The Economic Advantages of EPS Pickling
Acid pickling has high 'setup costs' as the acid needs to be heated before startup. That means the line may need to run as high as 85% capacity just to reach break even. EPS' setup cost is virtually zero so there's no comparable capacity penalty.
EPS processing shows how 'being green' can be good for the bottom line. With no hazardous acids, the EPS process has no special permitting, storage or disposal costs. But the real cost advantage comes from a dramatically lower variable cost of operation:
- Projected EPS variable costs of operation are approximately 30% lower than acid pickling.
The cost of getting into the EPS processing business is also lower than acid pickling:
- EPS capital cost is 20% lower for the same capacity
- EPS line installation cost is 50% of acid pickling
- EPS line 'footprint' is 50% of acid pickling
That 'footprint' advantage means EPS pickling
capacity – tons/month per linear foot of pickling
area – is approximately four times (4X) that of a
conventional acid pickling line.
Catalyst for Growth
For most service centers acid pickling is outsourced, which adds both processing cost and freight cost. Bringing pickling in-house by operating an EPS line eliminates these costs:
- The extra freight to/from the pickler is eliminated.
- Inventory can be consolidated, since EPS replaces both acid pickled and hot roll black. That reduces carrying costs.
Above all, EPS processing is a catalyst for growing your business. Not only do you offer a valuable new service, with EPS you supply a new product that replaces acid pickled, but is superior in appearance and performance. Added volume from EPS sales can also generate more volume for other processing lines.