Document KJ0a0Z2LqLZRNZVamgg1Xy6XN
FILE NAME: Engelhard (ENG) DATE: 2012 DOC#: ENG003 DOCUMENT DESCRIPTION: Legal - Exhibits AA-FF of John Templin
1 StigTeErPmHanE@NhMtl.awTIoGffEicReMs.cAoNm (State Bar No. 112127)
2
3
MmaIAttisM@AhTtlTawISof(fSitcaetse.cBoamr No. 191027) LISA BROKAW (State Bar No. 247422)
4
brokaw@htlawoffices.com HAROWITZ & TIGERMAN, LLP
5 4S5a0n FSraannscoimsceo,SCt,A3r9d4F1l1o1or
6 Tel: (415) 788-1588; Fax: (415) 788-1598
7 Attorneys for Plaintiffs
8
9
SUPERIOR COURT OF CALIFORNIA
10
COUNTY OF SAN FRANCISCO - UNLIMITED JURISDICTION
11
12
13
TSHucOceMssAoSr-iRnU-inBtIeNreOst,tIondCiAviRduMalIlNyEand as RUBINO, JR., Decedent; DANIEL
14 RinUclBusINivOe,; and DOES ONE through TEN,
15
16 vs. Plaintiffs,
1187 AC AND S, INC., et at,
19
Defendants.
20
Case No.: CGC-08-274556 EXHIBITS AA-FF TO: DECLARATION OF JOHN TEMPLIN IN STUOPDPEOFRETNODFANPLTABIANSTFIFF' OPPOSITION SCUOMRMPOARRAYTJIUODNG'SMMEONTTIOANNDF/OORR ADJUDICATION
21
22 23 24 25 26 27 28
1
2 3 4 5 6 7
8
9
10
11
12 13 14 15 16 17 18 19
20
21
22
2234 EXHIBIT "AA'
25 26 27 28
tMFEfr-agFaRTttgttj pfcauKftwi
t. &. tarter"*
fes^
0, H. Zinsisr^anp
SUMCT Hew England 42 Talc teemwts
fiovaiF&ar e4 2975
Please gfte 8year eessstits on the shurfc and long tars strategies and tactics to he pursued at these accounts Hs this are.
fe 1380 apppeachss, ws satst re-think our positions at each sccramt and in total far thase Hsw England Accounts, Vie can expect increasing Vert! activity at our accmwtt, possibly requiring freight equelizstiOB long ter, At the Esina ttes, hy freight equalizing,, ws can grw/,
Tp firtw; W6tnd have tfi equalise fr e ig h t i$ 3 -6 /t} to got SCS (o r s w a ) .
terson 3>-WS tpy HC Position; List; 200 tpy; $5*S/t high in
fre ig h t c a s t; need good 7L saw cei
' Suncep 035 tpy EMC'^asitiofti 0; $5/t High OH freight,
~
fed pood TL senrica.
Others - ? -
Tote! 8-6506 toy Head 5oad TL se rie s.
To Protect; Freight disaciventef of $3-4/t in each cans.
Holes 1885 tp>` EMC PositSeri; JOB?; lis t ; Prefer EHC quality; truekloadi
BomSe &.
18K) tpy 180& tpy
EjjC Position; EHC Position;
ihMHas$;smBlti^rslets;de t' T, 1 rwaTicLtkhlpoKfaydVnsae;trrtoSnl!
i m btslhtrtick; Lists
Tffltfftsapd 1005 fcpy EMC fe iU o n ; ISOS? Lift! SIC qua! ft# preferred; trackless
Total
Other Pester;
tslc aseEdisptkft'Hshtyieaonrd dsaepclviincienghasvleigShotglay.valuOfefFaAtnceeedrstation?!seet&o uwhrtsi.ts oTfoftsn!ew
epipaunt. Possible Stretanles;
l. Hold our own. leave-Vert! alone, f6405'tor) freight epm za as forced, g m r qagT^agrsSrgTcr advantaged w
2, Hold gar asu- ge far a share of their
[6*8Hi2B0i25K3 e l ? ^ pS3S! *25M gj
RUBfWO
BASBMCC 50282
m ea-D EPA Rm aN i
kn
- ,, -- --
*
70
PfrtK
BATE
. ! V 1
IWSZQT
fFmrdeigsehrtvstqcus aJdizvsa?ntaPgfsisf.t tftyf EBS captiw trgcMn$? Band qualifcy . HFroeldighcutrRs auntdilgat> efosrtofericledqfenthgoufrraaeeo{1uUn6tDs,BTH)ht eraay oh theins;
pries incentivasi special peckagtng palletfzlr. Prlce Har*,
4, Fell Beck Positi an for 5D sbare at all accounfcs. p ^ a s j. 57M T !
