Document J0ee3nKrb2Bd6zXDZBVNw9bO
INTER-OFFICE CORRESPONDENCE
Tn Date
MR. A. H. KRIKORIAN - NIAGARA FALLS
NAME
LOCATION
MAY 25. 19R2
From Subject
J. F. KNIGHT
NAME
SHELL VCM INVOICES
- POTTSTOWN
LOCATION
Copy to Mr R D Reber
Hooker _ flfccENED
CheraicalMB2
RESINS Dl
FABRICA DIVISION
FINANCE & ADMINISTRATION
Per my earlier discussions with you and with Pat Fiedler I am returning Shell invoice no 1992E0-C dated 1/2/82 to you for payment My records indicate that the toll fee that was in effect at that time was $ 12/lb not $ 147/lb
Please let me know if you have any problem m paying this invoice
JFK/seh Attachment
PO-02 107 (11/81)
Hooker Chemicals & Plastics Corp
OCC 015995
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OCC 015996
INTER-OFFICE CORRESPONDENCE
ntp
DOMINICK
NAME
APRIL 26 1982
From
H H KASTER
NAME
Subject _ VCM PRICE OUTLOOK
Copy to M F Mack D J Massi J J McCoskey J F Knight
LOCATION LOCATION
Hooker Chemical
RESINS DIVISION
FABRICATED PRODUCTS DIVISION
FINANCE & ADMINISTRATION
RECEIVED
APR261982
PLASTICS ACCTa
following is the estimated VCM price outlook Coast for the balance of 1982
May June July August September October November December
Shell
$ 145/lb 145/lb 145/lb 145/lb 145/lb 17/lb 17/lb 17/lb
Dow
$ 138/lb 138/lb 138/lb 138/lb 138/lb 158/lb 158/lb 158/lb
Current freight rate for Shell VCM to Perryville Pottstown and Burlington is $ 0213/lb ($2 13/100 lbs )
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H H Kaster
HHK/seh
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PO 0 10 1 1
Hooker Chemicals & Plastics Corp
OCC 015997
luunci
March 1 1982
To From Copies
Subject
J Lienert A Krikorian
W- P Fiedler
D Calhoun J Hopper
0 RusT"" J Knight R 0 Donoghue C Thiele
VCM Pricing - March 1982
VCM price for March will remain at 13<t/pound pound
Shell toll fee remains at MU
Please invoice and pay invoices accordingly
tfPF cas
W Patrick Fiedler Product Manager Chlor-Alkali South
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OCC 015999
INTEO OFFICE CORRESPONDENCE
To MR R HAGEN H RASTER W KELLEY R SWALLEY
Date
NAME
FEBRUARY 11 1982
LOCATION
From Subject
D J MASSI
NAME
VCM PRICING
LOCATION
Copy to
J J McCoskey J Knight
Hooker Chemical
PLASTICS DIVISION
I have been advised of the following concerning the price of VCM
- VCM purchased from Dow for the Addis plant m February will be priced at 118 per pound The billing price on the Dow invoice will read 130 per pound and we will receive a 012 per pound credit through HCC Corporate
The price for Shell VCM purchased through the ICG
organization is to be rolled back to 13 per pound
from January 1 1^82
This is a 01 per pound pick-
up on 20 849 000 pounds By copy of this memo I am
requesting that J Knight contact ICG purchasing to
arrange for a credit
pr
OCC 016000
INTER OFFICE CORRESPONDENCE
To Date
MR R F GERVAIS
NAME
JANUARY 5. 1982
LOCATION
From Subject Copy to
H. H. RASTER
NAME
VCM PRICE - JANUARY.
LOCATION
1982
Mr S P Dominick Mr D W Powers Mr J J McCoskey
Mr D J Massi Mr J F Knight
Hooker Chemical
PLASTICS DIVISION
5 (SS?
