Document NEGVZKoE2BMw3MBNE67DLjpqb

Top of the news Jn/jiyW Energy use in production of polymers and rubber goods (Trillion BTU's) Synthetic resins and other plastic materials Synthetic rubber Cellulosic man-made fibers Synthetic organic fibers Tires and inner tubes Rubber footwear Reclaimed rubber Other fabricated rubber products Miscellaneous plastic products Totals: Fuel oils 33.4 0.9 7.5 50.6 13.8 1.1 0.1 15.0 7.0 129.4 Natural Purchased Coal gas electricity Total 29.0 5.5 46.3 59.5 13.8 0.1 0.4 55.8 61.5 8.8 52.8 35.0 0.7 0.6 7.1 29.9 1.7 163.4 46.7 291.8 102.8 21.1 5.4 57.1 43.4 2.1 0.9 36.0 117.6 386.4 221 89 68 220 106 4 2 88 173 971 Fuels and electric energy used in U.S. production of synthetic material* (SIC 282) end rubber and plastic products (SIC 30) during 1973. Source; Foster D. Snell, Inc., subsidiary of Booz, Alien & Hamilton. uct separations and other techniques. Up to now, the Saxton group observes, cost-benefit studies have tended to favor the slightly higher operating costs of inefficient energy management over the increased capital investment necessary for the additional heat exchangers, longer distillation columns and other equipment associated with energy conservation. But now, the authors say, the ground rules have changed in two fundamental ways: (1) Petroleum and other fuel prices have risen rapidly; hence, cost-benefit studies will shift toward favoring energy conservation. (2) Allocation of fuels during a period of shortages will mean that an energy-ef ficient plant will be able to maintain out put at a higher level than a plant with low efficiency in energy utilization; "and the margin for economic operations at re duced output is usually rather thin." Sax ton says this aspect of conservation "makes it essential that those companies that have aggressively pursued energy re ductions in the past not be penalized by allocations based on future conservation steps." Plug for Coal: In the plastics and rub ber industries, there could be appreciable substitution of coal for fuel oils and natu ral gas by 1980, according to the Foster D. Snell study. Conservation of fuels and electricity by near-term measures to improve plant ef ficiency could reduce the rubber and plastics industries' total energy require ments by only about 5%, the Snell team estimates. This would be in line with trends already observed in these indus tries. For example, in plants producing polyethylene and other synthetic resins, consumption of Btus. per unit of produc tion is expected to drop by 50% from 1962 to 1980. The Btus. in Benzene: Industry people do not take issue with the general find ings in these reports, but they do contend that the methods used in quantifying the various industries' energy consumption patterns have led to distortions. In the report on industrial chemicals, for instance, feedstocks as well as fuels are measured in terms of each material's heat of combustion. The Petrochemical Energy Group, representing 18 producers of organic intermediates and derivatives, maintain that this method is inaccurate for some products and should not be used for determining any future regulations on allocation or pricing of petrochemical feedstocks. PEG says the energy actually consumed in producing benzene and shipping it to a customer is about twice that product's heat of combustion. As of now, FEA is merely stockpiling these reports, along with the written com ments that have been sent in by PEG and other industry groups. If new regulations are needed, the reports will undoubtedly provide useful background, but the in dustry comments make it clear that de tailed and up-to-date testimony from in dustry experts will be indispensable. Building safer PVC unit B.F. Goodrich demonstrated last week that it apparently doesn't expect the La bor Dept's. Occupational Safety and Health Administration to promulgate its proposed "no detectable level" standard for worker exposure to vinyl chloride monomer (CW, June 26, p. 14). While testifying at OSHA's VCM hear ings in Washington last week, Goodrich Vice-President of Manufacturing John L. Nelson said the company has begun con struction of a polyvinyl chloride plant in Louisville, Ky. The plant, to go into pro duction in mid-1975, will significantly re duce VCM exposure, Nelson stated, but still will not be capable of reaching the proposed no-detectable-level standard (see alsop. 