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GRACE Construction Products Division TO FROM SUBJ September 27, 1983 R. J. Bettacchl NOTATION OF document Reviewer REDACTED R. A. Merther/G. T. Anderson September, 1983 Report - Fireproofing Products cc: D. M. Hilton L. S. Shu A. Major Project Status Report 1. MR-5 SG Introduction a. As previously reported, product performance of MK-5 SG (modified) was continuously monitored on two jobs in New York City. Product flow rates were comparable to MK-5 with lower pump pressures (75-100 psl). At s follow-up meeting with the contractor he agreed to use the modified SG product on the 55 story Equitable Building (his next job). This job will pump through the winter. Vith regards "winter time" pumping, we have discussed our* concerns over Research data on MK-5 SG "sensitivity". Data seems to indicate that in marginal weather conditions, product performance Issues such ss multi-pass applications and bond may be adversely affected by slower achievement of strength and penetration resistance, tfe will monitor this throughout the winter with materiel coming out of Easthampton and Trenton. No additional plant start-ups In the Eastern snd Central Regions are planned at this time. b. Dallas produced MK-5 SG (modified) for the Denver market was job site monitored. No product problems were noted. For Denver the problem would seem to be delivery delays caused by the long supply line. c. Conversion of the Newark plant from regular SG to modified SG is set for the week of September 25th. <54J 943 2- - 2. U.L. Fire Tests As previously reported, we witnessed three (3) full scale fire tests of Monokote at U.L. during September. These were: Metal Deck Inc. (new composite deck profile) Bowman (new electrified floor system) Bowman (new deck profile) I am pleased (and relieved) to report that product performance was excellent in all three tests. All test and approval goals set by the test sponsors were met. While none of the tests involved cellular deck, success in these 3 tests was significant because: failure would have been disastrous; improvements in certain fire test approvals will be possible; we may have an advantage over Cafco in those situations using Bowman's new electrical system deck profiles. Our next test assembly is the ASC Pacific assembly, a fully electrified construction. Spraying will take place in October. We have not yet determined the need for a bonding agent. Information on other U.L. fire test work is attached (Table B). 3. SBO Vermiculite The first Monokote production with SBO vermiculite was completed at the Wilder plant. Field monitoring indicated no yield/pumping differences. We have agreed to further evaluate SBO vermiculite at the Dallas plant. This plant will be converted in October. 4. Vermiculite-Asbestos Three reviews were held on the Vermiculite-Asbestos situation in conjunction with Central Region sales training meetings. As a result of these sessions I believe that our position on that subject is solid and that the sales force will be able to effectively deal with this issue. Ue plan to present this subject at the upcoming Central Region applicators meeting. The laboratory which reported to Wilkins Insulation that MK contained 5-8Z asbestos has admitted their error. We are currently dealing with a similar situation in Los Angeles (Smith Emery Lab - 3Z asbestos). 0641944 -3- We are currently addressing Florida legislation which states "no asbestos" due to take effect October 1st. We will need legislative or judicial relief from this law. While we cannot hope to do this prior to October 1st, we have no plans to suspend operations. Kev Financial Data Monokote sales for September were 378,400 bags. Sales were 179,000 bags (32.12) under budget and 193,300 bags (33.8%) under prior year. YTD Monokote sales of 3,672,200 bags are 1,154,700 bags (23.92) under budget and 1,174,200 bags (24.22) under prior year. The seasonally adjusted annual rate, based on yet another under budget month, fell to 5,076,000 bags. To reach this level, sales per month of 468,000 bags would be necessary. This sales level has oeen reached only twice in 1983. With the continued So. California