Document JJGBJg6rYDrOnxdXGN1QmoZq6

EMPHASIS AREAS SAFETY - The Chocolate Bayou safety program Is built around the concept of individual responsibility as the key to safe operations. Three major tools are used to audit the integrity of safety systems; the Triennial Audit, Job Safety Analysis, and High Hazard Material Audit. The formal audit system pin points potential problems and highlights systems needing attention. .- Safety performance In 1986 includes nine recordable Injuries for a total recordable rate of 1.19. The plant celebrated the record of 15 million man hours without a lost work day Injury in September, a record which began in June 1979. INDUSTRIAL Hygiene - The Industrial Hygiene Program at Chocolate Bayou has been targeted to keep pace'with Federal and State Regulations. Emphasis In 1986 has been on hazard communications and asbestos standards. In an indus trial hygiene corporate audit, the plant programs were certified as fit for potential OSHA Inspection. An OSHA health inspection beginning in November 1985 produced two minor citations, both of which were dropped. The Industrial Hygiene Department maintains an AIHA accredited laboratory. Laboratory Director, Frank Bryant, is a veteran Instrument analytical chemist. Frank manages a group of chemists and technicians experienced In advanced Instrument analytical tech niques. ENVIRONMENTAL Issues - Meeting an ever-increasing demand to maintain compliance with and stay abreast of changing environmental regulatory Issues. The Chocolate Bayou Plant acquired additional responsibility, for the MOTCO and North 80 sites from the Texas City Plant. c 002938 CBY 3109351 EMPHASIS AREAS 0 "PLANT OF THE '90'S - "Plant of the '90's" Is a vision the Plant has developed to insure continued Product Line success in the 1990's. Implementation of key components of our visionary model Is a major emphasis area in 1987. TOTAL QUALITY Improvement - The Total Quality Improvement Process is a key element of our "Plant of the '90's" vision. Plant-wide training and implementation of "Total Quality" concepts such as Statistical Process Control (SPC), customer/supplier relationships, and employe Involvement are commitments at Chocolate Bayou this year. 0 COST IMPROVEMENT - Productivity Improvement continues to be a "way of life" at Chocolate Bayou. Primary areas of focus Includes automation opportunities, via emerging technologies, and organizational consolidations. SORBIC DUPONT As Monsanto restructured In late 1985, the Sorbates business was judged not to fit with future strategic direction for the Corporation. At that point, the Sorbates business and manufacturing facilities at Chocolate Bayou were offered for sale. This has led to negotiations with Hoechst, in which Monsanto pro poses to sell the production facilities and operate the facilities for Hoechst. The negotiations are continuing, with prospects for concluding by early 1987. Monsanto provides services (utilities, environmental, distribution) for DuPont. This system is beneficial to DuPont because we can supply these services using existing facilities at a lower cost that DuPont can buy new facilities and supply their own needs. It Is also beneficial to Monsanto because It helps absorb fixed cost and provides a profit. In 1985, DuPont shut down their Ethylene Plant and downsized their need for services. They then Issued a notice of termination of our existing contract as of April 1989. Negotiations are in progress to establish a new contract which better fits current needs and con tinues to benefit both parties. We are targeting to sign the new contract by year-endC 002939 CBY 3109352