Document LoKdmRGREQXe2BVV9b4G3koZ3

We are working on the internal development of structural panels, cladding and roofing products for housing based on Permadeck, verraiculite, Bituthene and other existing products and technology, and are investigating the possibility of licensing other technology or products as they become available, such as Foam Form. The major new market area to be entered is residential building. We are working both with HOD directly in its Operation Breakthrough and with builders who have con tracts to erect housing under HDD programs such as Cost Effective Housing in an Improved Contemporary Environment (CHOICE) and will also work through conventional channels of distribution when the products and systems are devel oped more fully. 20115607 % that would use Dyfoam and a variation of Bituthene, which if successful would give us a proprietary product for the roofing market that would complement our pres ent roof deck and insulation products. 2. UNDERTAKE A MAJOR ACQUISITION PROGRAM. We are identifying areas of the construction market that have above average growth potential and good margins and are identifying the leading companies in c these areas. We will coordinate evaluation of acqui sition opportunities that come up independently with this overall evaluation of acquisition possibilities. We plan to suggest areas for possible additional investigation by ICG. 2011560 and - while other products have been added .culite is still the nucleus of the business. -e will continue \) To look for new vermiculite deposits, with partic ular emphasis in the eastern part of the United States; our objective is to locate proven reserves and acquire control of such reserves in sufficient mount to warrant another Eastern mining and milling Deration, similar in size to our present Kearney, outh Carolina operation. > extend the life of our present reserves, finding jys to utilize lower grade ores now being discarded .d balancing the output of the mines with market -uirements; and 20115609 I# f Continue program to reduce unit mining cost Increase average ore selling prices at Libby from the $18.44 per ton in 1967 to $23.00 per ton by 1972 by producing higher quality concentrate on which higher prices can be based and finding new uses for vermiculite that will command higher prices, such as in fire-resistant composites. 3. TO UPGRADE ZONOLITE MANUFACTURING PLANTS AND CONSOLIDATE AND/OR ELIMINATE AS MANY AS ECONOMICALLY DESIRABLE. Plants in poor condition are being replaced or consol idated with other locations, or eliminated. 20115610 F products and installation techniques will be devel oped to increase the variety and use of zonolite insu lation products available to the dealer and to the entire construction industry. For example, Zonolite plans to add other foam materials to its line, and has developed equipment for use in insulating existing masonry walls with zonolite Masonry Fill and is involved in setting up a national network of applicators. 5. TO DEVELOP ZONOLITE*S POSITION AS A SUPPLIER OP A WIDE VARIETY OF SPECIALTY ROOF DECK MATERIALS AND SYSTEMS. We acquired the "DRI-PAC" system - an asphalt-perlite roof deck line early in 1967. This product, together with the mineralized wood fiber roof deck line obtained 2C115611 'materials through Zonolite.'s network of approved applicators. We have started a research and develop ment program on an insulated roofing system using Dyfoam and a modification of Bituthene. 6. TO FURTHER DEVELOP ZONOLITE'S POSITION AS A SUPPLIER OF LIGHT-WEIGHT CARRIERS TO THE AGRICULTURAL AND CHEMICAL INDUSTRIES. Increase promotional and educational efforts with leading producers and manufacturers of fertilizers and agricultural chemicals working closely with the Ag-Chem and Davison groups. Expand the marketing of "Redi-Earth" (a combination of peat moss and vermiculite). Eight test markets were explored during 1966 to 1969. Based on our 20115612 20l`-5fcl3 With the experience we have gained at this installation, we plan to extend the process to other areas of the country using existing plants and, where possible, existing perlite furnaces. We have prcanoted one of our architectural representatives to be DRI-PAC Product Manager. Horticultural perlite applications, which offer a second major sales potential, sure the respon sibility of the product manager who handles Redi-Earth. 9. TO DEVELOP AND MARKET NEW PRODUCTS The research effort within the Construction Products Division has been redirected to include more projects in the zonolite area. We are currently investigating PRESENT PRODUCT LINES. We have developed a new generation cf ......... 