PLASTICS Accia
The VCM price for January 1982, has been established as $0 16/lb FOB Gulf Coast to all FVC producing locations
HCC 141
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OCC 016002
1.JTER OFFICE CORRESPONDENCE
To____ _ Date__
MR. W. R. -F'T-RT.TTRT!______________NT AGAR A FALLS
NAME
LOCATION
NOVEMBER 9 1981__________________________________
From__ Subject Copy to
D J MASSI
NAME
LOCATION
VCM BILLINGS TO RVC DIVISION
H Kaster
J J McCoskey /
J Knight
R W Swalley /
J Liemert (Cl)
Hooker Chemical
PLASTICS DIVISION
I have attached an outline which spells out the proposed method of receipt and payment of Shell VCM to the PVC Division
Please review this proposal and indicate, at your earliest convenience, if you agree Once agreed upon, we can finalize the exact procedures for
notifying ICG of shipment & receipt of VCM
support detail for monthly ITV
time frame for determining VCM market price
pr Attachment
HCC 141
OCC 016003
SHELL VCM RECEIPT/BILLING OUTLINE
November, 1981 PVC Division will receive billing invoices from Shell and pay direct to Shell ICG will receive duplicates of bill_ng invoices from Shell and review PVC Division's payment to Shell
December 1981 - PVC Division will supply ICG with a list of VCM cars and quantity shipped from Shell PVC Division will supply ICG with a list of VCM cars and quantity received from Shell - ICG will pay Shell direct ICG will bill (ITV) PVC Division for VCM received at a unit market price Market price will be determined by Messrs Gervais and Riordan Market price will not include a freight charge PVC Division will pay tank car rental and freight charges direct to carrier
January 1982 The ICG VCM billing to the PVC Division will be on going ICG will pay tank car rentals and freight charges ICG will bill PVC Division freight on a monthly basis
OCC 016004
LOCATHM
BY 106 TO PVC RESIBS DIVISION
Nr m P Gervais r j J McCoskey Nr B. B Raster Nr C P Dagen Nr D W Calhoun - Houston Nr J R Hopper Houston Nr J P Riordan - Niagara Falls Nr J C Hanson - Niagara Falls
% Shell has demonstrated they can provide consolidated VCM we should proceed to implement the program (as detailed a June 17 letter to you) per the following
11/1/81 12/1/81
1/1/82
Maintain parallel records at ICG and Pottstown Shell will send duplicate invoicing to each location
Target to implement program (except transfer of rail cars)
ICG will assume VCM rail car responsibilities mileage credits etc thus completing the transfer
18 suggest that you along with representatives from your Accounting
SHl Transportation Departments visit Pottstown m late November to
review our records and insure a smooth tramsition
J P Knight 'Jr
Jffe'eeh
pc
"A
OCC 016005 &
j.u/o pc Mr H H Raster
'T'n
DATE FROM SUBJECT
PRICE CHANGE NOTIFICATION
R S BAKER JR
D w CALHOUN
S p DOMINICK JR
R s GERVAIS J c HANSON
^oc,ivc,u
OCT 30 -WI plastics ACCTG
n
yL-
L G KING J F RIORDAN W J WETZEL
OCTOBER 21 1981
J R HOPPER
ReCEfVED OCT2 8198J J F KNlGHr
RAW MATERIAL PRICE CHANGE FOR VINYL CHLORIDE MONOMER CHLORINE TOLL FEE