Th? KMle AUsirfcfc ares has a smiler Situation,
aire ma your rsactlott and any spesisi, cfcpea&staiwes far eaeh eccomi gt'rf'Saf'1: %
11/31/79 so te can ceas up with a consistani 80-S4 pian by12/15/73,
,,,
\
R U BIN O
B A SF-EM C C OS283
1
2
3 4 5
6
7 8 9
10
11
12
13 14 15 16 17 18 19 20
21
22
2243 EXHIBIT "BB"
25 26 27 28
r
i
j i
:
i
:
K e v in Kearney
SALESMAN CALL REPORT.
COMPAN KAi^srT K E t r d B B o a d T A D D R E S S _ _______I t o r t h f o r d , CT
DATE: 8 -1 9-80
TEL:
VISIT X
PERSON CONTACTED : p h i l P r ic e DETAXES:
LYTDj YTD!
5 8 .2 4 5 $35.1263
T h ere had been |i a p roblem h e re c o n c e r n in g S a t u r d a y morning
p ic k - u p s how ever t h e y g o t word from E n g e lh a r d t h a t th e y can-
now p ic k - u p a g a in on S a tu r d a y s a p p a r e n tly b u s i n e s s t a s
s ta r te d ta pick, up enough a t th e p lant where th ey axe ab le
t o have people B a t th e p la n t in Vermont on Satu rd ay so i t
i s no problem here and th ey are happy a g a in . A c tu a lly i t
k in d o f .made up lo o k , .good b ecau se i t w a sn ' t much more th a n
a week or so a f t e r I had been in th ere th e l a s t tim e t h a t
bo .E n g e lh a rd c a l l e d them up and t o l d them t o come on in oir
Safcurdays a g a in ,
th e y were happy a b o u t w h a t we seem ed t o
h a v e -done f o r th em .
According to P h il the b igg e st reason fo r th e t a lc b ein g o ff
K i s th e f a c t t h a t t h e new li g h t w e ig h t m a t e r i a l t h a t t h e y a re
m a k in g ZK n o t r -e g u ir e n e a r ly as much t a l c , s o t h a t i s why i t
does
has. the
e f f e c t on t h e ir u sage,
& g^ s^ rd -
j a l c ; t k t : th e y s e t e i : ' @ ;`fe h
t a c . g f :anytidy dise':'
JL -
C- _ (V er - t r ^
t
D
R.T.O. . V
w,a.K.. "W.F.G,.
Z
1
! ACTION NEEDED:
: I 1 I
!
;
; I
1
2
3 4 5 6 7
8
9
10
11
12
13 14 15 16 17 18 19 20
21
22
2234 EXHIBIT "CC"
25 26 27 28
M lhSRLS & CH EM ICALS DIVISION
Engelhard' Minerals & Chemicals Corporation
Menlo Park, Edison, N. J, 08817
Q Catalyst
Personnel
Machattier, Pres,
Scott Thurmond, Purch. Agent
B i ll Beary, Mgr. Manufacturing
Ch arlie Dugger, Expeditor
Literature
Samples
M a il List
Salesman JMZ and John Morris
Business
Requirements 9,000 TPY Total Talc which includes 750 tons of 4190, 8,250 tons of 42 and about 50 tons of 500 for Manufacturing Plants in the U.S, and Canada
Remarks:
O bjective: To a rriv e at the basis for our contract for 1982.
Scott carried on the negotiation. Despite the fa c t that he was new, he has apparently been well briefed by QuintJ. His taking oyer the negotiation (with Quinn's approval as we la te r learned) represents one more step in Dynatron's attempt to grow and become more p ro fessio n ally sta ffe d . Although we were able to speak with Quinn during th is v i s i t , i t appears that we were purposely required to do a ll negotiation with Purchasing rather than with Mr. Machamer himself.
