Document EdD1E9VgrD9ejKN0jpR7y5zJg

......... ................. Industrial Chemicals Co. - St. Louis * December 17, 1971 TO ; Directors of Marketing Field Sales Directors Field Sales Managers District Sales Directors C0MFIDKMT1AL At their Board meeting on December 9, 1971, Monsanto's Board of Directors approved corporate Monsanto decisions previously taken 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 polychlorinated terphenyls by March 31, 1972 for plastlclzers. 3. Sales of PCB fluids for transformer or capacitor use will be dependent upon the receipt of agreements ac ceptable to Monsanto, holding Monsanto harmless from legal liability associated with the use of PCBs In transformers and capaoltors from customers whose financial responsibility makes suoh agreements mean ingful in Monsanto's opinion. Since Monsanto Industrial Chemicals 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 Group Functional Products Group Tggg------------- ----------- Heat Transfer Fluids: Thermlnol FR-Lo Temp Thermlnol FR-0 Thermlnol FR-1 bO o"d'-v 2 Capacitor Dielectric Fluids: Capacitor 21 Aroclor 1016 Aroclor 1242 Aroclor 1248 Aroclor 1254 Transformer Askarel Fluids: Znerteen 100-42 Inerteen 70-30 Inerteen PPO Pyranol A13B3B 2. Plasticizer Business group uRrugbeber & Process (Chemicals Division Plasticizers Aroclox^l221B Aroclor5432 Aroc 101^5442 Aroclor5^60 Aroclor6000 Series Montar 5 Santiclzer 301 Santlclzer 311 Santiclzer 326 Santlclzer 327 Santiclzer 335 Santiclzer 336 Santiclzer 337 MXP 101 What effect will this have on our customers? While everyone wishes these decisions did not have to be taken, and while they will cause some Inconvenience to customers, the pioture Is not so gloomy as might be supposed. 1. These decisions should not come as a complete surprise to any customer. We have been alerting customers by letter periodically since February, 1970 ofthe problems associated with PCBs. 2. We phased out PCBs from certain applications (plasticizers, hydraulic fluids, and process fluids) from mid-1970 to early 1971. 3. We discontinued sales of PCBs to new heat transfer fluid systems several months ago. 4. Since August, 1971* many 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 90j of these conversions for Monsanto with our non-PCB heat transfer fluids Thermlnol 33 and 66.) CH61161 TOWOLDMONOQ58795 -3- What help are we offering our customers? 1. Heat Transfer Fluids Aa explained In our customer notification letter, we have assembled an experienced engineering team to give help to customers as they decide on conversions. We also offer the services of a high temperature Incinerator to dispose of used PCB heat transfer fluids, and will accept return of originally packaged PCB fluids. 2. Dielectrics The decision on dielectric fluldB will probably not affect most of you since transformer and capacitor manufacturers are a reasonably Bmall and separate group. We emphasize that we are not discontinuing dielectric PCBs since their usage Is important to the national Interest. Monsanto is conditioning such sales, however, on obtaining certain financial safeguards, while acting responsibly In the Interest of the electrical industry. Its consumers, and thus the country. We are also active in ANSI C107, a committee set up to develop guidelines and policies for handling PCB In the electrical Industry. 3. Plasticizers Monsanto Is working to develop a list of suggested re placement products and suppliers to be used sb a guide In replacing our Arocloi products In existing formula tions . Questions from customers Customers are going to ask questions about these decisions. We would suggest that your salesmen not try to answer these questions but to refer the customer to St. Louis: Heat Transfer Fluids Telephone > (314) 694-2514 Mall: Cummlng Paton Monsanto Company P. 0. Box 14617 St. Louis, Missouri 63173 Dielectrics T. L. Coasage P. 0. Benlgnus C. Paton 0481162 TOWOLDMONOQ58796 Plasticizers H. S. Clark (314) 694-2518 Direct Inquiries from customers to Monsanto district offices should be handled In the same way. If you wish to pass on questions or statements from customers, please feel free to do so through the same ohannels. Key Monsanto customers Attached you will find a list of key corporate Monsanto customers who will be given special notification of Monsanto's decisions. Separate lists are given for Heat Transfer KluldB and chlorinated terphenyl plasticizers. No list Is given for dielectric custom ers since discontinuation of sales will not result unless our terns are rejected. Customers not Included In these lists will receive the formal notification letters by mall (copies attached). Key customers will be notified as follows: Heat Transfer 1. By mall: 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): lntEIir^aSegorynJe^ay-aiTrTs8ls;Eance--?roBrT?egIonal Vice Presidents or Directors of Sales/Marketing to Introduce us to the "right" people. The personnel primarily involved from Specialty Products Oroup In notifying key customers will be; H. S. Bergen, Jr. - Business Oroup Director T. L. Oosaage - Director of Marketing N. T. Johnson - Field Sales Manager C, Paton - Product Manager Plasticizers 1. By mall: Formal notification by letter addressed to the Office of the President to be mailed on 12/31/71. 2. By phone: By regional managers and salesmen during period" from 12/20/71 to 12/3V71. This will cover all important accounts. -5- 3. Personal calls: By regional managers and salesmen from 1^/26/71 to 1^/31/71 with follow-up visits by St. Louis management personnel from 1/1/72 to 1/1V72 at key accounts as appropriate. Customer Notification U. S. Domestic Customers Heat Transfer Fluids: December 15-20, 1971 Plasticizer Aroclor: December 20-31, 1971 Canada Notification will follow the U. S. pattern as quickly thereafter as practical. International Action will be taken through World Area Marketing management in the first quarter of 1972. It is very Important that you do not make this subject a deliberate topic of conversation in your dealings with your customers. Please do not preempt the business groups in volved in notifying customers. We have alerted you so that you are not caught unaware should delicate negotiations con cerning your products be going on. We would ask 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 how you handle this information at the following accounts: Dow Dow Corning All oil companies Dow is Monsanto's major competitor in synthetic heat transfer fluid. They have never had fire-resistant fluids like Therminol PR fluid. However, they will be out to obtain refills of fluid with Dowtherm against our Therminol 66. If the customer oper ates at temperatures below 550F. or so, he may elect to go to lower oost fluid such as Therminol 55 In these cases, our competition will be petroleum-based fractions from Humble, Mobil, 8hell, etc. 0461164 TOWOLDMONOQ58798 -6 - Finally, nay we ask that this nemo be furnished only to those with a need to know. C. Paton Product Manager Dlelectrlo, Heat Transfer & Prooess Fluids Specialty Products Business Oroup W. S. Clark Product Supervisor Plasticizer Business Oroup Knc. (H. T. Fluid Letter) (Plasticizer Aroolor Letter) (Key H. T. Fluid Accounts) (Key Plasticizer Aroclor Accounts) TOWOLDMONOQ58799