MDBC. 2011. Diamond mining and the environment fact sheet. DiamondFacts. Accessed March 30. http://www.diamondfacts.org/…

    • 1894 Words
    • 8 Pages
    Best Essays
    Read More
  • Powerful Essays

    Business Management Factory Relocation
    • 4438 Words
    • 18 Pages

    Business Management Factory Relocation

    Patel Diamonds is one of the largest retailers of diamonds in the local Indian market. It is also a major diamond exporter with interests in most global diamond centers. Presently, Lypsa Diamonds has its manufacturing facility in the suburbs of Mumbai comprising 100 mills with a monthly production of around 15000-20000 ct.…

    • 4438 Words
    • 18 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    is war ever justified??
    • 421 Words
    • 2 Pages

    is war ever justified??

    Diamond, a precious metal, is famous for two important characteristics which are its hardness and thermal conductivity, although, extraction and processing of a diamond are a very difficult process. Diamond is one of the most expensive metals in the world as it is rarely found in the world. The extraction and processing of a diamond is done in the following manner: Discovery of diamond mine, Extraction of diamond in raw form, further processed in industries and finally it is supplied to the markets.…

    • 421 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    diamonds
    • 623 Words
    • 3 Pages

    diamonds

    TV and movie stars showcase unrealistic body types that most girls can't copy ... They're creating and sharing images of their own. .... All women are beautiful.…

    • 623 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Blood Diamonds
    • 755 Words
    • 4 Pages

    Blood Diamonds

    I have chosen to focus on and analyze one pattern of the Diamond Trade at a global scale. The pattern illustrates that the Diamond Trade exists on a global scale. I have used examples and specific evidence from different regions and nations across different hemispheres to highlight this Global pattern. 

There are five different processes of the Diamond Industry. Exploration, mining, selling rough diamonds, cutting and polishing and selling on world markets. Each process happens in different location from the previous process. Producing a diamond with these different processes and locations causes one big spacial pattern. 

Exploration is a very early process of the Diamond Trade. Exploration is testing certain areas to determine the economic viability of the deposits there. This happens all over the Globe and places containing sufficient diamonds to be of economic interest are then mined. There are diamond mines in all four hemispheres of the world and in every continent except Europe and Antarctica; twenty three of these are major diamond mines. Gem quality diamonds are mined primarily in Russia, Botswana, South Africa, Angola, the Democratic Republic of the Congo, Namibia and Australia. However 57% of major diamond mines are found in the Southern and Western part of Africa forming a clustered and concentric spacial pattern around this area. The rest of the Diamond mines are dispersed around the globe and create a slightly scattered spacial pattern.
 After the process of mining, the rough diamonds are then sold to trading centers, where they go through the processes of evaluation, cutting and being sold. Major trading centers in the world are based in Antwerp, Mumbai, New York, Tel Aviv and Russia. More than 50% of the worlds production of rough, polished and industrial diamonds pass through Antwerp (in Belgium), 8 in 10 of all rough diamonds in the world are handled in Antwerp. This makes Antwerp the worlds diamond capital. However as of 2012, much of the gem…

    • 755 Words
    • 4 Pages
    Good Essays
    Read More

Related Topics