Scott started with a demand that we hold the 1981 contract p rice for Emtal 42 for a ll of 1982 and that we cut the p rice on 4190. He also asked for 180 day p rice protection on a ll future increases and a statement from Engelhard that the contract p rice to Dynatron is as good a price as any one customer of lik e grade quantity and quality of purchase now receives.
A fter an hour of strenuous and intense discussion, we arrived at the following compromised terms which we agreed to take back to our management. These are the terms which John and I recommend and which, Dynatron has agreed to:
Volume: Terms:
Emtal 42 - 8,500 to 10,000 tons Emtal 41 - 750 to 1150 tons
45 days
terms (He in sisted on 60 days, but I am suggesting that we back o ff on th is a l i t t l e bit and make our firm o ffer a t 45).
P rice Protection: 90 days - price l i s t ~ ' purchased.
$3/Ton on a ll grades of ta lc
Added Term to be Considered:
A statement that says the terms of th is contract are competitive with other customers of sim ila r grade, quality and quantity.
EM-IOTO 6/75
ET002248
BASF EVENS000015911
Page 2 Dynatron
With th is contract in place, we w ill hold the -volume and our 100% supply position at l i s t p ric e . {We do not pay commission on Dynatron s a le s , so the $3/T discount returns most of th is cost savings to Dynatron. On 42, the commission is approximately equal to the discount, while on 4190, the discount is.co n sid erab ly less than the commission savings. To achieve these f i r s t three o b jectives, we were forced to y ield 30 days more on price protection, IS days on cre d it terms, and extend the $S/T discount to 41 SO.
I f advantageous to us, we might also consider w riting in a 1 or 255 discount for payment within 10 days. This w ill be looked at fin a n c ia lly ,
Mike Zinsmermann w ill prepare th is contract and obtain approval at Menlo. John Morris w ill present i t back to the customer.
Market P o sitio n :
Dynatron has gained 1755 in volume of body f i l l e r sa le s vs. 1980. This represents th e ir capture of an increasing share of what they see a s.a declining total body f i l l e r compound market. Five years ago, body f i l l e r represented over 70% of th e ir sa le s. Now i t is only 40% as they move into more and more consumer .items and sp ecia lty types of rep air m aterials such as Fiberglas reinforced polyester compound.
The trend to light-weight body f i l l e r .compound continues. Our ta lc volume should be stable or growing s lig h t ly in 1982. We were not able to gain any recent s t a t is t ic s on the percent of Dynatron's body f i l l e r that is light-weight vs. regular, but i t is d e fin ite ly well over h a lf lig h t vfeight by now,
Dynatron has no technical person, but we pressed heavily for
the opportunity to folTow through on the use of 4190, 41, and the design of a "one talc" system for light-weight body f i l l e r . This is of some considerable in te re st in the Guelph, Ontario Plant. Apparently, they are doing some development work with an unknown ta lc with a price of about $71/T that seems to work as well as 4190 ($140/T)' in th e ir lig h t weight body f i l l e r . I t is lik e ly that th is is an apples to oranges comparison, -and that we could do a lo t better. I w ill ask Debro to follow up on th is development,
John Morris w ill make an_ attempt to meet th e ir technical consultant, who i s a part time employee and d if f ic u lt to catch.
Scott promised to get a sample of the competitive ta lc from Canada so-that we can analyze i t , but didn' t want to give us a name and address information.
ET002249
BASF EV EN S000015912
Page 3 Dynatron
Points made and benefits of dealing with Engelhard. The following points were made and are lis t e d here only for reference in future negotiations: Long term re la tio n ship, no gains, dealing stra ig h t, major difference between the .talc business and the resin business, the histo ry of moderate price increases in t a lc , the national coverage of Dynatron that we give, the incentive hopper car rates and hopper car supply Engelhard provides.
Key points: 1) On time supply - always there, never threaten Dynatron with a shut-down,
2) R eliable q u a lity - Engelhard does a ll of Dynatron's Q.C, for them, as s p e c if ic a lly ordered by Hr. Machamer.
3) Importance of -tal-c to the compound - You can 't make i t or make i t rig h t without quality ta lc .
