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To counter declining profits, Air Products will implement a global cost reduction fast plan to reduce capacity and costs. "First, we have shut down or will divest several underutilized facilities within our gases and chemicals segments," says chairman and CEO John P. Jones. "Second, we are implementing cost reductions to improve productivity, including balancing engineering resources with project activity. And third, we are reducing the number of management positions in the company to streamline our structure. Collectively, these actions will result in the elimination of 461 positions worldwide." The program is aimed at saving $38 million in fiscal 2004.As part of the restructuring, Air Products will shut down two liquid oxygen/liquid nitrogen plants at undisclosed locations. The company is also actively seeking a buyer for its $65 million to $70 million European methylamines business and is setting up its US methylamines business for divesture, having already closed its methanol and ammonia plant in Pensacola, Fla., notes Bane of America Securities analyst Mark Gulley. Danger comes from the fact that centrifugal force does not increase in direct proportion to an increase in speed, but instead it increases as the square of that speed increase. gas When rotational speed doubles, centrifugal force quadruples. This effect means that relatively small changes in speed can produce significant increases in force. In the example mentioned, changing from 6,600 rpm to 7,700 rpm multiplies the speed by 1.167. However, the corresponding scooter centrifugal force would multiply by a factor of 1.167 x 1.167, fast or 1.36. To take a more extreme example, consider the same wheel with a maximum safe operating speed of 6,600 rpm run on a 5-inch right angle grinder at 10,000 rpm. This represents an over-speed of about 1.5 times the wheel''s designed speed. But the corresponding centrifugal force-and the corresponding rotational stress on the wheel-would be about 2.3 times as much as the maximum allowed.
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