Document DMZQNNJaVKRb9w832L50Yzqm5

Monsanto mu MA Mf A i Wlll'Hi Industrial Chemicals Co. - It* Louis *n iuejec* Dtoaaber 17, 1971 M'lMMCI TO : Directors of Marketing field Salsa Directors Field Salts Managers District Salts Directors OQMFXDBfTIAL . At their Board meeting on December 9, 1971# Monsanto's Board of Directors approved corporate Monsanto decisions previously takon as follows: 1. Terminate all sales of PCB fluids for use in heat transfer applications by formal notice to all custo mers. 2* Immediately implement a plan to terminate all sales of polyohlorinated terpbenyla by March 31# 1972 for piasti- elzers. 3. Sales of PCB fluids for transformer or capacitor use will be dependent upon the receipt of agreements ac - osptable to Monsanto, holding Monsanto harmless from legal liability associated with the use of PCBa in transformers and capaoltors from customers whose financial responsibility makes suoh agreements mean ingful in Monsanto's opinion. Since Monsanto Industrial Qitaic&ls Company sells these products to many key corporate Monsanto customers, we want you to be aware of these decisions and their implementation so that customer visits don't lead to surprises. What MICC products are' Involved? 1. Specialty Products Business Croup fupohionai" 'Product's group ' lest Transfer Fluids: Thtminol FR-L Temp Thtminol FR-0 Thermtnel FR-1 WATER PCB-00049952 -2- Capacitor Dielectric Fluid*s . Capacitor 21 Aroclor 1016 Aroc lor* 1242 Aroclor* 1248 Aroclor 1254 Tranafohner Aakarel Fluid*: Znertaen 100-42 Inertaan 70-30 Zfitrttan PPO fyranol A13B3B 2 Plasticizer Business Qroup . TCBjr"~lTTFoceai Chemicals Division Ugg TM .. ......" ------- Plaatlcizara Aroclox*1221B Aroclor5432 Aroclor5442 Aroclor 5460 Aroclox6000 Serlas Montar 5 Santicizar 301 Saaticizer 311 Santlclzor 326 Santicizar 327 Santicizar 335 Santlclzer 336 Santicizar 337 MX? 101 What affect will this have on our customers? , While everyona wlahae theaa dedalona did not have to be taken, and while they will cauae aome lnoonvenlence to customers, the picture la not ae gloomy aa Bight be auppoaed. 1. Theae decialdns should not coaie aa a complete aurprlae to any ouatoaer. We have been alerting cuatoaera by letter periodically tinea February, 1970 ofthe problem* aiaociated with FCBe. 2. We phased out PCBe from certain applications (plasticizers, hydraullo fluids, and process fluids) froa aid-1970 to early 1971. 3. We discontinued sales of PGBs to new heat transfer fluid systems several months ago. 4. Since August, 1971# aany existing PCB heat transfer fluid users have effected conversions to non-PCB fluids. (To date over 150 of such systems have converted. We have retained 90% of these conversions for Monsanto with our pen-fCB heat transfer fluids Theminel 55 nd 66.) 300 2tlC 900370 WATER PCB-00049953 -3- What help art we effertng our customers? 1* 1--t Transfer Fluids la explained in our customer notlflcation letter, ve ha?e assembled an experienced engineering team to give help to euitouri aa they decide on conversions. We also offer the services of a high temperature Incinerator to dispose of used FOB heat transfer fluids, and will accept return of originally packaged FOB fluid*. 2. Dielectric* The decision an dielectric fluids will probably not affect east of you since transformer and capacitor manufacturers are a reasonably small and separate group. We emphasize that vs are not discontinuing dielectric FCBs since their usage Is important to the national interest. Monsanto is conditioning such sales, hovsvsr, on obtaining certain financial safeguards, vhils acting responsibly in the interest of the eleotrlcal industry, its consumers, and thus the oountry. We are also active in ANSI C107* a committee set up to develop guidelines and policies for handling P0B in the electrical industry. 