4) R idiculously low price of the t a lc - 30 - 50% of the compound is ta lc yet the p rice is 10% of le ss of the price of a to tal gallon of m aterial.
Other fa cto rs:
Engelhard reimburses Dynatron for any phamtom freig h t due to our underloading of hopper c a rs, we have worked with them very heavily in giving some to
r e lie f ($3700) in 1982, cars are routinely traced and that in formation given to Dynatron, immediate order confirmation is provided to the C a lifo rn ia Plant, technical se rv ice assistance is a va ilab le .
The emphasis is on a long term relatio n sh ip and the non p rice benefits that that brings.
JHZ:sc
ccj. .John Morris
Bro Baur
^
C . D. Carter L-/
G.E. Montour
Dave Stock - Debro
R, W. Graf
D. A. Clark
C.D. Richardson
ETQ2250
BA SF EVENSOOO015913
1
2
3 4 5 6 7 8 9 10
11
12
13 14 15 16 17 18 19 20
21
22
2234 EXHIBIT "DD"
25 26 27 28
KtlWESSXl-B & CH SM iCA LS DVN3JOM
MENLO PARK. ON B, EDISON, N J Q SS1
C u s t o m e r 's R e p o r t
0 Visit
Q Atiapulgus Poroea! KoaSin
Q Catalyst
Personnel S c o tt Thurman - P u rc h a sin g Abdul R azzk - T . D.
lite ra tu re Samples M ali List
Firm Nome Addresi
Dyne t ron C o rp , A t la n t a , EA
Pate of Visit 12-7-82
Date of Report 12-13-82 Report M o.i 5
Salesm an Business
J . J . M orris Body F i t i e r
W/Mik e Zimmermann W. Gobe)
Requirement*
8,000 T/Yr. Emtai kZ 750 T/Yr'. Emtai Jii90
R e m orkii Purpose o f V i s i t ;
P reltm ln ary 0 8 3 co n tract n eg o tiatio n .
R e s u lts o f C a l l ; $ c o tt had requested a le t t e r su p p ortin g our reasons fo r a T a lc p ric e in c re a s e . M ike's le t t e r o f 11/2V S2 d e ta ile d co st fa c to rs im pacting our p r o f it a b ilit y ( l a b o r , e l e c t r i c i t y , e t c , ) , our m id -ye ar respo nse to V e r t a ! ' s c o m p e titiv e o f f e r , and the f u l l range o f s e r v ic e s t h a t we have developed to a s s u re D ynatron o f q u a l i t y p ro d u c ts , d e liv e r e d o rrtlm e and w it h in s p e c if i c a t io n s , S c o t t , altho ugh s y m p a th e tic to o u r needs and concerns, fe e ls th a t the p ressures of the market place (co m p etitive p ric in g has seen t h e i r ce se goods d isc o u n te d by 208) r e q u ire s th a t t h e i r c o s ts must be c o n t r o lle d i f th e y a re to remain p r o f it a b l e . He in d ic a te d t h a t a check w it h th e Census Bureau & U nion la b o r
ep rese n t a t i Ve y ie ld e d c o s t f a c t o r s somewhat in v a r ia n c e w ith o u r c o s t c o n te n tio n s . R eg ard in g our m id -y e a r resp o nse to V e r t a ] , we g ran te d B yn atro n a *1.25 d is c o u n t V5. V e r b a l's 7 ,0 0 / to n o f f e r , The 2 ,7 5 p e r ton d lf f e r e n c e was r e f le c t e d in lower f r e i g h t , r a t e s to C a l i f o r n i a w h ich , on a d e liv e r e d - ln p r ic e , met V e r b a l's p r ic in g . S in c e then V e rb al h as o b ta in e d equal f r e i g h t r a te s to C a l i f o r n i a , in a d d it io n , V e r b a l's r a t e to A t la n t a i s now more fa v o r a b le ( 3 8 .8b vs 1 (2 .7 5 ). With V e r ta l c o n tin u in g th e p re s s u re on c o m p e titiv e p r ic in g , S c o tt asked t h a t we c o n s id e r th e fo llo w in g p r o p o s a l;
A) Mo .p r ic e , in c r e a s e f o r 1383. (P re s e n t c o n t r a c t has 90 day p r ic e p r o t e c t io n ) . P re s e n t b u lk p r ic e and bag pr-i-oe w i l l c o n tin u e to r e f l e c t th e $2-75 d i f f e r e n t i a ] m entioned above.
