ECONOMIC IMPACT
  OF AIR POLLUTION
      CONTROLS ON
         GRAY IRON
FOUNDRY INDUSTRY
               U. S. DEPARTMENT OF HEALTH,
               EDUCATION,AMD WELFARE
               Public Health Service
               Environmental Health Service

-------
                ECONOMIC  IMPACT
          OF AIR POLLUTION  CONTROLS
       ON  GRAY  IRON FOUNDRY  INDUSTRY
U. S. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
                  Public Health Service
               Environmental Health Service
         National Air Pollution Control Administration
                  Raleigh, North Carolina
                     November 1970

  For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 2M02 - Price 65 cents

-------
The AP series of reports is issued by the National Air Pollution Con-
trol Administration to report the results of scientific and engineering
studies,  and information of general interest in the field of air pollu-
tion.  Information reported in this series includes coverage of NAPCA
intramural activities  and  of cooperative  studies conducted in conjunc-
tion with state and local agencies,  research institutes, and industrial
organizations.  Copies  of AP reports may be obtained upon request,
as supplies permit, from the Office  of Technical Information and
Publications, National Air Pollution Control Administration, U.S.
Department of Health, Education,  and Welfare, 1033  Wade  Avenue,
Raleigh, North Carolina  27605.
National Air Pollution Control Administration Publication No.  AP-74
                                   ii

-------
                             FOREWORD

      The Clean Air Act, as amended, (P.L.  90-148) vests primary
responsibility for overseeing Federal government activities in air
pollution control with the Department of Health,  Education, and Welfare.
At the same time,  the Act encourages cooperation among  Federal
agencies (Section 102.b), which extends to the statutory requirement
for economic cost studies of the impact of air quality standards  on the
nation's industries (Section  305. a).
      In partial fulfillment of the Act, the National Air  Pollution Control
Administration of the Department of Health,  Education, and Welfare
conducted a study of the economic  impact of air pollution controls on
gray iron foundries. Results of the study are contained in this report.
      Significant  contributions to the study were made by the Business
and Defense Services Administration of the Department of Commerce.
These contributions included:  development and  preparation of survey
questionnaires,  interviewing,  arranging financial data  retrieval from
the Internal Revenue Service,  data tabulation, and data analysis.  The
Gray and Ductile Iron Founder's Society,  the American Foundrymen's
Society,  and other individual firms also made contributions, without
which this  study  and report  would not have been possible.  Responsi-
bility for the analyses and conclusions rests, of course, with  the
National Air Pollution Control Administration.
                                  iii

-------
                         LIST  OF  TABLES

 Table                                                        Page

   1.  Distribution of Cupola-Rated Capacities	    7
   2.  Net Profits before Taxes as Percent of Gross Receipts
      by Size of Foundry	     13

   3.  Profitability of Foundries Compared to All Manufac-
      turing, 1966	   16
   4.  Profitability by Type of Furnace,  Existence of Controls,
      and .Size of Foundry Sales	   17

   5.  Averages for Profits, Gross Receipts, and Profit Rate
      by Size of Foundry Sales and Type of Furnace	   18
   6.  Air Quality Control Regions Designated as of  July 31,
      1970   	   24

   7.  Allowable Rate of Emission Based on Process Weight
      Rate,  San Francisco Bay Area Pollution Control District.   26
   8.  Foundries with Control Systems	   31

   9.  Control Equipment Depreciation Life	   34
  10.  Investment Cost by Type of Control  System on Cupolas
      for Typical Melt-Rate Capacities	   35

  11.  Conditions Affecting Installed Cost of Control Devices   . .   37

  12.  Equipment Costs as Percentage of Total Control Invest-
      ment 	   38

  13.  Annual Cost by Type of Control System on Cupolas for
      Typical Melt-Rate Capacities	   38

  14.  Operating and Maintenance Costs  as Percentage  of Total
      Annual Costs	   40

  15.  Dates  of Electric  Induction Furnace  Installations	   41

  16.  Model Plant Operating Characteristics and Value of
      Shipments	   44
  17.  Model Plant Financial Characteristics	   45
  18.  Relation of Pollution Control Costs to  Total Investment,
      Profit, and Value of Shipments by Model Plant	   46

B-l.  Selection of Plants for Interview Survey	   6Z
C-l.  Industry Economic Statistics:  Gray Iron Foundry Industry   71
C-2.  Industry Economic Statistics:  All Manufacturing Operations
      United States	   72

-------
Table                                                           Page
 C-3.  Industry and Product Distribution        .      •     ...    73

 C-4.  Cost of Materials. ...       .  .       .      	    74
 C-5.  Wholesale Price Index	    75
 C-6.  Consumption of Scrap and Pig Iron in Foundry Cupolas.  .    75

 C-7.  Number of Reporting Units in Gray Iron Foundry Industry
       (SIC 3321),  Grouped by Number of Employees:  1959-1967    76
 C-8.  Total Foundries and Foundries with Control Systems.  .  .    77

 C-9.  Gray Iron Foundries Classified by Output, Size Classes,
       and Types of Air Pollution Control Systems     	    78

C-10.  Geographic Distribution of Gray Iron Foundries by Type
       of Furnace  and by Type of Air Pollution Control Equip-
       ment       .  .     	      	    79

 D-l.  IRS Gray Iron  Foundry Tabulation	    84

 D-2.  IRS Corporate Subsample as  Proportion of All Gray Iron
       Foundries,  1966	    86

 D-3. , IRS Corporate Subsample Classified by Amount of Sales,
       1966.           ....    .    	    86

 D-4.  Selected Financial Averages  of Sample Gray Iron Foundries,
       Corporations  Only,  Classified by Size of Foundry Sales,
       1966	    88

 D-5.  Selected Financial Averages  of Sample Gray Iron Found-
       ries,  Corporations Only,  Classified by Types  of Furnace,
       1966	    89

 E-l.  Particle-Size Distribution of Particulates	    93
 F-l.  Investment  Cost Equations for Pollution Control Equipment  1Q2

 F-2.  Annual Cost Equations for Pollution Control Equipment  .   1Q5
 G-l.  Particulate Emissions in  Cupola Stack Gases	   112

 G-2.  Emissions Escaping from Controlled Cupolas     .     .     113

 G-3.  Penetration of Particulates by Type of Control Equipment  114

 G-4.  Range  of Inlet  Velocities through Charging Door	   115
                                   VI

-------
                        LIST  OF  FIGURES

Figure                                                       Page
    1.   Flow Diagram of Gray Iron Foundry	   6
    2.   Flow Diagram for Action to Control Air Pollution
        on Regional Basis	23
  F-l.  Investment Cost Versus  Melt Rate for Multiple
        Cyclones	103

  F-2.  Investment Cost Versus Melt Rate for Low-
        Energy Wet Scrubbers	103

  F-3.  Investment Cost Versus Melt Rate for High-
        Energy Wet Scrubbers	104
  F-4.  Investment Cost Versus Melt Rate for Fabric
        Filters	104
  F-5.  Annual Cost Versus Melt Rate for Multiple
        Cyclones	106

  F-6.  Annual Cost Versus Melt Rate for Low-
        Energy Wet Scrubbers	106
  F-7.  Annual Cost Versus Melt Rate for High-
        Energy Wet Scrubbers	107

  F-8.  Annual Cost Versus Melt Rate for Fabric
        Filters	107
                                vii

-------
                            CONTENTS

CHAPTER 1.  INTRODUCTION	   1
     Purpose	   1
     Scope	   1
     Study Techniques	   2
CHAPTER 2.  GRAY IRON INDUSTRY	   5
     Product Description	   5
     Melting and Production Process	   5
CHAPTER 3.  RECENT ECONOMIC CHANGES IN INDUSTRY .  .   9
     Introduction	   9
     Value  of Shipments	   9
     Value  Added	  10
     Conclusions	  13.
CHAPTER 4.  CURRENT ECONOMIC STATUS OF INDUSTRY
     AND OF INDIVIDUAL, FIRMS   	  15'
     Introduction	  15
     Profitability of Industry	  16
     Profitability within Industry	  16
     Magnitude  of Profits  within Industry    	  17
CHAPTERS.  AIR  POLLUTION CONTROL REGULATIONS  ...  21
     Introduction	  21
     Clean  Air Act	  21
     Types  of Regulations	  22-
     Expected Trends in Air Pollution  Control	  27
     Tax Reform Act of 1969	27
CHAPTER 6.  AIR  POLLUTION CONTROL EQUIPMENT  ....  29
     Introduction	  29
     Types  of Control Equipment	  29
     Use of Control Equipment	  30
CHAPTER 7.  AIR POLLUTION CONTROL COSTS	   33
     Introduction	   33
                                  IX

-------
      Concepts on Cost        	    33

      Analysis of Survey Data    	    34

      Electric Induction Furnaces   ....   	   	    40

CHAPTER 8.   FINANCIAL IMPACT OF AIR POLLUTION CONTROL
      ON MODEL GRAY IRON FOUNDRIES   	    43

      Introduction	     .       .    43

      Model Plants    .      ...     	       	    43

      Pollution Control Costs of Model Plants	    45

CHAPTER 9.   SUMMARY  AND CONCLUSIONS	    49

REFERENCES	     51

APPENDIX A.   CARD QUESTIONNAIRE AND LETTER OF
      TRANSMITTAL FOR MAIL SURVEY	    53

APPENDIX B.   INTERVIEW SURVEY	    59

APPENDIX C.   INDUSTRY SURVEY STATISTICAL TABLES . . .    69

APPENDIX D.   FINANCIAL DATA SURVEY	    81

APPENDIX E.   PARTICULATE EMISSIONS AND AIR POLLUTION
      CONTROL EQUIPMENT	    91

APPENDIX F.  ANALYSIS OF COST DATA	    99

APPENDIX G.   TECHNICAL DATA ON EMISSION  CONTROL  . .   109
BIBLIOGRAPHY	     ....     	119

-------
                    ECONOMIC  IMPACT
             OF  AIR  POLLUTION  CONTROLS
         ON  GRAY IRON  FOUNDRY INDUSTRY

                  CHAPTER 1.   INTRODUCTION

 PURPOSE
     The purpose of this  study is to identify the costs and to assess
the economic impact of controlling air pollution from gray iron found-
ries.
     Two principal considerations commend  the gray iron foundry
industry  to this type of study.  First,  the industry is an important
source of particulate pollution in most urban  metropolitan areas.  In
1968 the industry emitted  an  estimated 170, 000 tons of particulates or
2. 3 percent of the 7. 5 million tons of particulate emissions emitted in
the United States by industrial processes.  This output ranks it twelfth
among industries contributing particulate pollution to the  nation's
atmosphere. ^  Second, the industry includes  a. large number of small
establishments that may find it difficult to finance the purchase and
operation of pollution control equipment.  Approximately  a third of all
companies in this industry employ less than 20 employees. ^ Informa-
tion on the cost and effectiveness of control equipment is  useful in
directing and anticipating future developments by  control  officials in
managing air quality programs and by foundrymen in the purchase of
control equipment.
SCOPE
     In this study,  concentration was placed  on foundries that are
primarily producers of gray  iron castings. Foundries producing
malleable iron or steel castings are specifically excluded.  Many gray
iron foundries also produce a closely related  product called ductile

-------
iron.  Because the production processes and the pollution character-



istics  of these two are similar,  ductile iron foundries are included



among the foundries surveyed in the study.



     Although these foundries are the source of other pollutants, par-



ticularly carbon monoxide and odors,  the scope  of this study was



restricted to particulate pollution.



     Metal-melting processes  are the major uncontrolled source of



particulate emissions in foundries.  Other nonmelting processes gen-



erate particulate pollution, but these either  tend to be under control or



are not considered serious forms of air pollution in terms of neighbor-



hood effects.   This  report, therefore, addresses only the problems



associated with controlling melting processes.



     The greatest source of  particulate emissions  from melting pro-



cesses, both in terms of the  number of sources  and the emission



strength of each source, is the cupola.  The  second ranking source is



the electric arc furnace.  Electric induction furnaces,  which are rela-



tively  pollution-free,  enter the discussion for comparative  purposes.



     Pollution control costs  are examined for the various types of



systems commonly applied to reduce furnace emissions.  Factors that



may influence  control costs are tested between the  different types of



control systems and within types of systems.  The  control costs devel-



oped herein include various  components of both total investment costs



and annual costs. Model control costs are developed for typical sizes



of installations.




     Costs of  control are measured against the  economic strength of



the industry and against the financial condition of firms in the industry;



this allows explicit judgments on the impact of the absolute costs of



pollution control. In the absence of well-specified  supply and demand



relationships,  however, conclusions on the incidence or burden of air



pollution control may only be implied.





STUDY  TECHNIQUES




     The experience of foundries presently  controlling emissions from



their melting operations was  evaluated to furnish insight about the



economic impact of pollution  control on uncontrolled foundries.   Two
                                          GRAY IRON FOUNDRY INDUSTRY

-------
types of data were collected, individual company data and aggregated
industry data.
      The aggregated data include published and unpublished Federal
statistics and information gathered during the course  of this study. All
the known producers of gray iron were surveyed by mail in 1968 to
determine which ones had installed pollution control equipment,  the
types of equipment, and the costs.
      A stratified random sample of respondent firms  having pollution
control equipment was interviewed  to learn the production aspects of
individual foundries and their attendant pollution control costs.  Appen-
dix A presents the materials employed in both these surveys,  and
Appendix B  discusses the sampling process.
 Introduction

-------
               CHAPTER  2.  GRAY  IRON  INDUSTRY

PRODUCT DESCRIPTION
      The final product of the gray iron industry is  a heavy, brittle
metal popularly known as  cast iron,  but named by the trade after its
characteristic gray-white color.  The industry also produces castings
of ductile iron,  which are stronger and less brittle than cast iron.
      The chemical and physical properties of castings  vary according
to requirements of malleability, tensile strength,  and corrosion resist-
ance.  Individual castings range in size and weight from a few ounces
for door lock parts and computer gears to many tons  for mill rolls and
locomotive frames.
      The gray iron foundry industry produces components for a wide
variety of manufactured products:  automobiles, trucks, construction
and agriculture machinery,  rail-way equipment,  electrical equipment,
rolling mills, machine tools, and various defense products.  The
industry's products are commonly intermediate  to some final manu-
factured product.  Gray iron also finds a.  substantial market in munici-
pal castings  and soil  pipe.
      The industry faces competition from nonferrous castings, for-
gings, fabricated  steel,  plastics, and steel castings.
MELTING AND PRODUCTION  PROCESS
      The melting process is the major uncontrolled source of pollution
in the foundries.  The metal for gray iron castings  is made by melting
pig iron, scrap metal, unused casting parts,  rejected castings, and
small amounts of  alloying metal as needed.
      The molten metal is poured into sand molds that are prepared to
produce the desired casting shape.  Mold-making usually requires
wood patterns, synthetic  cores,  and sand. Sand  is packed around the
wood patterns or synthetic cores to hold the metal in the design of the
wood pattern when it  is removed or in the design of the synthetic core,
which dissolves under the heat of molten metal.

-------
     When the metal has solidified,  the sand and extraneous metal are



removed.  The sand is dried and reclaimed for further use.  The



extraneous metal is returned for resmelting.  Castings are, depending



on their final use,  either cleaned of  rough edges and shipped,  or trans-



ferred for further refinements such  as machining.   Figure 1 depicts the




flow of foundry operations.
                Figure 1. Flow diagram of gray iron foundry.







     Two types of furnaces are used to melt the metal, the cupola and



the electric furnace.  Cupolas are used for the majority  of metal



poured for gray iron casting purposes.   The mail survey of the indus-



try showed that,  of the approximately $3. 4 billion worth  of castings



produced by the respondents during 1967, a little over $3.0 billion in



castings originated in foundries with cupolas.  If these values are taken



as indexes of production, then cupolas accounted for 88 percent of gray



iron casting output.



      The cupola is heated by lighting a bed of coke  or wood.  During



melting operations,  air is forced into the cupola near the bottom while



a mixture of metal,  coke, and limestone is charged from an upper



level.  The contact between the ascending hot gases and  the descending
                                          GRAY IRON FOUNDRY INDUSTRY

-------
 charge provides a. quick and efficient melting process.
      The turbulence created in cupolas by forced air, hot gases, and
 descending charges, however,  generates more emissions than the
 other types of melting units.  The emissions from an uncontrolled
 cupola have been reported at 17. 4 pounds of particulates per ton of
 metal  charged.    The results  of the survey, however, indicated that an
 emission rate of 20 to 21  pounds per ton of  metal charged is more
 accurate.
     Another aspect of the cupola that distinguishes  it from other fur-
 naces is the hot gases laden with particulates that escape to the atmos-
 phere.  The gases vary in temperature from 1, 500°  to 2, 000° F. Such
 high temperatures give the gases a buoyancy that carries them to high
 levels.   Particulates are  then dispersed over wide areas.
      The melt rates of cupolas  range from 1 to 50 tons  of metal per
 hour.  Approximately a quarter of the cupolas melt between 1 and 4
 tons per hour; more than  half melt at 8 or less tons per hour. Table 1
 shows  the distribution of cupolas by capacity according to melt rate.
         Table  1.  DISTRIBUTION  OF  CUPOLA-RATED CAPACITIES
                                                        a,5
Melt rate,
tons/hr
1 2
3 - 4
5 - 6
7 8
9 - 11
12 14
15 17
18 - 21
22 - 26
27 30
31 40
>40

Percent
of
total
7.8
16.5
16.4
14.8
T3.7
7.6
6.3
6.7
4.6
2.2
2.6
0.8
100.0
Cumulative,
%
7.8
24.3
40.7
55.5
69.2
76.8
83.1
89.8
94.4
96.6
99.2
100.0

          aBased on 1,810 out of  2,530 known installations
            in  1965-1966.
Gray Iron Industry

-------
      Electric arc furnaces do not present as great an air pollution
problem;  they generate emissions between 5 and 10 pounds per ton of
metal melted.   These furnaces melt metal by passing an electric
current between two electrodes that are inserted in a. covered chamber
containing the metal.
      Another type of electric furnace is the induction furnace.  It melts
by introducing an electromagnetic field through an enclosed charge of
metal.  Emissions amount to about  2. 0 pounds  of particulates per ton
of metal charged.    If pig iron and clean casting returns  are charged,
no air pollution control equipment is usually necessary.  Control is
more necessary if the charge consists of either contaminated scrap or
magnesium  to produce ductile iron.  "*
      Electric furnaces are being used more and more throughout the
industry.  One reason certainly is related  to air pollution control —
electric furnaces have lower emission characteristics.  Another  reason
is the increased demand for the more refined castings.
      Furnaces other than cupola  or electric are reverberatory, cruci-
ble,  and blast furnaces.  Since  these are used  in less  than 2 percent
of all foundries and generate relatively low emissions, they are not
considered  in this report.
                                         GRAY IRON FOUNDRY INDUSTRY

-------
   CHAPTER  3.   RECENT  ECONOMIC  CHANGES  IN  INDUSTRY

INTRODUCTION
      Of 418 manufacturing industries,  the gray iron foundry industry
ranks 24th in employment and 49th in value of shipments.  These
ratings are based on data for 1967,  the most recent year for which
data are available.   Data for the period 1958 to 1967 are examined in
this  chapter to investigate the strength of the gray iron foundry indus-
try relative to  all the economic sector it occupies.  (Many of the basic
data are presented in Appendix C. )
      The reason for making this comparison is to permit some judg-
ments on the incidence of air pollution control expenditures.  The  costs
of air pollution control,  as with any increase in industrial production
costs, could, theoretically,  be  offset through one or a combination of
the following ways:  (1)  an increase  in product prices, (2) a decrease
in prices  paid for raw materials,  (3) a reduction in factor costs  of
labor and capital, or (4) a decline in profits.  This chapter inquires
into  the past behavior of prices, output, and profits as a. means of
identifying the  future incidence  of air pollution control costs.

VALUE OF SHIPMENTS
      One index of the economic strength of an industry is the value of
its shipments,  which was $2. 7 billion for gray iron foundries in  1967.
During the 9 years from 1958 to 1967, the value of shipments from gray
iron foundries  grew at a compound annual rate of  7. 4 percent.  The
growth rose from a 1958 level  of $1.4 billion; however, real growth in
value of shipments is 5. 4 percent per year since prices for gray iron
castings rose steadily at a rate of 2.  0 percent. '
      Byway of comparison, the value of shipments of all manufactur-
ing grew during the same period at a compound annual rate of 6. 1  per-
cent.  Correcting this for  commodity price increases at an annual rate
              Q
of 0.6 percent   yields a real growth rate of 5.5 percent.  Thus, the

-------
growth of production from gray iron foundries follows closely the be-
havior of all manufacturing.

