The Polypropylene Is a Polymer

Victoria Chemicals is an international chemical company that produces polypropylene. The polypropylene is a polymer used to produce a lot of different products such as, carpet fiber or automobile components. The plant to produce the polypropylene was located at Merseyside and Rotterdam, Holland. In terms of sales position, Victoria Chemicals was mainly supply for the customers in Europe and the Middle East. As a plant manager of Victoria Chemicals' Merseyside Works, Morris has a plan to make an innovation to the polypropylene production in Merseyside plant as the purpose in carve out the opportunities to carry up the production efficiency and also doing some reparative job for the machine. On the other hand, the assistant manager of the Merseyside project, Griffin Tewitt had suggested to including the production line for ethylene-propylene-copolymer rubber (EPC) along with the Merseyside project. Moreover, the Transport Division was suggested that the purchases of tank cars to increase the product allocation and the cost should consider as initial outlay for the Merseyside project's capital program. As we can see, that was a lot of things that Morris should consider to implement her plan. Thus, she needs to prepare the very detail proposal and submit to senior's management to get the approval for this plan.

2. What is the Transport Division's suggestion? Does it have any merit?

The Transport Division suggested that the cost of tank cars, which is GBP 2 million, should be included in the initial outlay of Merseyside's capital program. It is because the Transport Division has to increase its allocation of tank cars to Merseyside due to the project will increased throughput. By doing so, it would accelerate the need to purchase new rolling stock to support the anticipated growth of the firm in other areas from 2012 to 2010.

In fact, the suggestion does bring merit to the capital-expenditure proposals. It is because the transport division is part of the same company as Merseyside plant, and the cost of additional rolling stock is an incremental to taking on the project.