Document BRk2moE4oay7ab0gKREX5ok4J

MONTHLY REPORT FOR THE PERIOD: December 1 -31, 1974 TO: Dr. A.-L. Zecha CC: Mr. John L. Myers FROM: F. S. Wada RECEIVED JAN 3 1975 ASBESTOS: 1. Price Increase: The price increase of average of 14% effective January 1, 1974 was postponed to April 1, 1975 for AS-200, HPO and three other grades-? due to customers' financial difficulties caused by slow business and tight-money. Whereas, the price increase for RG-244, HPP, T-I35 P 0 and t\vo other grades will be increased from Janauary 1, 1974. John L. Myers has given a special consideration to Tomoe's difficult position with excessive inventory, slow business and customers predicaments to accept a price increase to postpone the price increases of AS-200, HPO, etc. until April 1, 1975. ^ 2. The Labor Safety Sanitary Regulations: The Nikkan Kogyo Shinbun of November 19, 1974 reported that the Labor Ministry announced that the asbestos will be included in the Labor Safety Sanitary Law as the occupational cancer causing material, which will be revised next spring. ' The new regulations are (1) Total prohibition of gunniting (spray gun),of asbestos (2) To change present dry process to wet process from production (of asbestos slates and pipes) to fabrication (cutting, grinding, drilling hole and finishing). _ (3) Any materials containing "over 5% asbestos" will be affected by this new regulation. Reference: The asbestos used for slates, pipes and insulation are stiff long fiber called "blue asbestos" (crocidolite)' causing cancer. Whereas, our California and Canadian asbestos are short flexible fiber (Chrysotile) proven to be harmless to human body. 3. Nittobo is planning to use Calidria SG-102 for floor tile in place of Canadian Carey asbestos. The quantity will be about 100 T/M starting March 1975 and increase up to 300 T/M with economic recovery. If successful, Nittobo will be our first customer for floor tile application. BCElVfcO UCC 008541 qC 311374 OCC-CM-1DSIA n 2 MONTHLY REPORT FOR THE PERIOD: December 1-31, 1974 4. Daiken Patent: The writer checked with Kurauchi Patent Office for any progress taken place, and the writer was informed that no action has been taken by Daiken regarding UCC, Eidai, etc. oppositions. In our subsequent calls on Daiken, no mention has been made to Tomoe or to the writer. 5. Mr. R. E. Byrue has made plants to visit Japan from March S to 26 in order to develop RG-600 market as our potential customer trial tests have been unsatisfactory. Without Niagara Falls' technical assistance RC-6C0 market development will be impossible. FSW/ys UCC 008542 1974 OBJECTIVES BATTERY - ASBESTOS - CARBON - December - t Title Battery: a. To achieve 5-10% of MAM watch battery replacement market by end of year thru Yuasa b. To achieve objective $3.5 MM sales volume for MAM cells by year-end c. To fulfill our obligation to accompany Mr. H. Matsumura to study MAM and SAM battery sales channels in USA d. To bring UCSIL carbon-xinc battery prices to proper market prices', level by yearend at Daiei Supermarkets Asbestos: a. To adjust Tomoe's inventory to reasonable level from over three months inventory b. Market development for new grade RG600 Carbon: c. To study asbestos production and sales in USA a. To improve carbon products (ATJ and Brush plates) delivery delays b. To achieve Grafoil sales of $0.8 MM thru Tomoe by year-end Yuasa holding blister pack, due to JV formation. YTD sales attained $4.3 MM to exceed target of $3.5 M by $1.0 M Completed in September Sales to Daiei will be discon tinued from Jan. 1, 1975 and Supper 99 batteries are agreed to be sold out by end of March 1975 ! Import orders of October, November and December were cancelled All tests conducted by customers were unsatisfactory that a tech nical assistance required Expected to be realized in 1975 Now the economic changed suddenly that the orders are cancelled to adjust Tomoe inventory Attained 76% of $0.8 or $0,648 MM J UCC 008543 MONTHLY REPORT FOR IKE PERIOD: December 1-31, 1974 TO: Dr. A. L. Techa FROM: F. $. Wada SALES: - : i l BATTERY: MAM SAM Total December S %AB3 %LA5T YEAR _________ Year-to-Date $ %AB3 %LA57 YEAR 45 15 31 4,351 124 252 _0 _0 _0 ^ 193 65 25 45 14 22 4,524 119 182 i UCSIL _6 20 - .e 176 - 50 -- 1 ii Battery Total: 51 15 23 4,700 113 139 i { AS3ESTC3: 000 656 46 81 C66) CARSON: Carbon: Grafoil GRAND TOTAL: 19 33 61 33 49 52 42 168 103 603 648 1,251 S3 160 76 84 333 * / FSW/ysV l \ \I i \ UCC 008544 -r----* : ^' MONTHLY REPORT FOR THE PERIOD: December 1-31, 1974 Comments; Battery: Asbestos: The imports of MAM and SAM batteries were 14% of ABB/12 for December and 22% of ABB/12 of 1973, due to slow sales and Yuasa's exessive unintended inventory. But for the year of 1974, it was 119% of ABB and 182% of 1973 imports, which is miraculous growth, indicating great advance in electronification of cameras watches in Japan leading the world in these area. But we must not forget the great efforts of Yuasa, who has reinforced their organization and personnel to keep up with this expanding market. There were no imports for December following November and October, due to slow-down activities and excessive Tomoe inventory. The imports of $656 M was 46% of ABB and 81% of 1973 imports. Carbon: The carbon products import was 61% of ABB/12 for December, due to cancellation of orders of brushes and ATJ. The import of $603 M for the year was 88% of ABB and 160% of 1973 imports. The import of Grafoil for December was 49% of ABB/12, and for the year $648 M was 76% of ABB, due to recession. The carbon products as a whole including Grafoil, the import amounted to $1,251 M or 333% of 1973. New Assignment - UCARSEP: . The writer has been assigned to assist Mr. K. Gustafson on sales of UCARSEP systems on November 15, 1974. UCARSEP market evaluation survey was conducted by Dr. Arino and - followed by Dr. Litz's potential customers calls during September this year. Since the day of the writer's assignment, like inquiries Nippon Parkarizing, Nippon Yushi (Nagase)f Toyota through Mitsui Bussan were received. Except Toray Engineering, who has placed order for a standard 2x6 UCARSEP system, we are unable to comply with the customers requests to test our system, until our plans made and budget approved. - t (t ( I t UCC 008545