'"
....
F/
e.t'-14jINRjJ.OOAp;- endLx B
__]ag" lQ
tons was somp,what in oxoens of' needs due to expansion under wa;y in a neW srne1t~r. The rOlling mill produced about
7,300
tons of rolled prod:ucts;---1.ih~'~rig~iiih~;,j.tmtlnt
cost of' the entire integrated. '_;~.- . 0 • • • • •_ _ • • •, . , ' • • •
operation, excluding neW capacity under
ccns
tz-uc taon , was about US$9.4 mt.LlLon,
builtup .i{IlQe
thebeginning
of WorldWar II.
SCHEDULE 3 - Production Cost~India of Alumin~d Ingot,
l:2.21.
.. - ' (Rupees
-per 'long ton -
4.78Rs - us S1.00)
Total costs without depreciation (freight to smolter included. for
. iD1dian lilu;ninium Company) .
US
dollar c~uivalent,4.78
Rs =$1.00
;!).luminium j-!'.f:~.!
Production, loae'~ons
Raw materLaLa Power and fuel Labour
Rep,,:irs , mai.nt onan ce , consumable stores Pot lining cxp~nZ~hS'
Other· over-heads 1t";-.S.s cr-ed.Lt Royalty
Head office eA~O~SCG
Depreciaticn tQtal.
US dollar e~ui'dlont,
4.78
Rs =$1.00
US cents per pcund
423.47
rupeesSouroe'f' Tariff Commias Lon , Government of India, Report on the Continuance of f.l'0~~ti£.ll__ to'.i~e Aluminium Industg,Bombay, 1958 •
. . .~ ._ _ .o
~.--,,_..-._._-.-~~~
" f
'.. "
..
•
'1 CN "l4/TN'R/lOC
Appendix B Page 11
17.
It is likewise interesting to oompare employment of around 1,500 persons, in the r-o l l.drig mill of the 1ndian Aluminium Company in 1958 (producing in that year 8,800 long tons of rolled products) with the less than 2,000 persons required in the assumed integrated US aluminium~ --,
enterprise from bauxite through ingot, with a capacity of 100,000 metric tons per year. As pointed out in the United Nations document, Pre-Investment Data in the Aluminium Industry (pp. 37 and
38),
a modern rolling mill with 10,000 tons of capacity would cost in theU~between $8 and $12 million, and one using a new direct callting sheet progess might cost between $4 million and $8 milliOn. Also, a small
extrusi~tt,plantw9uld cost about
$1.5
million and a small plant produc-ing ki tch,enutep!>ils and similar products about $400,000. Thus, it c would be possible to build a combined rolling mill, extrusion plant,and utensil plant with a capacity of 10,000 tons of mixed products for between $6 million and $10 million using US cost standards, and employ in such a combined plant as many as 1,000 or more workers.
The same $140 million required for an integrated ingot enterprise in the United'''States employing less than 2,000 persons oouLd be invested in such fabricating plants in each of 14 to 23 developing countries and night employ in these countries between 15,000 and 25,000 workers.
,Semi-fabricating plants
18. For aluminium semi-fabricating plants, it is not practical to
p~esent a simple schedule of capacity and production costs comparable to schedules for alumina plants and smelters. The range of capacities of semi-fabricating plants varies first according to the number of hours used per day, and days per year. Alumina plants and smelters produce 24 hours per day, 365 days per year, although portions of plants are shut down at times. The products of many semi-fabricating plants are not limited and uniform as alumina and ingot. Different 'cQmbinations of products may be made in some plants at one time, and
the combinations can change during the same working year. Different kinds of equipment can be used to achieve similar results. The new
6asting'to ID&ke sneet ~~d rod require a
",i;ilert~ili'liIliitatj01iG otsize and charadtel'.
:' tei:ibii61ogies
"oi':\~6Ii"c:iJ'll.i.ous·much 'jiower i.>1vc~tm8hc 6ci~t''thali oldermeth'odsfor products""ithin both' in
,in'dustrial-',UI"::~-; ';[iz~a- 6r:i:fii--,:-ttJvJJ.op'ine '6:cnllr01'>i'~'s
when<·tkEirk'e't's
for '"fllmiiiriiuinproducts
y <l.re~1.odil6r'::1J()gin"ai",i
sIIiall vol'ume,a:nalUminiumfabd~ating plant,,' i;
".maY' S'ta¥t
',httt'& yery'sIl'all shop,i:i
few'pieces of equipment'~dafe*;.§llrp16yJ eis :lhi;i,~,:BjYestmehtbeWe-en't5D;OW-and
$300',000,
a'sma11~h'o:pmay
proc1u'Gesome of the productsof'a muTti.-mili{o~·
dollar"::"''J:iYirH,'suc1i as ki
tcl1en'uteri~il"or
w:tndowah'd
door assembiies. Such; ""'a
'''ah6p''willpUTchaadthest6ck 'ocf metal~ii.ipes that aolo:N
integrated-',:"::'1 pliu{t; .;durd first ma~L}; Some p.Lants may' use"older equipm'ei1t p~Chased
", ,fr-blii'
moT~;-mdu~triai:ihecibountrie";,
or assemblies of oldanah~wer
+ 'eqUipmen'f/
Theamouilt~f
labour requiredw{hvari:acco;ain~':to
thedegI-'e'edfplaht'moderniz'ation an'd: th'e impoi'\~nce of hoilrlylaboUT
.."~G
o6e!-ts}' .. ,;;
'1"' c..,,;."