B) EC w ork to d evelo p c o m p e titiv e f r e ig h t r a t e to A t la n t a , GA to c o u n te r V e r t s l ' s present advantage.
S c o tt f e e ls th at by our ag reein g to the-rabove proposal he w il l b e 'a b le to co n tin u e support in g o u r p o s it io n as th e s o le t a l c s u p p lie r to D y n a tro n . A V e r t a l t r i a l now underway a t th e C o n n ecticu t p la n t w il l be fin a li-z e d and r e s u lt s developed, but S c o tt in d ic a te d h is d e s ir e to ab id e by c o n tr a c t c o n te n ts , w hich s t ip u la t e a 1008 sup p ly s it u a t io n .
Required A c tio n :
Mike Zim m erm annto re v ie w w it h Menlo P ark th e above p ro p o s a l. F o llo w up- l e t t e r to S c o tt c Thurman by M ike in d ic a t in g a re sp o n se , in some fo rm , by JJM d u rin g mid J a n u a r y , 1983- .
JJM /jw
....................
CDR
ETQ2253
BASF EVEN S000015916
]
2
3 4 5
6
7 8
9
10
11
12 13 14 15 16 17
18
19
20
21
22
2243 EXHIBIT "EE"
25 26 27 28
W iftE=lA US B, lE tm C A L 'S D IV IS IO N
MENLO PiUBH, CN SS, EDISON. N J O B 8 1 8
o m b r *s R e p o r t
2' Phono
ttqpulgui [3 Pore-coi Kaolin
Catalyst
Fin* Nam* Dynatron Al uddures-s A t la n t a , GA
Date of Yist3_ ^3~83
Data of Reporl 3* 25'"63 Report H o.: 5
Salesman j , J , M o r r i s
Personnel
Literature Samples
Mall List
S . Thurman - P urchasin g A . R azzak - T . D,
Business Body F i l l e r
Requirements 5,000 T / Y r . Ema I 42 750 T / Y r . ' Esitai 4?30
Romorks:
Purpose o f C e ll: D iscuss co n tra ct renew al.
P .e s u lts o f G a l l : The lo w e r- b u lk f r e ig h t r a t e s th a t V e r t a l had o ffe r e d on s h ip m ents to A t la n t a a re now co n firm e d by l e t t e r to D y n a tro n . The r a t e , on rn-l-ni-
nture 15 0,0 00 l b . c a r s , is $37-39 v s . our r a t e o f $ 4 1 .7 2 . L a t e in 1982 V e r t a l a ls o a tta in e d an equal fr e ig h t rate to C a lifo r n ia , e lim in a tin g a fre ig h t advan ta g e we had enjo yed in th e p a s t . D u rin g mid- ) 982 we had responded to an o ther V e r t a l p r ic in g i n i t i a t i v e o f a fu r t h e r re d u c tio n o f $7 per ton on b u lk s h ip m ents. A t th a t tim e, because of our fre ig h t advantage to C a lifo rn ia , a
re d u c tio n o f $ 4 .2 5 per ton e q u a lize d V e r t a l's $7 per ton o f f e r . With V e rta l e t equal r a t e s to C a l i f o r n i a th e rem ainder o f the $7 o f f e r , or $ 2 .7 5 / to n , p la c e s us a t a f u r t h e r d is a d v a n ta g e . S c o tt s ta te d h is p o s it io n on renewing o u r c o n t r a c t f o r 1983r
1) W ill n o t a c c e p t a p r ic e in c re a s e d u rin g 1953. V e r t a l has w r it t e n to hum and in d ic a te d th ey w i l l not r a is e p r ic e s .