VALUE  ADDED
     An indicative statistic  for comparing the relative economic con-
tribution of the gray iron industry is that of "value added, " which is
simply the value of shipments less the cost of materials  and  services
purchased,  such as scrap and electricity.  Value added includes,
therefore, labor charges (wages and salaries),  capital charges  (depre-
ciation, interest, rent), and profit.  Value added affords a truer pic-
ture of economic strength than value of shipments since the  latter may
be inflated by treating castings  shipped  by one foundry as materials  of
another foundry.
      The value added for gray iron foundries in  1967 amounted  to $1.6
billion.  Growth of value added has been at a  compound annual rate of
7. 9 percent for foundries and  7. 0  percent for manufacturing.  The
higher growth rate of value  added  for foundries may be explained by two
sets of factors.  First,  the  price of  castings  increased at a.  rate greater
than prices for  all commodities—2. 0 percent  versus 0. 6  percent^as
mentioned above.  Second,  the major materials costs for foundries
declined.

     Pig  iron and scrap iron are the two major materials purchased  for
gray iron production.  Pig iron and ferroalloy prices fell at an annual
rate of 2.  3 percent during the  decade through 1967,  and the price for
cupola cast iron scrap declined at  an annual rate of  0. 3 percent.  Thus
the relative increase in the price of castings and the relative decrease
in the prices of major material inputs permitted  a growth of value
added for foundries at a higher rate  than for all manufacturing.

      To learn what preserved the increase in value added of foundries
relative to that  of all manufacturing  requires an  examination of the
components of value added.  Attention should be  directed particularly
to the shares  of value added going to labor, capital, and profit.
Labor  Share
     Consider first the labor share,  which is measured by the fraction
of payroll in value added.   Foundries have been more labor-intensive


10                                        GRAY IRON FOUNDRY INDUSTRY

-------
relative to all manufacturing since the ratio of payroll to value added
for 1967 is  0. 619 among foundries and 0. 509 for all manufacturing.
This difference shows that nearly one-fifth more of the value added in
gray iron production was absorbed by wages and salaries than was the
case for all manufacturing.
      More  significant than the level of foundries' labor share is the
fact that it fell and fell relative to a similar decline in the labor share
of value added in total manufacturing. From 1958 to 1967, the labor
share  for foundries declined 5. 65 percent  from a  share of 0. 654; that
for all manufacturing fell 2. 55 percent from a level of 0. 521.   Thus,
the labor share of value added for foundries not only fell,  but it fell at
twice  the rate of all manufacturing.
      The results may appear inconsistent when it is noted that gray
iron foundries experienced, relative to all manufacturing, a. more
rapid  growth  from 1958 to 1967 in total employment, production employ-
ment,  production worker man-hours, payroll per employee, and wages
per production worker.   These observations suggest an investigation
of the  other two components of value added—capital costs and profit.
Capital Share
      Neither capital costs nor profits are  reported in a fashion that
allows direct comparison with the labor share.  Indirect comparisons
are possible,  however.   One proxy for estimating the behavior of the
capital share  is the level and  growth of capital expenditures.  Where
capital share  includes the interest and depreciation charges associated
with plant and equipment usage, and where usage is directly related to
capital expenditures, then capital share may be expected to  reflect
capital expenditures.
     It would appear that the  capital share for foundries has grown
since the annual level of expenditures increased more than five times
from $32. 6  million in 1958 to $173 million in 1967.  During  the same
period, capital expenditures for all manufacturing little more  than
doubled.  This represents a compound annual growth rate of 20.4 per-
cent for gray  iron foundries as opposed to  a rate of 8. 7 percent for all
manufacturing.
Recent Economic Changes in Industry

-------
     Several factors help explain * growth in capital share.    irs ,
technical requirements placed by the consumers of gray iron on
producers for castings of higher quality and  greater sophistication
force new investments.   Capital expenditures have also been encour-
aged by tight labor markets and rising wages.   A final factor that can-
not be overlooked has been the growing number of air pollution control
installations .
      Survey results indicate that nearly $70 million has been spent by
foundries for air pollution control purposes.  It must be realized,
however, that the results cannot be strictly included in the foregoing
total capital expenditures.  One reason is that  the $70 million includes
expenditures  from before  1958 and-into the first quarter of 1968.  A
second reason is that total capital expenditures are limited only to
firms that are primarily gray iron producers.   The $70 million figure
includes air pollution control expenditures on foundries  in other indus-
tries such as  automotive manufacturing.  Nevertheless, air pollution
 control investments have contributed  to the growth of capital expendi-
tures in the gray iron foundry industry.

Profit Share
      The  remaining share of value added to be examined is profit.
Although time-series data are not available on profits in gray iron
foundries,  the 1967 cross section of financial data provided by the
Internal Revenue Service and the changing size distribution of foundries
lead to a conclusion that profit share  also increased  through 1967.
Table 2 illustrates  that as foundries increase in size, they tend to be-
come more profitable as measured against gross receipts.
      The distribution of foundries by size has  been changing in favor of
larger  establishments.   From 1959 to 1967,  the number of gray found-
ries in the United States declined from 1,251 to 1, 055 (see Appendix C,
Table C-7).   Virtually all of this decline was accounted for by a de-
crease in the number of foundries  with relatively few employees.  The
number of foundries employing less than 50 persons dropped a third,
from 757 in 1959 to  506 in 1967.   The number of large reporting units,
however, registered substantial increases.  Units with 100 or more
 12                                        GRAY IRON FOUNDRY INDUSTRY

-------
            Table 2.   NET  PROFITS BEFORE TAXES AS  PERCENT
                OF GROSS RECEIPTS, BY SIZE OF FOUNDRY
Size of foundry sales,
$]06
<0.5
0.5 to <1.0
1.0 to <2.5
2.5 to <10.0
yo.o
Net profits before
taxes as percent
of gross receipts
4.18
6.63
6.71
7.36
6.95
employees increased 22 percent between 1959 and 1967; and the giants
of the industry, those with 500 or more employees,  increased 46 per-
cent in number.
CONCLUSIONS
      The preceding discussion indicates that the gray iron foundry
industry, as an industry,  was in an economic position to assume  air
pollution control expenditures.  The prices of its products  rose relative
to all manufacturing,  which suggests  that the burden of air pollution
control could have been shifted to the consumer at least partially.
What was not shifted forward to the consumer may have been absorbed
in profits that have probably been increasing relative to value added,
but that may have increased faster  in the absence of pollution control
requirements.  Foundries also are improving their  ability  to manage
sophisticated air pollution control technologies as is evident from the
rapid growth of capital expenditures.   An exception to the foregoing
conclusions may be the sector of the industry composed of  small
foundries.
      These conclusions must be  considered in view of the major  in-
fluence that a few large gray iron firms have on the industry.  The
four largest companies accounted for 27 percent of the industry's
value of shipments in 1966,  while the eight largest accounted for  37
percent. 9  it is also estimated that the 50 largest firms accounted for
fully two-thirds of total industry  shipments.
      Many of these large firms are "production foundries, "  which
have the capability to produce  economically large lots of closely


Recent Economic  Changes in Industry                                     13

-------
related castings.  Much of the output of these "production foundries"



is captive,  i.e. , produced for the parent company's end product.  In



fact,  about 40 percent of all gray iron casting production originates



from "captive foundries. " The rest is produced for sale.



      In contrast to the  large "production foundries" are the smaller



"jobbing foundries, " which produce relatively smaller lots  of varied



types and  sizes of castings on custom order.  This group is composed



of the largest number of foundries.  Furthermore, most gray iron



firms maintain only one establishment.
14                                       GRAY IRON FOUNDRY INDUSTRY

-------
   CHAPTER  4.   CURRENT  ECONOMIC STATUS OF INDUSTRY
                   AND OF INDIVIDUAL  FIRMS

INTRODUCTION
      This chapter seeks to answer several  questions:  (1) How profit-
able is the gray iron foundry industry compared to all manufacturing?
(2) How profitable are various sized firms in the industry?  and (3) How
does air pollution control affect profits?

      No attempt was made in either the postcard or the interview
survey to collect data bearing on the financial status or general profit-
ability of gray iron foundries because  of the  privileged nature of such
information.  Instead, arrangements were made for the Internal Reve-
nue Service to consolidate individual company financial data based on
1966 income tax returns, with selected distributions based  on size,
type of operation, type of organization, and  existence  of air pollution
control equipment.

      Portions of the  IRS data are not included in this  financial analysis
for technical reasons.  (See Appendix D for a more complete presenta-
tion.)  Data from firms having "captive foundries" were excluded
because the casting production tends to be integrated financially with
other manufacturing operations and, therefore,  sheds  little light on
foundry operations per se.  Also, foundries  that file tax returns as
partnerships, proprietorships, and small corporations have been
excluded for several reasons: problems  of comparability with corpo-
rate organizations, inadequate data, and  relatively few observations.

      Thus the subsample chosen for analysis was  that of 240 foundries
filing corporate tax returns, which represented 17 percent  of all
foundries identified in the postcard survey.  Their 1966 gross receipts
of $756 million amounted to 28 percent of the $2. 7 billion of shipments
of gray iron castings for that year.

-------
PROFITABILITY OF INDUSTRY
      Several measures of profitability are possible.   The following
presentation dwells on two of these measures _ (1).profits before taxes
as a percent of  gross  receipts and (2) profits after taxes as a percent
of gross receipts.
      The 240 foundries examined showed an average net profit before
taxes of 6.9 percent of gross receipts, which was lower than the com-
parable profit rate of 8. 1 percent for all of manufacturing.  Profit
rates after  taxes as *. percent of gross receipts  for foundries and for
all manufacturing confirm the pattern.  This may be  observed in Table
3, which is based in part on data in Table D-4 of Appendix D.

             Table  3.   PROFITABILITY OF FOUNDRIES COMPARED
                    TO ALL  MANUFACTURING, 196611
1 ndustry
Foundri es
All manufacturing
Net prof i ts before
taxes as percent
of gross receipts
6.9
8.1
Net profits after
taxes as percent
of gross receipts
4.0
4.6
 PROFITABILITY WITHIN  INDUSTRY
       As pointed out in the previous  chapter,  the profit rate varies
 positively with the  size of the foundry.  Table 4 provides a more
 detailed confirmation  of this behavior.  All three  categories—cupola and
 electric arc furnaces  with controls,  cupola and electric arc furnaces
 without controls, and  electric induction furnaces—show a tendency for
 net profits before taxes,  as a. percent of gross receipts,  to rise as
 foundry sales rise.  The  most pronounced variation occurs for electric
 induction furnaces, which require no controls.
       The presence or absence of air pollution controls,  however, has
 no clear, discernible  effect on profits.  It might be expected that profit
 rates would be lower for  cupola and  electric arc furnaces that have
 outlays for air pollution control purposes.   Also,  to the extent that
 induction furnaces are a form of pollution control  and  entail higher
 casting-melting costs,  one might  expect their profit rate to be  lower.
 The fact that profits bear  no observable relation to the use of air


 16                                        GRAY IRON FOUNDRY INDUSTRY

-------
        Table It.  PROFITABILITY  BY  TYPE OF FURNACE, EXISTENCE
                OF CONTROLS, AND SIZE OF FOUNDRY SALES
Furnace type
Cupola/arc
(controls)
Cupola/arc
(no controls)
Electric
induction
Size of foundry sales,
$106
<0.5
0.5 to <1 .0
1 .0 to <2.5
2.5 to <10.0
iio.o
Average
<0.5
0.5 to <1 .0
1 .0 to <2.5
2.5 to <10.0
ilO.O
Average
<0.5
0.5 to <1.0
1.0 to <2.5
2.5 to <10.0
L10.0
Average
Net profits before
taxes as percent
of gross receipts
3.38
5.25
7.20
6.22
7.02
6.86
it. 92
7.00
6.52
7.73
3-29
6.18
-6.84
5.97
k.07
Ht.61
15.79
12.25
pollution abatement processes and equipment may be explained by the
absence of data on other factors.
      One factor, for example, that may influence profits is the benefit
derived from pollution reduction  in forms of reduced expenditures for
building painting, roof maintenance,  and insurance for personal injury
and property damage.  While attempts were made to quantify these
benefits for all foundries, the survey was able to do little more than
prove their existence for some foundries.
MAGNITUDE OF PROFITS WITHIN  INDUSTRY
      The average net profit before taxes of "jobbing" foundries with
casting sales under $500,000 amounted to $11, 00.0 in 1966,  a profit rate
of 4. 18 percent.   Firms that shipped from $0. 5 to $1 million in 1966
had an average profit of $52, 000  before taxes and «. profit rate of 6. 63
percent.  These  results are presented in Table 5 from data collected
in Table D-5 of Appendix D.  The table shows that firms that ship more
Current Economic Status of Industry and of Individual Firms
17

-------
        Table 5.   AVERAGES FOR PROFITS, GROSS RECEIPTS,  AND PROFIT RATE,
                 BY  SIZE OF FOUNDRY SALES AND TYPE OF FURNACE
Size
of foundry
sales, $106
<0.5


0.5 to <] .0


1.0 to <2.5


2.5 to <]0.0


>.10.0


Furnace type
Electric induction
(no controls)
Cupo 1 a/arc
(controls)
Cupola/arc
(no controls)
Average
Electric induction
(no controls)
Cupola/arc
(controls)
Cupola/arc
(no controls)
Average
Electric induction
(no controls)
Cupola/arc
(controls)
Cupola/arc
(no controls)
Average
Electric induction
(no controls)
Cupola/arc
(controls)
Cupola/arc
(no controls)
Average
Electric induction
(no controls)
Cupola/arc
(controls)
Cupola/arc
(no controls)
Average
Net profits
before taxes,
$103
-15
1 1
13
11
41
53
53
52
54
135
113
119
750
329
276
329
2,309
4,298
698
3,277
Gross
receipts ,
$103
219
325
264
263
686
1 ,009
757
784
1,326
1,874
1,733
1,771
5,132
5,287
3,569
4,470
14,617
61,222
21,162
47,141
Profits before
taxes as percent
of gross receipts
-6.84
3.38
4.92
4.18
5.97
5.25
7.00
6.63
4.07
7.20
6.52
6.71
14.61
6.22
7.73
7.36
15.79
7.02
3.29
6.95
18
                                          GRAY IRON FOUNDRY INDUSTRY

-------
than $1 million of castings garner more profits and achieve higher
profit rates than their smaller competitors.
       Knowing the magnitude of profits within the industry offers some
basis for comparing the impact of air pollution control expenditures.
This comparison will be given in Chapter 8.
Current Economic Status of Industry and of Individual Firms                      19

-------
    CHAPTER  5.  AIR POLLUTION  CONTROL  REGULATIONS

INTRODUCTION
      Industry decisions on whether and how to control air pollution
have been considered -within the existing pattern of varying state and
local standards,  regulations, and enforcement practices.  Foundries
•with cupola controls tend to be located in those states  or metropolitan
regions with air  pollution control regulations.  Since the number of
states and  localities -with regulations is growing rapidly, most found-
ries may expect  to come under the influence of some air pollution
control agency in the next several years.  The Federal influence will
be indirect because of the  provision of the Clean Air Act "that the pre-
vention and control of air pollution at its source is the primary respon-
sibility of States  and local governments."
CLEAN  AIR ACT
      The intent  of the  Clean Air Act and the policy of the National Air
Pollution Control Administration are that air pollution be considered
as an individual problem in each region of the country, and that it be
attacked by a combination of State and  local governments.   The intend-
ed primary role  of the  Federal government  is to provide information
and assistance to the states and local governments to make certain
that the machinery of the Act operates at peak efficiency and to ensure
that states discharge their responsibilities as outlined in the Act.
      Under  the Clean Air Act, the Federal government issues cri-
teria on the effects of various air pollutants on health and property,
and issues information on the most effective and economical ways to
control the sources of those  pollutants. Once the  states receive this
information, they are expected to set air quality standards  in regions
whose boundaries have been  established by the Federal government.
Air quality standards are prescribed maximum limits  an the levels  of
air pollution that can be reached,  usually during a given period of
time.  In selecting  air quality standards, a  region is,  in effect,
                                 21

-------
deciding how clean it wants  its air to be.  An essential part of the
standard-setting process is a set of hearings at which the public and
industry may express their preferences.
      After states select air quality standards for their designated air
quality control regions, they must develop an implementation plan that
will provide an emission-reduction strategy to attain the air quality
standard.   The implementation plan sets forth the sources to be con-
trolled, the degree of control to be accomplished,  and the time
schedule to be met.
      The  mechanics of the Act are shown in Figure 2,  along with the
statutory time limits allowed for each step in the process.  The process
begins  for regions once they have been designated  and after air quality
criteria and control technique information have been published.
       The National Air Pollution Control Administration has issued to
the  states air quality criteria and control technique information on the
pollutant of immediate importance to foundries—particulate matter.
       Table 6 lists the  39 air quality control regions that have been
 designated as of July 31, 1970.   It is expected that within the next year,
 regions will be  designated  for all other major metropolitan areas  of
 the country and for  most communities with more than 25, 000 population.

 TYPES  Of  REGULATIONS
       Five types of  emission standards have been predominant:  con-
 centration,  collection efficiency, process  weight rate, potential emis-
 sion rate,  and visible emissions. Each of these regulations will be
 explained and then evaluated  regarding its future use.
       Concentration standards restrict pollutant mass  per unit gas
volume, such as pounds of particulate matter per thousand pounds of
gas, grains per standard cubic foot, parts per million, and micro-
grams  per standard cubic  meter.  These types  of regulations are
acceptable for pure  combustion processes that can be compared by
standardizing gas volume.   Because foundries utilize processes other
than pure  combustion, concentration regulations are of limited value.
      Another weakness of concentration standards  is that pollutant
concentration alone does not register total emissions,  because  the gas


22                                        GRAY IRON FOUNDRY INDUSTRY

-------
TJ
o
30
U. S. DHEW DESIGNATES
AIR QUALITY
CONTROL REGIONS

U. S. DHEW DEVELOPS AND
PUBLISHES AIR
QUALITY CRITERIA
BASED ON SCIENTIFIC
EVIDENCE OF AIR
POLLUTION EFFECTS

U. S. DHEW PREPARES
AND PUBLISHES
REPORTS ON
AVAILABLE CONTROL
TECHNIQUES

—
•*•«
?fm\ f™>\
UAYS) 1 DAYS ;}
STATES SET
STATES INDICATE SAP'™
TO SET STANDARDS (PUBLIC QUAFLTT™EQNATV
REGIONS
*
STATES SUBMIT
STANDARDS FOR
U.S. DHEW REVIEW
^1
STATES ESTABLISH
COMPREHENSIVE PLANS
AIR QUALITY
STANDARDS
t
STATES SUBMIT
IMPLEMENTATION PLANS
FOR U.S. DHEW REVIEW
r^
STATES ACT TO CONTROL
AIR POLLUTION IN ACCORDANCE
WITH AIR QUALITY STANDARDS
AND PLANS FOR IMPLEMENTATION
                                                Figure 2.  Flow diagram for action to control air pollution on regional basis.

-------

1 .
2.
3.
4.
5.
6.
7.
8.
9.
10.
11 .
12.
13.
14.
15.
16.
17.

18.
19.
20.

Washington, D. C.
New York City, N. Y.
Chicago, 111.
Philadelphia, Pa.
Denver, Colo.
Los Angeles , Cal i f .
St. Louis, Mo.
Boston, Mass.
Ci ncinnati , Ohio
San Francisco, Calif.
Cleveland, Ohio
Pittsburgh, Pa.
Buffalo, N. Y.
Kansas City, Mo.
Detroit, Mich.
Baltimore, Md.
Hartford, Conn.
Springfield, Mass.
1 ndianapol is , 1 nd.
Minneapolis St. Paul, Minn.
Providence, R. 1 .

21 .
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36,
37.
38.
39.


l^-rcn AS OF JULY 31, 1370
Seattle Tacoma , Wash.
Louisvi lie, Ky .
Dayton, Ohio
phoenix, Ariz.
Houston, Texas
Dal las Ft. Worth, Texas
San Antonio, Texas
Bi rmi ngham, Ala.
Toledo, Ohio
Steubenvi lie, Ohio
Chattanooga, Tenn.
Atlanta, Ga.
Memphi s , Tenn.
Portland, Oregon
Miami , Fla.
Oklahoma City, Okla.
Omaha, Neb.
Burlington, Vt.
Vi rgin Is lands


 volume is not taken into account.  Thus, a. low concentration could be
 incorrectly associated with low emissions.   This is particularly rele-
 vant to foundries that infiltrate large quantities of air through the
 charging door.  Robert Mcllvaine   illustrates how deceptive concen-
 tration can be.  For a  cupola with particulate emissions of 170 pounds
 per hour, the concentration is 0. 96 grain per standard cubic foot with
 a. certain effluent gas volume.  A concentration of 0.24 grain per
 standard cubic foot was measured with a four-fold increase  in gas
 volume but with no change in the mass emission  rate of 170  pounds per
 hour.
      A single concentration standard requires about the same  degree
 of control for large as for small sources; this fact is subject to criti-
 cism because large sources  emit more pollution  and are generally able
to afford more efficient collectors.
24
                                          GRAY IRON FOUNDRY INDUSTRY

-------
      Another type of regulation is one based on percentage removal of
participate matter from the gas stream.  This collection efficiency
regulation has the same weaknesses as concentration regulations
because it does not:  (1) limit total emissions generated by the process,
(2) usually vary degree of control according to size of source,  and (3)
prevent circumvention by operators who recirculate collected particles
or certain large particles through increased gas flow rates  to increase
collection efficiency,  usually at the expense of increased emission
rates.
      Process weight rate regulations and potential emission rate
regulations do not have the three deficiencies.  These regulations:
(1) restrict total emissions  in pounds per hour,  (2) vary in most appli-
cations according to source size,  and (3) eliminate circumvention by
focusing on emissions  rather than collections.  Allowable emissions
vary according  to the weight of materials processed per hour,  as  in
the process weight regulation, or according to the uncontrolled emis-
sion rate,  as in the potential emission  rate regulation.
      The  process weight regulation of the San Francisco Bay Area Air
Pollution Control  District (Table 7) has been widely adopted by other
communities and by states.   In this regulation,  as the process •weight
rate increases, the allowable emission rate becomes more  stringent
in terms of pounds of emissions per ton of material processed.
      Process weight rate regulations generally apply to all industries.
Some jurisdictions, however, have special provisions for a certain
category of small gray iron cupolas.   The New York State regulation,
for example,  specifies a. more lenient process weight rate regulation
for existing jobbing cupolas, which are defined  as those melting less
than 50, 000 pounds per hour or operating less than 4 hours per day.
      The  Pennsylvania pollution potential regulation limits allowable
emissions in pounds per hour.  Potential emission rate is calculated
from  some suitable parameter and an emission factor associated with
that parameter.  In the case of foundries,  the parameter is melt rate
in tons  per hour,  and the emission factor is pounds of particulate
matter  produced per ton of metal melted.  The  regulation contains
several emission  limits that apply to different areas of the state.


