Document N2vwErdXBDJ7gX05poww0pBw8

CC: CSUMJSHCOIta E. I. d u Po n t d e Ne mo u r s & Co mp a n y Ne w p o r t , De l a w a r e 19804 CHEMICALS, DYES AND) PPIIOGMMEENNTI SS DUlELPPAAKRTI MMEtNNTI ihtAmf " /livp ke M P. A. A. Dl J. J XP. J.-C. J. L. M. W. D. M. A. E. I. A. G. H. Hopkins Wriede ~ - Willette Hendgfson Chaney Deming Williams Kafka Andrejko Berkemeier - Hull C&P " Wilmington Jackson Lab. Newport DU PONT CONFIDENTIAL - SPECIAL CONTROL C. R. OWEN C&P Department Wilmington COST REDUCTION FORECAST/ACCOMPLISHMENT REPORT 1983 YEAR TO DATE NEWPORT PLANT Attached is subject report. JLBiejp Attach. L. BALA&0UIDE CONTROL SUPERVISOR NEWPORT PLANT Re iz e d Y e a r o D a te cn Mh O aO(d)i & w ww PI ft SOCJ TMoCToi UH I ft EfHt ri! t2o Oft CD Z Eh Ow wft Eh H aD ft a Ewh o u o VO r*- rH 00 io in o VD ID CM EmH < uw u i oft rH (d A3 4-> oo O 00 co in co CM o on 00 o rH o o z o^ H % to omo in VO o o o 00 rH VO rH io O in 00 rH 41 rH o CO CO id CM pH rH W a) H fti cn tn -P c (II c H (0 T3 <U M in 0 O' X) C <0 H >1 O' M P a> <d JS, fct -p o uo in o 00 rH in rH in o co i--i o CO rCN ON rH 00 10 % X a) Eh T3 Oc Eh H ac 0 rH P U0 T33 oas) -iMn o u C00O ON DUP050145826 N 26477.01 er> IH o CN C0n 10 o< E-< CO < U ofa i--I (0 10 -P U oo Z U &H H CO 0 -P P zw KO-t cMo Z 0S4 n Ooo Uo. E-i CJ*-i Z<S \< i 4^ A w oi < g U -< w os S co o os < 0-4 Oo, Da. w z Z El OM t0o5 e-i h u fa zQ M OS C-4 CO O U uo 0 TS 1P0 0Q N H 0 <0 4-> 0 OS o --4 o in in o i vo r- r> o r-C o I--( m orr i rin- i i in oro- 0*0r m in o o or- om o.-t in icns or- om orH in in CM co VO I DUP050145827 1048 1500 835 CTl CO (1) m o P O 2 dC)n (0 CO <u p -p C (4 (X a> e Eh p -p CO p -p < 3 10 u aw w 05 o r--I IX iH (4 rtJ -P u OO 2 U Eh >< d CO a) -p 2E-i W s-4 CHO J IX Sen Ooo Uov Eh CJr-l 2< <\1 iJ Eh _ IX CO 05 <W Eh UEh S 05 W 05 co- O 05 C CX O D E IX Ci W 2 2 Eh : O co H 05 Eh H UD IX a 2 Eh CO uo <u p >a ro 0) Q N (0 a) p 05 (4 <u >H .> a co 05 OOO in CN rH rH O 00 rH OOO O *}* rH 04 O in 04 N* in o m 1 o H 04 o rH rH rH o '--I in o O o O OJ pH in o o 04 rH 04 rH in 00 VO 112 QA TOTAL: a DUP050145828 Ol o CCDn <0 cl Eh zs K OT H PI CL Z<n O co UTi e-i u -h z< <\i PI Eh c l cn oS <C4 Eh U Eh S UK cn o OS < ft OD S Cl a W Z Z EH O cn M os Eh H O&l D D W OS Eh cn O U cn <d -P -P c <o EChn <u E P 'H 1-1 -P < 3 CD U aw W OS o CL rH (Q ro -p U Z Uo Eoh H > < 'O Ui CD p -p H O1 o r- r^ O| r* o r*- o| r* o 'O (O <d a N P o rH +J CO CD P OS 10 CD >H >1 "a cn os uu (X c l uu = (= \ 4* o vo a o o -p in pi -<au tCcrnD < Eh 0 f- r) Eh P =*L 1 TD m gP >iO x: o c D cn <P c0 r-- --i CD O rH c -H CD rH O cn <CS O XS P P vo <d x: c n ,y CL 00 tn a *0 rH p ai (D rH cai -H T3 a> u 3 Toa3si o 3E -a o ai p os ip P c M rH wH r* O rH VO rH OO r** ro oo r- m uu & CL w- u cn P ai CL H rtpHO Eai x w tCrD> <o (0 cn Ta3i Ta3i 'Oc o 3 o 3 ccJ Tcas3i 'a oCsD 5 <0 J rH rH rH CO o m r* VO CM O ro in O m r^- vo CN O vo <N in in VO CN O VO CN -J sc lHJ DUP050145829 485 655 567 ai d-i O in in Pa9e d) 4J 4J C id 4) E o in CN 00 ID U -P Pw uw o| | oH fa rH fQ 4J e> O 0 zM C3 Eh o00 oo in ID in CN rH O CN oom rH CN CN i iinn o in 00 ID in oi i NEWPORT PLANT COST REDUCTION FORECAST/ACCOMPLISHMENTFIR ST QUARTER 1983 82 CPC TOTAL: CO ID CN in V0 2co C0)M PS u fa u P-1 fua fua ouuu ufa u Q 18 fa CJ PuW u u idnp Co 0 -H 2 4-1 a#0ec_-i \ fa fiad 3 id in