Document Mn6wV6n69RKNxoLM9e6Q9rGj

RNSelby RJBuch (21) SFWest RPRogera RUTobar KLNeynaber RHAkins (3) FSBredimus (3) EEOaffe (3) EWStewart (3) DABlumberg YWBurins ECSrown RBuckland April 18, 1980 FOR OU PONT USE ONLY C04P DEPARTMENT DISTRICT MANAGERS ASST. DISTRICT MANAGERS COMMERCIAL ASSISTANTS SALES REPS (BY DIRECT MAIL) The April Newsletter is attached. In this issue we are an nouncing three discontinued products, asking for your assistance in selling 400M pounds of off-spec products and introducing a Product for Emphasis feature. Please let us know if a Product for Emphasis should appear in each Newsletter edition as well as other items you would like to hear about. Items from the field would be most welcome. 0. S. Thackrah fP TOGMENTB COLORED PIGMENT PRODUCTS DIVISION APRIL NEWSLETTER <s> Sales and Earnings In 1980, sales, transfers and earnings for the colored pigments business are being reported on a worldwide accounting basis. Added to our present domestic/export base will be Colorquim (Mexico) and some additional Du Pont Far East (DUFE) revenues. Sales and transfers for two months were 11% above forecast and 9% above 1979. Pretax earnings were 105% above forecast and 35% below last year. The decline in earnings versus 1979 is due to: 1) an unusually strong performance early last year 2) a downturn in profitable transfer business, due largely to the slump in automotive sales 3) a sharp increase in mill cost and freight 4) worldwide accounting aberrations March sales were $9.5MM, 100% of forecast. Domestic sales and transfers were down 7.4% and 30.0% respectively, while export sales increased 31.3%. Colored Pigments May Expand Business Base Probably Colored Pigments will assume the business responsibility for two former Dyes Division products with annual sales of $6.4MM. a Crystal Violet Extra Pure APN - 60% is sold to the carbon paper industry primarily for spirit hectograph, carbon paper and typewriter ribbons. Hectograph is an old' system which con tinues to fill the need between office copier systems and printing techniques. Dye Specialties Company is the only domestic competitor and holds a 30% market share. Most of the sales responsibility would be shared by Cleveland, Chicago and New York districts. 1980 sales are estimated at 950M pounds at $5.75/lb. We are discussing sale of Crystal Violet technology with the one remaining interested company. o "Pontamjne" Fast Green PD is a CPC derived green which is used exclusively by Procter and Gamble for "Cascade" Dishwashing Powder. Sales of this excellent earning product are 1'" is annually at $64.00/pound and would be handled by Cleve 'PIGMENTS DUP050070942 N42124.01 2 Supply of product is the pest it's been in years. Inventory standards were increased late last year and most products are on or above standard, . Of 180 products* only seven are currently trouble codes. Here is the status; Code YE-735-D RT-233-D RT-455-D RT-761-D YW-811-P RT-695-D YT-714-D Comments Expect Stock Position Within Increasing order demand 60 days Quality problem resolved 30 days Increasing order demand 30 days If It II 30 days K n t 30 days Quality problem resolved 30 days Quality problem unresolved 60 days Discontinued Products For over one year we hsve had difficulty asking two "Watchung" Reds, RT-662-D and RT-710-D, and phthalo blus BT-413-D. We- will not be able to fill existing orders with standard materialhowever, off standard product exists which we would like to sell. Contact Henry Pietras (4-0937) in the Sales Order Center for further information. Code .RT-662-D RT-71Q-D lbs. 7500 1800 Location Newark Edison Quality Blue & opaque vs. std. (lot 30080) 3OS weak, masatone 029, tint Y15. RT-710-D 18000 Newark 10-203 weak in rubout 103 strong in nitrocellous 4 vinyl RT-71Q-D 1650 Edison (lot 80463-1) 603 weak, masstone 017, tint Y29 The closest offering we have for RT-662-D is RT-841-D, although it is harder to disperse and somewhat deficient in gloss and transparency. For RT-710-D, we cannot continue to manufacture due to an unavailable % DU P050070943 3 intermediate. Unfortunately, neither we nor our competitors, have a close counteroffering, 8T-413-0 should be replaced with 8T-425-D. Bruce Garth can assist with reformulation guidance. If you have not already done so, please inform your customers and promote the replace ment products. Price Increase Our April l organics price increase, averaging 9,88, is in effect. Since the announcement, Sun Chemical, Ciba-Geigy, Harmon, BASF and American Cyanamid have announced, generally matching prices. Until these competitive prices are in effect, we do not want to lose busi ness. Off-Schedule Price Noticed and CPA's should be issued to protect desirable business positions. General Business Conditions In mid-March, a slowdown in order size and rate began and is continuing. In addition to the automotive market, softness is occur ring in the industrial and ink segments. The refinish and trade sales markets are holding their own, but a downturn in architectural coatings should occur due to the 408 reduction in housing starts. The depth and length of this much publicized recession is unclear. Concern exists that it will be more severe than earlier predicted. We would appre ciate more field information about key customer forecast requirements and inventory positions. Chrome Yellow Replacement Concern about lead pigment usage in some packaging printing inks caused Appleton Paper to turn to Diarylide yellows. After changing they became concerned about a potential toxicity problem if residual DCB remained in the finished Diarylide pigments. Last month they adopted "Dalamar" YT-811-P and anticipate using 70M