This is to advise you that H(_C Corporate Purchasing has just received notice of the following price change
Raw Material
Vinjl Chloride Monomer - Chlorine Toll Fee
Vendor Shell
Old Toll Fee New Toll Fee Amount of Chance affective Date
$ 171/lb
$ 147/lb
$ 024/lb
10'1/81
Comments
The VCM merchant market price became $ 17/lb ($ 22/lb list price
less a $ 05/lb TVA) when Dow announced and other producers
followed this price decrease effectne 10/1/81 Shell responded
by offering a $ 154/lb toll conversion fee which represented a
$50 00/ton chlorine value
When Shell realized that discountina
below $ 17/lb vas occurring in the VCM market place successful
negotiations established the fee at $ 147/lb (a $72 00/ton chxorne
value) effective October 1 and firm thro igh the fourth Quarter
I pact
Based on Fourth Quarter for.cast d VCM quantities this >22 00/ t-on chlonne \iluL impro untnl ^.quat^s to i S57G 240 00 bivinas bv vl ir end
T R HODpel
JP i 'sel
OCC 016006
hooker
10/ 2 8 pc Mr R W Swalley Mr R D Rebel
To From Copies
L J Gorney
W P Fiedler
J C Hansan J L Ward D W Calhun J R Hpper H Kaster
Subject September Invoicing
October 26 1981 Resins Division
received
OCT 2 81981
1 F KNIGHT
September invoicing for Chlorine shipped as VCM to PVC Resins Division should be as rollows
Shipped @9/01/81 9/21/81 -
Location Burlington
VCM (MM Lbs )
4 853 161
Cl^ Equivalent (Tons)
1 553 0
Price ($/Ton)
$91
Pottstown & Perryvilie
6 232 152
Shipped 09/22/81 - 09/30/81 -
1 994 3
$9,
)%j HU 30 /TV
00
CM
Burllngton
4 493 668
1 438 0
Pottstown & Perryvilie
TOTAL
7 122 460 22 701 441
2 279 2 7 264 5
$28
cOjD ^ 63 g/7 k0
This pricing represents a 20tf/lb VCM price for September 1 through September 21 and an 18<t/lb VCM price for September 22 through September 30 per agreement between R F Gervais and J F Riordan
WPF cas
W Patrick Fiedler Product Manager Chlor-Alkali South
OCC 016007
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OCC 016010
INTER OFFICE CORRESPONDENCE
To MR W R KELLEY/HR D E LONGWELL___________
NAME
LOCATION
nat,, JULY 21, 1981______________________________________
From J
Subject
F KNIGHT^_______________________________
NAME
LOCATlOf
VOM PPTHThpT - TFFECyPTVE AUGUST 1 , 1Q81
Copy to
Mr R F Gervais, Jr Mr J J McCoshey
Mr T C Walker Mr D J Massi Mr J R Hopper Mr F F Hoy
Hooker
Chemical
PLASTICS DIVISION
Effective-A^gust--t, 1981, all current VCM sunpliers ha/e announced a 02/11) increase, taking the market price to $ 22/lh plus freight The toll fee, effective August 1, from Shell, Ethyl, and Diamond Shamrock ds S 188/lb
1981,
For export PVC sales, Dow has continued tneir $ 05/lb rebate off market price at tune of shipment
J *iV dLfJ p'
C 141
OCC 016011
PRICE CHANGE NOTIFICATION
CORRECTED COPY
TO
DATE FROM SUBJECT
L G King
Wm E Shol1 Jr W J Wetzel R S Baker W C Marquard (Dex)
T C Walker (Dex)
J R Hopper (Dex) R A Katherine (Dex) 0 F Knight (Dex) J C Hanson (Dex)
J F Riordan
W P Fiedler (Dex) A Hammerl (Dex)
R F Gervais (Dex) H J Heneman
July 15 1981 D W Calhoun
bC, -r
, il ?
