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Diamond Chemicals

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Diamond Chemicals
Diamond Chemicals:

Merseyside and Rotterdam Projects

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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

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