Air Pollution Control  Regulations                                          25

-------
        Table 7.  ALLOWABLE  RATE OF EMISSION BASED ON PROCESS
                 WEIGHT RATE,  SAN  FRANCISCO BAY AREA
                   AIR POLLUTION  CONTROL DISTRICT
Process weiqht rate,
Ib/hr
100
200
400
600
800
1 ,000
1 ,500
2,000
2,500
3,000
3,500
4,000
5,000
6,000
7,000
8,000
9,000
10,000
12,000
16,000
18,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
120,000
140,000
160,000
200,000
1,000,000
2,000,000
6,000,000

0.05
0.10
0.20
0.30
0.40
0.50
0.75
1 .00
1.25
1.50
1.75
2.00
2.50
3.00
3.50
4.00
4.50
5.00
6.00
8.00
9.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
60.00
70.00
80.00
100.00
500.00
1 ,000.00
3,000.00
Ib/hr
0.551
0.877
1 .40
1.83
2.22
2.58
3.38
4.10
4.76
5-38
5.96
6.52
7-58
8.56
9.49
10.4
11.2
12.0
13.6
16.5
17.9
19.2
25.2
30.5
35.4
40.0
41.3
42.5
43.6
44.6
46.3
47.8
49.0
51.2
69.0
77.6
92.7
      Visible emission regulations are based on the opacity of the
visible plume.  Such regulations  are widely accepted by State and local
jurisdictions, and have been upheld in court. 13  The principal useful-
ness of visible emission  standards is in (1) ease of source surveillance
when large numbers  of sources are present and (2) direct reduction of
the quantity of very small particles that would otherwise contribute
significantly to reduction in atmospheric visibility.  Enforcement of
such standards involves the visual judgment of individual observers
26
                                          GRAY IRON FOUNDRY INDUSTRY

-------
whose observations can vary widely under various conditions of lighting
and background.   Trained observers, however, can reproduce  observa-
tions  to a reasonable degree  of accuracy.
      It can be expected that, in the future, process weight and potential
emissions regulations will be more  common in conjunction with an
opacity regulation.
EXPECTED  TRENDS IN AIR POLLUTION CONTROL
      The Federally designated air quality control regions have closely
followed the areas defined by respective Standard Metropolitan Statisti-
cal Areas (SMSA's).  If all of the more than 200 SMSA's become parts
of air quality control regions, then the  number of foundries facing air
pollution  control will be determined largely by their location in SMSA's.
Survey results show that 58 percent of the gray iron foundries are
located in SMSA's,  but smaller foundries tend to be outside SMSA's
more frequently than do large ones.  Approximately half of the foundries
with gray iron shipments between $10, 000 and under $500, 000 are
presently located in SMSA's.   Nearly two-thirds of those shipping more
than $0.5 million in castings  are in  SMSA's.  Thus, larger foundries
have  a greater likelihood of facing air pollution control regulations.
TAX REFORM ACT  OF 1969
      The U.S.  Tax Reform Act of  1969 provides  for a 5-year straight-
line depreciation of certified  air pollution control facilities.  Equipment
covered must be placed in operation after December 31,  1968,  and
before January 1,  1975.  Furthermore, the facilities must control
pollution from plants in operation before January  1, 1969.  Investments
that merely diffuse pollutants, e.g., taller stacks, are  excluded from
the provision.
      States must certify to the Department of Health, Education,  and
Welfare that the equipment conforms with their programs or  regula-
tions. Equipment  is not eligible if its cost will be recovered over the
actual useful life.  Where the useful life of control equipment extends
beyond 15 years,  only part of the capital expenditure qualifies.  For
example,  if the useful life is  20 years,  then three-fourths of the capital
value may be depreciated over 5 years.


Air Pollution Control Regulations                                          27

-------
      CHAPTER  6.  AIR POLLUTION CONTROL  EQUIPMENT

INTRODUCTION
      This chapter discusses the operating and efficiency characteris-
tics of the several types of equipment commonly available for control
of pollutants in foundries. The distribution of control systems is
presented according to type of melting operation,  size of foundry,  and
location.
TYPES OF  CONTROL EQUIPMENT
      The term "emissions control system" refers to all equipment
installed at the plant for the  purpose of reducing furnace emissions.
Such equipment may, for example, include: (1) the cap of the cupola,
(2) the ductwork leading from the cupola to the  control device,  (3) the
quenching chambers for reducing gas temperatures, (4) the control
device,  (5) the demister (if needed) for removing moisture droplets
from the gas stream,  (6) the fans and pumps,  (7) the particulate  dis-
posal and water-circulating systems, (8) the afterburner  inside the
cupola,  and (9) automated electrical  devices that monitor the system.
      For control of particulate emissions,  one of the following types
of systems of air pollution control equipment is commonly used by
gray iron foundries with cupola furnaces.
Wet Caps
      The wet cap collection device consists basically of a conical
"weatherhood" above the  cupola stack. Water pours over the  conical
section  to produce  a water curtain through which the hot gases must
pass.   Overall collection efficiency is not likely to exceed 60 percent
of solid particulates, on a. total weight basis.    Wet caps will not meet
a typical process weight regulation such as that presented in Table 7.
Multiple Cyclones
     Multiple cyclones include devices in which a vortex is created to
separate particles from the main gas stream.   These particles then
                                 29

-------
fall by gravity to locations from which they may be removed from the


collector.  Usual collection efficiency is in the 70 to 85 percent range


                    14
(total weight basis).



Wet Scrubbers


       Wet scrubber systems use a. liquid, usually water,  to separate or


assist in the separation of particulates from the  gas  stream.  Collec-


tion efficiency will be a. function of energy used to obtain the interaction


between dispersed  liquid droplets and particulates.


       Low-energy wet scrubbers  collect with an  85 to 95  percent


 efficiency.    For  the purpose of this report, low-energy scrubbers


 include all those designs with an  energy input up to  25 inches water


 gauge.  Scrubber designs with energy requirements  greater than 25


 inches water gauge are classed as  high-energy wet  scrubbers.   These


 collect more than 95 percent of uncontrolled emissions.  *



 Fabric Filters


       Fabric filters are devices that remove particulate matter from


 gas streams by retention of the particles in or on a. woven or felted


 fabric through which the gas flows.  Collection efficiency can be main-


 tained at more than 99 percent.    This equipment is used on electric


 arc and  cupola furnaces.


       For each type of air pollution control equipment, a detailed


 description is presented in Appendix E.



 USE  OF CONTROL EQUIPMENT


       A survey conducted by BDSA identified 1, 376 operating gray iron


 foundries throughout the United States in 1967.   Of these, 204 foundries,


 or 15 percent of the total — accounting for approximately 40  percent of


 total  value  of gray iron production — had some type  of air pollution con-


 trol system.  (Tables C-8 through C-10 in Appendix C.)


       The number of gray iron foundries found to have installed air


pollution control equipment was greatest among  those with a relatively


high value of production (Table 8).   Foundries with production worth


more  than $2. 5 million each in 1967 accounted for nearly half of all


foundries  with air pollution control equipment,  although their number
3D                                        GRAY IRON FOUNDRY INDUSTRY

-------
               Table 8.   FOUNDRIES WITH CONTROL SYSTEMS
By






value of production in 1967,
$106
<0.5
0.5 to 
-------
     The wet-cap system was used on 95 of the 180 controlled cupola
furnaces.  Wet caps are not used on non-cupola furnaces.  Foundries
using wet caps were geographically distributed on * comparable basis
with the distribution of all foundries.
      The fabric-filter system was used on approximately 30 percent
 of all controlled foundries.  More than half of these (38 foundries) were
 located in California, where local regulations necessitate high collec-
 tion efficiencies.  One-third of the foundries using fabric filters had
 electric arc furnaces, and two-thirds had  cupolas.
      Wet scrubber systems were used  at about 15 percent of all con-
 trolled foundries.  Twenty of these foundries, or three-fifths of the
 total number using wet scrubbers,  were located in the East North-
 Central Region. Most of the foundries with wet scrubbers operated
 cupolas; only four foundries applied scrubbers to electric arc furnaces.
        Multiple cyclones were used on only 15 foundries, 8 of which were
  in the East North-Central Region.
        An electrostatic precipitator was reported  being used by only one
  foundry in the United States.
        Electric induction furnaces  without  pollution controls  were used
 by 73  foundries,  or  5 percent  of all reporting foundries.  One-third of
 these  are in the East North-Central Region, with the rest scattered
 throughout the  country.  About half of  the foundries melting with elec-
 tric induction furnaces are small, with individual foundry production
 for 1967 under  $500, 000; in fact,  the distribution of electric induction
 furnace, foundries by production-size class  differs only slightly from
 the distribution of all foundries.
 32                                        GRAY IRON FOUNDRY INDUSTRY

-------
         CHAPTER  7.   AIR POLLUTION CONTROL COSTS

 INTRODUCTION
      This chapter analyzes the results of survey interviews of gray
 iron foundries equipped with air pollution control equipment.  A total
 of 67 interviews was conducted during 1968 among all sizes of foundries.
 These interviews  focused on the costs associated -with pollution control,
 and on the operating and engineering features of foundries that affected
 costs.  The emphasis will be on cupola control systems,  although in-
 formation was collected on foundries  operating furnaces other than
 cupolas and for control systems on nonmelting operations.  According-
 ly,  the principal analysis presented comes from data collected on 51
 gray iron foundries with cupolas controlled by wet caps, mechanical
 collectors,  wet scrubbers, and fabric filters.  (See Appendix B for a
 detailed  explanation of the survey. )
CONCEPTS ON COST
      Data were collected for two basic cost categories:  investment
 costs and annual costs.  The investment costs category sums the
 expenditures for the primary control  equipment, any auxiliary equip-
 ment,  installation, and  research and  development.  For the research
 and development category,  the number of respondents was negligible,
 and the total amount involved -was insignificant. To compensate for
 differences in installation dates, investment  costs were converted to a
 common base of 1967 dollars.   This adjustment was made by using an
 implicit  price deflator  series for nonresidential fixed investment con-
 sisting of a. "structures" and an "equipment"  component; basic and
 auxiliary equipment costs were adjusted by use of the equipment com-
 ponent of this series.   '
     Annual costs, the  other basic cost category,  include operating and
 maintenance costs associated with the control system, and capitalized
 cost associated with the investment.  Capitalized cost consists of
                                 33

-------
depreciation and cost of capital.  Depreciation was applied on a
straight-line "basis to the various types of control equipment according
to the schedule shown in Table  9.

            Table 9.  CONTROL EQUIPMENT DEPRECIATION LIFE
               Equi pment	Li fe, yr
            Wet cap                                11
            Multiple cyclone                       15
            Wet scrubber                            9
            Fabric f i Her                           9

       These figures for depreciation life were used to recalculate the
 depreciation data reported in the survey.  An accurate portrayal of
 the economic life of most of the systems and a comparison with the
 depreciation life cannot be made because most systems have been in
 operation less than 9  years.
       The long-term cost of capital was calculated at 7 percent of the
 total investment cost to account for interest incurred or,  if a firm
 used its own  capital,  to account for the  opportunities foregone by
 committing funds for air pollution control rather than for some revenue-
 producing investment.  Annual costs are underestimated to a certain
 extent since it was not possible to allocate a portion of plant overhead
 to the control system.

 ANALYSIS OF SURVEY  DATA
 Investment Costs
       Investment costs of the control systems  surveyed varied widely
 according to type, complexity, and size of system.  The greatest
 differentiation in complexity of a given type of system exists between
 relatively simple low-energy wet scrubbers  (up to 25-inch static pres-
 sure drop as  in spray,  impingement,  and packed-bed systems) and the
 higher energy, venturi-type wet scrubbers (25- to 70-inch pressure
 drop).  The investment costs  of  these two  categories are considered
 separately.

      A number of operating variables are  indicative of control system
size.  Among them are  melt rate of the cupola, gas volume throughput,
                                          GRAY IRON FOUNDRY INDUSTRY

-------
and production volume.   Analysis of collected data indicated that in-
vestment cost varies most directly with melt rate.  For those found-
ries that have several cupolas operating on alternate schedules, yet
controlled by the same control system,  cost varies with the melt  rate
of the largest cupola or cupolas operated at any one time.
     Table 10 presents total investment cost as a function of cupola
melt rate for each type of control system.  These costs are derived
from functions presented in Appendix F   Except  for fabric filters,
the costs show economies of scale in investments for pollution control
systems.  In mechanical collectors, for example, the  cost  of control-
ling a 16-ton-per-hour cupola is  about one and a half times  the cost of
controlling an 8-ton-per-hour unit, rather than twice the cost as might
be expected.

    Table 10.  INVESTMENT COST BY TYPE OF CONTROL  SYSTEM ON CUPOLAS
                   FOR TYPICAL MELT-RATE  CAPACITIES
                               ($103)
Melt rate,
tons/hr
4
6
8
12
16
20
Multiple
cyclone
a
a
113
144
174
205
Low-energy
wet scrubber
44
51
58
72
87
109
High-energy
wet scrubber
a
a
a
194
229
265
Fabri c
f i Iter
45
80
115
185
255
324
 No observations  on facilities of this size.
      Cost functions have not been derived for wet caps,  since they
seldom meet control efficiency standards.  The average investment
cost for wet caps,  however,  has been calculated as $4,903 per ton of
melt  rate.  Individual control systems vary from as low as  $1, 031 to
as high as $9, 825 per ton of melt rate.  Major variables affecting the
investment costs of wet caps include:  number of  cupolas serviced;
the materials used in construction —hot rolled or stainless  steel; and
the method of disposing of the dust-laden water — whether by draining
to an existing disposal point or by draining to a clarifier tank and re-
turning the "clean" water to the collector.
Air Pollution Control Costs
                                                                    35

-------
     Multiple-cyclone  costs may be expected to vary according to
requirements on ducting and cooling.  Added to the costs  associated
•with these variations are costs related to the number of cyclones or
banks  of cyclones in the control system.
      Variation in installed costs of wet scrubbers stems from the large
number of equipment designs,  use of  corrosion-resistant metals,  and
a. spread in the operating pressure drops from 4 to 70 inches water
gauge.
      Fabric-filter installations  usually are designed for  either batch
 or continuous foundry operations.   Batch-type collectors are cheaper,
but normally are suited only to small foundries that melt during a part
 of a shift.
       Costs  also may vary for the  same type of control systems  in-
 stalled on comparable-size cupolas.  Factors  contributing to such
 cost variance are summarized in Table 11.
 Investment  Components
       Basic and auxiliary equipment costs  are  the principal components
 of total investment.  As shown in Table 12, equipment costs represent
 from 57 to 74 percent of total control investment.
       On an individual foundry basis,  the ratio of equipment costs  to
 total investment varies  considerably. Variations in installation re-
 quirements  and labor  costs were the  main factors affecting this  ratio.
 Annual Costs
       A comparison of the economic impacts of different  control systems
 for foundries cannot be made solely on the basis of investment costs.
 Variations in life  spans among different equipment types, as well as
variations in operating and maintenance costs, must be considered in
 order to gain a true cost-comparison of alternatives.  These factors
and others that are considered in the derivation of total annual cost
are listed on the interview form shown in Appendix B.
      Since all relevant cost variables are included  in total annual cost,
alternate control systems for a. given cupola size should  be compared
on an annual  cost basis.  Total annual control  costs are presented in
Table 13.  Economies  of scale are again evident for wet  scrubbers,


36                                         GRAY IRON FOUNDRY INDUSTRY

-------
  Table  11.   CONDITIONS AFFECTING  INSTALLED COST OF CONTROL DEVICES
                                                                      12
Cost category
Equipment trans-
portation
Plant age
Available space
Corros i veness
of gas
Complexity of
start-up
1 nstrumentation
Guarantee on
performance
Degree of
assembly
Degree of
engi neering
Uti 1 i ties
Col lected waste-
material
hand! ing
Labor
Low cost
Minimum distance; simple
loading and unloading
procedures
Hardware designed as an
integral part of new
plant
Vacant area for location
of control system
Noncorrosive gas
Simple start-up, no exten-
sive adjustment
requi red
Little requi red
None needed
Control hardware shipped
completely assembled
Autonomous "package"
control system
Electricity, water, and
waste-disposal
faci 1 i ties readi ly
aval lable
No special treatment
faci 1 i ties or
handl ing requi red
Low wages in geographi-
cal area
High cost
Long distance; complex pro-
cedure for loading and
unloading
Hardware installed into
confines of old plant
requiring structural or
process modification or
al teration
Little vacant space re-
quires extensive steel
support construction and
site preparation
Acidic emissions requiring
high alloy accessory
equipment using special
handling and construc-
tion techniques
Requires extensive adjust-
ments; testing; consider-
able downtime
Complex instrumentation
required to assure reli-
ability of control or
constant monitoring of
gas stream
Required to assure designed
control efficiency
Control hardware to be
assembled and erected in
the field
Control system requiring
extensive integration
into process; insulation
to correct temperature
problem; noise abatement
Electrical and waste-treat-
ment facilities must be
expanded; water supply
must be developed or
expanded
Special treatment facil-
ities and/or handling
requi red
Overtime and/or high wages
in geographical area
Air Pollution Control Costs
                                                                         37

-------
               Table  12.  EQUIPMENT COSTS  AS  PERCENTAGE
                     OF TOTAL CONTROL INVESTMENT
               System
          Viet caps
          Multiple cyclones
          Viet  scrubbers:
             Low-energy
             High-energy
            Fabri c f i Hers
            All  types
Equipment  costs  as  percent
of total  control  investment
            63
            72

            57
            74
            72
             71
       Table 13.   ANNUAL  COST BY TYPE OF CONTROL  SYSTEM ON CUPOLAS
                    FOR TYPICAL MELT-RATE CAPACITIES
                                 ($103)
Melt rate,
tons/hr
4
6
8
12
16
20
Multiple
cyclone
3
a
18
33
50
67
Low-energy
wet scrubber
13
15
16
20
24
28
High-energy
wet scrubber
a
a
a
60
72
84
Fabric
filter
13
24
34
55
77
a
      dNo observations on facilities  of  this size.


 but not for multiple  cyclones and fabric filters.
       On the  basis of total annual cost, low-energy wet scrubbers
 appear to be considerably less costly than multiple cyclones, even
 though wet scrubbers achieve a. higher collection efficiency.  This
 relationship  is not unreasonable  in view of the fact that wet scrubbers
 have an average  rated  gas volume of 2, 000 acfm per ton of melt rate,
 while the conversion ratio for multiple cyclones is 5, 200 acfm per ton
 of melt rate.   In effect, the multiple cyclones surveyed were designed
 for gas volumes 2. 6  times as great  as  the rated gas  volumes of  wet
 scrubbers on cupolas of comparable size.
      Of the two types of high-efficiency collector systems, fabric
filters account  for all control systems  on cupolas  of less than 12 tons
38
                                           GRAY IRON FOUNDRY INDUSTRY

-------
per hour.  High-energy wet scrubbers, however,  predominate in the
cupola-size range from 12  to 50 tons per hour.  This relationship is
supported by the fact that the annual cost of high-energy wet scrubbers
falls below the annual cost  of fabric filters as cupola size rises above
12 tons per hour. Note the annual cost functions in Appendix F.
      The average annual cost for wet caps is $1,497 per ton  of melt
rate.   The range, however, is from $470 to  $3, 096 per ton of melt
rate.
Operating and Maintenance  Costs
      Operating and maintenance (O and M) costs per hour of  operation
show  a considerable range  for each of  the different types of control
equipment.  One reason may be the difficulty some plants had in
developing this information; internal bookkeeping and auditing systems
often  include these expenditures in total plant-operating costs.  Also,
operating and maintenance  costs vary with such factors as the quality
and suitability of the  control equipment and a foundry's operating and
maintenance  practices.  Operating and maintenance cost  factors pecu-
liar to each type of control  system are discussed below.
Wet Caps  "O and M"  costs for wet caps involve primarily the costs
of water, electric energy,  maintenance associated with pumping water,
and disposal  of collected wet material  and water.
Multiple Cyclones   For multiple cyclones,  the  significant operating
costs  are for electric power (which varies with  the unit size), water
for hot-gas cooling, and waste-disposal operations.  Maintenance costs
include the costs of servicing the fan motor,  replacing any parts worn by
abrasion, and flushing  the clogged small-diameter tubes.

