Corporate Finance Case Discussion : ‘Diamond Chemicals Plc (A)’ 1. Purpose: This case presents the capital investment decision under consideration by executives of a large chemicals firm in January 2001. This involves a go/no-go project evaluation regarding improvements to a polypropylene production plant. A critical assessment of a capital investment evaluation system is the focus of this case. The case also enables discussion on conflicts of interest and other ethical dilemmas that may arise
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Diamond Chemicals: Merseyside and Rotterdam Projects [pic] 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
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INTRODUCTION Diamond Chemicals a major global competitor in the chemical industry and a leading producer of polypropylene. In 2001 the Corporation was facing losses in earnings and the slowdown of the global economy. The Earning per Share (EPS) had fallen by 50% from 1999 to 2000. The controller of the plant in Merseyside proposed a project of £9 million to renovate and rationalize the polypropylene production line at the plant to compensate for deferred maintenance and to exploit opportunities
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Background Victoria Chemicals‚ a major player in the global chemical industry that supplies polypropylene‚ polymer that used to manufacture carpet fibers‚ packaging‚ automobile parts to the customers in Europe and the Middle East. Apart from numerous small producers‚ the company also receives the threats from the other seven major competitors. The company owns two plants in Europe‚ one being Merseyside Works‚ England and Rotterdam Facility‚ Holland. Both plants were built in 1967 and are identical
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Diamond Chemicals PLC (A): The Merseyside Project Late one afternoon in January 2001‚ Frank Greystock told Lucy Morris‚ “No one seems satisfied with the analysis so far‚ but the suggested changes could kill the project. If solid projects like this can’t swim past the corporate piranhas‚ the company will never modernize.” Morris was plant manager of Diamond Chemicals’ Merseyside Works in Liverpool‚ England. Her controller‚ Frank Greystock‚ was discussing a capital project that she wanted to propose
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VICTORIA CHEMICALS PLC Ricky Tjayadi 01120120028 Young Jung Kim 01120120201 Irene 01120120214 VICTORIA CHEMICALS PLC The Background Victoria Chemicals‚ a major company in the chemical industry‚ was the number one producer of polypropylene‚ a polymer used in various everyday items. Victoria Chemicals at the end of 2007 was in a financial slump and was under pressure to improve their financial performance. Due to this financial slump‚ Lucy Morris‚ the Plant
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NYIT School of management Report CASE STUDY 22: VICTORIA CHEMICALS PLC(A) CAPITAL BUDGETING DECISIONS SUBMITTEDTO: DR.RAJA NAG PREPARED BY: SEVTAP BATIR HONEY MEHTA JUN HUANG NYIT School of management Report CASE 22 Victoria Chemical In 2007‚ Victoria Chemicals experienced a significant drop in its improve its performance as its earnings had fallen 38% from 250 pence per share to 180
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Victoria Chemicals PLC: The Merseyside Project Prepared by Gabriela Tiffany Executive Summary The purpose of this report is to provide an understanding and analysis regarding the project proposed. The report starts with a brief overview of the company and the project proposal. This report then continues with assessing the concerns of Transport Division‚ ICG Sales and Marketing Department‚ and Treasury Staff. Furthermore‚ this proposal will also evaluate the recommendation from the Assistant Plant
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financial reporting in Australia? A) The Corporations Act‚ The AASB‚ CLERP B) Accounting standards‚ conceptual framework‚ stock exchange listing rules C) Government legislation‚ stock exchange listing rules‚ accounting standards D) AASB‚ FRC‚ government legislation. If there is a conflict between the provisions of the Framework and the requirements of the accounting standards A) The statements of accounting concepts prevail B) The accounting standards prevail C) The AASB must rule on the conflict
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Case 22: Victoria Chemicals The Merseyside Project Table of Contents Executive Summary 3 Problem Statement 3 Key Decision Criteria 4-5 Data Analysis 5-6 Alternatives Analysis 6-7 Recommendations 8 Action and Implementation Plan 8-9 Exhibits 10 References 11 Executive Summary Victoria Chemicals is a major competitor in the worldwide chemicals industry. They are a leading producer of polypropylene‚ which is a polymer used in products such as: medical products and carpet fibers.
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