3, Plasticisers Monsanto is working to develop a list of suggested re placement products and suppliers to be used as a guide in replacing our Arocloz products in existing formula tions. Questions from customers Customers are going to ask questions about these decisions. We would suggest that yeur salesmen not try to answer these questions but to refer the customer te it, lowls: Heat Transfer Fluids Telephone! Mils (314) 694-2514 uiMiiii Patou Monsanto Oenaippayny F. 0. Box 14617 It. Louis, Missouri 63173 Dielectrics T. L. Oossage P. 0. Benlgnus C. Paton (314) 694-2545 314, 694-2513 ,314) 694-2520 300 2607 900371 WATER PCB-00049954 -4 - Plasticisers V. S. Clark (314) 694-2518 Direct inquiries from customers to Monsanto district offioes hould be handled in tha lue way. XT you wish to paaa on questions or statementa from customers, pleas* faal fres to do ao through tha uaa ohanatls. Kay Monsanto customer* y Attached you will find a list of key oorporat* Monaanto customers who will be given apacial notification of Monsanto's decisions. Separata lists are given for Heat Transfer Fluids and chlorinated terphenyl plaatlolsers. Mo list la given for dielectric custom ers since discontinuation of sales will not result unless our terns are rejected. Caatonera not included in these lists will receive the formal notification letters by mail (copies attached), ley customers will be notified as follows: Heat Transfer 1. By mailt Formal letter plus cover letter indicating that conversions are already underway or (in the case of multi-plant locations) have actually taken place at some locations. ' 2. By phone? Formal letter will then be mailed. 3. By Phone Plus personal visit (letter hand-carried): in this category we nay ask assistance from Regional Vice Presidents or Ureotora of Salts/Marksting to introduce us to the 8rlghtB people. The personnel primarily involved fro Specialty Products Group in notifying key customers will feef , X.,8. Bergen, Jr. - Business Group Director ?, L. Gossaft -> Director of Marketing V. f. Johnson - Field Sales Manager G Paten - Product Manager Plasticisers 1. By mailt Formal notification by letter addressed . to the'Office of the President to be mailed on 13/31/71. 2. ftr nbonet If regional managers and salesmen during - ` peHoCTrom 13/20/71 to 12/lX/ll. Thia will cover all important accounts. 300 900372 WATER PCB-00049955 * 5* 3* Personal calls: By regional manager* and salesmen from 12/20/7* to 12/31/71 with follow-up visits by 8t. Louis uM|smt persaanel frost 1/1/72 to " l/lk/72 at key Accounts as appropriate. Customer notification .... ....... .......................mjM "" .......ttirnimiHmnrniiiiiiiimniiiMiniirTTfflrra^^^M^mgB 0. i. tomeatlo Customers '* Host Transfer Fluids? December 15-20, 1971 . Plaetioizer Aroclor? December 20-31, 1971 Canada " notification will follow tho V. S. pttorn as quickly thsrsAftsr as practical. International lotion will bs tAkon through World Area Marketing management in tho first quArtor of 2972. It is vory important thAt you do not Ak this subject a dollborats topic of convsrsAtlon in your doolings with your customers, flease do not preempt the business groups in volved in notifying customers. We hsve Alerted you so thAt you Are not caught unaware should dsliOAts negotistions conotrnlng your products be going on. We would ssk in return that you treat this information in confidence so that we can implement these corporate decisions as effectively as possible for both Monsanto and our customers. Competition Be particularly careful in hew you handle this information at the following accountsi tow tow swing All oil companies tow is Monsanto's major competitor in synthetic heat transfer nfluifdlu.idT. heHy ohwaevveern, etvheeryhawdilflirbee-roeustisttanotbtfaliunidrseflillklss Iherminol of fluid with towtherm against our Theminol 66. Zf the customer oper ates at temperatures below 550F. or so, ho may eleot to go to lower ooat fluid such a Thermimol 55 In these eases, our competition will bs petrolew-based fractions from Bumble, Mobil, then, ete. 3D0 2 900373 WATER PCB-00049956 -6 - Finally, say ask that this aeao be furnished only to those with a need to know. C. Faton Product Manafer Dielectric, Hoat Transfor * Proooaa Fluid* . Specialty Product* Business Orup IA)SCQ*J<- W. S. Clark Product Supervisor Plasticizer Business Group toe. 'X. T. Fluid Letter) ^Plasticizer Aroolor Letter) (K*y H. T. fluid Acoounts) (Key Plastlolser Aroclor Aoceunts) 3(jO 2 660 900374 WATER PCB-00049957