Document Oz13zN2qK9bn7mVww5YyyNo2p

COLUMBIA-SOUTH EKN CHl'MiCAL CORPORATION SUBSIDIARY OF PITTSBURGH PLATE GLASS COMPANY CABLE ADDRESS -"PlTTC H EM" N, J. EHLEKS ASSISTANT technical DIRECTOR ONE GATEWAY CENTER PITTSBUKGH 22, PA. ATLANTIC 1-5808 March 18, 1957 Manufacturing Chemists* Association, Inc. 1625 Eye Street, N. W. Washington 6, D. C. Gentlemen: Please send me the following two items which are mentioned in your STATE LEGISLATIVE BULLETIN NO. 6, dated March 8, 1957, Page 2$: OHIO J v H - 257 #5 WATER POLLUTION S - 5 #3 POLLUTION sp ^ ; Please send these to ngr attention, and also advise me if there is a charge. Very truly yours. NJE:ma CMA 174925 COMPANIES SPECIALTIES SURGE FOR PPG'S CHEMICALS GROUP A big push for international growth uring the past 12 months. PPG with Dean Witter Reynolds, "with lots DIndustries' (Pittsburgh) chemicals of room to grow geographically." In group launched a growth strategy particular, Stober says, PPG is "quite that is giving its specialties portfoliowaeak in Europe." major boost. The company lias in Chemicals repre creased the international reach of its sented 20% of PPG's silicas, surfactants, and Transitions total 1993 sales and Optical eyewear venture, and is ex 19% of operating in panding its fine chemicals operation. come, with coatings PPG has further developments in and resins (40% of the pipeline. Its capital spending this sales and 56% of oper year is targeted at $100 million, similar ating income) and glass to last year, with additional funds avail (38% and 27%, respec able for acquisitions, says Peter Heinze, tively) making up the group v.p./chemicals. Chlor-alkali and balance. derivatives, still the biggest portion of In precipitated sili PPG's $1.15-billion/year chemical busi cas, with sales a little ness, are having a rough ride because over $100 million/ caustic soda prices have plummeted. year, PPG's moves have Still, PPG is optimistic that prices will been positioning it for bottom out during first-half 1994 and "a couple of key markets," says Donald has its eye on some moves for that Bogus, v.p./specialty chemicals. First, business too. there is substantial silicas demand SHIFTING PORTFOLIO. The push is in line growth in the Far East, running at more with PPG's strategy since than 10%/year. Major the mid-1980s to shift end uses are in reinforc its chemicals portfolio ing elastomers for foot from being primarily wear and mechanical a commodity chlor- goods, such as belts and alkali business to one hoses, and as a tire build with 50% of revenues er. PPG is keying on Chi derived from specialties na and Indonesia. Its by the late 1990s. From main competitors are De- 17% of sales in 1986, gussa, Rhone-Poulenc, when PPG acquired sur and J.M. Huber. factants maker Maser, To meet this demand specialties now account growth, PPG has made for 35 %--about $450 mil three moves in the region lion--of sales. during the past year, The chemical group's total operating income Bogus: `We're pretty busy.' building on its existing positions in Taiwan, dropped from $185 million in 1992 to Thailand, and China. The company $138 million in 1993; sales rose; 3%. raised its stake in its PPG-Nanohang However, specialty sales grew 23% and Chemical venture in Nanchang City, profits jumped 50%, says Heinze. Jiangxi province, China, and expanded The second dimension to ileinze's capacity to 15,000 m.t./yoar. Last De growth strategy is to boost international cember, it announced a multimillion- business. "More than 90% of |PPG's dollar expansion at PPG Siam Silica, its chemicals business] is domestic," says precipitated silicas joint vent ore in Thai 51-year-old Heinze, who came to PPG land's Kayong province. In January, it 18 months ago, after 23 years with formalized a second Chinese venture, BASF, 12 of them in the IJ.S. "We want PPC-I.iangji Chemical Industrial, origi to have 25%-30% outside the IJ.S." nally announced last summei, lor a "There's plenty there in the five or 5,000-m.t./year precipitated silica plant six specially areas to grow the busi at Liunyungang, northern Jiangsu prov ness," concurs Harvey Stoher, imalysl ince, in northeast China, scheduled to come onstream in late 1994. The second thrust in PPG's silicas strategy is aimed at capitalizing on its leading position supplying silica for its last-growing use as a membrane separa tor in batteries. This was consolidated by its acquisition a yearagoof'the former Katalistiks catalyst plant at Delfzijl, the Net herlands, to be converted to gi ve PPG its first