Document 93E4bnYwDxwaoVZb83B304M1V

FILE NAME Manville JMA DATE 1980 DOC JMA223 DOCUMENT DESCRIPTION M Chairman Draft Speech with Relevant Correspondence JM a Manville To M. Harris From D.M. Kelleher Copies 2-13 2-13 ma Internal Correspondence Date August 6 1980 * Subject ETERNIT SUMMIT Attached is the outline we reviewed we propose Let think additional us know visuals if they are are needed will then fill in the numbers last week and satisfactory If these are the visuals or if you O.K. we J.A. MC KINNEY PRESENTATION You indicated you would standing that basically to develop the numbers review it further you approve it We It is my under- are proceding ACAPULCO They still have not pressed us for the Knowing the Mexicans later in August we will probably July payment be O.K. til you return D.M. Kelleher DMK Attachment PRODUCED a - 83 I. THE NEED TO WORK TOGETHER M AS LARGEST SUPPLIER AND ETERNIT AS LARGEST CONSUMER PROVIDE LEADERSHIP FOR OUR THREATENED BUSINESS HELP US KEEP OUR COSTS DOWN WE CAN HOLD DOWN FIBER PRICE FOR THE INDUSTRY CHART I CHART II SUPPORT 1 Show difference in cost of 5 and day operation ' 2 Show impact of 100,000 tons of lost sales on day operation show as 6D24 3 Get specific amount of fiber we need " " Statement of order in tons by grade Values shown are approxi- mate J-M 83 CHARTI SIX DAY VS FIVE DAY OPERATION 200 4 DOLARS OF MILONS 100 + , s 1 REDUCTION IN SALES REDUCTION IN COSTS LOSS OF PROFIT 40,000,000 15,000,000 25,000,000 DAY OPERATION DAY OPERATION PRODUCED - JM 83 CHART II 200 DOLARS OF MILONS 100 FORCED TO DUMP 30,000 TONS 6D24 30,000 TONS PB 5 40,000 TONS OTHER GR 7 BASED ON ANNUAL PRODUCTION OF 152,000 TONS OF GR 4 REDUCTION IN SALES REDUCTION IN COSTS REDUCTION IN PROFIT 15,000,000 2,500,000 12,500,000 650,000 TONS 550,000 550,000 TONS PURPOSE BUILD UP THE NEED TO CLEAN UP THE INDUSTRY - BY INDUSTRY RATHER THAN BY GOVERNMENT II UPDATE ON THE STATUS OF THE ASBESTOS AND HEALTH SITUATION IN THE U.S. A. BUREAUOCRATIC REGULATORY EFFORTS 1 OSHA a BENZENE CASE IMPACT b NEW STANDARD C HASSLE US Jim Reis & Wyatt McCaullie 2 CPSC will brief you on these subjects a STRATEGY AND TACTICS SUBSTITUTE MEETINGS b CVF AC 3 EPA Get copy each of , Do you want slide the shows a STRATEGY AND TACTICS INDUSTRY EFFORTS 1 CLEAN UP INDUSTRY DEVELOP WORK PRACTICES ALL INDUSTRIES RESULTS OF FIBER CONTROL EFFORTS 2 PUBLIC ADVERTISING MEDIA AND DIRECT MAIL DEVELOP AUDIO SHOW LINKE AUDIO SLIDE AND AFD AUDIO SLIDE AND WORKING WITH ASBESTOS 3 PROBLEM - STARTED TOO LATE TO PREVent damage to OUR BUSINESS CHART III 4 WHAT WE BELIEVE WILL HAPPEN INCORPORATE THE RESPONSE TO THE ETERNIT PAPER 5 IMPACT ON OUR MARKETS - C LOSS BY MARKET Moke Consider moving the subject of the discussion of impact of asbestos and health on our markets and the our strategies to preserve the business to a location following the discussion on pricing PRODUCED PRODUCED BUSINESS ROOFING FLOORING FRICTION MATERIAL BLACKLINE OTHER CHART III IMPACT OF U.S. REGULATORS FIBER USED 1979 SHIPMENTS B 1985 SHIPMENTS LOST BUSINESS PRODUCED PRODUCED 27 J-M 27 6 OUR STRATEGIES BY MARKET a PAPER GRADES BLACKLINE ETC. CHART CHART CHART CHART IV V V VII ROOFING FLOORING FLOORING / . PIPE - IMPACT ON ADVOCATE DISCUSS LATER FRIC.MTLS BLACKLINE }__ Each similar to attached Roofing Strategy PRODUCED . JM C LOSS CHART IV STRATEGY - ROOFING FIBER 1979 TONS 1985 TONS REDUCE FIBER PRICE - 6.40 FIBER IN 50 - PLY SQ OF ROOF - INSTALLED COST ASBESTOS 4.00 SQ HIGHER THAN GLASS % - PRICE REDUCTION OF LITTLE IMPACT PERFORMANCE NORTH - POORER RECORD THAN GLASS SOUTH - GOOD LONG TERM PERFORMANCE STRATEGY DON'T CUT PRICE PLAN ON LOSS OF TONNAGE CONVERT LOST TONNAGES TO A GRADES NOTE CHART V FLOORING CHART VI CHART VII FRICTION MATERIALS BLACKLINE THESE CHARTS ARE EACH SIMILAR TO THIS ONE CHART IV PRODUCED JM - 83 III NO CHARTS STATUS OF ASBESTOS LITIGATION IN THE U.S. A. LAW SUITS FROM INJURED PEOPLE B. HART