'(', '
'r,~
• r-'_:"' .('. "'.' ,";::
19. As a rough guiC,e; the following Schedule
4
shows, capa"ities,.r~t.:::':; ',' . ;";,;. " ."
investment and smp.Lovment for different tYV,es and sizes elf ,semi.,...
·i ';l~oo .
fabricating plants in the United States, and for, one ,pl,ant in
" " -. " . - - ' " .
", Columbia, 'South America, an d one smaLl. plant in Venezuela.,The
" ,
s~h,')dule'
shows a va",:, rang"be'&~ee!.l"a
usL'~lling
mill with' an annual caps.oi,ty of185,noo
slwr1'. tons of pr-oduct e-rto a, mIll'in fuitimbia with a .,hl3et, capo,ci'ty ~er;'3, than 2,ODO','tons peI' year(plus,
extrusions) • A wO,rId directoXlI')i "aDY sem:,-'fabricating pLants sh,?ws that the,',below 'l'able
far greater proport~cn'withcapacities year than the d~ve1()ped;c()untries(Appendix CO?lSoqB,ent,lyj , many of the opportunitie" in· the develcping countries begip ~',~.th .,ven '?illaller investmen'csr,han the smallest,plants shown in Schedul e4.
20;' 'The' new-e±- ter,lmologies oi' direct C>dsting of rod and bar and of sttip
pei'ml
f the :prod.uc~~5_('''1 of' wireani
"ttri.~~ products' and of sheet products'up'co
mod.or-ate ~lidths . "iihoui;"oiortainlaree
investment andhee.'Vy
eqtupm8nt 'needed inth.l'oiiier'miUs. ThesenMn3r pr oceaseaF/
eN_14/
nrnjl00Appendix B Page 13
elim:i.:iiatebig m~l~ing furnaces and large rolling mills to reduce heavy ingots to intermediate shapes. It is thus poseible to build a rolling mill of 5,000 tons 'capaoiti, using a continuous casting process to
'j, - .
produce the strip 'to 'be rolled, for about $4 million in the United Statee and less in some foreign countries. Such a mill can make products for limited markets in developing countries at low cost, competitive with a much larger investment in a conventional mill with a greater capacity for more diversified products.
21. The processes in producing a.Iumana , ir,lgot,and fabricated products are illustrated in the following figures taken from the United Nations pre-investment study by Reimers. Figure 1 shows the steps in oonvert-ing bauxite to alumina; figure
:2
the steps in converting alumina into ingot.ilithe electrolyticcel1';~~d
figure 3 the steps in converting the primary ingot, scrap an.dallOying metals into various fabricated products. :.2?_ .'l'herelationship between unit investment and capacity in an alumina plant is shown in figure 4 and the relation of capital cost per unit of ingct capacity to size of the reduction plant is shown in figure
5.
.E;'';',\f'4/lNR/lOO Appendix }3
Page 1,4, -.,
~,
SCHEDULE 4 - Re9u.irem~ts for Aluminium Semi-:Fabricati:ng nants,
.,":-
-
,-, --.Rolling mill for sheet and finished products (cas'~ing foundry, hot mills, cold
mih:~, :hie~t tre~t~ent,
andfinished sheot product~--oorrugated,
painted, pi'intolf, cut and chaped),' estimate
Rolling mill, oonti~uous casting, milling, finishiilg
Ex:trusion plant
Ki tohen u'i'ensils lend hollo'" ware USA aott1al~lant.s..
Rolling mill (foundl'Y, hot and cold mills, coiling, slittjng, .J,G7,-':'~_i1:"~J __~oil);
products include foil, d:,s]Ol:dble dishes, food containers, utensils, housewares, toys, aluminium boats, roofing sheet, Mirro Alum:L"1ium Co.
Manitowoc Wisconsin, built 1958-1959 Rolling mill (plate and sheet products)
to be built by H:uvey Aluminium Inc.
in Kentucky) 1966 Rolling mill (]?J.ate and sheet product)
owned by Reynolds Metals Co., MoCook Illinois, built 1..'1 World War II
---~
F/
aq.'l4/mP.j)1)O windows) o,med by Reyl,olds Metals Co., Louisville, Ky. built 1943
Capaoity, Extrusion plant (extrusions, tubing,
pipe), owned by Reynolds Metals Co., Grand Rapids, Mich., built in World
War
I I14,500
Extrusion plant (extrusions, pipe, tub-ing, fabricated parts) owned by Reynolds
Metals Co., Bellwood, Va., built 1956 19,000
400
525 Extrusion and foil plant (extrusions,
foil oontainers, wrapping foil, printed foil) owned by Reynolds Metals Co.
Torrance, California.
Sheet (cold rolling aild
extrusion--pet-ro1eum pi.pe, irri.gation pipe; aheet for 1,800 roofing, aiding, transportation vehicles, sheet;
extrusions, A1can of Columbia, Cali, plus Columbia, constructed 1960-1962. extrusions Combination extrusion and window-door
$2
million 150
$