2 ) Meet th e co m p e titiv e b u lk ra te to A t la n t a . 3 ) S c o tt w i l l not a sk us f o r th e 2 .7 5 p e r ton th a t i s r e fe r re d to In the
above paragraph,
S c o t t spoke d i r e c t l y to a problem he has w it h th e T e c h n ic a l Department in the form o f Abdul Razzak. Abdul, during m eetings, in d ic a te s he w ill not have a problem s w itc h in g to a c o m p e titiv e t a l c . W ith Quinn Macamer in vo lve d in these d is c u s s i-ons, S c o tt f e e ls t h a t a req u e st on o u r p a r t f o r a p r ic e In c re a s e w h ile f a c in g th e r e a l i t y o f a c o m p e titiv e o f f e r in g w ould p la c e our lOOS'-rsupply s i t u a t i o n in - je o p a r d y , a su p p ly s it u a t io n he has sup p o rted in m eetings w ith Q uinn. S-cott f e e l s t h a t th e c o n d itio n s he has o u t lin e d , i f com plied w i t h , w i l l s a t i s f y t h e in t e r n a l - c o n fl 1c t s he co ntends w ith and e n a b le him to renwe our c o n t r a c t .
See Page 2
CDft WHS DIB BP
ET002265
B A S F _E V E N S 0 0 0 0 15926
ffllM E R T A LB & C W E iiS tC A L B D IV IS IO N
C u s t o m e r 's R e p o r t
Phon
Atfapuigos Porocst
Kaolin
0 Catalyst
Personnel
Page 2 M E N LO P A R K . DNI SB. E D IS O N , N J D B S -IB
Firm Kom 0 '/natron A t la n t a , GA
AddroBi
Cat* of Visli
3-23-83.
D ais of Report 3 - 2 5 - 8 3 Report No. : 5
Salesman
Business
J . J . Morr i
Requirements
Remarks: Reviewed w ith Abdul Razzak re c e n tly eva lu ated samples o f a blend o f E a ts ! 4 2 A 1 9 0 . He had p rep ared h is own s a m p le s, b le n d in g Emtal 4 2 A I9 0 and upon comparing v is c o s it ie s between samples found a wide v a r ia b le in re a d in g s. The samples o f Em tal ^2/500 a re in h is ia b and th ey w i l l be looked a t n e x t week. He w i l l make a d e c is io n on e it h e r Em tal lll9 0 o r Em tal 500 as the f i n e p a r t i c l e t a l c o f f e r i n g optimum blend c h a r a c t e r i s t i c s . Required A c tio n : 1, Review c o n tra c t p r ic in g w ith H ike Zimmerman. 2 . D is c u s s V e rb a l c o m p e titiv e r a te s to A t la n t a , GA, 3. Have B i l l Ciobel c a l l Abdul to d is c u s s v i s c o s i t y re a d in g s .
JJM /jw
cc
C DR WHS DLB BP
EfpD 2266 B A SF E V EN S00 00 1 5927
1
2 3 4 5
6
7
8 9
10
11
12
13 14 15
16
17 18 19 20 21
22
2234 EXHIBIT "FF"
25 26 27 28
J
~ C ,D C / Z 2 C D -*"* '""`if vi-O C\ C H S t t t A L S D TV itsiO N
tVMLD PAOK, CM e s , EDiSON, C<? ' f
C U S T O M E R 'S, R E P O S T
G5 Viol) Phone
AilapuSjjus Porcfel Koolln Q CotaSy.it
Personnel
Literature
JrOmpJei M dI List
Q. Macamer - P re s . A. Razak - T . 0, S . Thhuurman - P u rch .
Cm < '&
(/)
>
Firm Memo Address
` Dynatron A t la n t a , GA
1
Dato of Visit 6-15-83
0ats of Rspciri 6-22-83 Report No, ; B
Sal esmem J , J , N o rris
business
Body f i l l e r
Requirement
V//J. M. Zlinnerraenn W, E . M ettles
8 ,0 0 0 T / Y r . Emtal kZ 750 T / Y r . Emtal in 90
Remarks; Purpose o f C a l l : Review 1983 c o n tr a c t p r ic in g .