European silicas plant. Besides silicas for battery separators, in which PPG competes with Degussa and Akzo, the plant will provide silicas for the company's coatings opera tions. PPG has also announced it is studying production at its Lake Charles, LA site of a new proprietary silica to im prove tire performance, but Bogus says more testing is required by the tire and auto companies before invest ment goes ahead. Apart from a second-stage expan sion at Delfzijl to increase capacity from 15,000 m.t./ year to 25,000 m.t./year by April 1995, "we're unlikely to announce additional sili cas moves in 1994," says Bogus, "We're pretty busy." The surfactants business, with sales of $125 million/year, is also being posi tioned for fast growth even by its own standards, having racked up 15%-20%/ year growth in recent years. In the past six weeks, PPG has announced plans to build a 5,000-m.t./yearalkoxylation unit at Antwerp and to acquire Nalco's Free port, TX ethoxylation unit. At Antwerp, PPG will make ethoxylated polyols for the company's coatings operations and ethoxylales for its surfactants operations in Europe, based on its 1990 acquisition ofthe French surfactants maker Ets. Rob ert Ouvrie. The 30-million lbs/year Free port unit will supply Nalco's new oil field chemicals venture with Exxon and will bo expanded to supply the needs of PPG's surfactants business. GLOBAL LEADER. PPG's push is in "soft detergent compounds," says Bogus, based on sodium and ammonium acyl isethionates, where he claims PPG is the global leader in technology and supply. PPG also offers a "lot of niche services in ethoxylales and in the emerging science of propoxylates," he says. This capability is based at Gurnee, II,, its principal surfactants site, and will be installed at Freeport and, even tually, Antwerp. In fine chemicals, also with sales over $100 million/year, "we've target ed to make a significant acquisition in 26 CHEMICAI.WEEK March 2, 1994 CMA 174926 COMPANIES 1994," .says Bogus, either in llio U.S. or Europe, Based on its l.a l'orlo. TX silt!, PPG is the biggest custom phosgeuator in tlio U.S. Tlui now acquisition will bo in another technology, to broaden PPG's base. Moanwbile.ii mult imi II ion-dollarin\ ostnient is under way to install a nitiltipurpose capacity expansion. BBC. con tinues to find "profitable opportunities in specific niches in pharmaceutical in termediates," Bogus says. Making inter mediates involves "a lot of liability ex posures, so there's an opportunity for a very respectable company that knows how to handle hazardous chemicals. The pharmaceutical companies are looking to the big companies loperating in fine ehemicalsl to support them with these kinds of services," he adds. Bogus sees a positive impact on the business from any increase in generics sales be cause of health care reform. That will favor lower-cost manufacturing, which PPG is positioned to provide. PPG's CR-39 special polycarbonate optical resin monomers business is in cluded in its fine chemicals operations. Production is at Barberton, OH and Chiba, Japan--through PPG's AsahiPenn venture--and the main competi tor is Akzo. An expansion at Barberton in 1991 has created enough capacity to cover demandgrowth--running at 7%/ year--during the next three years, Bo gus says, SOCCER STIMULUS. PPG's Transitions Op tical (Pinellas Park, FL) eyewear venture with France's Essilor has grown out of PPG's optical resins know-how. Starting out in 1991, the venture's sales have rocketed to about $100 million/year, with PPG holding 51 % of the venture. A European production plant at Tuam, Ireland, will start up this spring, and an Asian production site is being sought with the prospect of starting operations in early 1995. Transitions would next consider a U.S. West Coast plant. PPG is looking for a fillip to sales from having l bought a soccer World Cup sponsorship tor Transitions and the franchise as "of ficial eyewear" for the series taking place in the U.S, this summer. The final $100-mi I lion/year segment of PPG's specialties business is an as sortment--comprising calcium hy pochlorite for water treatment, a $25million/year business in plastic addi tives, and Teslin synthetic paper. In addition, the chemicals group hits at 'east two new product developments coder way: deinking chemicals (an out growth of its surfactants business) and photochromic dyes (ait outgrowth of the photochromic optical resins business). Still llu; biggest part ul the chemicals As with specialties, PPG is looking