strike and the onset of cold weather in the East, sales over 5,000,000 bags is unlikely. In September, the average selling price rose to $6,308 per bag, up over 8c/bag versus August results. Despite the rise, selling price was 9.7c/bag (1.52) under budget for the month and up only 33.1c/bag 5.52, over September, 1982 results. For the YTD results, the ASP was $6.280/bag. This was 5.3c/bag (0.82) under budget, but up 45.8c/bag, 7.92 over YTD 1982 sales results. For the month, GM was 46.22, only 0.42 points under budget and 4.12 over prior year results. For the YTD sales GM was 45.72. This was only 0.52 points under budget, but 4.92 ahead of last year sales. Seles of other fireproofing products through September were: Product Volume Gross Sales $ Gross Margin $ Zonolite 3300 Zonollte 105 Zonolite Topkrete Monokote Export 37,667 20,459 12,176 146,549 595,191 261,436 124,649 797,627 279,210 161,853 86,891 277,373 216,851 1,778,903 805,327 Zonolite 3300 sales through September of 37,667 bags are down (212) under budget and well behind 1982 by 10,316 bags. Zonolite 105/Topkrete sales represent nice add on businesses. Sc far most of the sales have been in the Eastern Region. 0641943 -4- Monokote Export sales are well ahead of both budget by 37,400 bags up 34.2% and 49,000 bags, up 50.3%, over last year. Even better they found someone to pay $7.08/bag in September which gave a good GM% of 45.4%. C. Market Conditions The WS Journal (8/25/83) reported a high level of contracting activity in the O&B building sector. This is unusual given the overall glut of space available. While they (and Dodge) report activity at the 1981 record level, this may be a short term burst of activity. D. Competitive Activity Cafco announces a new plant (blending facility) scheduled for January 1st opening in Waco, Texas. An analysis of market conditions lead to a recommendation to install a MK mixer in Irondale. This will enable us to secure Bonitz's work in Birmingham (62,000 bags initially on the Alabama Power job) and at least 100,000 bags/year incremental business in the 3 state area this plant would cover. Cafco has just held their fourth applicator meeting so far this year. This is by far their most concentrated effort and coupled with "low ball" pricing is causing loss of market share. The Central Region's applicator meeting is set for October 2-5. Decisions on our own group of applicator sessions will be made following the Central Region meeting. In the export area we have been unable to resolve technical problems with analysis of our BS.476 fire test results. Follow-up meetings with the test laboratory has resulted in some thickness reductions. These, however, still leave us with a 30%-40% thickness disadvantage. It will be necessary to re-test to resolve this issue. Failure to do so jeopardizes the growing Far East business. e Indications are that Tnemec is testing a South African vermlculite and gypsum based fireproofing product at U.L. This can only be for direct competition with Monokote. More information as it becomes available. E. Other 1. We have discussed in detail a program with Research to evaluate the quantity and quality of L #3 vermlculite in MK. Manufacturing is set for early October. / 0641946 -52. The '84 Sweet's catalog was sent to the field sales force. P. October Activities 1. Central Region Applicators Meeting. 2. AWCI Business Meeting - Salt Lake City. 3. Resolution of BS.476 Fire Testing approval. 4. Fire Testing - ASC Pacific Assembly. R. A. Merther RAM/CTA:mg I 1983 OF HK-S SC OF TOTAL HONOKOTE SHIPPED BY PLANT/BY MONTH 0641947 0 44 0 o uO o o o Qj 44 . (9 CM g <J> 4* 44 fal 0 '44 M 0 c 0 N 4J 0 0) w -- 00 ^ 4J CO S0 Z0 44 0 e o tS3 U 0 0 u -4 03 "O W SO O3 Z0 9) g > 44 w o y tM 0J *4 A o CO > o 00 w CO a. Va e3 n 00 > 3 WX ea 3 0 03 IM 0 T5 00 U 03 44 0 < e e fa. 0i s eu a ** < 44 404 4c4o z xs CO C 0 * u c 0 0 > 0 u & c. 0 >> u 0 0 0. a; x o0 0) V e^ e-- 02 *4 xe oo * Z u 0 (* 0 0 > 0 u a CL 0 >> w 0X 00 00 401 *0 at e C0 e5 *4 O 404 CO xe O0 o c o k X o> 0 s0 44 0 >S 0 tta* O 0 w u S3 W 0 > 0 0 > c u a a 0 s 404 *4 c s 0 S3 o o co 4J u o * a; iTl u fM 4 4 a </> </> 9 44 CO C0 zu E 0 44 0 00 >s C 0 4 0 U 0 44 c0 4* 0 <4. 