BILL 0 LONG TERM AFFECT ON M SUITS WITH INSURANCE COMPANIES ETC. _ PRODUCED LONG TERM ASBESTOS POLICY CHART XIII I. II CHART IX ASBESTOS POLICY OBJECTIVE That those using asbestos or 411 asbestos conta product do not sustain an asbestos related injury MAKE POINT THAT IF WE DON'T THAT GOVERN- OBJECTIVES MENT WILL STEP IN DESCRIBE SHRI DIGVIJAY BARRY CASTLEMAN SITUATION A. Asbestos will be sold only to responsible users by asbestos producers Resales of asbestos will only be responsible users labeling will be adequate Packaging integrity and B. A maximum level of cc 8 HR TWA with a peak concentration of _ cc will be considered safe A no smoking policy among workers will be encouraged C. Areas to be covered include in phases 1 Movement of fiber from the delivering ship's hold car or truck to the plant - Phase I 2 In Plant conditions - Into the mix - Phase I Product Fabricating - Later 3. Jobsite work practices- Phase 4 User sales policies must include a Friable products not to be sold except for very essential uses and then only if well labeled Phase I CHART X b Locked in products are to be sold with adequate work practices Later Phase c Encapsulated products can be sold on an un-~ restricted basis III TO BE ALTERNATCI ONSV IDE ERS ED A. Producer Alliance A union user to of sufficient segment meet the objective objective or of be supply forced to force any out of busines CHART XI 1. Most likely - group M Advocate Bell Cassiar Balengero Turner and Newall 2 If the above group formed then Lake and ACL might join PRODUCED JM - 83 IV INTERNATIONAL ASBESTOS AND HEALTH A. DEVELOPED NATION - PATH IS FIXED B. See attached Int'l Asbestos Policy for program DEVELOPING ECONOMIES INTERNATIONAL ASBESTOS POLICY SHORT SHORT AND LONG RRAANGE NGE . INTERNATIONAL LABELING POLICY Discuss Mexican situation Shri Digvijay Pics LABEL ALL LOCKED PRODUCTS SO THAT FABRICATOR WILL BE TOLD TO USE WORK PRACTICES Forming Environ- mental Activist Groups - WE CAN USE ETERNIT EXPERIENCE IN CLEANING UP PLANTS IN THE 3RD WORLD C. EFFORTS to clean UP M PLANTS CHART VIII ASBESTOS POLICY OBJECTIVE THAT THOSE USING ASBESTOS OR AN ASBESTOS CONTAINING PRODUCT DO NOT SUSTAIN AN ASBESTOS RELATED INJURY PRODUCED PRODUCEDPRODUCED 83 ASBESTOS POLICY SELL ONLY TO RESPONSIBLE USERS SET REALISTIC SAFE STANDARD COVER ALL AREAS IN PHASES CONDITION PLANT CONDITIONS JOBSITE WORK PRACTICES SALES POLICY PHASE I PHASE I LATER NEXT TRANSPARENCY CHART X USER SALES POLICIES NO FRIABLE PRODUCTS - EXCEPT ESSENTIAL LOCKED PRODUCTS WITH WORK PRACTICES ENCAPSULATED PRODUCTS - UNRESTRICTED PHASE I LATER PRODUCED PRODUCED 83 CHART XI PRODUCER ALLIANCE PURPOSE ASSURE NO ONE INJURED SIX PRODUCERS > PRODUCE 50 OF GR 4 5 AND 6 FIBER M ADV BELL T & N BELANGERO CASSIAR NINE PRODUCERS - PRODUCE 67 OF GR 4 5 AND 6 FIBER ABOVE PLUS ACL LAKE AND NORDENHAM PRODUCED JM - 83 Alli - Ua sern Alc liae nce Use threat of reduced supply plus ability to put pressure on conforming users through it's smart business sell their government 11 M Alone Threat to reduce supply plus it's smart business sell M - User Alliance IV Threat of reduced supply pressure through their governments plus it's smart business sell PRODUCER ALLIANCE IMPLEMENTATION The only alternative considered Each of the other would weaken our sales position tion and cost us share of erode our market price leadership posi CHART XII A. Mandate Sole role of this organization would be to enforce the asbestos manufacturing industry's compliance to the objective that no one be injured by asbestos 1 Require each user to achieve the specified fiber levels within a given time frame Each user not presently in compliance must develop a master plan with long term and intermediate objectives to achieve the plan 2 Make surprise inspections If bad conditions are found issue citations allow time for correction If the user believes he has not been dealt fairly with have to sell to