Document M4pRk15mKE9YBLx3Vgg72MkxV

TO: Distribution TGG: Interoffice Communication FROM: DATE: SUBJ: T. G. Grumbles November 5, 1990 WASTE MINIMIZATION PHILOSOPHY fc /0: RF VISTA The attached article describes the involvement of business areas in DuPont's waste minimization programs. As we progress with our waste minimization programs and continue to search for areas of improvement beyond the "classical" plant projects, we will need to find upgrade or marketing opportunities such as those described here. Cooperative, innovative efforts will be needed. T. G. Grumbles dlj Attachment Distribution: R. Flammer, R. Andersen, W. Vogel cc: R. D. Gamblin VVV OOOOU^1 NEWS Du Pont profits by opment programs." Pollack says. "We're selling the product at reinvestment economics." maximizing minimization "You start off hy treating every nraanic,stream as having great vain* but you haven't identified the customer Du Pom's (Wilmington. DE) petro a by-product ofadiponitrile; and C,0-CtI- vet." Pollack savs ofDu Pont's approach. chemicals department's commercial C acids used as corrosion inhibitors. "High oil prices and the pressing waste ization of its by-product streams is In MGN derivatives. Du Pont developed issue assure further development: Du emerging as a key strategic tool in the a new high-yield hydrogenation cata Pont's petrochemicals department ex battle to cut hazardous waste genera lyst. The pay-off: a product with spe pects to generate $250 million/year from tion. Since the early 1970s Du Pont has cial polymerization characteristics for "by-products" sales and avoid $100 had an active policy of finding outlets polyamide and polyurethane copoly miUion/year in disposal costs by 1996. for by-product streams--expected to mers that has won 30 customers within garner $70-million sales this year. Now three vears. and "hundreds of devel DA VID HUNTER the firm is changing gears. "Our focus has switched from going after the most obvious market opportu nities to using the approach as a vehicle to reduce waste generation," says Harold FINANCE Dow cancels initial public offering for Destec subsidiary Pollack, manager of business develop ment/petrochemicals. That program is Dow Chemical (Midland. Ml) has primarily a commodity chemical firm, being rapidly expanded, with a network decided to withdraw the initial public subject to cyclical downturns. Concern across Du Pont's various divisions. stock offering (IPO) of its Destec Energy that its assets are being undervalued in Pollack's team of 20--a four-fold in subsidiary in response to falling stock this way also led Dow to offer 92 mil crease since 1985--is working to market conditions. The company says lion shares ofcontingent value rights of identify, and peg commercial outlets the 15-million share offering, repre pharmaceutical subsidiary Marion for. waste streams "that will cause the senting about 25% of Destec. met with Merrell Dow to the public last year worst problems soonest." he says. positive reviews but not cash commit (CW, May 30. p. 17). Du Pont added a new product line-- ments at the $16.50-$19/share price. But last year was another lifetime as isobutyl esters of di-basic acids, gener Destec Energy became a wholly far as stock offerings are concerned. ated during adipic acid output--to its owned subsidiary last year, when Dow Most offerings are being pulled, ac 15-product portfolio earlier this year. combined its cogeneration operations cording to underwriters. "It is the rule, Methyl esters of di-basic acids were Du around the U.S. with newly acquired not the exception." says one manager. Pont's first by-product, commercialized PSE (Houston), pur- ___________ _____________ Inact.the$25-million in 1972. After "intense technical work chased for its experi stock offering of on the formulation." Pollack says, the ence in developing American Pacific (Las products found outlets in solvent ap plications and as a paper chemical. With increasing concern on volatile organic content in the workplace, de cogeneration facili ties. Dow has gener ated its own power and steam for process In tough times people want to Vegas, NV) (CW. Oct. 3, p. 9). a specialty chemical company that makes ammo mand for these products as solvents to uses for nearly a substitute methylene chloride and ac century. It also has a see immediate nium perchlorate and plans to make sodium etone has been growing at 15%-20%/ coal gasification plant year in the last three years. Pollack in Louisiana that results' azide, is close to being scrubbed as well. savs. Du Pont is now sold out. and has produces synthetic The Destec offering started purchasing other adipic acid gas. an alternative ^ ^m was problematic even producers' by-product streams. energy source. And before the stock mar Pollack expects to launch a new line the cogeneration plants are wholiv fired ket dropped 15% since July, from a of derivatives of 2-pentene-nitrile--an by gas. insulating the units from the Dow Jones Industrial Average of close other nylon chain by-product, structur current oil shock. to 3.000 to about 2.500. Kidder Peabody ally similar to acrylonitrile but without "We had developed an internal ex (New York) analyst Richard Sweetnam the carcinogenicity--by year's end. Du pertise that was a little unique. These notes. "In a good market you can sell Pont researchers have patented a method assets are vital to the company but `concepts,' such as the energy shortage to overcome the product's shortcom horrendously undervalued, so we and selling power, to utilities. But in ing--lack of reactivity. One use Pollack thought it would make an attractive tough times, people want to see earn sees is in epoxy applications. And a IPO," says John Lillich. Dow corporate ings and immediate results. They are program to capture benzoic acid and director/mergers and acquisitions. Many scared to death of disappointment." phthalic acids, generated via tereph- similar utilities have been trading at And Destec has no earnings record yet. thalic acid production and currently price/earnings multiples slightly above Dow says it will repeat the offer incinerated, is under way for 1993 Standard and Poor's and other indexes, when the market improves. The crisis startup. Pollack sees a "good market" adds Lillich. "while Dow is trading at in the Middle East was probably the for the products in polyols. a pretty substantial discount." final blow to the IPO, made on July 27. Strong products in the existing lineup Dow had hoped to unlock the value less than a weekbeforethe Iraqi invasion include acrylonitrile by-product of its Destec subsidiary--"hidden" of Kuwait. acetonitrile, formerly deep-welled; de because the company's stock market rivatives ofmethyl glutaronitrile (MGN), value is based on the view of Dow as KAREN HELLER 14 Chamicatwak/Octobaf 17, ia>0 WV 000011422