44 44 000 44 W 0 <** 44 w p4 3 4w4 44 0 44 ux 0 0 <4* 4* 4 0 M 44 44 0 0 .4' *4 30 44 0 < X 44 X44 0 44 0 > 00 "O U -4 a > a. 00 u &0 0 00 44 e x >> u 0 -4 0X 0 44 0 0X 0 0 C0 404 44 .1 9-0 *0 B 00 H0 >. 0 44 e 4 Q 0-- C 41 00 ^3 3 o 44 0 04 3 "3 0 O0 U0 &c X 4- u 0^ 44 X44 0 Qj *4 0 40 00 e 404 X 0 0 44 0--X 9 4 44 4 0 00 >c 0 wca *o 0 44 0 3 W 44 0 e 0 00 3 44 X 0u 44 0 a c 3 u >* b< 4J a 3 <b au a o> va UE uV 3w eg Q. V W Vi a oi e HO e 3 w >1^ --e -+ s 3 w JS. aw* a o x aw u wm O 11 H 3X abu a a *j x was .V in w w& e o IM o to a V *^ u' X00 E 44 X aac a 0 ** a 44 0 a o a >. u ** o a 3w u a B 0) www w3 9 W 13 ~4 01 aX 3U xa B w B 0) >> a w CL a 0) X o w *H b XV EX 01 o a *j au <O 0 c Ita* *o .w 0 T5 e W0 o 44 41 44 0 03 44 U W 44 00 44 e 00 zu XW 01 SX 0 uw " a Q> b w0 aw b W bl -h a sa b ec WE U" a >> n a 0b ba o. in H ue jaut UI c I Haa s u <uM NOeo 0641948 GRACE <S4J 949 Construction Products Division W.R. Groce & Co 62 WhitteKore Avenue Combridae. Moss. 02 UC 16171 876- MOO October 7, 1983 TO: R. J. Bettacchl FROM: G. N. Ciampa SUBJ: Monthly Report - September 1983 Business Summary Polycel Products - Total shipments during the month of 69.OM lbs are 15.92 behind budget but are 11.32 ahead of September 1982. Strong sales in Texas and the Central region in Professional accounted for the majority of the overrun. Sales through our consumer and industrial reps were strong enough (31.OM lbs.) to offset the aerosol sales underruns in the Central and Eastern regions. Wall Insulation Products - ZMI sales volume of 212.OM bags were 9.8Z ahead of last September and 7.62 ahead of budget. Year to date sales volume of 1643M bags are 3.3Z ahead of September 1982 and 5.0Z ahead of budget. Thermo-stud sales of 582 MBF were disappointing after strong sales in July and August; we felt September would be even better. Sales volume for the month were 34.4Z behind last September and behind budget by 52.2Z. Year to date sales volume Is even with last year but behind budget 35.9Z. Attic Insulation - Sales volume of 88.OM bags are for the sixth straight month below 1982 levels. Year to date sales volume is 18.5Z below last year. See product volume summary chart on next page for detailed analysis of monthly and year to date volumes. 0641950 2- - Market and Competition Polvcel Products In mid-September we launched a major program aimed at regaining business in Texas. We are offering competitive prices and extended payment to twentyseven target accounts. We're on the right track - we have sold 4.0M lbs. in a short period of time. Eagle Insulators, Inc. has taken advantage of the program and ordered 1.2M lbs. Their purchases in 1983 prior to this were only 1.2M lbs. versus 13.2M lbs. thru September 1982. We also regained Diversco's business in Dallas. They ordered 1.8M lbs. under the program. When they were a full time customer in 1981, they purchases over 10.0M lbs. Owens Corning management have approved Polycel One for sale through their sixty-five supply centers. Polycel is the only foam sealant in an aerosol can that they have allowed their supply centers to sell. We have received orders already for 120 cases from the Louisville and Cincinnati centers. We participated in several dB Plus acoustical sealant seminars put on at the Owens Corning branches in Columbus and Cincinnati. These seminars were a joint effort between Mike Ragan's people and the Owens Corning branch man agers. As a result of the effort O.C. is stocking dB Plus. They were successful in securing distribution in Louisville and Cincinnati. Polycel One is being advertised by Cotter/True Value in October in the following magazines: BETTER HOMES AND GARDENS, FAMILY CIRCLE, MECHANICS ILLUSTRATED, POPULAR SCIENCE, POPULAR MECHANICS, SPORTS ILLUSTRATED, (World Series Preview)and OUTDOOR LIFE. Also the True Value direct mail circular going out in October to 20.3 million homes will also feature Polycel. The advertising we are receiving is an example of co-op advertising at its best. For a fraction of what it would actually cost, our product will be brought before over 100.0 M people in October. M. Toben has received an order for a new consumer account in the Northwest. T & A has