-n
381 1,
Raw Material Price Change for VCM (Vinyl Chftlonde Monomer) Toll Fee (Raw Material)
THIS IS TO ADVISE YOU THAT HCC CORPORATE PURCHASING HAS JUST RECEIVED NOTICE OF THE FOLLOWING PRICE CHANGE
Raw Material
VCM (Vinyl Chloride Monomer)
Vendor
Shell & Ethyl
OLD PRICE $ 173/lb
NEW PRICE $ 188/lb
VARIANCE FROM AMOUNT OF CHANGE
$ 015/lb
EFFECTIVE DATE August 1, 1981
COMMENTS The VCM market price increase of $ 02/lb on -Atiguct 1 1981 appears
to be holding We have negotiated a toll fee of $ 188/lb with Diamond and
Ethyl Shell wanted $ 19/lb originally but are now willing to be competitive
at $ 188 The chlorine value we will receive at the new toll fee is
$100/ton
^
D W Calhoun
DWC/mj 1774b
pc Fr Bill Bryant - Burlington, N J y
J/
OCC 016012
INTER OFFICE CORRESPONDENCE
Tn Hate
MR W R KELLET/MR D E LONGWELL
NAME
LOCATION
JUNE 8, 1981__________________________________
Frnm J F KHIGHT__________________________________
NAME
LOCATION
Subject VCM PRICING - EFFECTIVE HAY 18, 1981
Copy to Mr R F Gervais, Jr Mr J R Hopper Mr F F Hoy Mr D J Massi Mr J J McCoskey Mr E W Swalley Mr T C Walker
Hooker Chemical
PLASTICS DIVISION
c,U
WW %
H ASTICo ACC f
All current VCM suppliers increased their market price effective May 18, 1981 to $ 20/lb plus freight This represents the net delivered cost to the PVC Resins Division after internal transfer charges for chlorine from the Industrial Chemicals Group
Toll fees from our suppliers are as follows
Toll Fee April 1, 1981 May 18, 1981
July 1, 1981
Shell Diamond Shamrock Ethyl Georgia Pacific
$ 1550/lb $ 1665/lb
$ 1665/lb
$ 1750/lb $ 1704/lb $ 1700/lb $ 1704/lb
$ 1990/lb
For export PVC sales, Dow has continued their $ 03/lb rebate off market price at time of shipment In addition, they are holding the current export price firm until August
Ethyl Corp has also offered an export incentive They will hold firm, through August, a $ 0316/lb processing fee plus ethylene at market
Shell has just announced a $ 03/lb increase on VCM effective July 2, 1981 taking the net cost to $ 23/lb plus freight The toll fee will be adjusted as shown above The extent of the industry support for this move should be determined within the next week
Materials Management JFK/llh
HCC 141
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OCC 016015
TO
FROM DATE REFERENCE SUBJECT
HOOKER CHEMICAL
PLASTICS DIVISION
INTEROFFICE
1 Shell
Effective April 1, 1981, the toll fee for VCM from Shell will he 8 155/lb Internal transfer charges for chlorine from the Industrial Chemicals Group will bring the total cost for VCM (less freight) to $ 18/lh
2 Dow
For export PVC business (excluding Canada), Dow will supply VCM to Baton Rouge during April, 1981 at $ 15/lb for a maximum of 50% of the monthly monomer throughput For domestic sales, tne price is $ 18/lb
3 Uniroyal
Uniroyal is maintaining their normal competitive stance, and will supply VCM during April at $ 18/lb However, their April invoices will show an added charge of $ 002/lb repre senting the Superfund tax passthrough This charge for April shipments should not be paid Uniroyal is our only VCM supplier attesting to pass through this tax for April ship ments, and they have been notified that we will short pay April invoices showing this tax
J F Knight Mat eri alsManagement
JFK/1lh
cc Mr R F Gervais, Mr J R Hopper Mr F F Hoy Mr D J Massi Mr J J McCoskey Mr T C Walker
!
OCC 016016
TO MR
W IsmLET
FROM J F KNIGHT DATE MARCH 13, 1981
REFERENCE
SUBJECT DIAMOND SHAMROCK VCM INVOICES
HOOKER CHEMICAL
PLASTICS DIVISION INTEROFFICE
Corporate Purchasing has requested that payment of outstanding Diamond Shamrock VCM invoices can he resumed m order to bring
payments up to date
Materials Management
JFK/1lh
cc Ms L E Garner Mr J R Hopper Mr J J McCoskey Mr R D Reber
Ve,D 'S 0^7
OCC 016017
TO
FROM J F KNIGHT DATE FEBRUARY 23, 1981
REFERENCE
subject DIAMOND SHAMROCK VCM INVOICES
HOOKER CHEMICAL
PLASTICS DIVISION
INTEROFFICE
As requested by Corporate Purchasing, please stop payment on all outstanding VCM invoices from Diamond Shamrock until
notified otherwise
cc Ms L E Garner Mr J R Hopper Mr J J McCoskey Mr R D Reber
t L O v.