P <U ffaa e> c H fa < Eh O Eh 1 N2 fa -rH 2 2 d) D E O c 0 2 i--i i-i <n fa in 3 0 43 W op <u <u a> d> >>3 <U id id O to tn in fa 3 o i i d> o 43 > fa u E P 0 u <0 id <U P i <d s 0) +j fa >i o Di fa -P M <d S E H P Q> 0) PC *5 fa 0 P m <n fa d) E 0 Eh (T Id fa >P fa dn o Eh wo 3 1 32 T) in a fa Pfa fa * O PO idfa >i <u H njm c C2 fa H fa ido 4JCN C 0 0) ao 01 H V E-P 43 0 4-1 3 o uv 13 nr (Ufa 34-> n 2 DO (Ufa O 3 T3 d> P P 0 'O <u U0 0 3 E 3 S 4J 3 TJ 0 'O 0 01 T3 P d) Pi fadH f(aUd-P1 o u (U fa ID 43 to 4J O DUP050145830 56 305 on 4-1 0 VO cu rd a, Eh z w*r* K CO H 3 a* O oo Ocn Eh UH Z< C\1 3 Eh a c o ps <w E- UE-' Z 05 WPS v> O P5< 6 03 W CX W Z Z Eh OM C0O5 Eh H UW D Q W 05 Eh CO o u CO a) P z0 cn a) PC P (T3 <D E Eh M *H CO P 4-1 < S3 CO O uw ows o rH fc* rH (0 cd p o O0 z O eh H > < XI CO 0) P 4J 1 u a) -p t 3 cNu id a -P O rH P fd a> p 05 id a> iH >4 a a 05 __ rH rH r- o O o CN O o ON rH CN CN ro 00 rH *3* CN ro oo rH O in o O o CN 00 o CN 00 <N <N (N rH CN i in r". O in o O O O O o CN rH rH CN rH CN oin ** i i ro 00 <N rH ro ON VO rH in CO rH H < Mech, Mech, Mech, Mech, OO U0 CU z # .E (1) z cu Z oo oO CN CN oO H* CN O OO O i O rH CN ^1* ro oin mO pH oi CN ro r- 00 r^* rH rH rH rH O za) 0o zG) cu z O0 (U (U zZ on rH r- oo oP p 0 P p a> > rH id o H c id O zCU 1 fd m a) H p fd rH fd CO x> icd p 0 IN O P 4-1 p O4 ecu X w T3 <U O 3 TJ 0(U5 rH O rH O p w a> *tf>dp X) <o3u X0c53u cp rH 3 T) a> OCQ XC3 fd c> cP c 3fd rH Oi ca 04 0 CO >1 CU rH rH fd > rH aCl) CU CO 3 P P o3 X3 0 P a CO p ca >i rp m C id x, p > 034 m >i p id p 0 04 6 CU P -a0) o 3 X3 CO 3 Oa) c id ip i--c cu a cn p <u S 0 c04 id E X3 (U O3 X3 ap> XfXd <3 CO c 3 id < Pp CO Eh CP id C O cu 0 Eh P tP XI 1 04 c (3 p 3 c. 'c *p CO cd cu c p p p0 0 p XcI *p E ip p id id id cu p a) i--i cn 3P p cn >i <n aP CO c p 0 0 X3 X3 P cu p>o 04 cu cp C -P CU P cu X) cu p>o a >0) p0 04 <D SUB-TOTAL: DUP050145831 CT\ 4-1 o r 0tji (0 a &H Z wwa-<t w M 4 & Sro o Off* Eh U-H 5^, a < Eh (X ctaj eohs- <z/> Oa_ (X< aODa W z Z Eh ow M Eh H U fe D Q W Eh W o U cn 0) P 4-1 C0 0l-l *EH H -M D cn uw o oO o o o CM co CN CO < r- o in o *3* CN CN o CN o in C\ in CN o in m oo CN CN in o in o in X X t 0. cn cc x: X! o0 00 ZX Si si x: 0u0 0 0 0ias z .z x0: 0 z si x: uu 00 zz 4J cn <G Oi EC H c 'O -P o 0 'O 0 r"f. i C H o XI 0 o -Vp H 3 d> 4-> 0 H p 0P > -P R1--31 cd o 0 eE Cn V rl C H cn 0 X3 -P C 4-i 0 0 *H 0 O H si 0 cn C -P o p 00 cn 0 4-1 0 0 TJ 4-1 cn o p au 00 cn 3 p 0 p oa Eo a H c <0 cn ip o 3 i--cnI c0n 0p c0 00 cn E 0 -p rH -P 4J 3 T3 0 cn (0 tr 0) -cp cn o T3 u cn 0 0 o cn > p cn <0 cn 0 cn 3 T3 00 0cn TJ 0 0P >0 oc U) -H .Q 0 O0 00 H 'U 0) c H cn M 0 Vi O C 0 00 P -p M f p o 0 10 0 p o c C Oc 0 a aP -H x EO > t> O3 E TJ 00 4-1 0 T3 C CQ a w H 4-> IX p D <U -M O 4 < Eh O Eh 1 m D cn MECH. TOTAL: 266 860 1100 1493 DUP050145832 260 436 250 29 <T\ 4-1 O 00 <U tn ft Eh Z U*r--3*< acns H a & So OU<cTni Eh UH Z< <\I PI h ft WK <W Eh UEh ' K WK o QS< SiOD b fc a w Z Z Eh O cn H OS Eh H U fc D Q H Eh W Uo 0] a) p +j c ns a> g in CM in o co in in in o V0 u -H p +j 3 tn uw rH rH (0 rH <0 -P rf in O0 C5 Eh oo CO in in fM CM d (V p p in o co o in CM in CM in r^ cn in M* CM in CM CM 10 in CM CO o rH CM CO in a> p tj ai a N H 0 .H 4J J <D P os m a> Jx *H r--i rH 00o ppp 04 tn Pi w as w <4 -p c 0 -p c o p c 0 05 W co cn u u u r O P o in 0 -P o CM -P CM -p O c o in O P co 0 P P u +j kT a CO a ^0 0 g CM rH 0 CM c p gp 6 (0 e <4-4 0 4h e o o p 0p ctn p p <4H P p <4-4 4H Q> a w o g <U g a> H W <D C7> o j w a> P <0 z X 10 S X w z m n* rH o a ,d t) "d K <U <U <u tu <u <u ou 00o o Q> a 3 3 3 d 3' <D 'O T3 T3 -d T3 d >i 0) d (U OJ <U QJ O cx OS a OS OS OS rH Q. e w a Eh O Eh 1 m D tn rH O P -P C 0 u s ID CO rH </> 2u *? 