ordered 1400 cans of PC5's and an order is pending from the Angels centers in Southern California. The industrial business appears to be picking up. We have lowered our price in two areas of the country to keep from losing business. We also introduced a 5% sales increase in PC8's effective 9/15/83. Now that the fall weather has arrived we should expect to see a surge over the next three months. In September leads received from the JULY BUILDER magazine were sent out to our certified contractors and distributors. Also a copy of the leads and letters sent to our customers was sent out to the Polycel specialists for follow up. Wall Insulation Central Regional Management has agreed to change over to the revised T-clip system. New clips and the new channel have already been shipped to the Milwaukee plant. -3- 0641951 Two new T-clip jobs were started in September. One job is in Waco, Texas and that is a 2 1/2 inch job and the second, a 2 inch job in Florida. We signed the Dryvit agreement and have returned it to them. We are wait ing at this point for Dryvit's approval and we can begin to actively pursue this business in Phoenix, Arizona and in Southern California. There are currently 100.0M board feet of material aging at the South Gate facility. Another OCF Supply Center has been added to the Thermostud distributor list. The supply center in Atlanta purchased a half truckload of Thermostud for their warehouse and began marketing the product in September. This is the first 0C supply center in the Southern Region to begin marketing Thermostud. A slide presentation explaining the revised Thermostud T-clip system has been distributed to the regional offices as an aid to helping the sales force introduce the revised system to distributors. The Zrll incentive program ended in September. We know the program was successful and a detailed analysis will follow. We continue to get reports that EPS scrap is winning in obtaining acceptance at the contractor level over ZMI. We are developing sales tools to aid in defeating this low price competitor. The 1984 Sweet's catalogs for the Thermostud system with the new T-clip and channel as well as ZMI have been completed and are printed. Attic Insulation Overall, poor insulation sales at the retail level have affected attic insu lation. Even the best campaign dosen't seem to be able to compete with 80 and 90 degree temperatures-. With many stores carrying last year's inventory and consumers who aren't interested ve have a product which is behind last year by 20%. Research and Development Polycel Products In October we will begin the market test of the new improved A-l catalyst. We are producing one hundred PC60-D's and one PC3600. These will be dis tributed around the country to specific accounts. We will attempt to observe the operation of as many of the A-l catalyst tanks in the field as possible. The private label 9.5 board foot two-component kit continues to elude us. The latest delivery date is October 15th. Since we have been promised this for the last four months* I don't put a lot of faith in this event occurring. In Texas ve experienced several failures of the new refill valve. The problem with the valve has been identified and steps have been taken to correct it. We have also contacted our original European valve supplier. They have sent us pricing and samples of valves which we will evaluate. / 0641952 4 We are going to have to identify another source of aerosol cans. Southern Can has to date never met many of their promised ship dates. It is especially important during this season that they do meet those dates. Wall Insulation A wall has been constructed for the guarded hot box test on the Thermostud system with the T-clip. We should know in October what the in-place performance is of the Thermostud system with the T-clip. We can compare this to these performance results from our computer model. As stated earlier we are requesting research help to determine the static charges of ZMI and EPS scrap. If our sales force can show proof that EPS scrap's high static change prevents it from completely filling blockcores we may be able to deter sales of EPS scrap without lowering ZMI prices. In