Economics vs. Equipment Type for Cast Stretch Production, 2006 PLACE Conference

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This paper reviews the market for cast stretch films and the different variables that could affect the economics of this sector. The raw materials situation is revised and the processing variables influencing the efficiency of the extrusion process are mentioned. A general analysis of the performance of cast film extrusion lines depending on the web width is completed. Variables such as maintenance costs, energy cost and labor are compared among different equipment sizes to study how these costs are absorbed. This study is completed under some assumptions for speeds, lot sizes, resin prices and others trying to follow the company observation from the world market.

It is observed that maintenance, pay-back and labor costs are better assimilated by wider lines in comparison with the narrow ones. Also, the effect of resin prices seem to be better absorbed by wider lines with more than 3 layers because their ability to accommodate different formulations. However, it is also emphasized that the particular regional market situation is the one determining which the best option for a specific film producer is.