'i aids, DDA-7, which we plan to introduce connerciaiijv in the second half of 1969. The DDA-7 product civ-:'' supencr performance at equivalent cost per pound, rep:roving the use-cost. We are currently working on a new grir~ - with which we plan to supplement DDA-7 c regain control of the market vs. the p priced competitive products that have . during the past several years. DDA-8 to reduce the cost per pound at the s formance as DDA-7, further improving . the cement mill. We have filed and _> patents on both DDA-7 and DDA-8. . DDA-3, ' '-'rer : lc---er :a active ; :ed i, and will begin an evaluation of bauxite, both of which may have comparatively large sales poten tials for existing type products. We plan to make a farther study of the mineral processing industry for possible non-grinding aid applications of our present technology, such as flowability, and for the possibility of our selling products based on related but broader technology, particularly wet grinding. Our studies to date indicate that outside the cement industry wet grinding is more common than dry grinding. Wet and dry grinding are fundamentally alternate methods of achieving the same objective so that our technical sales people can move into the new field relatively easily. 20U5blb for thar.r MARKET. We are planning to increase our r .c -fTcrt and strengthen our marketing with the following (a) Complete the acquisition of the remaining three U. S. distributers. (b) Undertake development of >i=hor performance, low dosage water reducer- : r. arders, to sell at the same or a . .;wer use-cost as present admixtures. (c) Assign full time Dare, five major cities - :: Boston, Chicago and Dec 80 per cent of the cor.r written in the United 3 ion men to ^adelphia, h cover ications ?0115617 directed tcwor.d...^...t.h...e..irl-a-r'--gjemsn^tr^xiiiniemmadiig^i,aijrpro- ...........'' ducers, including direct calls by management people; technical seminars; and t ,,feted call:, by field salesmen. For ready-mix companies who have several product lines, we will use cur Horn and Servicised salesmen for a combined approach to increase their incentive to take on our line. (g) Increa: men ? - prcl.. Of C p- f.^les training of specialist sales to sell to the entire concrete stry (ready-mix plus producers lock, concrete pipe and precast/ oncrete panels). 3. OBTAIN MAXI... : SALES GROWTH ON BITUTHENE. The follow:. * on this poo,.. ey elements of our action program 20115618 -13^^^Pcbiitinue to bring'in standard Bituthene (10 mil PE) 1*' / J>5 y- V: <:. *............ ,, --Jt-x-,? * . * ^^yCrattfServieised^Ltd.frthrQagh at least 1970Jpra^': ' *<"v; >'4'5- '&? t. ''. Jwv. Cnx'1 ^^aahqfactye' ^. in the to increase maj^ins ^ b ; " _ -. |p$|^;*V'V'' iS&v&e&eA &: - -v,:? -:>-afS?#?v ' (b) Complete the development of a formulation for. self-' -manufacture, usingaground rubber in place of liquid latex, based on our Paraplastic technology. At the name time, we will also investigate the possibility of using a cold process instead of a hot process, with the objective of simplifying the manufacturing method, eliminating the wrinkling problem and reducing manufacturing costs. (c> Expand the marketing effort as follows: - Assign additional men to Bituthene specifica tion work in key architectural centers; - Hold architectural seminars on Bituthene throughout the United States and Canada; - Undertake direct mail and space advertising on Bituthene directed to specifiers; - Undertake continuing training of the general sales force in the special aspects of selling Bituthene r 20115619 ->SV: -14- v-JS: . - BB - Maintain warehouse stocks of Bituthene in our regional., plants and other key locations BB;-rB-v:. '-'}o-M^S^su . direct to usersand to mm -- vary by ares BBl: -- the? user. BB*-? fe. .-.BBiSB (d) Investigate other^applications for Bituthene type "` ' v B-.v- '\-v `"B'- - products, including-'roofing, pipe wrap and bridge deck waterproofing. We will undertake development work on the best possibilities. 201156t0 .vi`,.; -/'?r r/J1;?-'-. i .'s.-itrt*;-:- ... 8 A P X - -`,r ' CH> 1970 long Range Plan -f s^1.^k--'*v?.>i&'v - ..v.. ;--<x V\. l.'tt staffs operating inytcrwnt- and research groups have not in the pest been organised or staffed to undertake Big ificant internal development p roj r; - -t-dat vould involve both Zonolite and CIO operations jointly. The organisation problem has been solved with the combining of Zonolite and <30 but the staffing problem remains. Our research and product; management groups lack experience in residential building 1 nd field applications knowledge fr- r> a systems building point-of-view. 2. The Division is not yet adequately staffed -to errpiora and evaluate related nev areas of construction for a major acquisition program. B. Canada: 1. Sales volume is not adequate to provide a satisfactory re turn on investment and the existing product lines do net hc\ good growth prospects. 2011775b C. ZonolitcAl. 3,: 1 Wte are presently at capacity on venniculite milling in the Dkiited States. We need to Increase the efficiency and outpot of the mine at Libby, Montana. Mining and milling costs at this location are high and processing practices are not efficient by modern mining industry standards. We need to locate additional Venniculite ore reserve- ir. the eastern part of the United States. 