addition we plan to have some thermographs produced of separate block walls filled with EPS scrap and ZMI. This should graphically reveal that ZMI is a superior product in filling and insulating the cores of a black wall. GNC:jmm G. N. Ciampa PRODUCT/ REGION ZMI BAGS(OOO) 62A 50UTH CENTRAL EAST FLORIDA WEST 63 52 54 14 10 TOT 193 THERMO STUD SYST(MSF) B2A EAST SOUTH WEST CENTRAL FLORIDA 26B 107 172 171 169 TOT 697 ZAI BACS(OQO) B2A EAST CENTRAL WEST SOUTH FLORIDA 73 41 3 1 0 TOT 118 POLYCEL PRtF.LS5(000) B2A RYAtS CENTRAL EASt SOUTH WEST FLORIDA OTFER 9 3 4 2 2 0 1 TOT 11 AEROSOL LBS (000) B2A REPS EAST INO/AUTO CENTRAL RYALS NEST SOUTH FLORIDA RISC. 3 13 9 12 5 4 2 1 2 PRODUCT VOLUTE SUITORY * SEPTEMBER 1983 *** nmmass annsm SEPTEMBER VOLUTE JAN-SEP VOLUTE 0641953 ME": S2A/63A 63A/838 83A 63B S * 82A/83A 63A/63S 7T~ * 62A 63A 63E * % ise: 75 61 19 23 59 49 13 20 55 60 2 (8) 12 9 (14) ' 33 11 16 10 (39) 565 609 452 390 369 366 391 421 446 105 117 79 116 107 145 4 35 7=: 00 6 (5) 5?'. 11 45 u: 0) (25) is: 212 197 ID 6 1569 1643 1510 3 9 223c 62A/63A 63A/B3B B3A 636 % % 62A/B3A B3A/635 TOT- B2A 63A 636 t X iss: 219 260 OB) (16) 120 155 13 (22) 115 400 (33) (71) 62 260 (52) (71) 45 125 (73) (64) 1610 936 1376 1980 1032 1970 1340 1111 1415 1060 2020 1210 3500 2941 1125 22 (2) 229: 43 11 i2=: (19) (6) no; (29) (52) 3125 5 (4) 1225 562 1220 (34) (52) 6935 6917 10796 0 (36) 951E B2A/83A 83A/836 63A B3B S % 44 60 (40) (26) 39 43 (5) NA 4 2 33 100 1 0 0 NO 0 0 NA NA 62A 289 202 26 9 0 63A 226 167 31 5 0 02A/B3A 63A/B36 636 S X 293 (21) (22) 153 (17) 9 21 19 46 0 (44) NO 0 NA NA tot; 195: 54: 37E 35 11 C 68 105 (25) (16) 526 431 467 (18) (e) 971 62A/B3A 83A/83B 83A B3B f f 82A/B3A 63A/S36 TCTA 62A 83A 636 X X 1952 9 23 5 (61) 6 4 100 50 4 6 0 (33) I 3 so 0 2 5 0 (60) 1 1 NO 0 0 0 (TOO) NO 125 92 184 (26) (50) 177 25 38 34 52 12 33 31 35 51 13 (31) 45 17 32 27 66 19 27 21 23 38 10 (39) 26 3 6 9 100 (33) C 3 4 0 26 NO 0 16 19 45 (16) 225 230 343 2 (33) 315 B2A/83A 83A/B3B 83A B3B S % 82A/83A 63A/63B TOTAL 82A 63A 838 X X 1962; 20 11 567 62 10 13 (23) (23) 11 10 2S 6 B 12 (33) (33) 4 8 (20) (50) 0 3 (100) (100) 0 4 (96) (98) 0 1 (90)/ (92) 0 0 (TOO) M3 43 98 59 128 66 65 SO 36 73 (27) (51) 91 67 82 106 (6) (23) 125 47 37 69 (21) (47) 67 26 39 42 39 (7) 50 20 10 17 (49) (36) 35 20 11 24 () (S3) 23 6 2 7 (63) (68) 7 2 0 0 (TOO) NO 0 tftft GRACE 064195^ Construction Products Division TO: R. J. Bettacchi FROM: A. N. Crawford cc: J. E. Danel/CPD Enoree W. J. McCaig/CPD Libby J. C. Yang DATE: September 26, 1983 SUBJECT: September, 1983 Monthly Report MONTHLY HIGHLIGHTS The Wilder plant continues to produce Monokote from SBO treated L-3 concentrate with no manufacturing problems. The average furnace yield improvement for the first twelve carloads is 3.2%. August YTD sales to Gypsum customers are $1,215,144 which is 18.52 over budget and 28.9% over prior year. The strong recovery we saw in the first half is expected to slow down, but should still finish the year well over budget. Air samples taken during the Firemate test at Mlnnkota Power Company Indicates there were negligible amounts of tremolite fiber in the air. The combination of surface treating the L-4 concentrate and Dearborn's enclosed handling equipment are responsible for the low fiber levels. The highest TWA measured was 0.03 f/cc in an area where there was a large vermicullte spill. I. VERMTCULITE CONCENTRATE (VCX) A. Dearborn Chemical's Firemate Process 1. Minnkota Power Co. completed a three week evaluation of Firemate using high fouling coal containing 9% sodium. They are now planning a three week test of Perlite using DUSCO's Injection equipment and burning normal grade coal containing only 4.5% sodium. DUSCO will then have another chance to run Firemate under the same operating conditions and sodium content to compare directly to Perlite. DUSCO estimates that Minnkota will run several more full scale tests before making a decision of which materials to use. 2. The fiber levels measured during the Minnkota Test were extremely low (highest recorded was 0.03 f/cc TWA). Even though we ran one control T/L without SBO treatment, we could not show any correlation between treated and untreated since most areas measured were zero or extremely low and beyond the accuracy of the test methods. 