Document QMvRQzVaw0ze33DzyzmLZpbz4

f I V. E. Schalk - St. Louis February 1, 1971 MOKSAMTO CANADA LTD. PLASTICIZER PROORAK 1971 FILE J. E. Springgate-JSERI D. E. Marriner R. V. Johnson-RJOHN J. K. Lllly-JLILL S. Marty - JFQ J. H. Brydon - Montreal R. M. Brell-RBREL E. Osreene-EGREE Work review sessions were held in Montreal on January 27th and 28th of 1971* The specific topics that were reviewed and agreed upon are as follows: (1 Santicirer 711 import program Canadian alcohol outlook Canadian Santiciser 160 resale and pricing outlook 4 Polymeric sales in Canada (5 Aroclor 6460 pricing in Canada. I Santlclxcr 711 Import Program: Our previous MOCAM program called for the separation of Monsanto alcohol st Texas City Into a fraction and a CjCQ fraction and ahlpsient to Monsanto Canada for esterification at Montreal into the following products: 7*9 Adipate, 7.9 Trimellitate, 7.9 Fhthalate, a reblend of alcohols to a Santlciser 711, wuA a DUP. Forecasted operations at Montreal combined with the alcohol outlook for Canada now dictate the modifications spelled out in the attached summary calling for 7*9 alcohol importation but no manufacture of 79 phth&late or 711 phthal&te in Montreal. Instead a program of direct importation of Santiclaer 711 (U.S. manufacture) from storage st Mew Haven initially and later tanker movement s from Texas City to bulk storage at Toronto was agreed upon. /Some comments on Canadian Tariff lav are in order: The following alcohola are presently dutiable at 15$ M.V.F.: 2-ethylhexaaol, 6*10 alcohol, 711 alcohol and 7.9 alcohol. Exempted from duty is ieo-octanoi. Iso-decanal, Iso-nonsnol, trri dsssnol sad C.. alcohol. Curiously, Canadian regulation* impose a duty on alcohol mixture* of varying carbon obain lengths, e.g. 6-10 alcohol sad 7.5 alcohol. It tea not, aa Conoco alleges, additionally discriminate gainst isomeric blends of alcohol. house, separate outs of Monosnip alcohol Or or Op or C11 would enter duty free deeplte our isomeric mixtures. With respect to 2-ethylhexaaol, it 1* dutiable although currently not mode in finadi under reemmet granted BASF mho oS\N 58T637 STLCOPCB4092973 MONSANTO CANADA LTD. PLASTICIZER PROGRAM 1971 - 2 February 1, 1971 allege a 2-ethylhexanol facility under con struction. Should BASF suspend or abandon alcohol production plans for Canada, it is felt that MQCAH could sake a successful petition to Ottawa for a duty free entry of 711 alcohol as well as 2-EH^/ It was agreed that Monsanto U.S. would furnish S&nticizer 711 from the U.S. to Canada with standard MCCAN resale commission*. In addition, a inland freight allowance will be extended to MQCASj covering bulk delivery to the major customers in the Toronto and Montreal areas. Examples U.S. price + Canadian duty + exchange - freight - commission - MOCAN price delivered 12.73* + (13 + 2) - .5 ~ 8$ * IlOCAN price delivered 12.75* + 2.17* - .5 - 8 -*3.4# As a credit against this sarlas of transacti cns, Monsanto Company would receive 1.23* per pound of finished ester ss duty drawback to be credited to Santiclaer 711 basic upon previous phthalic importations. This program at this point commits K.C. to a continuing program of competition with Conoco and BASF (Canada) through whom they will hope to move alcohol ss pbtbalates, to the customers delineated in the attached program. Significantly, it not only permits but actively abets the profitable MOCAH production of Trlmellltates, Adipates and WSf as well as the rigorous resale of 7 IS# of Saatlelser 160 into the Canadian market. The adventages of this program are obvious whan we consider tbs coat to Monsanto la MOCAJf profit ability, particularly in Saatlelser 160 pricing. If crude attempts of Saatlalaer 711 alcohol sMrfeetlag programs are pursued. DSW 587638 STLCOPCB4092974 MQHSAffTG CAHAQA LTD. PLASTICIZER PROGRAM 1971 - 3 February 1, 1971 II Canadian Alcohol Outlook: It will be recalled that Shewinig&n, ths original Canadian producer of 2-ethylhexanol announced an expansion in capacity. Later BASF announced a 100 new 2-ethylhexanol facility. This announcent resulted in Shawinigan suspending Canadian production of 2-ethylhexanol and cancelling their proposed expansion. The BASF facility was originally forecast to be operational in aid-1971. This date was later pushed back to the first of 1972. The prevalent rvaaor new is that these plans are indefinitely suspended. In response to our direct query, BASF officials Said that they would be in a better position to conaent after an alcohol Mating la Qeraany was concluded onetime In late February 1 Several considerations conb i alcohol venture an extraeely risky venture. First, a