2. Asbestos dust in the Libby ore creates an air pollution prob lem at the mine and in our expanding plants. We also have an asbestosls problem with Msnoijpal, a fireproofing material which incorporates asbestos. The product is applied in the field by spraying steel beams. Asbestos is rapidly becoming recognized as a very serious health hazard. f4-' re-opened wood fiber plant previously operated by the defunct Textured Products Company, Increasing the competition cm roof deck faced by Concrete Products. 6. Selling expenses are heavy and with the inflationary period ve are going through it is difficult to offset these Increases with volume and/or price. 7. There has been virtually no BSD on basic new products and Inadequate BSD on the existing product lines. 8* There is a shortage of competent younger people (under 35) to aove into key management positions. D. Bock Processing Chemicals/U.S.: 1. Competition from lignin and chemicals producers has caused price erosion with some loss by us of both margin and volume vide a satisfactory return on Investment. Hast of these products are comparatively unimportant or lev interest itens for architects. Some are "necessary evils" that architects would like to find ways to eliminate (for example the joints in concrete highways or decks that are eliminated by contin uous steel reinforcing cr by non-shrink cement). These prod uct lines are not by themselves effective bases from which to grow by internal new product development. Excuses, particu larly selling, are too high for the volume or type of item being sold. Ve do not yet have the answer to the Born and Servicised problems and this is one of our major objectives. The Chicago Servicised plant is a serious operating problem. Costs are too high and we have lost sales because of poor cus tomer service. We also have capacity limitations. Also, at some of our other plants, we do not have idequate manufactur ing capacity. 20117759 ' ............ eirtraintng*agent)with which va hm historically bad a leading "'a'W. l trf.i-J*-'-!-'' ` # ' ' ' ' '' - market share. A major customer la the Chicago area found that to achieve arinlimim- strength requirement! he needed to use more cement with ABA than with competitive vineol resin type air entrainers. Our preliminary tests tvtnftrm this. Wte may have to change customers in some areas from ASA to Daravair, our vinsol resin base air entrainer, with a loss of $100,000 to $300,000 of gross margin. Opportunities A. Division; ic 1. Utilize the combined technical and marketing capabilities of the Division to develop significant new products and market them to new segments of the construction industry; for example, panels of Pernadeck and of venniculite for residential build ing, sprayed veraiculite/concrete wall systems with metal studs and lath, and Dyfoam/Servistik for roofing. KUD's current Operation Breakthrough and CHOICE programs provide an oppor- 20117760 board, which is nov purchased outside, am xor the manufacture of other expanded polystyrene specialty products including Tnfbdde and Ventboard. The self-mnufhcture of the basic board and the addition of the specialties will significantly increase our margins. Finally, the market potential for Foam Form is large enough so that taking it an will enable us to increase our penetration of British Calmbia. C. ZonoliteAj.S.; 1. The combination of smaller vexadculite plants with each other and with Dyfoam plants, and possibly in same cases with Horn/ Sezvlclsed plants, will give us more efficient manufacturing and significant cost reductions. 2. Other significant cost reduction opportunities exist in im proving the Libby operation, the use of more efficient vemi- culite furnaces in the plants, and better control of shipments to reduce freight costs. 20117761 al sprayed asbestos fireproofing; - Hew uses for vermiculite, such as a new French process for making panel board which we osy license or an in ternally developed process for producing such panels; - Permadeck modified for use in wall panels, and a second modification of Permadeck using wood flakes in the core to reduce costs and Improve margins. a 100 percent flake type Permadeck with a different surface texture night be a possibility for new applications such as a better stucco base; - Possible license of Foam Fora in the United States, depending on its U. S. patent position. Ve expect to have an option on the U. S. and Puerto Rico; - A spray wall using vermiculite concrete on wire lath and metal studs for a quickly erected, fireproof, low cost vail system. 