Note for Mr. Pritchard
G - 13 C.
Meation with Mr. J.Z. Intras President of Arjoy Equipment
11th April 1984 - Millbask
C - V C plant capacity is rated at 180 kg per hour (400 The per houe) and Is
based on a 600 lb batch per cycle lasting 55 minutes.
L. B. + W. G - 13 C plant ex Petersburg
a) Arjay have two prospective non-BA.T purchasers and Mr. Ingram was of
the opinion that the plant could be disposed of very shortly.
b) Should the plant be sold be sold to a 3AZ associate Arjay would be
willing to undertake any necessary refurbishment. They would also
carry out pro-shipment, testing. As a guide to possible cost. Arjay
refurbished the first G - 13 C plant from Petersburg for approx
U.S. $ 39,000. This Included changing the motors end starters to match
the electric supply In the new location. The work was completed in
about 3 months.
Arjay would supervise the installation start up in the now location.
This would be charged for on a per dies basis Involving 2 men for
approximately I month.
2. low 0 - 13 plants
a) The cost of a new 6 - 13 is currently UJ6 $ 500,000 to which aunt be
added U.S. $ 100,000 for ancLIlarles direct to the process.
b) Arjay are currently offering a 9/10 mouth delivery which means, say; a
15 month period from order to start up.
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B.A.T INDUSTRIES P.L.C. - MINNESOTA DEpOSTroRy Copy - PRODUCED PURSUANT To VILD. OF
CONSENT JUDGMENT DATEo 54SO IN STATE OF MINNESOTA ET AL. V. PHILP MORRIS, ET AL CASE No. C1.9"565
3. Commerical Arrantements
While Do specific offers ware, made by Arjay, Mr. Ingram expressed
willingness to put forward a plant purchase agreement which would include a
once and for all royalty payment. The general agreement offer provides for
a LO cout psi pound royalty but he intimated that this would be open to
negotiation in places where low leaf cost adversely affect the rate of
return on the plant.
4. Active Asent
The discussion briefly touched an the use of Freon 11. It was evident that
they vote aware of the variability of Freon 11 residues an cigarettes and
Mr. Ingram, mentioned that the residual level on the batch C - 13 C plants
was greater then that achieved by the continuous 0 - 13 plants. There was
no strong attempt to dismiss the problem which was raised in the context
for the need of steam-strLpping following the ev:pamoion.
V9WDAH
l8th April 1934
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B.A.T INDUSTRIES P.L.C. - MINNESOTA DEPOSITORY COPY - PRODUCED PURSUANT To VILD. OF
CONSENT JUDGMENT DATED 51&W IN STATE OF L*MWSOTA, ET-AL v. PHxr MORR6, ETAL, CASE No. C1-9"665