0 p o c/> s 0 P 6 0 P C\ p e to 0 (U p P Ul <0 tn P PS a) tu o c 0a PS o ca ao <u tu <U 0 CJ a 3ad Tf t j TJ <U V a> p OS OS os tu ps * p o in PI < Eh O Eh 1* 03 D 03 & w CONTROL TOTAL: DUP050145833 a\ 4-1 O <T> O O' <0 & COST REDUCTION FORECAST/ACCOMPLISHMENT m 00 iH K U Eohs m w m oo < Eh 0\ a O Z Eh <v Cafl 4-> P H (0 h a3 'O co o <u w p >-l (0 -(P0 O -P a) i--i 3 3 4) OOT DU P050145834 ACID & AROMATIC PRODUCTS DIVISION Hydrazine Hydrate - 85%: Late in 1982, we qualified Otsuka of Japan as a second source. At a price of $1.32/lb. and with 90 day consignment versus Olin's price of $1.90/lb., we awarded them 50% of the business. In March, Olin lowered their price to $1.35/lb. delivered; savings will be $40M/yr. (AF) Sulfur Supply: Despite an increase in sulfur demand of up to 45% at our northeast plants and curtailment of sulfur production by local refineries, we were able to meet needs. It was necessary to use Canadian sulfur to supplement domestic supplies. Current plans are to bring in a barge or ship load of sulfur from the Gulf Coast to provide a protective stock in case of further local refinery cutbacks. Savings; The prices for domestic and Canadian sulfur were renegotiated downward several times via competitive bidding. Rail and truck rates also were reduced by scrutiny of existing schedules. As a result, as of April 1, we are paying $1.5MM/yr. less than we were on January 1. Tank Car Fleet; All Du Pont leased sulfur tank cars are now in active service and accumulating mileage and rebate credits to offset leasing charges. (LZ) COLORED PIGMENT PRODUCTS DIVISION Aceto Acet-o-Anisidine: Late in 1982, we qualified a Chinese supplier at a price of $2.45/lb. with consignment versus the domestic price of $2.70/lb., and awarded them 50% of the business. In February, we opened the remaining 50% for bids. American Hoechst, matching the Chinese price and agreeing to consignment, will receive the remaining 50%. Savings will be $30M/yr. (AF) BON: American Hoechst is pressing to become a supplier for Newark. We have approved a sample and have 3,000 lbs. at the plant for commerical evaluation. They are offering a price of $1.95/lb. consigned, which equals the price of our current suppliers, Ueno of Japan. (AF) Dry Alum; We have been working with Delta Chemical on bulk containers to improve handling, reduce dusting and decrease bag handling. We advised Allied, our 100% supplier, of this activity and they immediately lowered their price $20/ton. Savings will be $55M/yr. (AF) "Sitol"; We have completed a secrecy agreement and forwarded technical information to Upjohn which we are considering as a second DUP050145835 N 26477.02 2- - supplier. With the current shutdown timetable for "Ponsol" of mid-1984, we plan to complete contract negotiations before year-end. (AF) Sodium Chromate; Wehavecompleted negotiating with American Chrome for a 20% reduction in price for 100% of our business. Savings will total $600M/yr. (AF) Sodium Dichromate: With the loss of the chromate business, Allied and Diamond Shamrock lowered their respective prices of dichromate 15% to retain 50% of that business. Savings will be $110M/yr. (AF) In February, Lonza supplied a spot purchase of 19,000 lbs. at $1.95/lb. for a one-timesavings of $9500. (AF) Zinc Oxide; We set up an annual purchase contract and awarded 100% of the requirement to St. Joe in return for a lower price. Savings will be $13M/yr. (AF) METHANOL PRODUCTS DIVISION Methanol Catalyst: United Catalyst, Inc. supplied defective G-90B catalyst to Beaumont causing losses of $200,000 from unusable catalyst and $300,000 because of start up delay. United Catalyst has rejected our claim for reimbursement. We plan to invite United Catalyst to Beaumont to see for themselves the validity of our claim and to determine how badly they want to retain our business at Beaumont and other locations. To further strenghten our bargaining position, we have determined that Katalco Catalyst 23-1 is equivalent in performance and cost and therefore interchangeable with G-90B. Further, Katalco is extremely interested in obtaining the departments business. (WJB) Silver Formaldehyde Catalyst: The Belle plant has received 9,290 Troy ounces of heat treated silver needles from Metz Metallurgical. We believe that by the end of the second quarter, Metz will be confirmed as quality supplier. In an effort to win back silver refining business and -stave off a loss of needle supply, Engelhard has lowered their silver refining charge to 0^/Troy ounce and 99.5% of assay, compared to Metz 6^/Troy ounce. The key variable not mentioned is yield. The Metz yield is I- 2% higher than Engelhard's past performance. This is worth II- 22^/Troy ounce at current silver prices. The offer is sufficiently encouraging that we plan to send a test lot to Engelhard. (WJB) Deer Park Vanadium Sludge; Lake Chemical should reach a decision by the end of April on the timing of the receipt of our sludge (most likely about July 1). Because of reduced demand by Du Pont for DU P050145836 V -5- (AC #9) as an alternate which will save $100M/yr. (It has been successfully used at Johnsonville.) (LEK) Dichlorobutanes: Johnsonville is looking into the use of dichlorobutanes (DCB) from the Pontchartrain plant which incinerates this material. Savings will be ** $lMM/yr. with an additional $1.7MM corporate benefit accruing because disposal costs would be eliminated. Haskell Laboratory has been asked to define safety considerations. A procedure for a plant test is being developed. Also, new facilities will be needed since the heating value of the DCB is about one half that of present fuels. (LEK) Coal Quality: The vendors of coal to Johnsonville appear to be giving increased attention to size specification. The plant had no powerhouse opacity violations due to coal quality in February. We will continue to monitor their performance. (LEK) Alternate Source & Routing: A quotation has been negotiated for less expensive coal to be barged to Port Bienville (near DeLisle) and then trucked to the plant. A trial shipment is being arranged for April. Savings will be about $500M/yr. It is anticipated that the use of this barge/truck arrangement also will enable us to reduce freight costs for coke shipments to the plant. (LEK) DEPARTMENTAL GENERAL Lime: In order to forestall price increases, we are meeting with vendors to define minimum specifications, favorable freight rates and sufficient reliable supply, especially for Chambers Works and Edge Moor. (LZ) Sand: Negotiations have been undertaken with several vendors to insure continuity of high quality sand for normal and electronic grade silicates. (LZ) m 0?