Wet Scrubbers (Low- and High-Energy)   In addition to the cost of
waste disposal,  the major  operating costs for wet scrubbers  are power
and scrubbing-liquid costs. Power requirements vary with equipment
size,  liquid circulation rate, and pressure drop.  Maintenance includes
servicing the fan or compressor motor and the  pump,  replacing worn
or corroded parts, cleaning piping, and any necessary chemical  treat-
ment  of the liquid in  the circulation system.
Air Pollution Control Costs                                              39

-------
Fabric Filters   Operating costs for fabric filters include power costs
for operating the fan and the bag-cleaning device, water costs for hot-
gas cooling, and disposal  of collected dry material.  Maintenance costs
include costs for servicing the fan and shaking mechanism, and re-
placing worn bags  and parts.
      Operating  and maintenance costs accounted for from 35 to 49
 percent of total  annual costs, depending on the type of system; these
 costs are shown in Table 14.

        Table 14.  CONTROL SYSTEM OPERATING AND MAINTENANCE COSTS
                   AS PERCENTAGE  OF TOTAL ANNUAL COSTS
System
Wet caps
Multiple cyclones
Fabric fi Iters
Wet scrubbers:
Low-energy
High-energy
Al 1 types
"0 and M" costs as percent of total
annual costs
41
48
46

35
49
45
 ELECTRIC INDUCTION  FURNACES
       Electric induction furnaces are a relatively new type of melting
 unit used by the gray iron foundry industry.  Under existing air pollu-
 tion control  regulations, these furnaces usually do not require emission
 control equipment.   Unlike uncontrolled cupolas, emission levels of
 electric induction furnaces are normally within acceptable levels  set
 by current control regulations.   Thus, for air pollution control purposes,
 investment in an electric  induction furnace might be considered as an
 alternative to investment  in a. cupola and requisite control equipment.
 To gain information for evaluating these alternatives, the survey includ-
 ed information from ten foundries operating a total of 21  electric induc-
 tion furnaces.
       Of the 21 furnaces operated by the surveyed foundries,  14,  or
 two-thirds,  of these furnaces  were installed since 1965.  As seen in
 Table 15, only one of the furnaces was installed prior to  1963.
 40
                                           GRAY IRON FOUNDRY INDUSTRY

-------
Table 15. DATES OF ELECTRIC INDUCTION
FURNACE INSTALLATIONS
Number
of furnaces
2
A
7
1
4
2
1
Date
of instal lation
1968
196?
1966
1965
1964
1963
1962
     In all but one of the surveyed foundries, electric induction furnaces
replaced cupolas.  The main reasons that foundrymen gave for replac-
ing cupolas with  electric induction furnaces were:  compliance with air
pollution regulations, economy of operation, and better metallurgical
quality control.
     Even with the additional costs of pollution control equipment,
cupolas are, in most cases,  less  expensive than electric induction fur-
naces.  Nevertheless,  some foundries have found it to their advantage
to replace cupolas with electric induction furnaces.  Unfortunately,  the
interview survey provides only partial answers for this trend. Data on
foundry profits and operating costs of cupolas and  electric induction
furnaces were not collected; therefore, it cannot be determined from the
survey whether the profitability of foundries operating induction furnaces
was higher or whether higher investment costs  for electric induction
furnaces were offset by lower operating costs than those experienced
with cupolas.
     In the absence  of more comprehensive data,  it appears that, for
 some individual foundries,  investment in electric induction furnaces is
 a feasible alternative to investment in air pollution control equipment
fox existing cupolas.  On the other hand, many foundries have replaced
 or added to their melting capacity with cupolas.  In  spite of the sub-
 stantial cost of cupola air pollution control, many foundries,  especially
 those pouring large  tonnages, appear to still favor the cupola.
Air Pollution Control Costs                                               ]

-------
     CHAPTER  8.   FINANCIAL  IMPACT OF AIR POLLUTION
        CONTROLS ON  MODEL  GRAY IRON  FOUNDRIES

 INTRODUCTION
      The purpose of this  chapter is to draw together data on financial
 aspects and pollution control costs in the context of typical plants.
 Comparisons are made for six model plants between annual pollution
 control and profits, between investment in pollution control systems
 and total investment in plant and equipment, and between annual pollu-
 tion control costs and  value of shipments.   These comparisons of pollu-
 tion control costs with financial data offer some basis for judgment of
 the economic impact of air pollution control costs on gray iron found-
 ries.
 MODEL PLANTS
      Six plants  with cupolas  ranging in size from melt rates of 4 to 20
 tons per hour have  been used as models for the impact analysis.  One
 reason for selecting this range of  cupola sizes is that approximately
 three-fourths of all cupolas fall in this  range.  Another reason is that
 model plants are allowed that show the  full  range of profit rates in the
 industry.
      Table 16 shows the size and operating characteristics of the model
 plants in terms  of melt rate in tons per hour, hours of melting per day,
 days of melting  per year,  and the number of cupolas available for
 melting.  Also presented are the values of shipments associated with
 these characteristics.   Melting operations in hours  per day and days
 per year are approximations of the observed averages for the respec-
 tive foundry sizes.   The model plants reflect the fact that a majority of
 the sampled foundries  with melt rates under 10 tons per hour operated
 one cupola,  and  those  over 10 tons per hour operated two cupolas.
 Note, however,  that with few exceptions foundries with two cupolas
used each only on alternate days.
                                 43

-------
           Table  16.  MODEL PLANT OPERATING  CHARACTERISTICS
                       AND VALUE OF SHIPMENTS

Model
plants
A
B
C
D
E
F

Melt rate/cupola,
tons/hr
*4
6
8
12
16
20

Melt time,
hr/day
3
5
7
9
12
16
days/yr
175
200
225
2kO
250
250

Number
of cupolas
1
1
1
2
2
2

shipments,
$103
Alt?
7^1
1,228
3,502
6,390
11,779
     Value of shipments was determined from an equation in the form:
     logY  0- + V! + b2X2 + b3X3 + b4X4
where:   log Y   value of shipments,  $10
         X

                melt rate,  ton /hr
         X-,     number of  cupolas
         X,    = melt time,  hr/day
         X4    = annual melt time, days/yr
This form was fit by least squares techniques to 34 observations with
complete records on the five variables.  The derived equation is:
    log Y - 1. 6003 +  0. 0293ZXJ +  0. 21180X2 + 0. 03677X3 + 0.00349X4

Solving the equation  for a. melt rate of  4 tons per hour and a melt time
of 3 hours per day for 175 days a year  with one cupola yields  the log of
$447, 000.  This falls in the smallest-size category of surveyed found-
ries since the model plant's value of shipments is less than $500, 000.
It is assumed that this construction is  typical of foundries under half
a. million dollars in value of shipments.  Note from Table 16 that each
of the five categories of value of shipments is represented by at least
one model plant except for the  $2. 5 to <10. 0 million category, which
has two.
     Financial aspects of the model plants are  presented in Table  17.
Profits  for each plant are calculated according  to the average rate of
taxable  income  to gross receipts for cupolas and electric arc furnaces.
These rates were calculated from the data reported by the Internal
Revenue Service for corporate tax returns in the five value of shipment
44
                                          GRAY IRON FOUNDRY INDUSTRY

-------
           Table  17.  MODEL PLANT FINANCIAL CHARACTERISTICS


Model
plants
A
B
C
D
E
F

Value
of shipments,
$103
447
741
1,228
3,502
6,390
11,779

Profit
rate,
%
4.84
6.68
6.78
6.82
6.82
6.63


Profit,
$103
22
49
83
239
436
781
Rate of
return on
i nvestment ,
%
9.26
18.39
18.96
15.91
15.91
13.46


1 nvestment,
$103
234
269
439
1,501
2,739
5,802
classifications.   Investment in each model foundry was determined
from  knowing the profit  and rate of return on  investment.   The
latter was estimated from the same set of data used to calculate profit
rates.  Part of the Internal Revenue Service data included information
on long-term debt and equity.   The sum of these two items is defined
as investment.
POLLUTION CONTROL  COSTS OF MODEL PLANTS
      It is now possible to compare the cost of pollution control with
economic measures of typical gray iron foundries.   Three relation-
ships are investigated:  (1) investment costs in pollution control to
total investment,  (2) annual costs of pollution control to profits, and
(3) annual costs of pollution control to value of shipments.
      The choices of control systems available to the model plants are
determined by the types  of regulations  they must meet.  Because  the
trend is toward process weight and opacity regulations, it is assumed
that the model plants must comply with these.  Because opacity is
caused by very small particles, alternatives are limited to the  most
efficient collections systems — high-energy wet scrubbers and fabric
filters.
      As far as this analysis is concerned,  choice is further limited by
the absence  of observations on high-energy wet scrubbers controlling
cupolas with melt rates  below 8 tons  per hour and on fabric filters con-
trolling cupolas with melt rates as high as  20 tons per hour.  To  ex-
tend cost estimates into these voids andbeyondthe range of observations
would be  inadvisably speculative.
Financial Impact of Air Pollution Control on Model Gray Iron Foundries
45

-------
      Where o. choice between the two  control  systems  is possible,
the least-cost alternative  is  selected.   Thus  a fabric filter is
chosen over a high-energy wet scrubber to control the  IZ-ton-per-hour
cupolas of Plant D,  and a high-energy wet scrubber is  chosen to control
the 16-ton-per-hour cupolas of Plant E.
      Table 18 compares the investment and annual costs of the control
systems to the total foundry investment and profit before taxes for the
respective model plants.  Note that the  impact of pollution control ex-
penditures on the foundries 'tends  to fall as the size of the foundry in-
creases.   Two exceptions are the ratios of control equipment invest-
ment to total plant investment, and control equipment annual cost to
value of shipments  for the  4- and  6-ton-per-hour model plant cupolas.
One possible explanation is that plant and  equipment investment in
foundries with a 6-ton-per-hour cupola  is little  different from that
associated with a 4-ton-per-hour  cupola,  except for those pieces that
service the cupola directly,  such  as pollution control equipment.  Thus
the pollution control investment increases more rapidly than other plant
and equipment investment as cupola size increases for the two smallest
model plants.

   Table 18.   RELATION OF POLLUTION CONTROL  COSTS TO  TOTAL  INVESTMENT,
              PROFIT, AND VALUE OF SHIPMENTS  BY MODEL PLANT

Model
plant
A
B
C
D
E
F

Control
equipment
Fabri c f i 1 ter
Fabri c f i 1 ter
Fabric f i 1 ter
Fabric f i Her
H i gh-ene rgy
wet scrubber
Hi gh-energy
wet scrubber
Control equipment
investment as
percent of total
i nvestment
19
30
26
12
8
5
Control equipment
annual cost as
percent of prof i t
before taxes
59
49
41
23
17
11
Control equipment
annual cost as
percent of value
of shipments
2,3
3.2
2.8
1.6
1.1
0.7
     An increase in investment carries over in the form of deprecia-
tion and interest charges.  As a result, the ratio of annual cost to value
of shipments is higher for the 6-ton-per-hour cupola plant than for the
46
                                          GRAY IRON FOUNDRY INDUSTRY

-------
4-ton-per-hour cupola plant.  The declining impact trend is preserved
in the ratio of control equipment annual cost to profit before taxes, be-
cause the profit rate increases markedly between the 4- and 6-ton-per-
hour cupola model plants .
     The impact of pollution control is much greater on the smallest
foundry than on the largest, whether measured by pollution control
investment as  a percent of total plant investment,  by annual cost of
pollution control as a percent of profits before taxes,  or by annual
cost as a percent of value of shipments.   The annual control cost,
which includes depreciation, interest, and operating and maintenance
costs,  is 59 percent of the profits before taxes for the typical plant
under $0. 5 million in value of shipments, but only 11  percent  of the
profit before taxes for the typical plant over $10 million.  Annual  cost
as  a percent of value of shipments for the smallest model foundry  is
more than 3 times as great as that for the largest one.  The smallest
Plant A would be forced to raise its prices by 2. 3 percent in order to
cover the annual costs of pollution control,  while the larger Plant  F
would have to  raise its prices  just 0. 7 percent.
      It can be seen, therefore, that a small foundry relative to a
large foundry  must make a  greater sacrifice in profits or take more
drastic action in pricing if both foundries face equivalent restrictions
on air pollution emissions.
Financial Impact of Air Pollution Control on Model Gray Iron Foundries             47

-------
         CHAPTER 9.   SUMMARY  AND  CONCLUSIONS

       1.  Nationally, gray iron foundries rank as one of the largest
industries in terms of value of shipments,  employment, and particulate
pollution. Emissions in 1966 amounted to  190,000 tons, which was 2.9
percent of the 5. 9 million tons of particulates emitted by industrial
processes into the nation's atmosphere.
       2.  In 1967,  particulate emissions were controlled from 204, or
about 11 percent,  of the 1, 376 foundries in the gray iron industry.
About half the foundries shipped  less than $1. 0 million in castings; and
of those, only about 5 percent operate  air pollution control systems.
       3.  The four most common pollution control devices, in ascend-
ing order of collection efficiency, are  wet  caps, multiple cyclones, wet
scrubbers, and fabric filters. Nearly half the foundries with control
systems use  low-cost,  low-efficiency wet caps, which do not usually
satisfy stringent emission regulations.
       4.  Industry considerations as to whether and how to control air
pollution have been influenced by state and local regulations.   Federal
activity under the  Clean Air Act  will serve to intensity state and local
efforts to combat air pollution.
       5.  Pollution control costs tend  to rise as collection efficiency
rises.
       6. A comparison of pollution control costs determined  from the
interview survey with industry financial data provided by the Internal
Revenue Service suggests  that the impact of stringent pollution control
on small firms is  greater than on large firms.  The annual cost  of con-
trolling air pollution, as a percent of profits before taxes,  declines,  as
size increases, from 59 percent for a  typical firm with value of  casting
shipments under $0. 5 million to  11 percent for a typical firm with over
$10 million in value of shipments.
        7.  The possibility of foundries shifting air pollution control
costs is limited by the price behavior  in markets  serving and  served
                                   49

-------
by the industry.  Up until 1967, there appears to have been some price
flexibility as the industry grew relative to all manufacturing in terms
of value of shipments, value added in manufacturing,  capital expendi-
tures, and profit.
       8. While the profit share of value added appears to have risen,
the profit rates for all sizes of firms in the industry still remained
below those of equivalent-sized firms for all  manufacturing.  In addi-
tion,  an analysis of the cross  section of foundries shows that profit
rate declines as foundry size declines.
       9. A time series shows that there has been a steady attrition of
small foundries under 50 employees, while those employing  over  100
grew in number.  The number of foundries with less than 50 employees
fell by one-third from 1959 to 1967.  About half of the foundries employ
less than 50 people.  Since about half of the foundries ship less than
$1. 0 million in castings, these are the  most likely victims of attrition.
       10.  If the reduction in the number of small foundries is an indi-
 cation of their inability to control or adjust to the market in which they
 compete, then the  burden of air pollution control  must be expected to
weigh more heavily on them than on larger foundries.  It would appear
 that the growth of larger foundries,  the relative increase in  casting
prices, the  relative decrease  in raw materials prices,  and the increas-
 ing profit and capital shares of the industry will allow larger firms to
distribute the burden of air pollution control more widely.
50                                         GRAY IRON FOUNDRY INDUSTRY

-------
                           REFERENCES
 1.  Nationwide Inventory of Air Pollutant Emissions: 1968.  U.S.
    DHEW, PHS,  EHS,  NAPCA.  Raleigh, N.  C.  1970.   p. 7. NAFCA
    Publication No. AP-73.

 2. U.S.  Department of Commerce,  Business and Defense Services
    Administration.  Industrial Profiles: 1958-1967.  Washington,  D.C.
    1969.  p.  148.

 3. Duprey, R. L.  Compilation of Air Pollutant Emission Factors.
    U.S.  Department of Health, Education, and Welfare.  National
    Air Pollution Control Administration.  Durham, North Carolina.
    1968.  p.  30.

 4. Air Pollution Engineering Manual.   County of Los Angeles,  Air
    Pollution Control District.  U.S. Department of Health, Education,
    and Welfare.   Cincinnati, Ohio.  1967. p. 268.

 5. Calculated from materials collected by P.  S. Cowan from Penton's
    Foundry List. 1967.

 6. Unless otherwise noted,  the statistics in this  chapter were derived
    from:  U.S. Department of Commerce, Business  and Defense
    Service Administration,  Industrial Profiles:  1958-1967.  Wash-
    ington, D. C.  1969.  The limited Standard Industrial Classification
    of gray iron foundries (SIC 3321) is  used.   Thus,  only firms that
    are primarily gray iron producers are included.

 7. Determined from price indexes  calculated by U. S. Department of
    Labor, Bureau of Labor Statistics.  Washington,  D. C. 1969.

 8. Calculated from commodities wholesale prices indexes.  U. S.
    Council of Economic Advisers.   Economic Report of the President.
    Washington, D.  C.  1969,  p.  282.

 9. U.S.  Department of Commerce,  Bureau of Census.  Annual Survey
    of Manufacturers,  1966.   Value of Shipment Concentration Ratios
    by Industry, p. 18.

10. U.S.  Department of Commerce,  Business and Defense Services
    Administration.  Industrial Profiles:  1958-1967.   Washington,
    D.C.  1969.

11. Unpublished data on "all-manufacturing corporation"  tax returns.
    Internal Revenue Service.

-------
12   control Techniques for Particulate Air Pollutants.  U..5  DHEW,
  '   PHS,  CPEHS, NAPCA.  Washington, D. C.  January 1969.

13   Stumph,  T.L. ,  and R.  L  Duprey.   Trends in Air Pollution Con-
     trol Regulations .  Presented at the Annual Meeting of the Air
     Pollution Control Association.  New York.   June 22-26, 1969.

14.   Mcllvaine, Robert W.  Air Pollution Equipment for Foundry
     Cupolas.  Journal of the Air Pollution Control Association.
     J/7:542.  August 1967.

15.  Haines,  George F. ,  Jr. ,  and W.  C. L. Hemeon.  Report on
     Solids Discharge from Cupola Equipped with Dust Collector.
     Industrial Hygiene Foundation of America,  Inc.   Pittsburg, Pa.
     1954.  p. A-9; and Lars  Landau.  Costs for Dust Arrestors on
     Cupolas in Sweden.   Air Engineering.  Volume II, p.  21.
     January 1969.

 16.  Wright, R.  David. Cupola Dust and Fume Control: Some Further
     Technical and Economic Considerations.  Presented at 24th
     Annual Meeting of the Air Pollution Control Association.  Colum-
     bus,  Ohio.   September 22,  1967.

 17.  U.S. Department of  Commerce,  Office  of Business Economics.
52                                       GRAY IRON FOUNDRY INDUSTRY

-------
       APPENDIX A.
    CARD QUESTIONNAIRE
AND LETTER OF TRANSMITTAL
     FOR MAIL SURVEY

-------
                    U.S. DEPARTMENT OF COMMERCE
               BUSINESS AND DEFENSE SERVICES ADMINISTRATION
                         WASHINGTON. D.C. 20230
                                               April 15, 1968
  Gentlemen:

  The Business and Defense Services Administration is engaged in a
  study of the economic effect of air pollution control on the
  Gray Iron Foundry Industry.  A first step involves collection of
  a minimum of information from all known Gray Iron Foundries.  The
  enclosed BDSAF-807 requests information as to location and size
  of all Gray Iron Foundries, as well as information as to the kind
  and cost of air pollution control equipment installed.

  This survey has been approved by the Bureau of the Budget and has
  been discussed with members of the Gray Iron Foundry Industry.

  Before completing BDSAF-807, please read the enclosed instructions
  and definitions.

  Your cooperation in completing BDSAF-807 and returning it in the
  enclosed self-addressed envelope no later than April 25, 1968
  will be greatly appreciated.
                                     Sinc
                                       '£/lM4ffl*
                                     Forrest D. Hockersmith
                                    'Acting Administrator
  Enclosures
Appendix A                                                              55

-------
             INSTRUCTIONS FOR COMPLETING BDSAF-807
       Mailing :  Complete and return the enclosed Form BDSAF-807 to the Business
and Defense Services Administration, U.S. Department of Commerce,  Iron and Steel
Division, Washington, D.C,  20230, no later than     April	25_.	1968	.  A
separate report is to be filed for each Gray Iron Foundry operated by your company.
Include those foundries which do not sell any castings, but produce only for internal
company consumption.  Additional  copies of this reporting  form can be obtained from
the above address.

