Document 2JEO8pmVO1R3XDx9jd3ep4kJN

{ 1 in japan. This is because the current construction law stipulating compulsory use of non-flammable plates for ceiling materials of Japanere high storied buildings, and as far as the rockwool acoustic absorbent ceiling tile are concerned, all of such materials should pass the test of the Ministry of Construction Non-flammability authorization No. 1021. The dimensions of materials are specified as follows (Ministry of Construction Authorization No. 1021 for non-flammable materials): Thick Shape ness (mm) Size (mm) Density Bending j Water j Thermal Con- j Strength i Content j Activity(Kcal/ (g/cm3) (Ukag//ccnr2^)j :. t(%v)\ ! tmanmdpe.g7) (0Ar5verCa)ge ! Flat board 9 12 15 19 300 x 300 (303x303) 300 x 600 (303x606) 454.5 x 454.5 600x1,200(606x1,212) below 0.5 above 8.0 (may include differeiit sizes as required) ; i below ; 0.3 I i i i j ti ! ii below 0.06 i i -_________________ i There are seven domestic manufacturers of rockwool acoustic ceiling tile and six of them are employing the wet process. At present, five com panies are using AS-200 or HPP, and the remaining one, Shov/a Denko, is currently in the process of mill trial with HPP and this company has already determined the use of 10 tons/month from the next year. erefore, we would attain 100% exclusive share in this field next year. pla!nttffs^ EXHIBIT I Listed below are the makers of rockwool acoustic ceiling tile: UC-368 I Company i i | Daiken Kogyo Co. 1 j Nittobo Kenzai Co. ! i; Grade i .AS-200 i HPP i I Eidai Sangyo Co. i HPP : Matsushita Danko Co . iI HPP . \ Mitsuboshi Rock Star Co'. f HPP ; Showa Denko Co. * I1 HP? *Mili Trial Amounts used Nov. 1973 160 ton 140 II 40 It 50 ir 5 If _____i ti i ] ! j Dec. 1973 | s i 160 ton ; 130 " | 40 " 90 " 5" | 5" !  As you are aware, this application involves a patent problem being filed by Daiken. Kogyo. Currently negotiations are in progress between Daiken and ourselves in an effort to work out a solution in the interest of both UCC and Daiken. However it would take some time until we can reach a settlement. It appears that HPP is not so much utilized for this application in the United States. This may be because of Japanese law being more stringent for the standards of non-flammable materials. The typical formulation is as follows: Rockwool 8 5% HPP 3% Tapioca 3% Resin 2% Others 2% The purpose of HPP and AS-200 is to increase the retention of tapioca, thereby improving the overall quality of ceiling tile boards. Daiken Kogyo has switched their grade from HPP to AS-20Q with an increased volume of use twice as much, thereby greatly improving the non-flammability of its products. In view of the above, this company's demand for AS-200 in 1974 would increase by 50%. over the estimate of October 15, 1973 we previously submitted. We believe CALIDRIA. Asbestos will make an exclusive material in this application area upon successful solution of the patent problem.