Victoria Chemicals PLC (A): The Merseyside Project Capital Budgeting Case Analysis ------------------------------------------------- DeQuincy Adamson Donald Harrell Lekisha McKinley Taylor Wolfe Finance 5387 Spring 2012 Victoria Chemicals: Case Background Victoria Chemicals was a major competitor in the chemical industry worldwide. The company was the leading producer of polypropylene, a polymer that is used in a variety of products including carpet fibers, packaging, and automobile
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group Victoria’s Secret Chemicals Executive Summary Victoria Chemicals’ Merseyside Works production process is old and inefficient compared to its’ competitors. In order to remain competitive, management limited maintenance and other capital expenditures. As a result of competitors’ efficiency, earnings fell from 250 to 180 pence per share in 2007. Corporate raider Sir David Benjamin created an urgency to improve performance and a proposal was made. However, Frank Greystocks’ DCF analysis
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Victoria Chemicals Executive summary Victoria Chemicals Merseyside Words production process is old and inefficient compared to its competitors, which leads to the earning per share decreasing. Therefore, Lucy Morris, the plant manager of Victoria Chemicals’ Merseyside Works, seeks the opportunities for renovation. Therefore, Morris comes up with the Merseyside project to achieve increased production efficiency. However, several departments concerns about the transportation loss, cannibalization
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Case study Victoria Chemicals (A): The merseyside Project Summary Victoria Chemicals is one of the leading producers of Polypropylene, a polymer that is used in many products ranging from carpet fibers, automobile components, packaging film and more. Polypropylene was essentially priced as a commodity. In order to meet demand, Victoria Chemicals had two production plants located in Liverpool, England (Merseyside) and another in Rotterdam, Holland. The Merseyside plant was built in 1967 and
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victoria chemical EPPM3644 KEWANGAN KORPORAT DAN PENSTRUKTURAN SET: 3 REPORT OF CASE STUDY: CASE 24 VICTORIA CHEMICALS PLC (A) THE MERSETSIDE PROJECT NAME OF PROFESSOR: DR. LIZA MARWATI BINTI MOHD YUSOFF GROUP MEMBERS: LOH CHAI LING A140178 GOH HOOI SAN A139708 KERK (KEH) YIH JEN A139574 SEMESTER 2, 2013/2014 INTRODUCTION Victoria Chemicals, a major competitor in the worldwide chemicals industry, was a leading producer of polypropylene, a polymer which was known for
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Case Study 1 Victoria Chemicals (A) MBA9005 Ashley James Executive Summary The board needs to question a number of cash flow decisions made in the proposal by Morris. Namely; sunk costs, cannibalization, cash flows from unrelated projects and implication of future Capex programs for the transport division into the Merseyside project. There are also a number of conflicts of interest and other ethical dilemmas that arise in the case which need to be addressed in the assessment of the project. The
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#Case 5 Victoria Chemicals Scheme analysis Since the Merseyside project is identified as belonging to the engineering-efficiency category, its capital-expenditure proposals are subject to meet at least three of four performance criteria: First, the contribution to net income from the project is positive. This criterion is measured as whether the average annual addition to earnings per share (EPS) is greater than zero. It is important because it somehow shows the profitability, and investors
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Victoria chemicals PLC (A): the Merseyside Project As a world wide major competitor in the chemical industry, Victoria Chemicals is a leading producer of polypropylene, a polymer that is used in a variety of products around the globe. Polypropylene is known for its strength and malleability and was priced as a commodity. The company operates two plants that produce polypropylene, one at Merseyside, England and the other at Rotterdam, Holland. Both plants were identical in scale, design, and age
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Victoria Chemicals: The Merseyside Project Executive Summary 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. This report consist a recommendation for the plant manager which consists
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Introduction The following report shows that the proposal of the modernisation project should obtain funding from the corporate headquarters of Victoria Chemicals. The project has an initial outlay of GBP12 million to renovate and rationalise the polypropylene production line at Merseyside plant. This is done in order to make up for deferred maintenance and exploit opportunities to achieve increased efficiency. This report will look at the following four main areas of concern in order
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