&AST1CS ACCTS.
OCC 016018
TO
FROM
DATE
REFERENCE
SUBJECT
For export PVC business (excluding Canada), Dow will supply VCM to Baton Rouge for the 1st quarter, 1981 at $ 14/lb for a maximum of 50% of the monthly monomer throughput lor domestic sales, the price remains at $ 17/lb 2 Shell and Diamond Shamrock - 12/80 - 5/81
Shell and Diamond Shamrock VCM pricing is as reported in Mr J G Parsons memo of February 6, 1981, but with one correction Shell's December, 1980 price was $ 17/lb for the first 5mm lbs shipped, and $ 145/lb for the balance (3,178,513 lbs ) Chlorine tolling did not apply to the first 5mm pounds shipped
JFK/1lh
cc Mr T C Walker Mr J R Hopper Mr C J Klemert Mr J J McCoskey
ftc^civc.u tw
f-LPbiits Accra
OCC 016019
Hooker Chemical
PLASTICS DIVISION F re lone C d
P 0 Box 699 PollMown PA 1 J4t 4 21 / 326 2000
MR R W
SWAL
March 10 1981
TO MR J J MC COSKEY
FROM
C E FINKBINER
SUBJECT EXPORT PVC
Vou PLrtST'CS ACCT
Relative to our conversation yesterday with reference to VCM pricing for export resin sales from our Perryville and Pottstown plants I have been given the following story by Mr Bill Marquard recently appointed Manager of Marketing for the International Division
The Hooker International Group is going to be allocated a quantity of ECUs (electrochemical units) Each ECU contains 1,100 pounds of caustic and 1 000 pounds of chlorine International has ample outlets for the caustic at prices significantly better than the guarantee they must make to
ICG ($270 00 per unit) This then leaves the International Group with a quantity of free chlorine of which they must dispose
International is working with Houston Purchasing (Mr Calhoun) to develop a mechanism through which chlorine can be converted into low cost monomer by Shell Then International would essentially ask the PVC Resin Division to toll convert a portion of this monomer for fheir pvpprt- resin operation The
resj^t oYT~'conversion cost would be negotiated on each sale
with the pVc Resin Division to develop the selling price
Mr Marquard indicates that the charter which the International
Division has is to ultimately handle all export sales for
Hooker Chemical (with the exception of Canada) Accordingly
all sales which the PVC ResjLn Division would generate to the
interna t lona 1 marki t w il E~eye n tua~rTv"' b~e'"`ha nd 1ed _ bV tfie
International Group and^they would ^automaticallv^charge a_5/
commisi'ion based on"'the FA_S__selling price
~
OCC 016020
2
A<5 of this date Mr Marquard onl> has approval in principle for this program and he is m the process of working up the details Tomorrow he expects the ICG to formally commit to approximately 10,000 metric tons of ECUs Further, Houston Purchasing has indicated that they expect the chlorine con version to VCM details will be worked out with Shell by the end of next week Finally Mr Marquard expects to have final approval for his marketing organization including Product Managers with position specifications by the end of March The plan is to fill these positions to handle the extensive PVC international sales program just starting