R e s u lts o f C al 1: During th e p ast two months we have attempted to r e s o lv e t a lc p r ic in g in o rd e r to renew our y e a r ly t a l c c o n t r a c t . During t h is tim e Dynatron has moved, q u ic k ly to a d e c is io n on the use o f a new product w hich is a combina tio n o f 85% Emtal *!2 and 15% Emtal tr15 At the same tim e V e r ta l has o ffe re d t h e ir competing p ro d uct. T r i a l s have been conducted a t t h e ir Conn, p la n t and Abdul in d ic a te s both products a re a c c e p ta b le . We addressed th e problem of p ric in g In the lig h t of a continuing d e clin e In co ntract p r ic e s , which accelerated mid y e a r 1982 and V e r t a l ' s assu ra n ce to S c o tt Thurman th a t th e y would not seek e p r ic e in c re a s e d u rin g 1983- A d d it io n a lly , V e r ta l secured a lower b u lk end bag f r e i g h t r a t e to the A tla n ta ope ra t ion- dur I ng e a r ly 1$S3> However, th e im p etus, to co n v e rt to S , as they c h a r a c t e r iz e i t , blended product made p r ic e d is c u s s io n s on Emtal 1)2 and 1)190 academ ic. They asked us what our p r ic in g would be on M-835*), and on being Informed I t would be $Bo/ton re p lie d th a t V e r t a l ' s p r ic e was lo w e r than our p rese n t p r ic in g on Emtal A2. i had Ijeen to ld by S c o tt that I t was $ 5 1 /to n . At t h i s p o in t Quinn Nacamer in d ic a te d h is iong s ta n d i ns -des i r e to remain w lth Engelhard, c it in g our past re l at io n sh ip , product q u a lit y , r e l i a b i l i t y ,, e t c , , but w ith a p r ic in g d is p a r it y o f over $25/ton a d e c is io n had been made to go w it h V e r t a l i f via do not choose to me.''. V e r t a l 's p r ic e . In any c a s e , Quinn s ta te d th a t due to V e r t a l' s continued p ric in g a c t iv i t y over the p ast years he f e l t e t h i c a l l y bound to in c lu d e them as s u p p lie r s . When asked to what e x te n t, Quinn in d ic a te d a t a minimum of 1)5%, o r s p e c i t i c a i l v the Conn, and C a l. lo c a tio n s , The V e r ta l .p rice . is~Tlrm to r b y e a r. Quinn a ls o understands the p o te n tia l fo r product v a r i a b i l i t y and t h a t they may be v u ln e ra b le to o th e r problems in a sw itc h to V e r t a l , but be f e e ls th a t he must take advantage o f a p r ic in g s it u a t io n th a t w i l l a llo w him to reduce h is raw m a te ria l c o s ts by o ver $2 00,000, The body f i l l e r m a rk e t, as he In d ic a te d , has become .very c o m p e titiv e w ith consequent re d u ctio n s in t h e i r s e ll i n g p r ic e s to the autom otive in d u s t r y . We then in d ic a te d th a t i t w ould be n e c e ssa ry to review t h is la t e s t p r ic in g s it u a t io n . At the same time
See Page 2 >
c c
CDR WHS WEM T JK OLD B?
ET02Z69
I
BA SF E V EN S0 0 0 0 13615
.-TiAi-c. tr\ c :- iS i.'r:o A i- o s jv s o it s N
/\1Q0 2
WMLO PAP< , CN PS. EDISON, N!_i C f " "
CU STO M B a'S. S e p o e t
rjf visit
. Attopulgus P Porose) O Kaolin Catalys!
Firm Non
Address
,
bynatron Atlanta, GA
1
Dole of Visit 6-15*83 Dcste of ftoport ^"2-83 Report No.i 8
Salesman
P^-^onn&l
Slimness
liiorciiur S rm plat Mai) List
Requirements
Remarks;
Abdul agreed to make a v a ila b le samples o f V e r t a l 's new prod uct f o r our lab e v a lu a t io n s . A f t e r e v a lu a t io n and d is c u s s io n o f p r ic in g we would get back to them w ith our resp o n se. M eanw hile, a f u l l prod uctio n t r i a l w i l l be run a t the Conn, p la n t d u rin g J u ly . I f s u c c e s s f u l, a b u lk t r i a l a t A t la n t a would fo llo w and f i n a l l y the C a lifo r n ia p lan t would conduct th e ir f u l l production run.
Recurred A c tio n : Awei.t Menlo Park deci.si.on on the above.
JJra/jw
ET002270
B A S F _ E V E S s !S 0 0 0 0 1 3616