Document GKpGxJyJka4o4rJ9roBL46rvn

November Mr. Keith Kelly Manager of Purchasing Power Systems .... r-r--.. C Westlnghousa Electric Corporation Box 341 ,, Bloomington, Indiana 47401 Bear Keith: ' Randy Oraham and I enjoyed our visit with you. I am particularly pleased that I had the opportunity to meet you and to discuss In person the price Increase for Aroclor (Inerteen). ie prices of Inerteen 54201 CP and Aroclor 1232 will be Increased $0.02 per pound effective 1 January 1971 (1 July 1971 in accordance with your contract). The new prices for tanhcar shipments will be $0.18 per pound, freight allowed, for both productc. As I stated at the time of our meeting, there aro several factors Which lead Monsanto to this price Increase decision. Certain of the more highly chlorinated PCBs (polychlorinated biphenyls) have been found to persist In the environment, and may bo harmful to sensitive marine and bird species. Due to this PCB environmental pollution problem Monsanto has withdrawn certain Aroclors from non-electrlcal product applications where confinement and control of the PCBs are not possible. This has resulted In substantially lower volumes and Increased product costs. We Intend to continue to make these products available to the electrical Industry for use in sealed capacitors and transformers. In doing so, the need to conform with requirements dictated by tho PCB environmental problem has resulted in additional Increases in manufacturing costs, toxicological testing expenses, and re> search costs. Monsanto has historically had o responsible pricing policy on Aroclor. We will continue to operate under the same policy and have approached this price change as one which would provldo Monsanto only the minimum necessary revenue required by the true Increases In our cost of operation. HONS 089432 November 30, 1970 Mr. Keith Kelly Manager of Purchasing Power Systems Westlnghouco Electric Corporation Box 341 Bloomington, Indiana 47401 Dear Keithj Kandy Graham and I enjoyed our visit with you. I an particularly pleased that I had the opportunity to aeet you and to discuss in person the prlco Incroase for Aroelor (Inerteon). ^ The prices of Inerteon 54201 CF and Aroelor 1832 will be lncroancd $0.02 per pound effective 1 January 1971* The new prlcoe for tonkcar shipments will be $0.18 per pound, froight allowed, for both products. As I statod at the time of our meeting, there are several factors which lead Monsanto to this price Increase decision. Certain of the nore highly chlorinated PC3s (polychlorinated blphcnylB) have been found to persist In the environment, and nay be harmful to sensitive marine and bird species. Due to this PCB environmental pollution problem Monsanto has withdrawn certain Arocloro from non-electrlcal product applications where confinement and control of the PCBs are not possible, Thl3 has rosulted In substantially lower volumeb and Increased product coots. Wo Intend to continue to make these products available to the electrical Industry for use In sealed capacitors end transforners. In doing oo, the need to conform with requirements dictated by the PCB c-nvironnentui problem has resulted In additional Increases In manufacturing costs, toxlcologlcul testing expenses, and re search costs. Monsanto has historically had a responsible pricing policy on Aroelor. We will continue to operate under the same policy and have approached this price change as o::o which would provide Monsanto only tho minimum necessary revenue required by the truo increases in our cost of operation. MOWS 089433 Mr. Keith Kelly 2- Hovcmber 30, 1970 Keith, I was quite impressed with your plant operations and the work that has boon done to nosura proper handling of theso products. 1 will be back In touch v/lth you shortly concerning the modification to the contract v;e dlocusood. Very truly yours. T. L. Qosaage Director of Sales Functional Fluids cc 0. I?. Qrahao P. 0. Benlgnus H. S. Borgan MONS 009434