20117762 s?2Si *8" V `-r '&&' -ri.tn<>: vV-> . major problem with concrete). Also, apply existing RFC dry dispersant technology to selected non-cement industries and develop additional technology for these industries, especially where wet grinding is now used. B. Darex, Horn and Serricised/U. S.: 1. Bituthene, with its installation labor savir aspect and its factory controlled quality, baa the potential for a creparatively rapid penetration of the waterproofing market. The market for it will grow further as construction wage rates continue to increase and construction labor becomes in shorter supply. We expect Bituthene sales to reach $3/4 million by 1971 and close to $l-l/2 million by 1974. Economic Base for Planning. 1967 Actual 1975 Projected Avg. Annual * Grorth: 1967-1975 Value of Construction Put in Place - 0. S. (constant 1967 dollars in billions) Total Heavy Constr. Nonrea. Bldgs. Sub-total: Hvy. Constr.& Bonres. Bldgs. Hesid. Bldgs. $ 76.2 $22.5 $28.6 $51.1 $25.0 107.4 34.2 31.8 66.0 41.4 4.3* 5.4* 1.3* 3.3* 6.5* Scarce: P. W. Dodge, Construction Market Outlook: 1980. Iferch, 1969* A more detailed projection, prepared by the Grace Business Economics Dept., follows. This is a copy of last year's chart and will be updated in our final 1970 plan. s Xhigfrway --,-,, ,- T-- , --.--w,,--------------and certain other non- residential building. For construction activity to increase to the potential represented by basJ c demand will require political settlement oT the overseas ccenritnents of the United States, especially in Viet Fan, which is necessary to increase the supply of money. Meanwhile, in the short run, actual construction levels may fall below the average annual growth rates projected by F. V. Dodge. 4. There will be continued increases in construction vage rates and increas ing shortages of sane construction trade labor. This will increase the incentive to shift to materials and systems than require less on-site labor. 5. There will be seme increase in materials prices, but probably not fully connensurate with increased cos^s. Competition will generally remain heavy until the construction industry begins to grow on a strong, sus tained unit volume basis. 20115604 le use of pre-engineered metal buildings will continue to grov at a rate roughly double the industry average. In the residential building segment, there will be continued experiments with sectionslized houses and fully prefabricated housing units, but no approach so far tried represents a final answer to rapidly erected, lower cost housing. Developments in land acquisition, site development and financial planning will be more important in providing housing than technological change: alone. The major companies involved in the res idential segment of construction will probably be building conglomerates with control extended to all key aspects of providing housing, from site control through financing of the final sale. 8. The "Systems" approach to design and construction is a matter receiving a large measure of attention by the design professions and the manufact urers. Basically, the systems approach is to present methods of combin ing two or more products for the design and builder profession to serve a major function. Example -- complete wall systems, roof systems, etc. Development of this concept reduces time lag, lowers costs, improves ' :S < : its.;-'-*..' - S ' r.'- stage^-*U*Vf.V^dSl4e-Ct.ve/SKx -pe.- ct that there w; U` J^be.^Vs-.V.o;-'me- Increase in the "ji use of industrialized building systems involving precast concrete^lerpeclally *&'Y?r: no major increase or decrease In the relative anountof afas,,... ... *--1-- " 'cement concrete used in ~nar^yailding and construction. This has averaged close to 6C barrels of cement per thousand dollars of new construction put in place (constant 1957-1959 dollars) during i960-1963. ) 20115606 Boagd of Examiners , ,,,, set? rig,; i'Asb.es tos Hazards FfMeeting , ;1970 (TAPE 1120) (TAPE llbO) (TAPE 1200) (TAPE 1230) He CQnc^^di: *pU. -..'.c 4|K.- caused I seases. is*not known how Iowa dose I 3* Many bodies (other minerals/'ast can cause hazard. To sort them c 4. Asbestos exposure must be reduce 5. Dr. Cooper Is working on study ; define safety controls in asbesl Industries. Dr. Sel ma Drltz, San Francisco Depar Health, defined the presently exist!' of preventing further spread of seve asbestos-caused diseases, and urged take necessary steps to control the Hr, Douglas Fowler, University of Cal Berkeley, cited measurement of number fibers in ambient air at different i: near a construction site using asbes-: Measurements are stated in time-weic an 8-hour day. He submitted copies "Asbestos Fiber Concentrations in Ai Fire-proof ing Operations Using Zonol ` . Tabershaw-Cooper Associates, dated 0 Mr. John Fisher, American Institute cited use of insulating materials d with no knowledge of the existence c He stated that measurement of fibers of a completed building has been mac Bechtel Building). Mr, Goldberg asked for source of the fibers per milliliter. Dr. Cooper stated source was textii. particularly in England. He conside. per liter as high, 1000 per liter as 100 per liter as virtually undetected Ti i., i rr t 3