portfolio. PPG's chlor-alkali business, to boost its overseas presence in chlor- the third biggest in the t l.S. behind Dow alkali. Burton expects to have it project Chemical and OwChem, has been run as by the fall--probably in China--to com a cash generator to support expansion in plement PPG's single overseas chlor- specialties. It has been hit hard by the alkali stake in Taiwan. slump in caustic, hut it remains a strong "We think having chlor-alkali and low-cost operation, show specialties in one portfo ing signs of successfully lio is a unique combina dealing with the changing tion helping our suc face of chlorine demand. cess," says Heinze. He Its electrochemical unit has identified as two of output has increased each PPG's core competencies yearsince 1986. PPG is not its experience in low-cost experiencing "a reduction operations and customer in chlorine, but a shift service, both best exem ing--primarily to the Gulf plified by PPG's chlor-al Coast," says Rae Burton, kali business. He is proud v.p./chlor-alkali and de of the chlor-alkali opera rivatives, and to chlorine tion winning the 1992 In outlets that are growing-- ternational Customer notably vinyl chloride Service Association monomer (VCM) and tita nium dioxide. Burton ex Barton: Chlorine shift award. "We outperform our competition by huge pects to have a project to further expand amounts in regard to response to cus VCM by year end. tomer needs and accuracy of informa PPG's biggest chlor-alkali plant is well tion," he says. "That's a four- to five- placed at Lake Charles, with 3,600 tons/ year learning process. We've taken it day capacity and downstream units for from chlor-alkali and extended it to the ethylene dichloride, VCM, chlorinated specialties business." solvents, ethyl chloride, and vinylidene FAIR PRICE. It is tlie same with low-cost chloride monomer. PPG also operates a manufacturing. "To be a low-cost produc 1,100-tons/day unit at Natrium, WV, er is the entry card to being in business," which is a low-cost producer in the re says Heinze. "It can applyequally to chlor- gion and has a good baseload demand alkali as to specialties. Whereas in some supplying Miles's adjacent site. A 220- specialty companies you hear they're not tons/day membrane unit at Beauharnois, worried about costs but about being fast, PQ, using low-cost Hydro Quebec pow and think they can afford higher cost be er, along with a sodium chlorate unit, cause of value added they are giving. You completes its North American lineup. should only charge the customer what Burton is aiming for PPG to maintain will enable him to grow the business long a strong position in what will remain of term," Heinze identifies a further area the chlorinated solvents market follow outside chemical process technology ing chlorofluorocarbons phaseout. PPG where PPGseeks competitive advantage- has proprietary technology that can pro information technology. His requirement: duce perchloroethylene and trichloro It should be adaptable to having an acqui ethylene on the same unit, in contrast to sition " plugged into it." PPG's new system most of its competitors, which operate developed with EDS will be used initially perchloroethylene units designed to in its surfactants business. coproduce carbon tetrachloride, which One Heinze goal this year is to ac is being phased out. Burton is targeting quire another technology to comple sales to producers of hydrofluorocar ment PPG's existing portfolio; the com bon-134a: DuPont uses perchloroethyl pany had been a final bidder forCalgon ene feedstock, while 1CI and Elf Water Treatment last year. Ho is also Atochem use trichloroethylene. looking for double-digit sales and prof As for 1,1,1-trichlorethane, sched its growth. uled for phaseout in emissive uses in From his executive suite high in the 1995, Burton aims to hold on to sales of PPG building, Heinze likes to point to th&.product for nonemissive uses, pri the confluence ofthe Monongahela and marily supplying the producers of hy- Alleghany rivers, which form the Ohio, drochlorofluorocarbon-141 and -142. to illustrate his philosophy. One tribu "We see ourselves as a real player in C, tary is knowledge of the customer, ho feedstocks for nonozone depleting fluo says, the other is PPG's operating excel rocarbons," he says, and expects to set; lence, which combine to achieve PPG's the decline, in chlorinated solvents de goal of customer satisfaction. mand to bottom out in 1995. DAVII) HUNTER in Pittsburgh CMA 174927 March 2. 1994 CIIEMICAI.WEEK 27