Page 425 - Operations Strategy

400 case study 5 • delta synthetic Fibres (dsF)
exhibit 1 current market volumes by product and region, 2004 (millions of kg)

Market sectors UK Continental Europe USA Far East
Clothing – industrial 8.04 3.74 1.69 1.84
Clothing – domestic 1.22 0.09 N.A. N.A.
Clothing – general 0.52 1.02 1.10 0.73
Thermal insulation 0.41 0.39 1.01 N.A.
Electrical insulation 0.18 0.64 1.10 0.98
Total 10.37 5.88 4.90 3.55

exhibit 2 Forecasts for britlene and britlon ranges
Potential sales
Britlene (all products) millions of kg p.a. Britlon (all products) millions of kg p.a.
2004 (actual) 24.7
2005 22
2006 20
2007 17 3 (assuming availability)
2008 13 16
2009 11 27
2010 10 29
Average price forecast (p. per kg)
Britlene (across all products) Britlon (across all products)
2005 98 –
2006 98 –
2007 95 125
2008 90 120
2009 85 120
2010 85 120

exhibit 3 estimated britlon capital costs
The table below gives estimated costs and stage payments required by Alpen for Britlon polymer
line and extrusion unit construction.
Type of order Cost (£ million) Timing
Whole new ‘Britlon’ line including 4.8 Begin 6 months from order
polymer and extrusion units Onstream 2 years from order
Conversion of ‘Britlene’ line 3.0 Begin 6 months from order
to ‘Britlon’ line Onstream 2 years from order
The cost of a new plant is payable in three six-month instalments – £1,000,000 being due one year after ordering, £1,000,000 due
six months later and the balance on completion.
The cost of a conversion is payable in three six-month instalments of £1,000,000 at one year, at 18 months and on completion.

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