0641955 -2- 3. DUSCO is discussing another possible trial with the Allegheny Power System in Willow Island, West Virginia. This is a 175 MW unit with a tube fouling problem, which would consume 500,000 lbs./yr. (250 TPY) of vermiculite. DUSCO has requested Enoree concentrate due to landed cost difference with Virginia Vermiculite Co. We have agreed to supply test quantities from Enoree. B. Tremolite Binder Project 1. Wilder continues to run SBO treated L-3 with no apparent problems. The mine assay yields are averaging 3.2% over untreated, and Wilder is reaching the higher assay yields. Table I shows the data on the first 12 cars. The yield \ improvement ranges from (1.8%) to +7.2%. The "flake yield" is the assay yield divided by the concentrate grade, which is the calculated yield on a 100% vermiculite basis. The wide fluctuation in yield is suspected to be due to sampling techniques at the mine. Once the oil treatment becomes a standard procedure, it will be easier to establish sampling procedures to get more accurate data. 2. We have targeted Dallas as our next plant to continue scale-up evaluation of SBO L-3. The first C/L should arrive the week of October 10, 1983. Monokote will be made and compared to control material in the field. We will also produce Terra Lite #3 and send to Travelers Rest for growth tests. 3. A split C/L of SBO treated L-4 was made with a control split from the same conveyor and sent to New Orleans. This will be used to check roof deck performance via C-45A tests. ZCA will be produced the week of October 10, 1983 from this test material. C. Semi-Bulk Packaging We are continuing to experiment with the return of tote sacks to Enoree. The bags returned from USG's Sweetwater, Texas plant are on their 3rd trip and have little attrition. USG's Canadian plant has returned bags and nearly half are not suitable for reshipment. We will collect all cost information relative to return of tote sacks and use this to determine if we should accept this as standard policy. D. Account Status 1. P. S. Gypsum Co. - USG purchasing is working to justify a plant evaluation of our SBO treated L-5 based on the freight savings to western plants ($115,000) and the lower FOB price ($157,000).. <S4J 955 -3- USG management is reluctant to purchase from Libby due to the tremolite issue. Ue hope the new surface treatment and the potential $272,000 savings will convince USG to run a full scale test. NEW PRODUCT DEVELOPMENT A. Vermiculite Emulsions The patent investigation of the ICI patent turned up a prior patent expiring on June 13, 1984 which enables Grace to sell vermiculite emulsions using the 1C1 process without infringement after this date. Several companies have been approached by ICI offering to sell the technology to produce a vermiculite emulsion. We have received inquiries from some of these companies such as: Owens Corning, J. P. Stevens and Armstrong World Industries. Also three paper companies are interested in this technology for paper coatings. We are working with these potential customers to develop a vermiculite emulsion for their specific textile and paper applications. B. Vermiculite Foam ICI holds a strong patent position on the production of vermiculite foam. The foams we have made in the lab using their patented method have severe shrinkage problems. Unless these shrinkage problems can be resolved, this foam will be of limited commercial value. R&D is working on several ideas to solve the foam shrinkage, problem. A totally inorganic vermiculite foam would have great market potential as a fire retardant insulation. C. Athletic Surfaces We have a video recording of local tennis professionals playing on the experimental ZIC Tennis Court. It was raining most of the day and quite cool, therefore, the cooler playing characteristics were not apparent. Comments from the pro's Indicate it is a good medium speed surface, with excellent bounce. Before continuing with this idea, we will wait until Spring of 1984 to determine the product's resistance to winter freeze/thaw conditions. A preliminary market survey will also be complete by the first quarter of 1984. 