       Plant Location: On the front of the form, please correct name and address if
necessary.  If the Gray Iron Foundry is located at an address different from the
company address, report that location below the company address.

       Number of Cupolas:  Please report in Item 1 the number of cupolas at this
foundry.

       Production During 1967 :  Report in Item 2, the total dollar value of all gray
iron castings  made at this foundry during 1967.  You may report value of shipments
if value of production data are not  available.  If a captive foundry is reporting and
no value data are readily available, a value estimate based upon a knowledge of the
market price of such castings will be acceptable.

       Pollution Control System:   Please check one or more boxes in Item 3 to
designate the type(s) of pollution control equipment presently in operation at this
foundry., Please report all types of equipment regardless  of the date when installed,
just so long as the equipment is still in operation.

       If you have installed  a piece of equipment which is not specifically provided
for in Item 3, please check Other  and specify the equipment.  If no air pollution
control system is presently  in operation at this foundry, check None. In Item 3B,
please report the total initial installed cost of all air pollution control systems
checked in Item 2A.  This cost should represent not  only the initial cost of the
equipment but also should include the cost of installing the equipment.  Listed below
are definitions of the 4 types of air pollution control systems specifically shown in
Item  3A.

       Electrostatic Preeipitator:  A device which separates aerosol particulate matter
(solid or liquid) from industrial gases by imparting an electric charge to the particles
and removing them from the gas stream with the force created by  an electric field.
It is utilized to clean gases with concentrations of particulate matter of one-tenth
of a grain per cubic foot of gas and over.
56                                              GRAY IRON FOUNDRY INDUSTRY

-------
       Fabric Filter:  A device in which the dust bearing gas is passed through a
fabric in such a manner that the dust particles are retained on the up stream or
"dirty" gas side of the fabric, while the cleaned gas passes through the fabric to
the down stream or clean gas side, whence it is removed by natural and/or
mechanical means.  The fabric may be of any fibrous material whether natural
or man-made.

       Mechanical Collector; A device for the separation in a. dry state of entrained
particulate material from a gas stream by the application of a combination of the
following forces:  centrifugal, inertial, gravitational.

       Scrubber,  Particulate : A device for the removal of particulate contaminants
from a gas stream by means of intimate contact with the scrubbing liquid.  (If
water is added in  any form, consider it a scrubber, except wetted wall electronic
precipitators and  other devices which are primarily mechanical collectors.)

       Additional copies of BDSAF-807 or information regarding the form can be
obtained from the Iron and Steel Division, 642, U.S. Department of Commerce,
Washington, D.C. 20230.
 Appendix A                                                                   57

-------
                         PLEASE READ INSTRUCTIONS BEFORE COMPLETING THIS FORM

  t. How many cupolas are there in this foundry'   Number	

  2. Value of gray iron castings.produced during 1967.  S	
     QElecrrostat
     [""I Mechanical
     QFabticfil«
[  | Sccubbets, Pamculai
Q3 Other (Specify)  	
QNone
   b. What was the initial installed cost of the air pollution control sys
report

Telepr



and Ar

a Code







Plant location (II dlfleront from comply)


r ~i

L J
BUDGET BUREAU NO. 41S-6BQ22

FORM BDSAF-B07
GRAY IRON FOUNDRY
AIR POLLUTION CONTROL
Return to-. U.S. Deportment of Commoreo
Woshington, D. C. 20230
Iron & Steel Division
Return no later than
APRIL 25, 1968
58
                                                               GRAY IRON  FOUNDRY INDUSTRY

-------
   APPENDIX B.
INTERVIEW SURVEY

-------
tiensive econom-
SAMPLE PROCEDURE
      Personal interviews were used to gather comprehe
ic data from plants that were reported to be controlling particulate
emissions.   Interviewers for the study personally visited the plants
and assisted the plant manager in completing the questionnaire (BDSAF-
823) used to structure the data.
      Information gathered included:  general establishment information,
data on melting operations, production characteristics,  control system
characteristics,  and costs of emissions control.
      Plants visited for  the "Interview Survey" represent a sample
taken from  the returns of the "Postcard Survey"  (BDSAF-807).  In
selecting  the sample, all plants with controls were first stratified by
control system tyPe and by plant  size (Table B-l).  Stratification by
control system type was made  to assure getting  cost data for all types
of available  control equipment.  Included in these categories was  a
group of plants operating electric furnaces—either electric arc furnaces
with control systems or electric  induction furnaces.  The electric
induction  furnaces were evaluated as a substitute for the cupolas
equipped with control devices.  Stratification by plant size was consid-
ered important so that small as well as large plants would be statis-
tically represented in the survey sample; this minimized bias resulting
from differences  in plant size.
      About one-fourth of the 277 sites available for surveying were
selected for visiting.  This partial-sample plan was chosen as the
most feasible procedure.   The expense involved in field  visits,  com-
bined with time and manpower  limitations,  prevented visits to all 277
sites.
      Emphasis was evenly distributed among the plants  of various size,
except for the smallest  category,  where sites were not always avail-
able. Wet scrubbers, multiple cyclones,  and fabric filters were  em-
phasized because  there were only a limited number installed on found-
ries of all sizes,  and they qualify well as candidate systems for
meeting future emission control requirements.   Wet caps were de-
emphasized because they are simple  devices  and capable of meeting
only the most lenient of air pollution control regulations.


Appendix B                                                           61

-------
                                         Table  B-l.   SELECTION  OF  PLANTS  FOR INTERVIEW  SURVEY
System type
Wet caps
Multiple cyclone
Wet scrubber
Electrostatic precipitator
Fabric f i 1 ter
Electric furnaces
Total
Annual value of production, $10
0-0.5
l/4a
0/0
0/1
0/0
5/6
3/43
9/54
0.5-1.0
3/11
0/1
2/3
0/0
2/8
4/15
11/38
1 .0-2.5
4/24
0/1
3/3
0/0
6/15
4/22
17/65
2.5-10.0
2/35
6/8
4/13
1/1
3/8
1/8
17/73
>10.0
3/7
3/5
4/9
0/0
1/1
2/6
13/28
Not reported
0/14
0/0
0/1
0/0
0/1
0/3
0/19
Total
13/95
9/15
13/30
1/1
17/39
14/97
67/277
Surveyed
pi ants ,
% of total
14
60
43
100
44
14
24
-e.
o
          The  ratio  designates  the  number of  foundries  selected  for  interviews  from  the  total number of sites available.


           Includes 73  electric  induction furnaces  and 24 electric  arc  furnaces  with  particulate emission controls.
a
c
CO

-------
FORM BDSAF-8I3
17"1B"'">' ,, c u-s- DEPARTMENT OF COMMERCE

Sectio
GREY IRON FOUNDRY AIR POLLUTION CONTROL SURVEY
-GENERAL INFORMATION
BUDGET BUREAU NO. 41-S680&7
APPROVAL EXPIRES JUNE 1969
Date

1. Name and location of company
a. Name
b. Number and Street
d. City e. State


c. County
f. Zip code

2. Location of Foundry if different from above
a. Number and Street
b. City c County
a. State

3. Per
a. t1
4. Wha

ame b. Area

tisyou,(o™of«8_P 00*«*. nPa
e. Zip code

Code/Phone

rtnership [_^\ Proprietorship
5, What is your Employer Identification Number pro-
vided bv the U.S. Social Security Administration
6. Ify
7.Effl
Prc
pro
pin
3ur organization is a proprietorship, what
ic proprietor's Social Security number? 	
oyinent. What was the average number of production and produc
cessing, assembling, inspect ng, receiving (not delivering), stora
use (e.g., power plant), record keeping and other services close
8. Production of Costings. What was the 1967 production of castings
(include castings for own use and for sale)
a. Value of total castincs produced in 1967 d
b. F
Sectio
ercentage of total 1967 castings for own use 7

nil -MELTING OPERATIONS

rFnn rplnted workers fnr 10rt7?
working formen level engaged in fabricating,
ge, handling, packing, warehousing, ship-
ly associated with these production operations.
short cons*
ollars

?. Character! sties of Furnace. Report below the information for each melting operation within the foundry.
a. Furnace Number is for reference in succeeding items.
b. Type of furnace: identify as a cupola, electric arc, electric induction, if other, specify.
c. Year the furnace was installed.
d. Total installed cost of the furnace if installed since January 1, 1957. (Omit if earlier than 1/1/57.) Include
initial cost of accessories for melting and charging.
e. Average daily melt rate in tons per hour.
f. Tons of metal poured in 1967,
g. Blast volume in standard cubic feet per minute.
h. Dimensions of the charging door.
i. Charge door open during melc (yes or no)?
FlH-
V)
Fl
F2
F3
F.
F5
F6
Year Installed Melt
Type Installed Cost Rate
(b) (c) (d) (e)






Output Blast Charge Door
lyo/ Volume SJM n
(0 (s> (W (0






•Report .11 succeed.ng tonnage in short .ons.
Appendix B
                                                                            63

-------
10. Characteristics of charge b, »ch furnace

Fl F2
Metal Co coke ratio
Scrap as percent
charged
11. What is the number of furnaces operated on any typical

H. How many hours do you melt per day?
14. How manv hours do vou "lipht-up" per dav?
15. Have you in the last ten years replaced cupolas with di
b. When
c. Reason

Section 111 - CONTROL SYSTEM
16. Identification of Control System. Complete Columns b

Fly ash and spark arrester SA
Afterburner AB
Wet cap WC
Mechanica collector MC
listed here wi 1 be assumed to have no control syste
d. Year the contro system was installed.

h. Static pressure at the gas exhauster inlet in inches c

(a) (b) (c) (d>
C!
C2
C3
17. Characteristics of the control systems. Complete the a




b. Afterburner size in bru's/hours
c. Watec consumption in gallons/minute
d. Do you have a noise chamber (yes/no)


/. Duct work ining material (specify)
g. Major concro system material (specify)
h. Filter fabric (e.g. glass, cotton)
i. Air to cloth rario


Fu,..ee.
F3 F4 F3 F6



iav?



ferent types of furnaces? dl Yes Q No




tirough h for each control system

Wet scruber WS
Fabric Filter FF
Electrostatic precipitator EP


5 fahrenheit.

(<0 tO (g) W



ppli cable items below
Control Systems
C] C2 C3












64
                                      GRAY IRON FOUNDRY INDUSTRY

-------
Report below for t
tion, outlet conce
terms of grains pe
hour (o/hr). In Co
taken.
cnrnn-t
{
Cl
C2
C3
ol system.
flch control system. In Columns (a) through (c) record any two of the following: inlet concetra-
utracion, and collection efficiency. Specify whether parriculate concentrations are measured in
;- standard cubic foot (gr/scf), pounds per thousand pounds of gas (*1000ffgas), or pounds per
Umn (d) indicate the furnace melting rate in tons per hour at wrJch these measurements were
Pnrticulnte Concentration
c[ outlet Collection tmc,encj
n) (b) (C)



(%) Melt Rate
W



19. Controlled non-melting operations.
From the following list indicate in Column (a) below, the number of each of the operations in which your foundry
engages.
1. Metal pouring and mold cooling g. Abrasive cleaning
2. Oil removal operation from metal turnings 9. Casting tumbling operations
3. Coremaking operations 10. Grinding operations
4. Sand drying and sand reclamation 11. Annealing and heat treating furnaces
5. Sand mixing 12. Pattern shop sawdust and chip systems
6. Molding sand handling 13. Casting surface treatment
7. Mold and casting sbakeout
In the other columns include the following information:
(b) Type of control equipment (specify, e.g. Fabric Filter)
(c) Year control equipment installed
(d) Rated size in cfm
(e) Amount of paniculate collected in pound per week
Foundry Operation
(»)






Control Equipment
T«JC irS™ Si2c£c
(b) (c (d)







m) Collection {«/wcek>
(=)






Section IV - COSTS OF POLLUTION CONTROL
20. Investment costs.
scribed below are
"All Other Contr
ported in item 19
1. Basic equip*
basic equipm
L, Auxiliary eqi
but not gener
Report on lines 1-4, the designated costs associated with each of the control systems. De-
examples of the items to be included in each type of investment cost. The column headed
ibove.
ent. Include taxes and shipping charges with F.O.B. price on the "flange to flange" cost of
ent. If you manufactured the basic contro equipment, estimate the cost of fabrication.
ipraent. Include the following items essential to the successful operation of a control system
ally manufactured by gas cleaning equipment suppliers:
(1) Fans and blowers
(2) Electrical; motors, starters, wire conduit, switches, etc.
(3) Hoods, duct works, gaskets, dampers, etc.
b. Liquid movement equipment (in wet collection systems)
(1) Pumps
(2) Electrical; motors, starters, wire conduit, switches, etc.
(3) Piping and valves
(4) Settling tanks
c. Storage and disposal equipment
(1) Dust storage hoppers
(2) Sludge pits
(3) Drag lines, track way, road way, etc.
d. Support construction
(1) Structural steel work
(2) Cement foundation, piers, etc.
(3) Insulation (thermal)
(4) Vibration and/or anti wear materials
(5) Protective cover
Appendix B
                                                                            65

-------

(1) Air and/or liquid flow
(3) Operation and capacity
(4) Power
(5) Opacity of f ue gas (smoke meters, e
ntrol of:
tc.)
L,s"L=n,S, piL .p«.,i.ns, Jc. *
Labor co install
Cleaning the sice
Inspection
Field contingency
Existing facilities protection
Field Office charges
System start-up
5. Total. This should be the sum of all investments made for contr
'— — -
.. B.,,c E,«,pmcn,
<. Auxdllrj E,uipmnt
1.1«=«=h™dD«. = l = pi«».
4. lns,,IU,ta
5. Tolal
21.
A
I.Op
1.
Control Systems on Furnaces
Cl
(a)





C2
(b)





C3





All Othc.
Control Systems
(d)





Annuol costs.
are espies of che items to be included in Ouch type of annual cost. The column headed »/
Annual Cost Categories
1. Operating costs.
c. Repairs
d. Lubrication
e. Surface protection {cleaning and painting)
equipment
4. Other overhead for the control system includes:
b. Property taxes
d. Miscellaneous

11 Other Control

tion reported in questions 11, 12 and 20.
nnual Cost Categories
eraung
2. «„,„„„„,«
3. Depreciation
•1. Ov
5. Pr
cha
rhead
ngcs
6. Toial
Control Systems on Furnaces
Cl






C2
(b)






C3
(c)






All Othet
Control Systems
(d)






66
                                      GRAY IRON FOUNDRY INDUSTRY

-------
                      uluate any ben.
                                               trolling your air pollution such as reduced piai
            roof maintenance, increased property value, by-product recovery, reduced insui
            plaints by employees and neighbors
Appendix   B                                                                                                      67

-------
           APPENDIX C.
INDUSTRY SURVEY STATISTICAL TABLES

-------
                          Table  C-l.   ECONOMIC STATISTICS FOR GRAY IRON FOUNDRY INDUSTRY3

                                                    (SIC 3321)

Year
1958
1959
I960
1961
1962
1963 •
1964
1965
1966
1967




Year
1958
1959
I960
1961
1962
1963
1964
1965
1966
1967
Total employment
Number
112,670
125,862
121,516
113,685
119,234
120,528
126,329
134,894
140,709
143,000
Payrol 1 ,
$103
531,152
644,417
627,498
602,316
675,413
730,279
825,229
921,798
978,295
993,000

Value
added as
percent of
shipments
56.5
55.6
56.3
56.9
58.6
58.9
59.2
59.9
60.3
59.0
Production workers
Number
96,414
109,132
104,330
97,468
102,822
104,239
109,928
117,109
122,142
123,000

Payrol 1
per
employee,
$
4,714
5,120
5,164
5,298
5,665
6,059
6,532
6,833
6,953
6,944
Man-hours ,
103
178,006
217,159
199,652
183,888
204,064
214,285
235,612
252,953
259,742
250,000

Wages per
production
worker,
L 5
4,345
4,815
4,827
4,942
5,283
5,719
6,191
6,493
6,574
6,537
Wages,
$103
418,935
525,482
503,590
481,672
543,179
596,109
679,946
760,351
803,004
804,000
Value of
shipments per
production
worker,
$
14,881
16,521
16,474
16,649
17,858
19,042
20,816
22,224
22,337
22,098
Value
added,
$103
810,758
1,002,896
968,427
923,970
1,076,146
1,168,478
1,353,828
1,559,350
1,646,364
1,603,000
Value of
shipments ,
$103
1,434,701
1,803,001
1,718,773
1,622,700
1,836,197
1,984,944
2,286,233
2,602,590
2,728,235
2,718,000
Value added
per produc-
tion worker
man-hour,
$
4.555
4.618
4.851
5.025
5.274
5.453
5.746
6.165
6.338
6.412
Cap i ta 1
expend! tures ,
$103
32,559
34,072
53,202
52,307
60,498
64,823
75,910
171,468
221,295
173,000
Value
added per
dol lar of
wages,
$
1.935
1.909
1.923
1.918
1.981
1 .960
1.991
2.051
2.050
1.994
Wages per
production
worker
man-hour,
$
2.353
2.420
2.522
2.619
2.662
2.782
2.886
3.006
3.092
3.216

Annual man-
hours per
production
worker
1,846
1,990
1,914
1,887
1,985
2,056
2,145
2,160
2,127
2,033
aU.S.  Department of  Commerce,  Business,  and  Defense  Services  Administration,  Industrial Profiles: 1958-1967,
 Washington,  D.  C.,  1969,  p.  87.

-------
                          Table C-2.   ECONOMIC STATISTICS  FOR ALL MANUFACTURING OPERATIONS IN UNITED STATES^


Year
1958
1959
I960
1961
1962
1963
1964
1965
1966
1967
Total employment

Number
15,423,112
16,062,862
16,149,888
15,729,570
16,154,702
16,234,506
17,268,508
18,047,608
19,065,997
19,388,000
Payrol

$103
73,875,152
81,203,626
83,672,541
83,677,413
89,819,178
93,288,785
106,048,071
114,143,178
125,458,784
131 ,929,000





Year
1958
1959
I960
1961
1962
1963
1964
1965
1966
1967

Value
added as
percent of
shipments
43.3
N.A.
N.A.
N.A.
N.A.
45.7
46.0
46.1
46.6
46.6

Payrol 1
per
employee,
$
4,790
5,055
5,181
5,320
5,560
5,746
6,141
6,325
6,580
6,805
Production workers

Number
11,681,143
12,272,622
12,209,514
11,778,518
12,126,537
12,232,041
12,403,299
13,058,819
13,810,393
13,975,000


Wages per
production
worker,
$
4,247
4,458
4,550
4,650
4,876
5,076
5,308
5,466
5,668
5,798
Man-hours
103
22,679,219
24,443,617
24,174,380
23,289,389
24,269,571
24,509,450
25,245,482
26,577,538
28,220,286
27,925,000

Value of
shipments per
production
worker,
$
27,970
N.A.
N.A.
N.A.
N.A.
34,379
36,118
37,678
38,992
39,776
Wages ,
$103
49,605,180
54,714,135
55,555,452
54,764,619
59,134,113
62,093,601
65,838,852
71,736,328
78,283,386
81 ,025,000
Value
added,
$103
141,540,618
161,535,816
163,998,531
164,281 ,080
179,071 ,122
192,103,102
206,193,600
226,974,525
251,013,903
259,301 ,000
Value of
shipments ,
$103
326,722,817
N.A.b
N.A.
N.A.
N.A.
420,528,098
447,985,142
492,028,808
538,494,230
555,863,000
Capi tal
expend! tures ,
$103
9,543,528
9,139,992
10,097,837
9,779,800
10,436,210
11 ,370,935
•13,262,323
16,606,592
20,234,304
20,268,000

Value added
per produc-
tion worker
man-hour,
$
6.241
6.609
6.784
7.054
7.378
7.838
8.168
8.540
8.895
9.286
Value
added per
dol lar of
wages ,
$
2.853
2.952
2.952
3.000
3.028
3.094
3.132
3.180
3.206
3.200
Wages per
production
worker
man-hour ,
$
2.187
2.238
2.298
2.351
2.437
2.533
2.608
2.686
2.774
2.902

Annual man-
hours per
p roduct i on
worker
1,942
1,992
1,980
1,977
2,001
2,004
2,035
2,035
2,043
1,998
o
o
c
z
a
         aU.S. Department of Commerce, Business, and Defense Services  Administration,  Industrial  Profiles,  1958-1967,

          Washington, D. C.  1969, p. 142.


          N.A. = Not available.

-------
          Table  C-3.   GRAY  IRON  FOUNDRY  VALUE  OF  SHIPMENTS

                       (PRIMARY PRODUCTS),  ]g63a

Gray iron shipments by all industries
Gray Iron Foundry Industry
Other industries
Total
Shipments of primary products by Gray
Iron Foundry Industry (SIC 3321)
Gray iron castings, unspecified by type
Molds for heavy steel ingots
Malleable iron castings
Steel castings
Total
Amount,
$106
1,79^
252
2,046
1,656
101
22
15
1,79^
Percentage
distri bution
88
12
100
92
6
1
1
100
aBureau of the Census   1963 Census of Manufacturers.

