Introduction
The goal of this paper is to identify the optimal level of styrene in the gel coating production for Cook Composites and Polymers Co. as well as to determine its environmental impact. Also, we will discuss potential production and environmental implications of getting involved into By-Product Synergy Initiative. The main question of the paper is to decide whether or not it is reasonable for CCP to invest into concrete coating production.
Industry and company overview
Gel coats are chemical compounds used in manufacturing industry to increase products’ durability and resilience as well as to provide color. The coating industry is estimated to be worth $85 billion. Half of the market is controlled by 10 major companies and the other half is fragmented. Gel coat producers usually work directly with other manufacturers and tailor their gel coats to meet the particular standards. Therefore, precision and reliability are very important.
Cook Composites and Polymers Co. (later CCP) was founded in 1918 and one of its plants is located in North Kansas City, Missouri. The company manufactures resins and emulsions and has gel coating as one of its major products. In fact, in 2007 CCP was the world’s leader in gel coat manufacturing. Quality, customers’ satisfaction and environmental impact are all among the priorities for CCP.
However, the production of gel coating requires CCP’s vice president to solve a dilemma. High-quality gel coating manufacturing requires the use of styrene, a hazardous liquid, to rinse vessels in order to avoid contamination. One the one hand, the more styrene CCP uses, the higher probability of the batch to be approved. Losing its clients is extremely costly for CCP and, hence, it always welcomes the opportunity to improve the quality of the product. On the other hand, rinse styrene is a hazardous waste and has a negative