30). The new plant will incorporate Good rich's latest PVC technology and will have several features that will result in a reduction in VCM exposure, according to Nelson. Polymer reactors to be installed in the plant will be larger than those in the com pany's five other PVC installations. Goodrich contends that the larger reac tors will have about 87% fewer VCM leak sources than those now in use. Other safety factors, according to Goodrich: greater use of computer controls and the fact that the plant will be an "outdoor" operation. The Louisville plant will be located on the property where the company now op erates a PVC plant, which was built in 1937, a Goodrich spokesman relates. He adds, however, that the new installation is meant to supplement, not replace, the old plant It was at the existing Louisville plant that the link between worker exposure to VCM and the rare liver cancer, angiosar coma, was first reported in January. A search of employee medical records had revealed two deaths attributed to angio sarcoma. Investigations at PVC and VCM plants of other companies turned up sev eral more cases of the disease. Angiosar coma deaths of former employees of the Louisville PVC plant now number five, Goodrich says, and two other cases have been reported. Temporary Standards: Concern about incidents of angiosarcoma at .installa tions of Goodrich and other companies prompted OSHA to impose a temporary 50-parts-per-million emergency standard in April for VCM exposure. The agency's next step was to order the proposed nodetectable-level standard. VCM and PVC producers have con- 20 CHEMICAL WEEK July 17, 1974 OCC 6524 Top of the news Disputed data: How much can CPI cut energy use? Ffleets a tally on industrial consumption of fuels but still may not know the score. Petrochemical group urges the agency not to make rules based on contested figures Executives in the chemical process in The studies were requested by Trea mec, Jr., Herbert Terry and Stephen F. dustries are uneasy about the dossiers sury Secretary William Simon when he Nagy of Foster D. Snell, Inc. (Florham that the Federal Energy Administration was head man in the energy office, but Park, N.J.), shows that 22.7% of all has been compiling on their operations. they were sponsored by the U.S. Com energy consumed in the synthetic mate Their worry: when the energy crisis heats merce Dept. rials and rubber industries is in the form up again, inaccurate or oversimplified By last week, FEA had received the re of electric power purchased for use in the data in those new FEA tally sheets may ports, in final or draft form, on 10 indus plastics industry's polymerization and mislead the agency into drawing up un tries: industrial chemicals, polymer and molding plants (table, p. 20). workable regulations on the use and con rubber products, petroleum refining, pa Where Cuts Can Come: In plants that servation of industrial fuels and feed per and lumber, hydraulic cement, iron produce industrial chemicals, Saxton stocks. and steel, food processing, coal mining, says, the greatest opportunity for energy "In some cases," declares the energy motor vehicles, and ground freight trans conservation lies in the area of turbine resources manager for one large chemical portation. and boiler fuel use. Observing that lead company, "the figures are off not by just Still to come are reports on phar ing-producers such as Dow, Du Pont and 20%, as stated in the report itself, but by maceuticals, nonferrous metals, glass, Union Carbide have already reported as much as 300%." plaster and concrete products, and con achieving increased efficiency in these op At this moment, of course, petroleum tract construction. erations, Saxton estimates that similar products have become relatively plenti Commended on Perspective: By and improvements throughout the industry ful, prices have eased in international large, according to industry people who could save 67-79 trillion Btus./year. on markets if not in the U.S., and there is no have read them, the reports do give a rea turbine fuels and 382 trillion Btus./year Congressional clamor for FEA to sonably sound over-all account of energy on boiler fuels. propound tough new rules for curbing consumption in these industries. "Taken together, the improved turbine fuel consumption. Accordingly, FEA of In the report on industrial chemicals, and boiler fuel uses represent a potential ficials now regard these energy use re- for instance, James C. Saxton and his as 25.7% reduction in 1974 fuel require as a data bank to be accumulated sociates at International Research and ments," the authors continue. "If there f^Hterence. Technology Corp. (Arlington, Va.) point were no reduction in the 1974 feedstock Keeping Options Open: The reports, out that while this industry turns out energy requirements (estimated at 1,950 which include recommendations for re more than 1,000 products of economic