/N? Contracts: Several contract revisions are being negotiated. y S' ' Chambers Works - Airco gave notice of cancellation of the existing contract for nitrogen as of 4/23^82^ A new proposal has been approved by the Subcommittee on Purchases and Sales and contract details are being negotiated. Niagara Falls - AGA Burdox gave notice that they are cancelling their contract for nitrogen supply and plan to dismantle their plant this year. A new contract for pipeline supply has been negotiated with Union Carbide. Savings under this contract will DUP050145837 6- - be $40M/yr. The Subcommittee on Purchases and Sales has approved and final contract details are being negotiated. DeLisle - The O2/N2 contract is being modified to increase oxygen capacity to 260 T/D to meet requirements for full plant capacity. Also, the existing air separation plant is being modified to meet required dewpoint levels for nitrogen. While contract details are being negotiated, Air Products has agreed to credit us for operation of the plant dryers (to meet the dewpoint) from 11/81, until their dryers are on stream (expected 7/83). Savings will be $28M. Johnsonville - The Air Products contract is being renegotiated to consolidate the control rooms of the two air separation plants, thus reducing the number of operators required. Savings will be $100M/yr. (LEK) "Dowtherm A" - Du Pont Mixing; Based on our experience and savings at Newport with mixing Biphenyl and Biphenyl Oxide to make "Dowtherm A", the M&L Department has proposed that Du Pont contract out the remainder of the company needs. Additional potential savings to Du Pont are $635M/yr. (AF) Refining General: Heraeus - Midland in Pomona, NY, processes all of Photo Products film (6MM lbs./yr.). They recently suffered a fire that completely leveled their plant. They plan to rebuild with new technology and should be operational by early 1984. This is important because Photo Products needs will put a strain on available refining capacity and could delay recovery of our material, thus increasing our on-plant inventories. SIPI in Chicago had a flashback processing some of our organic contaminated catalyst from Memphis. The injured employee (minor burns) was grossly violating plant safety procedures. Even so, SIPI is reluctant to continue refining this material for us and we are therefore terminating business with them. Parkaws Internationnal Inc., Houston, TX, has been recovering base metal catalyst for Du Pont and recently expressed interest in the organic contaminated catalyst business from Memphis. We are pursuing tests with them. Also, they remove the organics, not by burning, but by high temperature distillation. Thus, we may be in a position to recover both solvents and quinones for reuse by Memphis. (WJB) Consignment/Vendor Stocking Activity: Activities during the quarter included: Consigned Chemicals - $254M Newark Plant - $217M Chambers Works - $37M DUP050145838