lbs. annually. We have a broad line of "Dalamar" yellow 65 and 74 products to fill customer needs. Chestnut Run are well equipped to assist with recom mendations . Off-Standard Pigments In December, a listing was sent to the district offices identi fying products, general quality information gnd desired pricing. The response and sales have been disappointing. Currently we have 4Q0M lbs. at Edison which we are anxious to sell. An updated list of available products will soon be sent to the districts. In the mean time, Henry Pietras can tell you what is available. Please give Henry e call if you have an outlet. Preferably, off-spec material should be sold to displace competitive products, not our regular business. % DUP050070944 4 "Dalaroar11 Organic yellow pricing has not kept pace with cost increases. For several years, our "Dalamar" line has not provided an adequate return. We believe our competito'rs are In a similar situation. Over the past few months, the intermediate situation has changed signifi cantly: o In November 1979, Montedison withdrew from ortho-anisidine and para-anisidine manufacture. 8oth OA and PA are key inter mediates for $-nitro-2-amino anisole and 3-nitro-4-amino anisole yellows used to produce PY-65 (YT-820-D type) and PY-74 (YT-808-D type). o Mobay remains the only domestic OA and PA producer. They have just increased OA prices 17%. o Foreign OA and PA sources are proving to be costly and un reliable . Both products are in tight supply. o There are two producers of 5-2 and 3-4, Hoechst (internal consumption only) and Du Pont (internal use and outside sales). The Du Pont list price has increased 44% and 60% respectively, reflecting higher raw material and manufacturing costs. o lithosol 5-2 and 3-4 increases are expected to add $.85 and $1,15 per lb. respectively to manufacturing costs for Sun, Harshaw and Ciba-Geigy. The impact of higher intermediates costs is now being reflected in higher PY-65 and PY-74 prices as follows: o Our 4/1 increase, averaging 14%, has been matched by Sun Chemical (eff. 4/14), Ciba-Geigy (eff. 4/18), Hoechst (eff. 5/1) and BASF (eff. 4/15). Toners increased from $6.35 to $7.30. o Harmon on 2/29, effective 3/15, announced a 10.2% increase, raising toners from $6.35 to $7.00 and on 4/15 announced an additional 4.2% increase to $7.30. Customers should be conditioned to expect larger and more frequent price increases until costs are fully recovered and organic yellows produce adequate returns. Product for Emphasis "Monastral" Blue RF, 8T-498-D, was introduced in 1978 and is growing nicely in volume and profitability (earnings index 96). It's a very strong, red-shade blue well suited for use in inks, plastic DUP050070945 5 dispersions, trade sales * industrial and automotive ref inish paint systems. It has significant advantages over many competitive offerings in intensity, tinting strength, transparency, flocculation-resistance, and crystal stability. The following customers have purchased over 1M lba* and are currently purchasing BT-498-D on a regular basis? Bee Chemical Plastic 4 industrial dispersions Dutch Boy Paint Universal colorant Marcus Edward Paint Industrial finish Sherwin-Williams Automotive refinish Sinclair 4 Valentine Flexo inks Custom Chemical Plastic dispersions Competitive products were replaced at many of these accounts. The attached Product Data Sheet, which was prepared from Chestnut Run Lab Notes, is for use with customers. Pocket Price Card A revised copy, which for the first time will include Colour Index Numbers, should be mailed to the Districts in mid-May. ADO COLOR TO OUR WORLD - SELL COLORED PIGMENTS DUP050070946 Description: Very strong, email particle size', red-shade CPC blue. CO Well suited for use in ink, plastics, trade sales. Industrial and automotive refinish paint system. ST-49S-D (list price $9,50} has significant advantages in intensity, tinting strength, transparency, flocculation resistance, crystal stability and lightfastness over most CPC red-shade blues. COMPARISON OF BT-498-D WITH COMMERCIAL CPC BLOCS BT-498-0 is: Compared With 8T-427-D System Acrylic Modified Air Dry Alkyd Metallics Intense, red Tints 33 strong, intense List Price 9.50 Date 4/1/80 BT-427-D Acrylic Emulsion Glycol Dispersion 103 strong 9.50 4/1/80 BT-391-0 55-3750 (Am. Cy.) 55-3754 55-3750 Acrylic Modified Air Dry Alkyd Acrylic Modified Air Dry Alkyd Acrylic Modified Air Dry Alkyd Air Dry Alkyd 4055 strong 103 strong 33 strong, intense 103 strong, intense 403 strong 203 strong 7,75 9.50 33 strong, intense 9.50 203 strong, 9.50 intense, red 4/1/80 4/21/80_ 4/21/80 4/21/80 55-3750 Air Dry Lacquer 303 strong, intense 203 strong, 9.50 intense, red 4/21/80 55-3750 Acrylic Emulsion Glycol Dispersion - 253 strong, 9.50 intense 4/21/80 Actual strength advantage depends on dispersion technique, solvents, and vehicle system. BT-498-D is not a direct substitute for 55-3750 3ince it is somewhat redder in both tints and metallics. The redness will vary depending on the flocculation of 55-3750. On a money value basis, because of its Strength.intensity and flocculation resistance, 8T-498-D offers an excellent incentive for reformulation. "Monastral" Blue Rf, BT-498-D, as with all alpha phase red-shade copper phthalocyanine blue pigments, may be subject to some colji__irift in storage tests. -`PIGMENTSThe technical advice contained herein u* hosed oh teats bel*ved to bit reliahia and is offend as a heipfui suneetna; it expressly understood, however, that all such technical advtca is given gratis and Seller assumes no obligation or liability foe the advice given or results obtained. all such advice being given and accepted at Huyer'a risk. DUP050070947