Morth Anerican oxo alcohol glut that would see the Canadian venture forced to export Into an already over-produced O.S. market. Secondly, the BASF requisition of Howards has propelled thee into s rapidly declining phthallc/ POP awrket with consequent serious easing problems. Their interim posture at Ottawa is to have con tinued tariff protection far Canada. The argument la that no tariff protection prior to Canadian production would encourage a torrent of laports end stockpiling that would result In no sales of Canadian alcohol after the Canadian plant sens on stream. t in The total C--dlan narkst la sstiawsted at f W. (This estimate pretty well to tbs 10 factor, rsasdl an warbat all The previews 12 K1 estimate V,S.}. tDSW 587639 STLCOPCB4092975 MOWSAMTO CANADA LTD. PLASTICIZER PROOKAK 1971 - * February 1, 1971 Of this 9 13# nsrket, 6 R# sales are forecast to the flooring industry at l6# per nound pricing. This pricing is valid at 13f# Canadian OOP pricing. However, if Canadian DOF cases down, our Santicieer 160 flooring price would be strained. If Santieixer 160 were reduced to invade the SOP market, the retaliation by DCF would aee an undesired price decline without a coapenaating volune increase. International Chemical, who took 500 K# from H.C.D. in 1970, will buy this volume frost RCCAN in 1971 at 15*25* (9.1.). BASF,who purchased 1.5 K# frost V. 1. ttrace in 1970, will secure this volune frost KOCAN in 1971 via a phthalic anhydride exchange. Finally, the subject of BASF rtLeivlng 1-160 frost 9.1. production was reviewed. It will be recalled that BASF of Canada bad requested K.C. for 9.1. shipwents in the hope of recovering the phthalic duty on shipments wade to us in late 1970 at Everett, lince they paid the duty, the procedure wWuld be ecnplex, awkward, bat possible. Z told Btydon that we didn't want to do this bat would leave these negotiations to fala with the understanding that we would ship frosa the 9.1. if X8CAH felt it was necessary to preserve this volune for Xoasantc. IT Folyweric Seles in Canada: Koasaato produced polynerlesT derived tramadipie acid, la fully dutiable (15 JOHf). This ruling in affect to pretest the 4u Pant ftantdl sw prednstlsn ef adipic add. Maanahlle, laary polyncrics enjoy a duty free entry since aselaic asld Is the . ; r DSW 587640 STLCOPCB4092976 MQKSAiVTQ CAJtADA LTD. PLASTICIZER PROORAK 1971 - 5 February 1, 1971 V. Aroolorst Aroclor pricing in Canada, parallels ty.S. pricing. Tliia is U.S. export and hence under the direct control of St. Louis. U.S. price increases will be automatically passed on to Canadian customers. WSa/mjB V. . Schalk I t- . _ DSW 587641 "** ..... STLCOPCB4092977 OAICVTLLK COfTVKRSION What Who When Switch Monsanto Oakville John Brydon to set entirely to U.S. pro up by visit duced Santlelser 711 To be completed by 2/1A1 Monsanto U.S. to explore delivery capabilities to Toronto Jack Kagan to ex plore traffic rates from Hew Haven to Toronto To be completed by 2/4A1 HOCAM to coordinate technical session at Oakville, Ontario Joe Darby to lead To take place week of 2/8/71 Ship T/V Sastlelser 711 John Brydon to 2/22A1" to Oakville arrange with Oakville Change automotive formulations entirely to Ssntleiser 711 John Brydon aatfajoe Darby to establish 3A5/T1 Drain Santlelser 160 from Toronto tanks, preparatory to Santlelser 711 storage John Brydon V17A1 Schedule either steamer or 20,000 gallon ship ment of Santlelser 711 to Toronto John Brydon Jack Kagan 4/20A1 Schedule regular teeh. service visits to Oak ville X. Brail 3A5A1 DSW 587642 STLCOPCB4092978 STAUFFER What Who Have technical dis cussion on Santieizer 711 with Bernie Craven J. R. Darby Jim Overing Institute stapling program on Santiciser 711 Jia Overing Seek T/T trial on Santlclzer 711 Jim Overing Save tech, service follow up on Sanfcicizer 711 Jim Overing, J. R. Derby When 2/B/ri 2/BAl 3/31A1 5A5Ai f it DSW 587643 STLCOPCB4092979 CAflADIAH GENERAL TOWSH What Who Send trial drums of MOCAN produced Santicizer 711 to customer Jim Overing Schedule tech, service Ji Overing to customer J. R. Darby Push for bulk trial of Santicizer 711 to customer Jim Overing Complete conversion to Santicizer 711 Jim Overing Make presentation on Santicizer 711 to re place currently used blend of phthalates/ adipates J. Darby D. Press When 2/5/71 2/3/71 3A5/71 5/1A1 5/15/71 DSVSI 587644 STLCOPCB4092980 UNXRQYAL Whet Initiate 711 discussions at purchasing level Arrange for drxm trial at Kitchener Have trial completed Have tank truck trial on 711 Who J. Brydon Overing J. Derby J. Overing Overing When 2A/71 Before 3AAl Before 3/l/Tl 4/15/71 I l *LDSW 587645 STLCOPCB4092981