 Excludes $134 million of minor products and $56 million of miscella-
 neous receipts.
 Note:  Value of shipment total differs from that reported in
        Table C-l, since the latter is defined as SIC 3321.
Appendix C
                                                                      73

-------
Table C-b.  COST OF MATERIALS FOR GRAY IRON FOUNDRY
             INDUSTRY (SIC 3321), 19&33
                                               Cost,
Materials consumed	$10^
  Pig  iron  (excluding silvery  iron)             276
  Nonferrous metals, alloys  and ferroalloys
    Aluminum, unalloyed                           2
    Aluminum-base alloys                          2
    Copper-base  alloy raw materials               5
    Magnesium and magnesium-base alloys           5
    Ferromanganese                                3
    Other ferroalloys,  including silvery iron    36
  Scrap  (purchased only)                        171
  Other  materials, parts and supplies           167
Total  materials  consumed                        667
Cost  of  resales                                  40
Fuels  consumed                                   56
Electric energy  purchased                        21
Contract work                                    28
Grand  total                                     8Hb
aBureau  of  the  Census   1963 Census of Manufacturers,
  Vol.  II, Part  2, pp. 33B-9  and 33B-16.
  Detail  does not add to total  due to  independent
  round i ng.
                                  GRAY IRON FOUNDRY INDUSTRY

-------
                  Table C-5.  WHOLESALE PRICE INDEX3

                          (1957-1959 = 100)
Year
1957
1958
1959
I960
1961
1962
1963
1964
1965
1966
1967
Gray iron
castings
98.3
99.2
102.5
104.7
104.8
106.2
107.3
108.3
1 10.2
113.5
122.1
Cupola cast
i ron scrap,
Chicago
93.8
93.2
113.0
93.6
92.1
83.0
84.9
94.5
98.8
103.8
96.6
Pig i ron and
ferroal loys
99.6
100. 1
100.3
96.3
94.7
91.1
81.8
77.7
80.2
80.2
80.0
           U.S.  Department of Labor, Bureau of Labor
           Statistics.
  Table C-6.  CONSUMPTION OF SCRAP AND PIG  IRON  IN FOUNDRY CUPOLAS*'
Year
1957
1958
1959
I960
1961
1962
1963
1964
1965
1966
1967
Scrap i ron
103 tons
8,992
7,696
9,438
8,830
8,425
9,516
10,597
11,837
12,932
13,490
12,404
Percent
of total
68.9
70.0
70.9
72.4
73.4
75.9
76.8
78.4
79-7
80.6
81.4
Pig i ron
lo' tons
4,057
3,237
3,939
3,420
3,098
3,137
3,295
3,356
3,453
3,360
2,928
Percent
of total
31.1
30.0
29.1
27.6
26.6
24.1
23.2
21.6
20.3
19.4
18.6
Total
103 tons
13,049
10,933
13,377
12,250
11,523
12,653
13,893
15,193
16,385
16,850
15,332
Percent
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
  Includes foundries other than gray iron.

 U.S. Department of the Interior, Bureau of Mines, Minerals Yearbook,
 Vol. I., Washington, D. C. 1959-1968.
Appendix C
                                                                      75

-------
                            Table C-7.   CLASSIFICATION  OF GRAY  IRON  FOUNDRIES  (SIC  3321)  BY  NUMBER OF  EMPLOYEES,  1959-19673
Employees/
foundry
<20
20 - 49
50 - 99
100 - 249
250 - 499
500
or more
Total re-
port i ng"3
Year
1959
Foundr 1 es
405
352
232
171
56
35

1,251
Percent
of
total
32
28
19
14
4
3

100
1962
Foundr ies
410
308
230
168
48
32

1,1%
Percent
of
total
34
26
19
14
4
3

100
1964
Foundri es
329
277
217
175
55
39

t,092
Percent
of
total
30
25
20
16
5
4

100
1965
Foundri es
303
274
222
179
59
45

1 ,082
Percent
of
total
28
25
21
17
5
4

100
1966
Foundries
270
255
223
188
64
51

1,051
Percent
of
total
26
24
21
18
6
5

100
1967
Foundries
249
257
229
203
66
51

1,055
Percent
of
total
24
24
22
19
6
5

100
5
             Bureau  of  the  Census,  County  Business  Patterns.
             Includes only  those  foundries  classified  by  Census  into  SIC  3321,  "Gray  Iron  Foundry  Industry.    The  BDSA-NAPCA  Gray  Iron  Foundry
             Air  Pollution  Survey,  BDSAF-807,  identified  1,376 foundries  operating  in  1967,  including  a  number belonging  to establishments  in
             which gray iron  production was  a  secondary activity.
CJ
31

-------
   Table C-8.  TOTAL  FOUNDRIES  AND  FOUNDRIES WITH CONTROL SYSTEMS3

By value of produc-
tion, 1967, $io6
<0.5
0.5 to <1.0
1.0 to <2.5
2.5 to <10.0
iio.o
Not reported
Total
By geographic
area
New England
Middle Atlantic
East North-Central
West North-Central
South Atlantic
East South-Central
West South-Central
Mountain
Pacific
Total
Total
foundries
604
240
247
180
37
68
1,376
95
247
472
121
131
108
73
27
102
1,376
Foundries with control systems
Number
20
27
49
68
24
16
204
9
26
80
13
13
13
3
4
43
204
% of total
3
11
20
38
65
23
15
9
11
17
11
10
12
4
15
42
15
aBDSA-NAPCA Gray  Iron  Foundry Air Pollution Control Survey, BDSAF-807,
 1968 (Postcard).
Appendix C
                                                                       77

-------
              Table C-g.   GRAY  IRON  FOUNDRIES  CLASSIFIED BY OUTPUT-SIZE CLASSES AND TYPES OF AIR POLLUTION CONTROL SYSTEMS3



Cupola foundries
With control systems
Wet cap
Multiple cyclone
Wet scrubber
Fabri c f i 1 ter
Electrostatic precipitator
Subtotal
Without control systems
Total
Electric arc foundries
With control systems
Wet scrubber
Fabric f i 1 ter
Subtotal
Without control systems
Total
Induction furnace foundries
(no control systems)
Other foundries'3
(no control systems)
Total foundries
With control systems
Without control systems
Value of production in 1967, $10
< $0.5
mi 1 1 ion


4
-
1
6
-
11
514
525


2
7
9
11
20
34

25

604
20
584
$0.5 to <1
mi 1 1 i on


11
1
3
8
-
23
200
223


_
4
4
-
4
11

2

240
27
213
$1 to <2.5
mi 1 1 i on


24
1
3
15
-
43
178
221


2
4
6
4
10
16

-

247
49
198
$2.5 to <10
mi 1 1 ion


35
8
13
8
-
64
107
171


_
3
3
-
3
5

-

179
67
112
>_ $10
mi 1 1 i on


7
5
9
1
-
22
7
29


_
2
2
1
3
4

1

37
24
13
Not
reported


14
-
1
1
1
17
46
63


_
-
-
2
2
3

1

69
17
52


Total


95
15
30
39
1
180
1,052
1 ,232


4
20
24
18
42
73

29

1,376
204
1,172
o
o
c
z
a
o
c:
CO
          3BDSA-NAPCA Gray  Iron Foundry Air  Pollution  Control  Survey,  BDSAF-807, 1968 (Postcard).


           Includes gas and oil reverberatory,  crucible,  and blast.

-------
^
li
Table C-10.  GEOGRAPHIC DISTRIBUTION OF GRAY IRON FOUNDRIES BY TYPE OF FURNACE
                 AND TYPE OF AIR POLLUTION CONTROL EQUIPMENT3
Region
New England
Middle Atlantic
East North-Central
West North-Central
South Atlantic
East South-Central
West South-Central
Mountain
Pacific
Totals
Type furnace
Cupola
Cb
9
22
72
12
11
12
3
3
36
180
Uc
78
207
356
103
110
88
59
15
36
1 ,052
Electric
arc
C
0
1)
8
1
2
1
0
1
7
24
U
0
0
6
1
2
1
0
1
7
18
Electric
induction
C
0
0
0
0
0
0
0
0
0
0
U
4
11
23
2
5
5
7
6
10
73
Other
C U
0 4
0 3
0 7
0 2
0 1
0 1
0 4
0 1
0 6
0 29
Totals
C
9
26
80
13
13
13
3
4
43
204
U
86
221
392
108
118
95
70
23
59
1,172
Type control
Wet
cap
7
17
41
11
9
6
3
0
1
95
Fabric
filter
0
3
11
1
1
1
0
2
40
59
Wet
scrubber
1
4
20
1
3
3
0
2
0
34
Multiple
cyclone
1
2
8
0
0
3
0
0
1
15
Electrostatic
precipi tator
0
0
0
0
0
0
0
0
1
1
          aBDSA-NAPCA Gray  Iron Foundry Air Pollution Control Survey, BDSAF-807, 1968.
          C = control led.
          U = uncontrolled.

-------
     APPENDIX D.
FINANCIAL DATA SURVEY

-------
INTRODUCTION
     In order to estimate the financial impact of installation and
operation of air pollution control equipment of gray iron foundries,
BDSA requested that the Internal Revenue Service tabulate certain data
from income tax returns filed for tax year 1966.  To this end, Reim-
bursable Service Agreement Project Number  69-47 was approved on
December 3,  1968,  and the tabulation was transmitted to BDSA by IRS
on April 29,  1969.
SAMPLE
     Of the 686 firm names that  BDSA submitted to IRS,  the latter
tabulated returns on 492,  or 72  percent.  Individual company data were
not provided by BDSA;  IRS provided only information consolidated by
class sizes.   The major categories for which data "were provided were
corporations, small corporations, partnerships, and proprietorships,
as determined by type of tax return filed.  In  addition,  each category
was further broken down by size  of foundry sales in intervals of:
                <$500, 000
                $500, 000 to <$1, 000, 000
                $1, 000, 000 to <$2, 500, 000
                $2,500,000 to <$10,000,000
                ;>$io,ooo, ooo
The number of firms in each category is set forth in Table D-l.
      The data supplied by IRS for each category except proprietorships
were:
       1.  Number of returns.
       2.  Gross receipts.,
       3.  Cost of goods sold.
       4.  Amortization,  depreciation, and  depletion.
       5.  Taxable income.
      6a.  For corporations:  total income  tax.
      6b.  For small corporations:  compensation of officers.
     6c.  For partnerships:  payments to partners.
       7.  Current assets.
       8.  Current liabilities.
                                                                   83
Appendix D

-------
                                           Table D-l.   IRS GRAY IRON FOUNDRY TABULATION, 1966
Type of tax return
Type of foundry furnace
Corporations
Electric induction (no controls)
Cupola/arc (controls)
Cupola/arc (no controls)
Total corporations
Small corporations
Electric induction (no controls)
Cupola/arc (controls)
Cupola/arc (no controls)
Total small corporations
Partnerships
Electric induction (no controls)
Cupola/arc (controls
Cupola/arc (no controls)
Proprietorships
Electric induction (no controls)
Cupola/arc (controls)
Cupola/arc (no controls)
Total partnerships and
proprietorships
Total
Total number
of foundries
4*1
102
285
431
1
2
19
22
2
25
2
10
39
492
Returns with balance sheet items
Jobbing foundries3
18
58
164
240
1
2
12
15
2
14
16
271
Captive foundries"
22
43
114
179
7
7
4
4
190
Returns wl thout
balance sheet
i terns
4
1
7
12
-
0
7
2
10
19
31
£D


-<


O
z

-n
o

z
a
a
c:
CSt
Fi rms in wh i ch gross receipts were  less  than  twice  foundry  sales;  this  is  construed to include most "jobbIng

foundri es."

Fi rms i n wh i ch gross recei pts were  more  than  twice  foundry  sales;  this  is  construed to include mos t "capt i ve

foundr i es."

-------
       9.   Long-term debt.
      10.   Gross value of fixed assets.
      11.   Depreciation reserves.
      12.   Equity.

      Returns without balance  sheet items (7 through 12) were tabulated
 for items 1 through 6 only.  Proprietorships were tabulated for items
 1 through 5 only.

 SUBSAMPLE
      The financial analysis  has been limited to a subsample  of 240
 corporation tax returns. This has been necessary for several reasons.
 First, partnerships and proprietorships were excluded due to compara-
 tively small numbers of firms and the larger proportion without balance
 sheet items.  Second, small corporations were not included because  of
 small numbers again but, also,  because of the absence of a measure
 of profits after taxes.  Third,  corporations •without balance sheet items
 lacked information that would  allow .complete inclusion with corpora-
 tions reporting balance sheet items.  Finally, foundries classified as
 "captive" were excluded.  "Captive foundries" were defined to the IRS
 as those companies with gross receipts more than twice the value of
 gray iron castings  shipped.  To include those companies would have
 been misleading where foundries were the major interest.  "Captive
 foundries," under our definition, clearly had other important interests.
 For example, the 186 corporate "Captive foundries"  are  components  of
 firms with 1966 gross receipts of over $60 billion. These clearly do
 not belong in the gray iron foundry industry classification,  which reports
 shipments valued at $2. 7 billion.

      The 240 foundries  represent 17  percent of all the 1, 376 foundries
 in the industry (Table D-2).  Included in the subsample are 28 percent
 of the firms melting with cupolas or electric arc furnaces that have air
pollution control systems.  The 240 firms filing corporate tax returns
in 1966 reported  gross  receipts totaling $756 million, or approximately
28 percent of the value of shipments reported in that  year (Table D-3).


Appendix D                                                            65

-------
     Table D-2.  IRS CORPORATE SUBSAMPLE AS PROPORTION  OF ALL
                       GRAY IRON FOUNDRIES, 1966
Furnace type
Electric induction
Cupola/arc
(controls)
Cupola/arc
(no controls)
Size
of foundry
sales, $10°
<0.5
0.5 to <1 .0
1 .0 to <2.5
2.5 to <)0.0
iio.o
Unreported
Subtotal
<0.5
0.5 to <1 .0
1 .0 to <2.5
2.5 to <10.0
>_10.0
Unreported
Subtotal
<0.5
0.5 to <1 .0
1.0 to <2.5
2.5 to <10.0
iio.o
Unreported
Subtotal
Total
1 ndustry
34
11
16
5
4
3
73
20
27
49
68
24
16
204
550
202
182
107
9
49
1,099
l,376a
Subsamp 1 e
6
7
2
2
1
18
4
9
23
16
6
58
60
48
38
16
2
164
24Qb
Subsample
as percent
of industry
18.0
64.0
12.5
4o.o
25.0
25.0
20
33
47
24
25
28
11
24
21
15
22
15
17
 "Number of foundries in industry; also see Appendix C,  Table  O7-
 Number of firms  in subsample; see also Table B-l.
Table D-3.   IRS CORPORATE  SUBSAMPLE  CLASSIFIED  BY AMOUNT OF SALES, 1966
Size
of foundry
sales, $106
<0.5
0.5 to <1 .0
1.0 to <2 . 5
2.5 to <10.0
>10.0
Total
Type of furnace
1 nduct ion
furnace
6
7
2
2
1
18
Controls:
cupola/arc
4
9
23
16
6
58
No controls:
cupola/arc
60
48
38
16
2
164
Total3
Number
of f i rms
70
64
63
34
9
240
Fi rms '
receipts
$106
18
50
112
152
424
756
 15  corporations  filing  small corporation  returns were omitted from
 portions  of  the  analysis  because  fully comparable data were unavailable.
                                           GRAY IRON FOUNDRY INDUSTRY

-------
FINANCIAL  AVERAGES
     Financial averages were prepared for the  240 observations.  The
seven averages presented are:  (l)net profits before taxes, (2) income
tax,  (3) net profits after taxes, (4) cashflow, (5) gross receipts,
(6) net worth, and (7) amortization, depreciation,  and depletion.  These
are summarized by size of  foundry sales from averages by type of
furnace (Table D-4),  and by type of furnaces from averages  according
to size (Table D-5).
COMPARABILITY PROBLEMS
     Comparisons between the interview survey data (Chapter 4) and
the IRS data (Chapter 5) are subject to the following technical difficul-
ties:
     1.  The former are from establishments; the latter are from
         firms.
     2.  The former take into account the important differences in
         cost and effectiveness between different types of control
         equipment; the latter do not.
     3.  Despite some inevitable overlapping, the two sets of data are
         not from the same group of foundries.
     4.  The former have been adjusted to 1967 prices; the latter are
         on a 1966 basis.  It was felt that the advantages  of using the
         latest available figures in each instance outweighed the
         advantages of having  both sets of data as  of the same year.
                                                                   87
Appendix D

-------
                                         Table D-4.  SELECTED FINANCIAL AVERAGES OF


                                              CORPORATIONS ONLY, CLASSIFIED BY SIZE
SAMPLE OF GRAY IRON FOUNDRIES


OF FOUNDRY SALES, 1966a
Size
of foundry
saTes ,
$106
<0.5
0.5 to <1.0
1.0 to <2.5
2.5 to <10.0
iio.o

Type of furnace
Electric induction (no controls)
Cupola/arc (controls)
Cupola/arc (no controls)
Subtotals
Electric induction (no controls)
Cupola/arc (controls)
Cupola/arc (no controls)
Subtotals
Electric induction (no controls)
Cupola/arc (controls)
Cupola/arc (no controls)
Subtotals
Electric induction (no controls)
Cupola/arc (controls)
Cupola/arc (no controls)
Subtotals
Electric induction (no controls)
Cupola/arc (controls)
Cupola/arc (no controls)
Subtotals
Electric induction (no controls)
Cupola/arc (controls)
Cupola/arc (no controls)
Totals
Number
of firms
6
4
60
70
7
9
48
6k
2
23
38
63
2
16
16
34
1
6
2
9
18
58
164
240
Averages per firm, $103
Net profits
before taxes
-15
11
13
11
41
53
53
52
54
135
113
119
750
329
276
329
2,309
4,298
698
3,277
229
598
82
217
1 n come
•1
3
4
4
12
15
21
19
16
57
38
44
317
186
116
161
1,079
1,826
179
1,377
102
265
30
92
Net profits
after taxes
-16
8
9
7
29
38
32
33
38
78
75
75
433
1^3
160
168
1,230
2,472
519
1 ,900
127
333
52
125
Amort i zat i on ,
depreci at i on ,
depletion
5
10
4
5
19
18
12
13
18
33
52
44
229
257
44
155
231
2,201
549
1,615
49
315
28
99
Cash
flow
-11
18
13
12
48
56
44
46
56
111
127
119
662
400
204
323
1,461

-------
                     Table D-5.  SELECTED FINANCIAL AVERAGES OF  SAMPLE OF  GRAY  IRON  FOUNDRIES,

                              CORPORATIONS ONLY, CLASSIFIED BY TYPE  OF FURNACE,  1966^
Furnace type
Electric induction
(no controls)
Cupola/arc
(controls)
Cupola/arc
(no controls)

S i ze
of foundry
sales, $10°
<0.5
0.5 to <1.0
1.0 to <2 . 5
2.5 to <10.0
ilO.O
Subtotals
<0.5
0.5 to <1.0
1.0 to <2.5
2.5 to <10.0
iio.o
Subtotals
<0.5
0.5 to <1.0
1.0 to <2 . 5
2.5 to <10.0
iio.o
Subtotals
<0.5
0.5 to <1.0
1.0 to <2.5
2.5 to <10.0
iio.o
Totals
Number
of
f i rms
6
7
2
2
1
18
4
9
23
16
6
58
60
'48
38
16
2
164
70
64
63
34
9
240
Averages per firm, $10^
Net profits
before taxes
-15
41
54
750
2,309
229
11
53
135
329
4,298
598
13
53
113
276
698
82
11
52
119
329
3,277
217
1 ncome
taxes
1
12
16
317
1,079
102
3
15
57
186
1,826
265
4
21
38
116
179
30
4
19
44
161
1,377
92
Net profits
after taxes
-16
29
38
433
1,230
127
8
38
78
143
2,472
333
9
32
75
160
519
52
7
33
75
168
1 ,900
125
Amortization,
depreciation,
depletion
5
19
18
229
231
49
10
18
33
257
2,201
315
4
12
52
44
549
28
5
13
44
155
1,615
99
Cash
flow
-11
48
56
662
1,461
176
18
56
111
4oo
4,673
648
13
44
127
204
1,068
80
12
46
119
323
3,515
224
Gross
receipts
219
686
1,326
5,132
14,617
1,869
325
1,009
1,874
5,287
61,222
8,714
264
757
1,733
3,569
21 ,162
1,326
263
784
1,771
4,470
47,141
3,152
Net
worth
68
168
322
2,717
5,390
725
149
256
551
2,395
30,903
4,126
126
255
631
1,099
4,164
425
122
245
592
1,804
22,126
1,342
aBased  on  Internal Revenue Service tabulations for  1966  from  income  tax  returns  filed  by  firms  in  the Gray  Iron
 Foundry  Industry.

