Document BvGOeJnedjx7d3yVKe4odE9D8

UC MS-.? INTERNAL CORRESPONDENCE f!k ?'2 (Ad w UNION CARBIDE CORPORATION ROBINSON plaza Ii, route ea Pittsburgh, pa 15205 METALS OrVlSOTN) To p\imej Division Location Atm Mr. J. T. Kelly UCC - Metals Division Danbury, CT J-- 1 Copy to G. M. Lincoln, Jr. T. P. Norris W. C. Thurber J. E. Walsh oa July 26, 1983 or^naungDaot. "Cal idria" Asbestos Area Subject 1983 Silica Treated Asbestos Sales The sales of RG-244 and SX-24 for the first half of 1983 are summarized as follows: Tons Actual Budget % Budget 80-21)4 Domest ic RG-244 Export SX-24 Total 106 144 201 451 170 160 245 575 62 90 82 78 $M Actual Budget % Budget 361 490 488 1,339 580 552 539 1,671 62 89 90 80 N.B. Domestic sales figures for RG-244 presented in the June sales summary are incorrect due to a computer input error. EXPORT SALES I. RG-244 The bulk of export sales of RG-244 is now being handled by Tomoe Engineering Co., Ltd. (TEC), especially since April 1 when their geo graphical marketing area was expanded. Although 10% below budget for the first six months, no major problems exist with RG-244 export ship ments. Because of the strong U.S. dollar, TEC is experiencing a pricing problem but still appear to be maintaining an acceptable sales record. UCC-Australia suffered a setback when their biggest customer became a subsidiary of Hercules and asbestos was formulated out of all their products. They are now expected to purchase only 10 tons in 1983 versus a budget figure of 45 tons. 2. SX-24 Sold only by Grace CmbH, this product is 10% below budget for the first 6 months, i.e., 488$M vs 539$M. However, July-shipments have been extremely good, and with August orders also on the high side, it appears that they should also approach budget by the end of the third quarter. UCC 010676 Mr. J. T. Kelly -2- July 26, 1983 DOMESTIC SALES 1. Commercial Although a relatively minor item in the commercial sales budget, RG-244 has performed far below expectations. The following is a breakdown by individual customers for the first six months. Tons__________________________ _$M Actua1 Budget % Budget Actual Budget % Budget AVCO PTI RIVERAIN TREMCO (CA) TREMCO (OH) Total 4 3 4 1 4 16 6 67 21 14 6 67 2 50 10 . 40 45 36 16 21 12 72 17 21 57 16 34 65 155 76 17 81 71 47 42 It is expected that Avco (protective coatings) and Tremco (CA) will be on budget by the end of the year. Tremco (OH) will probably improve but not reach budget as they have been purchasing some RG-244 from our Cleveland distributor. PTI and Riverain, both in automotive caulks and sealants, are the two problem areas. Because of their order pattern, Riverain could meet budget by the end of the year. However, PTI is purchasing RG-144 at the expense of RG--2-4-4, and year end results will undoubtedly not be an improvement over first half results. Both of these customers are faced with the problem that they can not develop any new formulations containing asbestos for the automotive industry. Therefore, their RG-244 usage is restricted to established product lines. 2. Distributor Sales The major problem area concerns the lack of sales by our distributors. The following summarizes the present situation (figures are in tons (rounded)). Distributor 1982 Purchases 1983 Budget 1983 To Date American Industrial A. T. Cal las D6F H & C (Canada) H & C (Pacific) Lenape Chemical Technical Products 13 20 30 35 74 12 41 22 4 52 24 51 14 40 11 85 53 31 14 53 __ 0 Total 225 334 120 UCC 010677 Mr. J. T. Kelly -3- July 26, 1983 Comments furnished by Jack Walsh on 7/25/83 are as follows: 1. American Industrial Have not performed as well as expected and especially with RG-244 sales. Have lost several customers including: (1) Futura - due to new management who decreed asbestos out of all formulation, (2) Indural - switched to Cabosil when Al put them on a COD basis, (3) National Chemical - went bankrupt. 2. A. T. Cal las About to reorder and should be close to budget. Their business getting better and he has had no big losses in RG-2M customers. 3. D&F Probably purchase about 3^ tons this year or (>1% of budget. Lost three customers due to corporate edicts not to use asbestos (Ceilcote, International Paint, and Matcote). 4. H&C (Canada) Should approach 1982 sales but will not hit 1983 budget. Jack lacks information on HC's individual customers. 5. H&C (Pacific) Expects them to meet budget. Got 5 ton windfall from sales to distributor in Taiwan. Will not be repeated. 6. lenape Chemical Should end up year close to budget. &. Technical Products A disaster account due to over-optimistic budgeting and their loss of several key accounts. Have purchased k tons in July against a 1983 budget of 53 tons. Lost Ceilcote due to corporate decree (General Signal) and has run into a problem with Mameco because of moisture in RG-2M*. Efforts being made to reestablish sales here. UCC 010678 Mr. J. T. Kelly -4- July 26, 1983 The fact that RG-244 sales to distributors is less than 70? of budget is because of the following: (I) over-optimistic budgeting, (2) loss of several big customers, (3) new customers are all very small, (4) no new RG-244 applications, (5) distributors' business have not improved over last year, and (6) salesmen are meeting stiffening resistance by potential customers to use RG-244. RG-244 is generally regarded as the most profitable product handled by our distributors and effort is being carried out to increase its sale. GLD:vad UCC 010679