trillion Btus.), the savings in fuel use ducing wasteful or inefficient use of fuel significance, it uses more than 75% of its would mean a 12% over-all reduction in and feedstock materials, were commis total energy budget to produce just 37 of total energy requirements." They add sioned last winter when the Arab petro those products {chart, below). that feedstock use- can be reduced by im leum embargo prompted the U.S. gov And the report authored by Joseph Ne- provements in reaction efficiencies, prod- ernment to adopt an emergency allo cation plan and to consider more dras Energy in '73 production of industrial chemicals: Where It comes from. . How it's used. .. Where it porn... ;' tic measures, such as gasoline ratio ning. And while the Nixon Adminis tration continues to back its proposal for virtual self-suf ficiency in energy by 1980, it can be expected to keep all its options open. But Eric Zausner, FEA's assistant ad ministrator in Purchased alactrieibt 1j 172*- 13-. - A Coil pest. OH, ether fuais 4.0* vr ** "- -;V- Nitunu gss : 4!.7%` -, fv i *' v ^ ffr A Vi,-' ' ytrf* ) ^ *** *1 Ethane, propane I.?- - ' 31.5% EtfiytaM antf< ;>* co-product^:;_%|;< v f -vy 8.6* 17.0% Ammonia. CWoniieand. ; caustic soda : . 10* Styrene , '' 2.7% Methanol The 32 next largest enargy-usin*. chamicels*y;?:;y'y; charge of Project endence, says Benzene OK-------- -- 23.9% Other Industrial?: K16 industry s are not now Naphtha, other feedstocks .9.8% counted as a vitalFuel, feedstocks and electric. energy used in U.S. industrial chemical* industries (SIC 281) to1973. * Principally element in thatpetrco.p'yInlecnleu,dbinugteennersicahnedd butadiene. 1 Principally industrial gases, soda ash, sulfuric uranium. Source: International Research and Technology acid, phenol, Corp. adipic acid. urea^ y project. July 17 "7d CMFMICAL WEEK 19 OCC 6525 Top of the news tended throughout the OSHA hearings that the proposed level is unrealistic. Most have recommended a compromise standard, such as that suggested by the Society of the Plastics Industry--25 ppm. by October 1975, with a time-weighted average of 10 ppm. for PVC plants and 10 ppm. plus a time-weighted average of 5 ppm. for VCM plants. Goodrich declares that its VCM expo sure levels have dropped from 35-40 ppm. at the beginning of the year to 1214 ppm. now. The company says it is try ing to limit exposure to a ceiling level of 25 ppm. and a time-weighted average of 10 ppm. Nelson told OSHA that while Good rich expects vinyl chloride exposure lev els at the new Louisville unit to be lower than those currently existing in the com pany's other PVC plants, the actual levels will not be known until the new plant is in operation. The process to be employed at the fa cility trill be suspension polymerization. Both suspension and emulsion polymer ization are used in the old plant, Good rich says. VCM will be shipped to the company's new operation by tank car from Good rich's Calvert City, Ky., VCM production unit. The company stresses that the prelimi nary engineering work on the new plant began in 1972--before the angiosarcoma controversy emerged--and that actual field construction was started early this year. Expected capacity at the new installa tion and cost of the project were not re ported by the company. GOODRICH'S NELSON: Even for new PVC plant, `no detectable level' is unfeasible. Less urge to merge The number of mergers proposed and completed by chemical, paint and coat ings firms dropped 21%, to 23, in secondquarter 1974 from 29 in the same period last year, W. T. Grimm & Co. (Chicago) management consultant firm reported last week. There were 41 mergers in the first half, down 24% from the 54 recorded in first-half 1973, Grimm added. Eight of the chemical, paint and coat ings mergers in the second quarter were cash transactions, compared with nine in the same period a year ago. Stock was ex changed in one case, compared with four a year ago, and a combination of pay ment methods was reported in three cases, the same number as in last year's quarter, according to Grimm. The number of drug, cosmetic and medical equipment mergers also dropped in second-quarter and first-half 1974 from the year before--to 14 from 19, in the second quarter, and to 27 from 37 in the first half. Solid second quarter Several early-reporting chemical com panies have chalked up record secondquarter profits. They attribute the gains mostly to higher prices. PPG's sales and earnings in the period were the highest in company history, ac cording to Board Chairman Robinson F. Barker. Earnings were $25.4 million, 5% ahead of the previous high set in sameperiod 1973. Sales were $448 million, 16% higher than the $385 million recorded in second-quarter 1973. Barker attributes the gains to higher prices and growing de mand for energy-saving glass. Allied Chemical's second-quarter earn ings amounted to $50.5 million (up 80% from same-period 1973) on sales of $567.7 million (up 31%). Board Chairman John T. Connor says the company's energy, chemicals, fibers and fabricated products and export sales and earnings all contributed to the company's best quar terly performance ever. FMC predicts second-quarter results will match the trend of the first quarter, when sales were $477.2 million, up 20% from same-period 1973, and earnings to taled $23.1 million, up 21%. Chairman and President Robert H. Malott says that full-year sales will rise 18% over 1973 lev els, topping the $2 billion mark for the first time. Reynolds Metals boosted sales 48%, to $530.6 million, in the second quarter, thanks to a market recovery for alumi num. Earnings skyrocketed to $33.3 mil lion, almost six times higher than in same-period 1973. Pluses in Paper International Paper credits record production at its pulp and paper mills and price rises in many areas for its solid second-quarter results. Sales were up 25%, to $763.4 million, while earnings jumped 61%, to a record $75.1 million. Crown Zellerbach reports a 10% in crease in earnings and a 20% sales gain for the second quarter. President C. R. Dahl predicts 1974 will be a record year for the company,, adding that sales "should break the $1.6-billion barrier." A "particularly outstanding" perform ance by Dart Industries' chemical group helped the company boost per-share earnings 30%, to a record of about 874, in the second quarter, according to Presi dent Justin Dart Akzona reports record sales of $208 million, up 88% from same-period 1973, and record earnings of $11 million, up 37%, in the second quarter. Claude Ram sey, chairman and president, says sales were limited only by plant capacity or raw-material shortages. He believes rawmaterial supplies will improve in the sec ond half, but adds that "gains over the strong performance of the second half of 1973 will be increasingly difficult to achieve." IP scraps merger International Paper still wants to tap the potential 300 million bbls. of oil be neath about 2.9 million acres it owns, but General Crude Oil (Houston) won't be part of the deal. IP made an offer early last month to buy General Crude for about $437 mil lion--a payment of $45/share for General Crude common stock and $ 180/share for preferred stock (CW, June 19, p. 23). Initial response to the proposed merger seemed favorable. Pew Memorial Trust, which holds about 63% of General Crude's common, approved the deal. General Crude's directors would not commit themselves, however, promising only to take the matter under advisement Meanwhile, General Crude began dis cussions with other possible suitors. Then, IP reported it had withdrawn its purchase offer and "terminated the nego tiations with respect to ihe transaction." An IP spokesman declined to give de tails on why the proposed merger fell through but did say that development of potential oil lands "is still a priority in tention here." July 17. 1974 CHEMICAL WEEK 21 OCC 6526 Jop of the news Detailed Objections: Most knowledge- able patent people lean toward McClellan's view. Their objections are many. But basically the consensus ap pears to be that the proposal is too de tailed, attempting to legislate in areas that are better left to Patent Office regu lations. Many feel that the bill would throw enormous roadblocks in the way of obtaining a patent, that it would raise the cost of obtaining and maintaining a pat ent significantly. The net effect, they fear, would be to encourage secrecy rather than patents. Objections to the S.2504 mark-up can be expected to become vocal. What im pact this will have on the deliberations by the Senate Judiciary Committee and full Senate is difficult to assess. But chances of a patent bill passing through Congress SENATOR McCLELLAN: 'Confused' law this session are slim. Reason: The House would lead to a weakened patent system. Judiciary Committee, which would have to approve a House version, is too in Patent reform hits snag volved with impeachment considerations to take on patent reform. Opponents fear, The road topatent reform legislation however, that the bill might sail through continues rocky. As soon as the latest the Senate, generating momentum that Senate bill on the subject cleared one would make for early passage next ses hurdle, it ran smack up against several sion. others. ^^tudies and -'proposals for patent re- have been in