-------
              APPENDIX E.
PARTICULATE EMISSIONS AND AIR POLLUTION
          CONTROL EQUIPMENT

-------
 INTRODUCTION
     This appendix first lists  the different types of foundry particu-
late emissions; second,  it describes in some detail the performance of
foundry furnace gas-cleaning equipment.
FOUNDRY PARTICULATE  EMISSIONS
     1.  Unburned combustible - Volatilized oil, fine particles of coke
         breeze.   This fraction produces the black smoke appearance
         when uncontrolled.                  ,
     2.  Coarse solids,  plus 44 microns    Burned sand particles ad-
         hering to foundry remelts, weathered limestone fines, dirt
         adhering to purchase  scrap.   This  fraction falls quickly in the
         plant and neighborhood areas  close to the  cupola stack.
     3.  Fine particles, 2 to 44 microns -Finely divided material from
         the same source as the  coarse fraction.  This material stays
         in suspension longer, and gradually settles over large areas
         of the community.
     4.  Metallic  oxides   Submicroscopic particles formed from
         oxidation of the charge.  Iron oxide particles produce the red
         plume typical of ferrous metallurgical processes. Particles
         stay in suspension for long periods before reaching ground
         level, except where local downwash or temperature inversions
         force the fume  to ground level.
     Typical particle-size distributions have been  reported and are
given in Table E-l. Quantitatively, each fraction will vary widely with

        Table  E-l.  PARTICLE-SIZE D'l STRI BUT I ON  OF PARTICIPATES
Particle-size range,
V
0 -
5
10 -
25 -
50 and
5
10
25
50
over
Percent by weight
of total particulate
k
2 -
k
5
45
10
15
15
15
85

*One micron =  1/25, 000 inch.
                                                                   93
Appendix E

-------
material charged and  the melting technique.  The larger the pieces of
scrap or remelt,  the smaller the surface area per pound of metal and
the less area for accumulation  of burned sand, dirt, and oil.  Extremes
would be remelts  that had been abrasive-cleaned and steel scrap like
railroad rails for the  clean charge,  contrasted to remelts from small
castings with much burned sand and  oily punchings or borings.

CONTROL EQUIPMENT  DISCUSSED  IN THIS  REPORT:
   1.  Wet CajDS.  This collection device is basically a  conical
       "weatherhood"  above  the cupola stack.  A shower of water is
       issued from the top of the conical section to produce  a falling
       curtain of "water through "which the hot gases  must pass.
             Contact between gas and water  cannot be intimate because
       the unit  relies on natural stack draft to induce the gas through
       the "water curtain.  Better contact from higher velocity passages
       "would cause enough back pressure to force blowout of hot con-
       taminated gas  at charging door openings.
             Collector is low in first cost, requires no  induced-draft
       fan and removes a high percentage of the coarse material.  Main-
       tenance  and nuisance  from fallout on  plant roofs and immediate
       ground-level areas are greatly reduced.  Water  volumes range
      from 200 to 350 gallons per-minute.  Corrosion  should be antici-
      pated  from sulfur and fluoride emissions.  Water clarification
       and the neutralization of recycled water are both common prac-
      tices .
            Often water is used for slag-quenching after leaving the
      wet cap.
            Overall collection efficiency is  likely to be 40 to 60 per-
      cent2  of solid particulates,  on a. total weight  basis.
   2.  Multiple  Cyclones.  The  basic multiple cyclone  unit is composed
      of a bank of cones in parallel.  The dust-laden gas enters the
      cones  tangentially,  and then centrifugal forces separate the
      particles from the gas stream.  A duct connects the collector
      device to the cupola, normally at a point above the charge door.
      The duct serves as  a. quenching cooler in directing the gas from


94                                       GRAY IRON FOUNDRY INDUSTRY

-------
       the cupola to the collector.  The temperatures in the duct are
       reduced from 1, 500° to 500°F by water jets.  The particulates
       are normally captured in a bin at the base of the collection unit.
       Periodically,  this material is removed manually by cart or
       automatically by a  conveying  system.  The dry material is
       normally disposed  of on the plant site or trucked away.
            The  temperatures  of the gas  stream normally handled by
       the collection unit are in the 450° to 550°F range.  These temp-
       eratures are maintained to prevent condensation that could
       cause plugging  or corrosion of the collector or the exhaust
       fan.  Because of these temperatures, even -with the evaporative
       cooling, the material is  collected dry. The pressure loss in
       these systems is  3  to 4 inches water gauge at the operating temp-
       erature.
            The  usual collection efficiency is approximately 82 percent,
       with an expected range from 70 to 85 percent on a total weight
       basis.   Multiple cyclones -will effectively remove particles
       greater than 10 microns.
             Multiple cyclones on foundries provide the lowest cost
       collection system using induced-draft fans (wet caps function on
       natural draft).  For the  efficiency achieved, relative to wet
       scrubbers and fabric filters,  the initial investment is high, but
       this  is offset by low operating and  maintenance costs.
   3.  Wet Scrubbers.  Wet collectors operating on a number  of differ-
       ent principles have been used on cupolas for particulate collec-
       tion.  The degree of removal by wet scrubbing increases in
       proportion to the amount of energy exerted to obtain contact
       between dust particles and liquid.
             Conventionally  designed dust collectors  (low-energy wet
       scrubbers) operating in the pressure-loss range of 6 to 25
       inches water gauge have good efficiency for removal of particles
       as small  as 3 microns,3  yet produce little  reduction  in the
       metallurgical fume component.    Collection efficiency can
       vary from 85 to  95 percent on a total weight basis.  Elimina-
       tion  of visible metallic fumes by wet scrubbing requires high-
Appendix E                                                          9

-------
       energy input (high-energy wet scrubbers) equivalent to 45 to 70
       inches water gauge.  This high-energy input is sufficient to
       reduce effluent to less than 0. 05 grain per standard cubic foot
       at a collection efficiency from 95 to greater than 99 percent.
             Corrosion protection is generally needed.   Stainless steel
       is a frequently used construction material, and recirculated
       water is  neutralized with caustic soda or  other chemical  treat-
       ments to counteract corrosion.
             With wet collector designs, exit gases will  be in the range
       of 120° to 160° F and will approach saturated conditions,  pro-
       ducing a  pronounced visible plume containing water droplets.
       Cooling the  gas  stream sufficiently to condense out the water
       vapor before gases leave the  stack requires added heat ex-
       changers.  With high-energy  scrubber designs, the cost of heat
       exchangers  can  be offset by improved economics  in handling
       reduced gas volumes and reducing horsepower on the draft fan.

   4.  Fabric Collectors.   These are devices that remove particulate
       matter from gas streams by retention of the particles in  or on
       a woven or felted fabric through which the gas flows.  Collection
       efficiency higher than 99 percent (total weight basis)  can  be
       maintained.
             Most of the fabric  collectors for cupola gas cleaning are
       of the continuous operating designs with four to six compart-
       ments.  Compartments are dampered off  from the hot gas stream
       one at a time for cleaning, and the cycle is repeated two  to four
       times each hour.
             Controlled water sprays in cooling towers hold  exit  gas
       temperatures in the higher operative temperature ranges of the
       fabric employed.  Where glass cloth can be used, inlet
       temperatures in the range of  450°  to 500° F are usual. Water
       vapor produced  from flash cooling in this temperature  range is
       insufficient  to cause condensation  on fabric or collector housings.
       The basic limitation of glass  cloth is  its  sensitivity to chemical
       attack in processes where flouride compounds are used.


96                                       GRAY IRON FOUNDRY INDUSTRY

-------
            Use  of low-temperature (250° to 275" F) fabrics, such as
       Orion and Dacron, has been limited.  Designers express much
       concern over potential condensation damage that may result
       from cooling in cold climates.  Use of indirect heat exchangers
       has also caused problems for low-temperature fabrics.
            Collectors  operate at 4 to 6 inches water gauge pressure
       loss with air to cloth ratios of 1. 5 to  2. 0.   Collection efficiency
       is excellent.  No visible discharge is  apparent as long  as the
       collector is properly maintained.
            Blinding of fabric due to condensed oil vapors has been re-
       ported where incineration time or temper'ature has not  been
       sufficient.  There is also a certain fire hazard with combusti-
       ble particulates that  may carry over into the fabric filter.
            Because dust and fumes are collected dry and include sub-
       stantial fine-particle fractions, attention must be given to dust-
       free handling of the collected dust from hopper to disposal area.

 CONTROL EQUIPMENT NOT DISCUSSED IN  THIS REPORT:
   1.  Afterburners. This  inexpensive control technique reduces the
       black smoke of unburned volatiles by maintaining ignition temp-
       eratures in the cupola stack above the charging door.  A stack
       height above the door of 25 to 30 feet may be needed to get
       sufficient contact time.  Gas flow has the turbulence needed
       for good combustion, caused by the convergence of the blast
       air from the melt zone with the induced cold outside air at the
       charging door.   Temperatures should be maintained at 1,200°
       to 1, 500°  F  and the heat input required will vary with the
       carbon monoxide produced and the dilution caused by the cold1
       outside air pulled through the door opening. With gases  rich
       in carbon monoxide and with modest amounts of  cold air  entering
       the charging door, afterburning requires only an ignition or
       "torching" burner to keep carbon monoxide ignited between
       periods of snuffing as a bucket drops its charge.  With lean
       gas and large charging door  indraft volumes,  substantial added
       heat  is required to maintain incineration temperatures.  Heat
Appendix E                                                          97

-------
         input of 100, 000 Btu per hour per ton of metal melted can be

         required under these adverse conditions.
              Basically, afterburning eliminates the black smoke of

         poor combustion.  Some combustible solids may be reduced to

         finer ash, but the impact on solids fallout is minimal.  For

         this reason, this type equipment was not discussed separately

         in the body of the report; it was treated, though, as a compon-

         ent of the control device or system in establishing  control costs

    2.  Electric Precipitators.   Experience with electric precipitators

         in the United States has been limited to  a very few installations.
         Fluctuating gas volumes and the changing chemical composi-

         tion of the gases and solids could explain the reports of varia-
         ble collection efficiency and chemical attack.

 REFERENCES FOR  APPENDIX E
 1.  Sterling,  Morton.   Current Status and Future  Prospects —Foundry
    Air  Pollution Control Proceedings:  The Third National Conference
    on Air Pollution.   Washington, D. C.  December  12-14,  1966.

 2.  Mcllvaine, Robert W.  Air Pollution Equipment for Foundry
    Cupolas.  JAPCA _17_:8.   August 1967.

 3.  Kane,  John M.  Foundry Air Pollution.  .   A  Status Report.
    Foundry 96_: 11.  November  1968.
98                                        GRAY IRON FOUNDRY INDUSTRY

-------
     APPENDIX F.
ANALYSIS OF COST DATA

-------
INTRODUCTION
     Initial plots of cost data against melt rate indicated that any line
that would approximate the  data would have a. non-zero intercept.  The
use of an average cost per ton of melt rate would result in a. line hav-
ing a zero intercept.  Such  a line •would diverge from the actual  cost
data at both the high and low ends of the melt-rate range.
     The method of least squares was therefore employed to determine
the line that best fit the data points.  Linear equations were  obtained
for both annual cost and investment cost of each type of control system.
Although the number of observations for each equipment type was in-
sufficient to achieve a statistically valid regression analysis, the lines
obtained were considered the best approximation of cost obtainable
from the available data.
INVESTMENT COST  EQUATION
     Investment cost equations were obtained by regressing melt rate
as the independent variable  against investment cost as the dependent
variable.  Excellent correlations were obtained for wet scrubbers and
fabric filters.  Less reliable,  yet satisfactory, results were obtained
for mechanical collectors.  The investment cost equations are pre-
sented in Table F-l.  Graphs of each  equation and the corresponding
data are presented in Figures F-l through F-4.
ANNUAL COST EQUATION
     Separate regressions were run for annual cost in order to cross
check the results obtained by calculating annual cost as the  sum  of de-
preciation, capital cost, and operating and maintenance costs.  The
annual cost equations yielded very good correlations and plotted
better against actual data than did indirect calculations of annual cost.
Again, fabric filter and wet scrubber  equations yielded excellent corre-
lations.  The cost equation  for mechanical collectors yielded only
slightly poorer results.  The annual cost  equations are presented
in Table F-2.   Graphs  of all equations and data are presented  in Figure
F-5 through F-8.

Appendix F                                                         101

-------
                                Table F-]
                                            INVESTMENT COST EQUATIONS FOR POLLUTION CONTROL EQUIPMENT
Equipment type
Multiple cyclone
Low-energy wet scrubber
High-energy wet scrubber
Fabric f i Her
1 nvestment
cost equation
1 = 51 ,428 + 7.675R
1 - 29,316 + 3.578R
1 = 86,959 + 8.908R
1 = -24,837 + 17.464R
Limits of
observations
23 >. R >. 8
26 i R i 4
50 i R i!2
40 i R >. 3
r
0.55
0.81
0.93
0.98
Regression parameters
F test
2.2
7.9
20.3
373.1
Standard
error
70,520
26,058
63,47')
33,536
T
1.5
2.8
4.5
19.3
N
7
6
5
16
a
33

-------
                              	  LEAST-SQUARES LINE
                              	  AVERAGE-COST LINE
                                 *  DATA POINTS
                                         20          30
                                     MELT RATE, tons/hr
               Figure  F-1.  Investment cost versus melt rate for multiple
                           cyclones.
                                    LEAST-SQUARES LINE
                                    AVERAGE-COST LINE
                                    DATA POINTS
                                         20          30
                                     MELTRATE, tons/hr

             Figure F-2.  Investment cost versus melt rate for low-energy
                          wet scrubbers.
Appendix F
                                                                                 103

-------
5
o
z
-n
o
z
o
CJ
c
CO
                 1,200
                 1,000
                  800
                 : GOO
                  400
                  200-
                                        . LEAST-SQUARES LINE
                                        . AVERAGE-COST LINE
                                        • DATA POINTS
                           I     I      I      I      I      I      I	L
                                            40           60
                                       MELT RATE, tons/hr
                                                                    80
                                                                                                     600
                                                                                                     500
                                                                                                     400
                                                                                                     300
                                                                                                     200
                                                                                                     100
                                                                                                             1      I      I      I      I      I      I
                                                                                                                      . LEAST-SQUARES LINE
                                                                                                                      . AVERAGE-COST LINE
                                                                                                                       DATA POINTS
                                                                                                                                     I
               Figure F-3.  Investment cost versus melt rate for high-energy
                            wet scrubbers.
                                                                                                       0           10           20          30
                                                                                                                        MELT RATE, tons/hr
                                                                                                    Figure F-4.  Investment cost versus melt rate for
                                                                                                                 fabric filters.
                                                                                                                                                       40

-------
Table F-2.  ANNUAL COST EQUATIONS FOR POLLUTION CONTROL EQUIPMENT


Equipment type
Multiple cyclone
Low-energy wet scrubber
High-energy wet scrubber
Fabric filter

Annual
cost equation
A = -17,787 + 4.217R
A = 8,911 + 938R
A = 23,037 + 3.058R
A = -8,054 + 5.289R

Li mi ts of
observations
23 > R > 8
20 > R > 5
50 > R >12
12 > R > 3


r
0.78
0.83
0.94
0.99
Reg res s i on pa ramete rs

F test
7.6
9.1
22.7
486.0
Standard
error
20,789
6,363
20,625
8,898


T
2.7
3.0
4.8
22.0


N
7
6
5
16

-------
CD
3J
 )
O
o
z
o
                  120
                  100
                   80
                  20-
    I     I      T

. LEAST-SQUARES LINE
. AVERAGE-COST LINE
• DATA POINTS
                                I
                                      I
                                           I
                                                      J_
                    0
                                                                               LEAST-SQUARES LINE
                                                                               AVERAGE-COST LINE
                                                                               DATA POINTS
                                                                  40
                               10          20           30
                                    MELT RATE, tons/hr
                Figure F-5.  Annual  cost versus melt rate for multiple
                            cyclones.
                                                                                   20          30
                                                                              MELT RATE, tons/hr
                                                        Figure F-6.  Relation of annual costs to melt rate for low-
                                                                     energy wet scrubbers.

-------
240
200h
120
        _L
                             LEAST-SQUARES LINE
                             AVERAGE-COST LINE
                             DATA POINTS
                                      _L
  "0           20          40          60          !
                    MELT RATE, tons/tir
 Figure  F-7.  Annual cost versus melt rate for high-
             energy wet  scrubbers.
                                                                                 12Dh
                     LEAST-SQUARES LINE
     \- /      	AVERAGE-COST LINE _J
                     DATA POINTS
                J	I	I      I
                10          20          30,
               MELT RATE, tons/hr
Figure F-8.  Annual cost versus melt rate
             for fabric filters.

-------
           APPENDIX G.
TECHNICAL DATA ON  EMISSION CONTROL

-------
 INTRODUCTION
      The interview survey conducted as part of this study produced
 significant information on cupola operation in the following areas:
      1.  Variations in emission rates.
      2.  Exit concentrations.
      3.  Indraft through charging door.
      4.  Charging door closures.
      5.  Influence of afterburning on collector size.
 VARIATIONS IN EMISSION RATES
      Fourteen of the foundries surveyed provided data on their cupola
 emission rates.   These data are  shown in Table G-l, including melt
 rate,  emissions  per ton of melt,  charge composition where available,
 and an indication of the method of emission measurement.  While
 emissions as low as 6 pounds per ton and as high as 36 pounds per ton
 were  reported, an average of 20  to 21 pounds per ton was reached from
 each of the following analyses:
      1.  Average of the 14 reports.
      2.  Average of the middle 10 reports with their narrowed
         range of 13 to 26 pounds per ton.
      3.  By developing a weighted average using:
                     Ib/ton x melt rate
                         total Ib
      Confidence should be placed in these results with due respect for
 possible sources  of variation.  First, the method of measurement can
 be the cause for  some variation.  Second, more accurate data -would
 result it the catch were actually weighed for an operating day and if
 the collection efficiency were known. Third, calculations in Table
 G-l are based on complete collection by fabric filters, and 85 percent
 collection by multiple centrifugals where the  catch was  reported.
 Finally, inlet samples,  when run for short sampling periods,  could be
 subjected to the greatest variation due to uneven particulate loadings
 in the gas stream or fluctuations in cupola operation.
 EXIT CONCENTRATIONS
     Table G-2 reports the loss  to atmosphere from 12 foundries for
which such data have been obtained from stack gas  sampling of the
                                                                   m
Appendix G

-------
                                        Table  G-l.   PARTICULATE EMISSIONS I.N CUPOLA STACK GASES


Observation
number
1



2
3
it
5
6
7
8

9
10


11

12
13
14



Emi ss ion,
Ib/ton
melt
26



21
36
22
14
6
13
24

20
26


35

7
17
21



Melt
rate,
tons/hr
20.0



10.8
8.75
17.0
40.0
8.0
17.0
7.0

3-5
17.0


10.0

8.0
12.0
12.0


Composition of charge, %


Returns
21



22

35
40
35
20
30

-
50


40

-
30
51




Pig
-



-

45
-
5
25
43

-
20


25

70
-
20


Cast
i ron
scrap
79



78

10
-
30
-
17

-
-


-

30
70
-



Steel
scrap
-



-

10
40
30
55
-

-
30


15

-
-
29




Briquettes
-



-

-
20
-
-
10

-
-


20

-
-
-





Measurement method
Below charge door takeoff. 2,580
Ib in 8 hr in fabric filter—
1,600 Ib in afterburner and
quencher.
Fabric filter-1,800 Ib in 8 hr
Inlet samples at multiple cyclone
Inlet samples at multiple cyclone
Fabri c f i 1 ter catch
Fabric filter catch-4g.4 Ib/hr
Inlet samples at multiple cyclone
Fabric f i 1 ter-22,560 Ib in 136
hr
Fabric filter-69 Ib/hr
2,850 Ib sludge, 2U H20 from 120
tons melt, plus wet cap exit
samples
Multiple cyclone catch 3,000 Ib
in 10 hr; assumed 85% efficient
Fabric filter— 550 Ib in 10 hr
Fabric filter-200 Jb/hr -
Multiple cyclone collector 18
Ib/ton melt catch; assumed 85%
efficient.
33
O
-<


0

-------
         Table G-2.   EMISSIONS  ESCAPING FROM CONTROLLED CUPOLAS
Observation
numbe r
1
2