available those who an appeal procedures don't comply Refuse 3 Avoid 3 commercial Image or response to CommerciaCol m ercial pressures aura of a cartel 4 Rotate Inspectors to avoid payoff problems 5 Provide guidance and assistance to users in their efforts to comply provide a technical staff to assist in design and review plans to prevent users misspending funds on poor designs 6 f a user does not cooperate refuses access ete cut off supply PRODUCED JM - 83 CHART XII IMPLEMENTATION ORGANIZATION WITH THIS AS SOLE ROLE . NO COMMERCIAL CONFLICTS OFFER TECHNICAL ASSISTANCE . EACH USER DEVELOP A PLAN ENFORCE OBJECTIVE NO ONE INJURED oo DUCED CHART XIII 1 Form a council of all producer with 1 vote per 25,000 of sales Each Establish an executive committee elected by the council Designate an administrator appointed by the executive committee Appoint a sufficient staff to make at least one inspection per year for each plant in countries where the regulations are weak or existent approximately 10 inspectors Budget 1,500,000 membership on a ratio - assessed against to $ sales the Set up an audit procedure DMK Mh CHART XIII ORGANIZATIONAL STRUCTURE CONTROLLED BY BOARD OF PRODUCERS ADMINISTRATOR TECHNICAL STAFF INSPECTORS ENOUGH for one INSPECTION IN COUNTRIES WITH WEAK OR NO REGULATIONS BUDGET 1,500,000 Short Term , Asbestos Policy I. Short term Objective CHART XIV Demonstrate responsibility and leadership as largest asbestos producer Advise and educate customers in the safe and proper usage of our asbestos fiber Get publicity II a Identify areas of greatest need for consultations Far East Africa b Identify applications set priorities c Discuss locked in concept labeling of asbestos containing products work practices offer complete in plant handling systems III Action a Send a highly qualified engineer to the Far East India Thailand Taiwan and visit all our customers Plan 1 day per customer visit of plant if possible asbestos and health presentation submitting literature and specific information for process b Follow up all visits by letter to have evidence if necessary c Plan second follow up visiitf necessary d Do not get involved with government authorities This is not yet our responsibility c Extend visits to other areas as Africa after having gained experience with approach CHART XIV SHORT TERM POLICY DEMONSTRATE INTENT BY M TO IMPLEMENT SALES POLICY VISIT PLANTS REVIEW CONDITIONS 3RD WORLD OFFER TECHNICAL ASSISTANCE DESIGN PURCHASE . INSTALLATION AVOID INVOLVEMENT WITH LOCAL GOVERNMENT . IMPLEMENT FALL OF 1980 V. FUTURE SUPPLY OF ASBESTOS - GIVE MINES THAT MAY GO OUT OF BUSINESS ESSENTIALLY SAME AS LAST YEAR DISCUSS WOODSREEF NO CHART VI UPDATE OF PQ SITUATION DISCUSS POTENTIAL NATIONALIZATION OF ASBESTOS CORP CED 33 CHART CHART XV XVT VII PRICING STUDIES * CONSIDER PUTTING THE DISCUSSION ON THE IMPACT OF ASBESTOS AND HEALTH ON OUR MARKETS HERE AND STRATEGIES - FOR USES TO PRESERVE THE BUSINESS Do when Lutz & I VIII return 8/25 CHARTS III IV V VI AND VII NEW ADVOCATE CONTRACT IMPACT OF PIPE SLOWDOWN Do when Lutz & I return IX OUR SUPPLEMENTAL ORDER CHART XV COST PRESSURES SPREADING COSTS OVER FEWER TONS PROGRAMS TO EXPAND TONnage MINING COSTS ACCELERATING FASTER THAN CANADIAN INFLATION PIT DEEPER WASTE DUMPS GREATER DISTANCE CHART XVI LAYED DOWN FIBER PRICE HISTORY PRICE OF 4T30 IN LOCAL CURRENCY INCLUDING FREIGHT DEVELOPED ECONOMIES GERMANY FRANCE UNITED KINGDOM JANUARY 1977 JANUARY 1979 DEVELOPING ECONOMIES MEXICO BRAZIL INDIA PRODUCED OTHER ISSUES CHINA - JOINTLY GET INDUSTRY GOING ETERNIT PRODUCE AND MARKET BLACKLINE PRODUCTS IN DEVELOPING ECONOMIES CAN THEY PROVIDE MERCHANDISING ASSISTANCE TO THE OTHER ASBESTOS AND HEALTH . PRODUCT PROMOTION DISCUSS STRATEGY ROOM SHOW THEM PICTURES RUSSIA CONDITION PRICE - QUALITY OTHER ASBESTOS FIBER SUBSTITUTES - STREIB NOTES establish would Joint establish establish Joint effort effort to to supply & demand demand