the works for eight ^^rs. Last fall, Senator Hugh Scott (R., No goodbye Columbus Production resumed last week at Bor Pa.) introduced S.2504, the Nixon Ad den's Columbus Coated Fabrics plant ministration's bill (CW, Oct. 10. p. 20). (Columbus, O.) following settlement of a That was turned over to the Senate strike that had idled the wall-covering Judiciary Committee's Subcommittee on operations since February. Patents, Trademarks and Copyrights, With the settlement, Borden rescinded which "marked up" (revised) the bill and a decision, announced last month, to turned it over to the full committee for a move the entire operation to Andover, vote. Mass. However, about half of the oper However, Senator John L. McClellan ation has been transferred to Andover, (D,, Ark.), chairman of the subcom resulting in the loss of about 250 jobs at mittee, made it amply clear that he did Columbus. not like the Committee Print (mark-up) The strike began when negotiations be of S.2504. Instead of writing a minority tween the company and Local 487 of the report, he issued a scathing personal Textile Workers of America broke down statement in which he said, among other over the issue of wages. Shortly after the things, . . our patent system will be strike began, Borden stated that it would weakened by enactment of legislation have to close the Columbus unit com which is confused in purpose and pletely unless a settlement could be deficient in execution." `He was partic reached quickly. ularly pained that C. Marshall Dann, The impasse continued for several Commissioner of Patents, had been de months, with the company refusing to nied the opportunity of expressing his yield to strikers' demands and union offi personal views on the matter. cials charging that the company was un Then, to confuse matters, Dann broke fairly trying to pressure a settlement. his silence with a 21-page letter to Then, on June 29, an agreement on Clellan, acknowledging some of the wages was reached with most workers, t procedures would complicate the and on July 1 there was agreement with cess "to some unavoidable degree." In the others. The settlement calls for a general, Dann supports the Adminis$1.30/hour increase duringthe next three tration's proposals, although he, too, obyears. jects to parts of the mark-up. "Fm not happy with the terms of the new contract," says Corwin Smith, presi dent of Local 487. "But, under the cir cumstances, I think we have something we can live with for three years and keep the company from moving jobs away from the plant here." Closing Shop: As the Columbus Coated Fabrics plant swings back into operation, another chemical process plant is shutting down for good. Litton Indus tries reported last week that it will liquid ate assets of its Hewitt-Robins subsidi ary's unitin Buffalo, N.Y. The plant, which produces industrial rubber products, has been closed since March by a strike involving about 475 members of the United Rubber Workers. Litton tried unsuccessfully to sell the plant to at least a dozen companies, ac cording to a spokesman. Alcoa set for expansion Because of increasing demand. Alumi num Co. of America said last week, the smelting capacity of the company's Badin, N.C., plant will be expanded by 50%, to 180,000 tons/year of primary alumi num. Cost was not disclosed. Alcoa says the project, expected on stream by mid-1976, will include a third potline and supporting facilities. The work force at the plant, now 680, will rise to around 830. A spokesman says the expanded plant will not use the company's new electro lytic process for converting aluminum chloride into aluminum, but will use the conventional Hall process. Its aluminum chloride method, he explains, is still being developed by the company at a Texas pilot plant. Power for the enlarged facility will be provided by local utilities, and die baux ite will come from Alcoa's world re sources, the spokesman says. No reason was given for choosing the Badin site for expansion, but relatively cheap power in the area might be a factor. Alcoa says its domestic smelters are now operating at 100% of their 1.57-miUion-tons/year ca pacity. In another aluminum-related develop ment, Continental Oil (Conoco) said last week that it would construct a $10-mil lion 40-million-tons/year high-purityalumina plant at its Lake Charles, La., complex. When completed in 1976, the unit will produce CATAPAL SB, a highly active form of high-purity alumina used as a catalyst support in all major refining and petrochemical catalytic applications. Conoco now makes the product in a 20million-lbs./year plant in West Germany. 22 CHEMICAL WEEK July 17. 1974 OCC 6527