Case Study: Installation of New Powder Coat Paint LineEverbrite, LLCPardeeville,WI

By

Derek Gates

Everbrite, LLC

A leading producer in indoor/outdoor electronic and neon advertising signs, menu boards, and scoreboards, etc. Customers include McDonalds, Pizza Hut,

Mobil gas station, DLK, and many more Founded in 1927 in Milwaukee Grown to about 1,200 employees in 11

different locations (5 in WI)

Project Description

Project focus: paint line process in the sheet metal section of the facility

Concerns Quality of paint job Environmental emissions Employee exposure to chemicals/fumes

Current Sheet Metal Paint Process

Parts are prepared (manually sanded and wiped down) to help paint adhere to surface better

Parts are hung on a conveyor system Parts go into paint booth via conveyor

and are painted Go into curing oven to bake and dry

Problem ID: Current Paint Process Open-Ended Wet Spray Paint Booth System was grandfathered in; old equipment,

ventilation, etc. Leads to inadequate paint jobs and poor air purity

Many parts are “defective”- need to be re-prepped and re-painted

Employees handle and are exposed to amounts of solvents, paint thinners, etc. which are hazardous

Majority of Haz. Waste of facility produced here

Picture of Spray Booth

Problem ID: Current Process (Production)

Shipping Some parts need to be powder coated, so

they are shipped out; leads to issues with quality and hinders productivity

Lost time on labor-handling, inspecting, and inventory on shipped parts

WIP Materials

Solution

Implement a new powder coating paint line Will greatly reduce

environmental safety concerns

Will increase quality of product, productivity, and lead to more business

Solution:Proposed New Powder Paint Line

Preparation-5-Stage Wash system Parts treated with chemicals to enhance

ability of paint to adhere to surface Powder Paint Booth Bake Oven

Parts moved via conveyor system

What is Powder Coating?

Applying dry paint to a surface Paint powder is

applied to the surface and put in an oven to bake

Results in a durable, even-coated finish

Preparation and baking are key to a good finish

Advantages of Powder Coating Releases little to no VOCs and HAPs into

environment (solvents, thinners) Reduces employee exposure to these harmful

chemicals Reduces burden of EPA compliance for

facilities Overspray of powder is easily recyclable Better paint quality

No drips, runs, or other imperfections Reduces defected parts; less preparation time

Durable, Non-Corrosive Finish

Problem Solution: Air Emission Permit

Obtain a new air emission permit

Everbrite is currently under a Part 70 permit Requires extensive

reporting and not many advantages

Everbrite should obtain a Registration Operating Permit (ROP)

ROP Permit

Allows facilities to change processes/do construction without obtaining other expensive construction permits Saves time and money Must stay within limits of ROP during construction

Less extensive and less frequent reporting and recordkeeping than Part 70

Easy application process; short waiting time Don’t need to hire consultant to handle permit

Costs less than Part 70 Doesn’t Expire

Emission Citations

Under Part 70- Automatically considered a High Priority Violation (HPV) Forwarded to the EPA Possibly referred to the Department of Justice

Emission Citations

Under ROP- not automatically HPV Facility is sent a Letter of Notification

(LON) Facility replies on how to make sure the

violation doesn’t re-occur Follow up visit

*Depends on violation for both Part 70 and ROP ROP most likely less serious than Part 70

Expected Results/Benefits

VOC/HAP emissions will decrease Less employee exposure

Less Hazardous waste produced Less recording/reporting to EPA

Not as much administrative burden to keep records

Benefits

Reduction in: Shipping costs Labor Costs Paint/Chemical Costs

Better employee morale due to working with new equipment

Better quality of product

Cost/Benefit Analysis for a New Dry Powder Coat Paint Line at Everbrite, LLCAnnual costs with current paint system in place Shipping out parts to be powder coated $717,886 Paint Chemicals

Solvents, Hardeners, Accelerators, Catalysts, Thinners $15,990.76 Preparation materials

sanding equipment, rags $6,558.29 Paint costs $26,386.84 Hazardous Waste Disposal $12,349.12 EPA Reporting $1,500 Labor Costs (Shipping Employees) $52,125Total $832,796.01Costs to implement new System Paint System

5-Stage Wash System Conveyor System Curing oven Stack Package (Ventilation) Installation TOTAL $580,000

Paint Booth/Accessories $73,058 2 additional full-time employees (Paint/Prep Workers)

$16.33/hr x 40 hrs/wk x 50 wks x 2 Workers $65,320 Cost of New Powder Paint (2/3 cost of Wet Paint) $17,679.18 Hazardous Waste Disposal $1,467.86 EPA Reporting

One-time $1,100 fee + $35.71 per ton emitted $1,308.81Benefits Savings (20% of annual costs above)

Shipping $143,577.20 Paint Chemicals $3,198.15 Preparation materials $1,311.66 Paint Costs $5,277.37 Labor Costs (Shipping Employees) $10,425

Total Benefits $902,623.23NET SAVINGS FOR FIRST YEAR -$69,827.22

Cost/Benefit Analysis Over 5 YearsCosts with current paint system in place over 5 years Shipping out parts to be powder coated $3,589,430 Paint Chemicals

Solvents, Hardeners, Accelerators, Catalysts, Thinners $79,953.78 Preparation materials

sanding equipment, rags $32,791.45 Paint costs $131,934.20 Hazardous Waste Disposal $61,745.60 EPA Reporting $7,500 Labor Costs (Shipping) $260,625Total $4,163,980.03Costs to implement new System Paint System

5-Stage Wash System Conveyor System Curing Oven Stack Package (Ventilation) Installation TOTAL $580,000

Paint Booth/Accessories $73,058 2 additional full-time employees (Paint/Prep Workers)

$16.33/hr x 40 hrs/wk x 50 wks x 2 Workers x 5 yrs. $326,600 Cost of New Powder Paint (2/3 cost of Wet Paint) $88,395.90 Hazardous Waste Disposal $7,339.30 EPA Reporting $2,144.05Benefits Over 5 Years Savings (20% of costs above)

Shipping $717,886 Paint Chemicals $15,990.76 Preparation materials $6,558.29 Paint Costs $26,386.85 Labor Costs (Shipping Employees) $52,125

Total Benefits $1,896,484.14LIFETIME NET SAVINGS (5 yrs.) $2,267,495.90

Cost vs. Benefits over 5-Year Period

$832,796.01

$2,267,495.90

-$500,000.00

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

1 2 3 4 5 6

Year

Dol

lars

Cost Benefit

References

Larry Boehm, CHMM, Senior Environmental Specialist with AlphaTerra Science

Marge Erdman, Accounting/Plant Controller for Everbrite, LLC Kelly Tomko, Freight Claim Coordinator/EPA Administrator for

Everbrite, LLC Daniel Guirl, President of G.A.T. Systems Kristin Hart with the Wisconsin Department of Natural Resources Darren Nosek with Dietz Supply Company Registration Permits. Wisconsin Department of Natural Resources. 23

April 2009. Printed 17 June 2009. http://dnr.wi.gov/air/permits/streamlining/regpermits.html

Powder Coating Process. Nordson Corporation. 2009. Printed 6-17-2009.http://www.nordson.com/Businesses/Powder/WhyPowder/powdercoatingprocess.htm

Benefits of Powder Coating. Nordson Corporation. 2009. Printed 6-17-2009. http://www.nordson.com/Businesses/Powder/WhyPowder/benefitsofpowdercoating.htm