Document Gm20Xy0g3Vm0eGNoKrNMyLqgn

E. I. d u Po n t d e Ne mo u r s & Co mp a n y Wil min g t o n . De l a w a r e 19898 cc: E, C. Broge L, H. Papineau T, A. Bartolec J. E. Kramer W. W. Greer R. F. Mahlberg J. D. Travis E. W, Stewart R. J, Eschborn J. A. Lamiet J, Blackwell J. G, Dickinson R. L. Beffelfinger CHEMICALS. DYES AND PIGMENTS DEPARTMENT September 25, 1980 DISTRICT MANAGERS ASSISTANT DISTRICT MANAGERS COMMERCIAL ASSISTANCE SALES REPRESENTATIVES DU PONT Ti02 RUTILE SLURRY PROGRAM FUTURE DIRECTION TiO- rutile slurry consumption has grown tremendously since it was first introduced by Du Pont in 1971, This segment, which does not include LWS and RPS, now represents 39% of our TiO, sales to coatings and 22% of our total TiO, business. Yet we project the additional growth in the next five years to be at a reduced rate. Most major coatings customers have already converted and we believe there will be little, if any, growth in architectural coatings. The challenge for Du Pont is clear: HOLD MARKET POSITION WHILE INCREASING PROFITABILITY, Let's review the key facts that will assist our effort: DU PONT - THE LEADER IN RUTILE SLURRY 1979 Sales - 70M tons; 83% market share Large capacity, three manufacturing plants Large slurry railcar fleet Versatile slurry line Strong technical service Advertising confirms commitment The Coatings Product Planning Committee has developed a basic plan to handle our problems and opportunities. On the attached sheets, I have outlined the future direction of our rutile slurry program. We must continue to improve the long term profitability of this business. Chestnut Run and the Product Center are ready to assist your efforts. Please call on us. TJE/efm Attachment T. J, ERTTER Ti02 RUTILE SLURRY - DU PONT OPPORTUNITY DEMAND (M TONS) 1980 - 99 m 1985 - SUPPLY CM TONS) 1981 Sa l e s Su p p o r t in g Ca p a c t iy - 137 M Du Po n t m SCM ti AC G+W K-M 102 20 5 5 5 (74%) Ca p a c it y in Pl a c e t o Sa t is f y De ma n d Th r o u g h 1984 POTENTIAL CUSTOMER SAVINGS VS, DRY BAG Up t o 6$/l b . m Imp r o v e Pl a n t Ut il iz a t io n Re d u c e T1O2 Lo s s e s m El imin a t e Ba g Ha n d l in g Ot h e r DU PONT. MANUFACTURING COSTS 1981 - 1,5$/l b . Mo r e t h a n Dr y Bag 1985 Es t ima t e - Dif f e r e n t ia l Sh o u l d Ra n g e 1.5-2,54=/l b . Wit h Cu r r e n t Pr o d u c t Lin e DUP050071599 N42272.01 DU PONT PRICING VS. DRY BAG t 1981 - Pr e miu m Po s s ib l e 1982 - Pr e miu m Pr o b a b l e Fu t u r e - Pr ic e Sl u r r y t o Ac h ie v e Eq u a l Ne t Ba c k v s . Dr y Ba g 1981 DU PONT PRODUCT LINE JOHNSONVIllE ANTIOCH EDGE MOOR / R-940 / R-941 R-941 fR-942 Vr -943 W-942 C R-945* R-946 R-946 Se l e c t e d Cu s t o me r s On l y R-950* t Cu r r e n t Lin e Av a il a b l e (Ex . R-0) Co n v er t R-941 Cu s t o mer s t o R-942 o r R-943 En c o u r ag e R-940 an d R-945 Cu s t o mer s t o Mo v e t o R-942 Of f er R-946 f o r Gen er al Sa l e By 1/1/81 DU PONT R&D PROGRAMS CONTINUING Ob j e c t iv e s Lo w er Co s t s t Hig h e r Qu a l it y a t Eq u a l Co s t CONTINUED IMPROVEMENT NEEDED Or d e r Le a d Time 21 Da y s = 100% Cu s t o mer Sa t is f a c t io n Ra il c a r Tu r n a r o u n d JV Av e r a g e Red u c ed 1 Da y = 2.5 Car s Ad d ed DUP050071600 POTENTIAL TECHNICAL BREAKTHROUGH: ALL TYPES OF TRADE PAINTS CAN BE MADE USING A SINGLE GLOSS SLURRY Ad v a n t a g e s f o r Cu s t o me r In v e n t o r y Re d u c t io n m Lo w e r Sl u r r y Ha n d l in g In v e s t me n t Lo w e r Sl u r r y Pr ic e Pr e s s u r e Ad v a n t a g e s f o r Du Po n t tt m ' Imp r o v e Cu s t o me r Se r v ic e In c r e a s e Ca p a c it y Re d u c e In v e n t o r y Re d u c e Dis t r ib u t io n Co s t s DUP050071601