3
4

5

6


7



8
9

10

11
12


Emissions ,
Ib/ton
6.8
5.4



4.5
5.4

4.6

1.6


4.7



2.5
2.0

1.0

0.68
0.21


Me 1 1 i ng
rate,
tons/hr
17
17



16
21

13

6


20



20
13

10

12
• 50


Collector type and comments
Wet cap
Dry multiple centrifugal 600° F
hot blast - charge: 33% remelt.
472 pig, 10% steel scrap, 10%
cast iron scrap
Dry multiple centrifugal
Dry multiple centrifugal, hot
blast, dry centrifugal precleaner
10 inches water gauge wet collec-
tion efficiency - 86% oily scrap
12 inches water gauge wet clean
scrap, high percentage remelt,
no coke breeze, no afterburner
14 inches water gauge wet 600° F
hot blast - charge: 40% remelt,
20% pig, 27% steel scrap, 13%
cast iron scrap
26 inches water gauge wet
35 inches water gauge wet collec-
tion efficiency 95%
45 inches water gauge wet collec-
tion efficiency - 99%
Electrostatic precipitator
58 Inches water gauge wet charge
40% remelt, 50% steel flashings,
10% cast scrap
 cleaned gas outlet.  The data have been recalculated to pounds of
 emission per ton of metal melted -where performance was reported in
 pounds per 1,000 pounds of gas or grains per standard cubic foot.  The
 former is the more significant because gas volumes for comparable
 melting rates fluctuate widely as will be discussed later.  The data give
 an indication of the order of performance for multiple dry centrifugal
 and wet collectors. Data from only  one wet cap were available.  Because
 of the high collection efficiency of fabric collectors and the absence of
visible escapement, stack gas  sampling has not been frequent for this
collector type.  Table G-3 summarizes the data with the exclusion of
Observation 6,
     The data confirm that increased energy input in wet collector
Appendix G
                                                                   113

-------
             Table G-3.  PENETRATION  OF PARTICULATES BY TYPE
                         OF CONTROL  EQUIPMENT
Control equipment
Wet cap
Multiple cyclone
Wet col lector
(water gauge in inches)
10-14
26-35
40-60
Penetration ,
Ib/ton melt
6
4

4
2
0.2
8
6

5
2.5
1 .0
 devices improves performance, although the order of improvement can
 be only generalized.  The single wet cap performance may or may not
 be typical of emission rates from this collector group.
 INDRAFT THROUGH CHARGING DOOR
      A substantial portion of exhaust volume handled by collection
 equipment consists  of: (1) the quantities  of outside air pulled inward
 through the charging door to confine the  stack gases, and (2) the signi-
 ficant volume of water vapor generated to cool the hot gases before
 reaching  the collector and exhauster.  In Table G-4,  data are shown
 for nine foundries,  selected because the  inlet temperatures were in the
 500°  F range and regulated by controlled spray-cooling in the gas
 stream.  If the  stack gas temperatures were in the 1, 500° F range,
 approximately 25 percent of the gas volume would be water vapor.
 Deducting this volume and the known blast volume from the total gives
 the volume induced through the  charging  door.   This volume was easily
 translated into indraft velocities because information on sizes of
 openings was available.  The data show a considerable spread.  On the
medium and larger size cupolas, where mechanical charging requires
 large door openings, an indraft of 450  feet per  minute,  as  opposed to
 300 feet per minute, would represent a 50 percent increase in outside
air handled by the system.  The impact on collector size and cost  can
be visualized from a comparison of Observations 6 and 7 (Table  G-2).
 Both have the same  8, 000  scfm blast volume, yet 30, 000 scfm was
involved in Observation 6, while 40, 000 scfm--* 33. 5 percent increase-
was installed at Observation 7.  Observations 8 and 9 have practically


114                                      GRAY IRON FOUNDRY INDUSTRY

-------
      Table G-4.   RANGE OF INLET VELOCITIES THROUGH CHARGING DOORa

Blast
volume,
scfm
2,000
2JOO
3,800
4,000
5,000
8,000
8,000
10,800
20,000

Water
vapor,15
scfm
1,900
2,100
3,200
3,900
5,000
7,500
10,000
12,000
13,000
Indraft
through
door,
scfm
3,500
3,700
6,000
7,600
11,000
14,500
22,000
26,200
19,000

Total
exhaust,
scfm
7,400
8,500
13,000
15,500
21,000
30,000
40,000
49,000
52,000
Ratio
of indraft
volume to
blast volume
1:5
1:4
1:6
1:9
2:2
l:8d
2:7
2:4
1:0
Charging
door
indraft,
ft/min
900
185C
600
250
480
290
430
435C
2.5
 temperatures at exhauster  inlet approximately 500° F.
 Water vapor assumed to  be  25 percent of exhaust volume.
 ""Closures on charging door  opening.
 Downdraft takeoff below charging door.
 the same size control system,  yet the melting rate of No. 9 is almost
 double that of No.  8.
      Byway of qualifications,  indraft volumes could be intentionally
 higher than needed for a particular operation where:
      1.  Collector capacity was designed for higher melting rates.
      2.  Design anticipated high melt-down temperatures where added
         volumes  of water vapor would be generated.
      To the extent that control system costs are influenced by gas
 volumes, however, the data suggest economies may be  achieved in
 choice of charging door opening size, indraft velocity, and the water
 vapor volume with evaporative cooling of the cupola gases.
CHARGING DOOR CLOSURES
     Although control equipment size and, thus,  its installation and
 operating costs, affect foundry profitability, there  has  still been little
 apparent effort to keep the charging  opening closed.  Stated objections
 include:
      1.  Unreliability of charging door control mechanisms, offering
         potential for collision between charging bucket and  closure
         device.
Appendix G
                                                                    115

-------
      2.  Gas escapement during the interval when the charging bucket
         unloads and closure device cannot be in place.
      3.  Sufficient capacity of installed systems to permit operation
         without such restrictions.
      Nevertheless,  the data suggest that greater design attention to
closures and their use could reduce costs.   This feasibility has been
demonstrated at several foundries where control of closures has:
      1.  Reduced the quantities of cold air that must be heated to the
         1, 200° to 1, 500° F range,  thereby reducing or eliminating
         the fuel cost of afterburning.
      2.  Reduced aspiration of stack gases where charging openings
         are exposed to outdoor wind conditions.
      3.  When  applied during meltdown,  eliminated  the need for
         excess collector capacity to handle added water vapor produced
         by the then higher stack gas temperatures.
INFLUENCE OF AFTERBURNING  ON COLLECTOR SIZE
         Afterburning in the cupola  stack was a  popular method of
reducing visible emissions from unburned combustibles long before
the use of sophisticated gas-cleaning equipment  was in general use for
cupola applications.  Little attention was paid to the fuel consumption
as long as incineration temperatures were maintained in the turbulent
air stream in the cupola stack,above the charging door.  In fact, the
higher the temperature,  the greater the stack draft, causing indraft
at the charging opening,  and the greater the ability to  overcome some
pressure losses from the influence of spark arrestors or wet cap low-
resistance collectors.
         The fact that higher temperatures increase gas volume at the
collector inlet  and require additional cooling expense in some systems,
however,  suggests that better control of fuel supply  in afterburner in-
stallations could  reduce overall costs.   Possible methods of control
include:
      1.  Cutoff of afterburner fuel during meltdown  when temperatures
         are in or above incineration range.
      2.  Development of charging opening closures so that minimum
         cold outside air  is heated to incineration temperatures.


116                                      GRAY  IRON FOUNDRY INDUSTRY

-------
       3.  Analysis of stack gas temperatures.  Often there is ample
           carbon monoxide available to maintain incineration tempera-
           tures  with a need only for a. torch to re-ignite in case the
           flame is snuffed out during the charge.
Appendix G                                                            117

-------
                          BIBLIOGRAPHY

Allman, Paul D.  The Future of Coke In a Growing Foundry Market.
    Gray and Ductile Iron News.  June  1968.  pp. 5-7.

American Coke and Coal Chemicals Institute.  Clean Air and the
    Foundry Industry.  Washington,  D.  C.  (no date).

American Coke and Coal Chemicals Institute.  The New Way of Life.
    The Foundryman and Clean Air.  Washington, D.  C.   (no date).

American Foundrymen's Society.  Control of Emissions from Metal
    Melting Operations.  Des Plaines, Illinois  (no date).

American Foundrymen's Society.  The  Cupola  and Its Operation.   3rd
    Edition.  Des  Plaines, Illinois.  1965.

Ameeican Foundrymen's Society.  Plant and Plant Equipment Commit-
    tee 10-G.  Dust Collectors.  Des Plaines,  Illinois.  1967.

American Foundrymen's Society.  Foundry Air Pollution Control
    Manual.  2nd Edition.  Des Plaines, Illinois.  1967.

American Industrial Hygiene Association. Air  Pollution Manual — Part
    II.  . .  Control Equipment.  1968.

Anderson, Eugene F.   Controlling Fumes from Foundry Cupolas.
    Industrial Wastes.  May-June 1956.  pp. 178-179.

Bay Area Air Pollution Control District Chart.   Cost and Efficiency of
    Control of Gray Iron Foundry.   Air  Pollution In the Bay Area,
    Technical Report and Appraisal.  2nd Edition Revised.   San Fran-
    cisco,  California.  1962.

Bloomfield,  Bernard D.  Costs, Efficiencies and Unsolved Problems
    of Air  Pollution Control  Equipment.  Transactions of 31st Annual
    Meeting.  Industrial Hygiene Foundation.   Pittsburgh, Pennsylvania,
    October  18, 1966.

Collier, Raymond  T.   The Gray Iron Castings Industry  1947.   Gray
    Iron Founders' Society,  Inc.  Cleveland, Ohio.   1947.

Cowen, P. S. The Codes and the Cupolas.  Gray and Ductile Iron
    News.  pp.  5-13.   February 1968.

Cowen, P. S.  Roundup on Air Pollution - Fantasies of the  Present.
    Gray and Ductile Iron News.  Presented at the 39th Annual Meeting
                                119

-------
    of the Gray and Ductile Iron Founders' Society,  Inc.  Scottsdale,
    Arizona.  October 17-30, 1967.

Carbaugh, HoytR., Andrew H.  Rose, Jr., and Robert L.  Chass.
    Dust and Fumes from  Gray Iron Cupolas — How  They Are  Con-
    trolled in Los Angeles County.  Repair.  November 1954.   pp.  123-
    130.

County  of Los Angeles, Air Pollution Control District.  Air Pollution
    Engineering Manual.   U.S.  Department of Health, Education, and
    Welfare.  Cincinnati,  Ohio.  1967. pp.  258-70.

Duprey, R. L.  Compilation of Air Pollutant Emission Factors.  U.S.
    Department of Health,  Education, and Welfare,  National Center for
    Air  Pollution Control.   Durham, North  Carolina.  1968.

Foundry.  Titles:  (1) Cast Metal Outlook (2) Foundry Statistics
    (3)  New Air Advisory  Committee Helps Keep  Tabs on Emissions
    (4)  Conference Should Help HEW Lay Down Standards   (5)  BDSA
    Seeks Control Data From Gray Iron Foundries   (6) Better Start
    Today (Editorial) and (7) Air Pollution and  Air Supply.  June  1968.
    pp.  9,  22, 73, 211, 214.

Gray Iron Founders' Society,  Inc.  Gray Iron Castings Handbook.  A. L.
    Garber Company.  Ashland,  Ohio.  1958.  Compliments of Hamilton
    Foundry and Machine Company.

Grindle, Aubrey J.  The Cupola Emission Problem  and Its  Solution.
    Presented to Semi-Annual Meeting, East Central Section.   Air
    Pollution Control Association.  Harrisburg, Pennsylvania. Septem-
    ber  25,  1953.

Haines,  George F. and W. C.  L. Hemeon.  Report  on Solids  Discharge
    from Cupola Equipped  with Dust Collector.   Industrial Hygiene
    Foundation of America, Inc. Pittsburgh, Pa.  1954.

Hall,  Robert M.  Stricter  Control  Seen Over Cupola Dust Emission.
    Foundry.  December 1965.  pp. 9-12.

Hammond, William  F.  Air Contaminant Emissions From Metallurgical
    Operations in Los Angeles County. Air  Pollution Control  District,
    Los  Angeles, California.  July 1964.

Inventory of Foundry Equipment: Melting and Heating Equipment.
    Penton Publishing Co.   Cleveland,  Ohio. 1968.

Inventory of Foundry Equipment: Pollution  Control  Equipment.  Penton
    Publishing Co.  Cleveland,  Ohio. 1968.

Kane, J.  M.  Equipment for Cupola-Emission  Control.  Transactions,
    American Foundry-men's Society.  64:525-531.  1956.
 120                                       GRAY IRON FOUNDRY INDUSTRY

-------
Kane, J. M.  Foundry Air Pollution- A Status Report.  Foundry.
    November 1968.  pp. 50-55.

Lagakos, John.  Venturi Scrubbers for Small Foundry Cupolas.  Re-
    printed from Foundry.   January 1968.

Lindau,  Lars.  Costs for Dust Arrestors on Cupolas in Sweden.  Air
    Engineering.  Volume 11, pp. 20-22.  January 1969.

Los Angeles Air Pollution Control District.  Metallurgical Industry.
    Technical Progress Report:  Control of Stationary Sources.
    Volume 3.   I960.

Lysyk,  Michael V.  Control of Particulate Emissions From a. Ferrous
    Foundry.  Paper No. 65-163, APCA Meeting.  1965.

Marketing Guide to the Metal Casting Industry.  Penton Publishing Co.
    Cleveland, Ohio.  1967.

McCabe,  Louis  C.  Atmospheric  Pollution.  Industrial and Engineer-
    ing Chemistry.  November 1953.

Mcllvaine, Robert W.  Air Pollution Equipment for Foundry Cupolas.
    Journal of the Air Pollution Control Association.   17:540-544.
    August 1967.

O'Mara, Richard F.  and Carl R.  Flodin.  Electrostatic Precipitation
    as Applied to the  Cleaning of Gray Iron Cupola Gases.   Air Repair.
    3J2):105-108.  November 1953.

Ortgies, R. C.  A Study of Cupola Design and Operating Factors That
    Influence the Emission Rates  from Foundry Cupolas.  Transactions,
    American Foundrymen's Society.   ^3_:l-4.  1955.

Penton's Foundry List  1967-68.  Penton Publishing Co. Cleveland,
    Ohio.  1967.

Shaffer,  N. R. and M.  A. Browen.  Air Pollution: Furnace Types
    and Sizes Dictate Most Effective Controls.  The Iron Age.  pp. 102-
    112.  May 5, 1955.

Silverman,  Leslie and  Charles E. Billings.  Low Cost Cupola Dust
    Collector.  Part II,  Air  Engineering,  pp. 44-46.  September 1959.

Sources for Gray and Ductile Iron Castings.  Gray and Ductile Iron
    Founders' Society,  Inc.  Cleveland,  Ohio.  1967.

Sterling, Morton.  Current Status and Future Prospects   Foundry Air
    Pollution Control.  Paper  C-12,  National Conference on Air Pollu-
    tion.   December 12-14,  1966.  Washington, D. C.
                                                                  121
Bibliography

-------
Stump,  X.  L. and R. L. Duprey.  Trends  in Air Pollution Control
    Regulations.  Paper presented at the Annual Meeting of the Air
    Pollution Control Association.  New York.  June 22-26, 1969.

Toquercio,  Peter and William J. Stanley.  Air Pollution Manual  of
    Coding.   U.S. Department of Health, Education,  and Welfare,
    Public Health Service.  U.S.  Government Printing Office.  1968.

U.S.  Council of Economic Advisers.  Economic Report of the Presi-
    dent, January 1969.

U.S.  Department of Commerce, Bureau of the Census.  Chart No. 22
    Ferrous Castings Shipments 1957-1966.  Gray and Ductile Iron
    Casting  Shipments.

U.S.  Department of Commerce, Bureau of the Census,  Census of
    Manufacturers,  1963.  Industry Statistics and Iron and  Steel Found-
    ries.  MC 63 (2)-33B.  U.S. Government Printing Office.   Wash-
    ington,  D. C. 1965.

U.S.  Department of Commerce, Bureau of the Census; and U.  S.
    Department of the Interior,  Bureau of Mines.  Current Industrial
    Reports. Series M33A-(66)-13.  Iron and Steel Foundries and
    Steel Ingot Products,  1966.   Washington, D. C.  1968.

U.S.  Department of Commerce, Business and Defense Services Admin-
    istration.  U.S.  Industrial Outlook, 1969.  Published by U. S.
    Government Printing Office.  Washington, D. C.

U.S.  Department of Commerce,  Business  and Defense Services Admin-
    istration.  Industry Profiles 1958-1967.  Published by U. S. Govern-
    ment Printing office.   Washington,  D. C.

U.S.  Department of Commerce,  Business  and Defense Services Admin-
    istration.  Iron and Steel Scrap Consumption Problems. Washing-
    ton, D.  C.  1966.

U.S.  Department of Commerce, Business and Defense Services Admin-
    istration.  Motor Vehicle Abandonment in U. S.  Urban Areas.  Wash-
    ington,  D. C. 1967.

U.S.  Department of Commerce,  Business  and Defense Services Admin-
    istration.  Summary of Information on the Metal Castings Industry.
    Washington,  D.  C.  1966.

U.S.  Department of Commerce,  Business  and Defense Services Admin-
    istration.  Trends in the Ferrous Castings  Industry.  U.S.  Depart-
    ment of  Commerce Printing Office. April  1962.

U.S.  Department of Health, Education, and Welfare, National Air
    Pollution Control Administration.  Air  Quality Criteria for Particu-
    late Matter.   Washington, D.  C. January 1969.
 122                                      GRAY IRON FOUNDRY INDUSTRY

-------
U. S.  Department of Health, Education,  and Welfare, National Air
    Pollution Control Administration.  Control Techniques for Particu-
    late Air  Pollutants.   Washington,' D. C.  January 1969.

U.S.  Department of Health, Education,  and Welfare, Public Health
    Service.   A Compilation of Selected  Air Pollution Control Regula-
    tions and Ordinances.  Washington,  D.  C.  1968.

U.S.  Department of Health, Education,  and Welfare, Public Health
    Service.   Proceedings:  The Third National Conference on Air
    Pollution.  Washington,  D. C.  December 12-14, 1966.  U.S.
    Government Printing Office.  Washington, D. C.

U.S.  Department of Health,  Education,  and Welfare, Public Health
    Service.   The Sources of Air Pollution  and Their Control. U. S.
    Government Printing Office.  Washington, D. C. October 1967
    (Revised).

U.S.  Department of Health,  Education,  and Welfare,  National Air
    Pollution Control Administration.   Thanksgiving 1966 Air Pollu-
    tion Episode in the  Eastern U.S.  Durham, North  Carolina.
    July  1968.

U.S.  Department of the  Interior,  Bureau of Mines.   Minerals Yearbook.
    Vol.  I.  Washington, D.  C.  1958-1968.

U.S.  Department of Labor,  Bureau of Labor Statistics.  Wholesale
    Prices.  Price Index.

U.S.  Senate.  Committee on Labor and Public Welfare.  Compilation
    of Selected Public Health Laws.  Washington, D.  C.  1968.

U.S.  Senate.  The Cost  of Clean Air.  First Report  of the  Secretary of
    Health, Education,  and Welfare to the Congress  of the  United
    States.   Washington, D. C.   1969.

Viets, Floyd H.  Atmospheric Sanitation in Los Angeles County.
    Heating and Ventilators.  February 1952. pp. 86-89.

Wallace, John F.   Charts for Special Report for Management on
    Electric Melting.  Presented  at the 39th Annual Meeting.  Gray and
    Ductile Iron Founders' Society, Inc.   Phoenix, Arizona.  October
    18, 1967.

Warden,  T. Jerry.  Review, 1965 Forecasts and Extended Market
    Projections.  Marketing Manual Section,  Iron Castings.  Gray and
    Ductile Iron Founders' Society, Inc.   Phoenix, Arizona.

Weber, Herbert J.  The Effect of Air Pollution Laws on the Small
    Foundry.  Reprinted from Modern Castings.  March 1965.
                                                                  123
Bibliography

-------
 Weber,  Herbert J.   The Impact of Air Pollution Laws on the Small
    Foundry.  Presented at the 62nd Annual Meeting of the Air Pollu-
    tion Control Association. New York.   June 22-26, 1969.

 Weber,  Herbert J.   Methods of Combating Air Pollution in Ferrous
    and Non-Ferrous Foundries.  Proceedings of the 50th Annual
    Meeting of the Air Pollution Control Association.  St. Louis,
    Missouri.   June  2-6,  1957.  Journal of the Air Pollution Control
    Association.  November 1957.

 Weiss, E.  J.  Foundry Ventilation:  Model for Tomorrow.  Heating,
    Piping, and Air Conditioning.  April 1967.  pp.  99-104.

 Withridge,  W. N.  Foundry Cupola Dust Collection.  Heating and
     Ventilation.  December 1949.  pp. 70-94.

 Winter,  Ralph E.  Many Small  Foundries May Have to Fold Due to
    Cost Posed by New Dirty-Air Laws.  Wall Street Journal,  p. 28.
    August  21,  1968.

 Woodcock,  Kenneth  R.  and Larry B.  Barrett.  Economic Indicators of
    the Impact of Air Pollution  Control:  Gray Iron Foundries, A Case
    Study.   Journal of the Air Pollution Control Association.  Febru-
    ary 1970.

 Workman, Donald H.  Gray and Ductile Iron Founders' Society.
    Foundry.  January 1966.

 Wright,  R.  David.  Cupola Dust and Fume Control,  Some Further
    Technical and Economic Considerations.  Presented at 24th Annual
    Meeting of the Air Pollution Control Association.  Columbus,  Ohio.
    September 22,  1967.
124
                                          GRAY IRON FOUNDRY INDUSTRY

-------