In this regard I a^ked Mr Marquard what relief we could expect on the monomer presently being used to make PVC resins in Perryville and Pottstown fox export shipment before finali zation and formalization of this program Mr Marquard indi cated we should keep records of the poundage involved and in those areas where we feel over-extended relative to our manu facturing costs he felt an adjustment could be made based on the current market price for export monomer In essence, he is saying that the specific order for 88 000 pounds of FPC 9300 to be shipped fr:om~TeI^3^i^f~5u~''Marctr^l8 "at $0 23 5 Alb FAS, will be given a monomer credit probably.of_fhe magnitude of $Tro267ib_ I suspect the other orders for solution, dispersion and bagged specialty PVC resin at our list prices will not qualify for the VCM rebate
One final note, we should be careful m all quotes for international business and include the 5/ international hand ling charge
Since this information came to me unofficially and is a con densation of several conversations and since this program is not as yet finalized I would appreciate being informed when and if yoj receive something more concrete with which we can operate
C E FINKBINLR
CEF jk
cc Mr T C Walker Mr J L Russ Mr J R Hopper Mr R W Sv^a lley
OCC 016021
Hooker Cncmical
PLASTICo DIVISION
Firestorm Blvd P O Box 609 Potislown PA 19464
215/326 2000
TO FROM DATE
MR R K RAUSCHER BATON ROUGE
J R HOPPER POTTSTOWN
MARCH 25 1901
SUBJECT DOW VCM METERING DISAGREEMENT
Mr John Boss of the Dow corporate office advised today that Dow would like to meet with you and your management the week of April 13 to demonstrate their meter proving station When contacted by Dow please coordinate the scheduling of this meeting and keep Pottstown\ informed of the results
I advised Mr Boss that you and your local management must be satisfied prior to finalizing any past meter reading/billing discrepancies
JRH/seh
cc Mr J J McCoskey Mr C J Klemert Mr F F Hoy - Baton Rouge Mr R W Swalley
ir\ 0 IvIvJ
plastics Acer
OCC 016022
Hooker Chemical
PLASTiCS DIVISION
Firestone Blvd P O Box 699 Pottstown PA 19464 215 / 326 2000
TO MR R W SWALLEY
FROM J R HOPPER DATE FEBRUARY 12 1981
SUBJECT VCM PRICING
The attached letter from Hooker Corporate Purchasing defines our VCM charges for Pottstown and Perryville Alert the Accounts Payable Department that when the credit charges are received from the Hooker Industrial. Chemicals Group our total cost for VCM (less freight) must equate to $ 17/lb
/ nf)
J R Hopper JRH/seh Attachment cc Mr T C Walker
Mr C J Kleinert Mr J J McCoskey Mr J F Knight
OCC 016023
INTER OFFICE CORRESPONDENCE
To Date From Subject
0 F Knight February 6 1981 J G Parsons VCM Invoicing
fopies
J R Hopper
kccbvfd
FEB 1 2 1981
J i*
Hooker Chemical Company
On VCM product oraered for December 1980 delivery the following prices apply
Shell 14 3/pound - FOB Norco LA Diamond Shamrock 14 94^/pound - FOB LaPorte TX
Beginning January 1 1981 and continuing thereafter until further notice from us the following prices apply
Shell 14 3^/pound FOB Norco LA
02/1 &
*
Diamond Shamrock 14 66/pound - FOB LaPorte TX W ^
At this time internal transfer charges from ICG on HCC chlorine consumed in
VCM toll conversion will equate to a VCM market price of 17 per pound based
Cl%J-T puu VI >j P v<* h 1 v# nec pc
p/-v Ii , r> H/"I r\ 4 U VI v<
JGP dh 1243b
JW Parsons
OCC 016024
INTER OFFICE CORRESPONDENCE
To_________MRS L E GARNER
NAME
Date.
SEPTEMBER 9 1981
LOCATION
From__ Subject
J F KNIGHT
NAME
SHELL DETENTION CHARGE
LOCATION
Copy to
Mr K H Garner Mr J R Hopper Mr R W Swalley Mr W F Tyson - Perryville
looker Chemical
PLASTICS DIVISION
To confirm earlier conversations VCM T/C detention charges from Shell have been negotiated as follows
10 days free time $30/day thereafter
JFK/seh
r*r a
OCC 016027