0641957 -4- III. INDUSTRIAL VERMICULITE (Z0N0LITE) A. Texture Coatings Verlite Corp., Tampa, Florida is now supplying U. S. Gypsum with African expanded vermiculite for acoustical plaster and texture compounds. This business was formerly supplied by Stronglite Products Co. Zonolite has been tested and rejected due to darker color. USG reports that they are now switching several formulae to polystyrene beads due to lower cost of PS beads vs. vermiculite and Perlite. B. Plastics Filler Occidental Petroleum Corp. has found both Zonolite #4 as well as ground vermiculite to be an effective filler for Phenolic resins. The vermiculite also improves the heat resistance of the Phenolic. Tests are still underway. Potential sales volume is not known. ANC:mg A iwf ord TABLE 1 o sf 2 uj m 53 tCnZ^^r(tnocQOt^^^to^O^t)nOstNp to onooienoNntfi g ^fopf^Q'optor-tnp r* ^Gj^ooN^jn^O) co- sf 5 tt>*nn tumn tf*-l8fofin?^8Q'8inRn8o8iA!iSniSo to If 8 s-j os t<o9 t n o<9j m-e a n ^r- r* so-fn 8 O) N O N JJ5 8 oWJ Is 8^8883283883!8 r^ooinmmcoooo to s Ifg > tn 9 8 8 8S 3^nn8i8oQP e2^m8fQ 8nQlm8Q8^0Q8{Q 8 S a i s ioSSoSssssss * sttnn I? A znFi/)iniA*i/)iAoo(i ui tn 51 u. -- * 2^3883228828 3s r>otnintn0tnor 2^88 88222888 I 3 3 5| 0m m QptnofnpnfnpQp 10 s il (to CDFOOOOOCDO0 3S Sff &A*uHi 55S SVCrNinwMNVmVAnVnmVASrSAoi*Q.iAAWof^A.o.>.W..noAA...o.QA..W.i.nA^.4. n]NAWpsnA t- r o m 9009000 0641958 0641959 GRADE To: R. J. Bettacchi From: P. E. Korenberg Construction Products Division Date: September 28, 1983 Subject: Monthly Report September, 1983 I. International Consolidated Gross sales for September were $94,710, 5% favorable to budget but 20% unfavorable to September, 1982. Gross sales YTD are $1,306,663, 62% favorable to budget and 53% favorable to YTD 1982. Current estimate remains at $1,752M, however unanticipated sales to PID may increase this to $2,000M. II. Zonolite Finished Products A. . Sales Zonolite sales totaled $62,941 and were broken down as follows: Monokote to PID $4,605; Monokote to Saudi Arabia $32,101; Insulperm to Saudi Arabia $19,759; Masonry to Saudi Arabia $5,644; and. Other $832. The 55,000 bags of Monokote to Korea are still on hold. Singapore, however, has released 41,000 bags for shipment from October-December, 1983. B. Zonolite Expandinq/Blendinq Facilities 1* Saudf Arabia The Gosaibi agreement, as drafted by legal, has been returned to Sami A1 Gosaibi for final review. We expect the present form to require only slight modification, and expect execution sometime in October. The cost data, supplied by engineering and used in preparation of the quotation to Gosaibi for a D-18 furnace, was found to contain art error of approximately $45,000. Our original profit on sale of the furnace of $80.6M will now be reduced to S35.6M. 2. United Kingdom & Europe Bettacchi is scheduled to meet with Hawkins (of IMC) in the United Kingdom on October 28th to discuss details of a Zonolite licensee agreement. Hawkins has asked for preliminary numbers regarding ore costs, yields, etc., based upon purchasing Libby concentrate from us. / GRACE P. E. Korenberg Monthly Report Construction Products Division Page 2 C. Mansour Industrial Marine Coatings (Saudi Arabia) _ Irvine Rogers reports a major project in Jeddah Jamjoon Commercial Center, Approximately 130,000 bags - which will require the fireproofing to pass the French Standard fire test (similar to BS476 and UL ASTM E119). I have requested Hawkins to meet with the architect in France to attempt to have USA standards allowed, and will have Irvine in Saudi contact Gosaibi to exercise all possible influence. D. Mike Rew Mike has been following up Saudi calls with meetings in New York and Toronto with purchasing agents and architectural firms to try to tie down new work. E. Technical Service - B.S. 476 Pt. 8 Bob Merther has confirmed that further fire testing will be necessary to obtain competitive ratings with Monokote. Bob is to meet with test lab personnel in early October to draw up the necessary.test schedule. Lloyd has further confirmed that these approvals are necessary to protect his projected 250,000 bag Monokote market in Singapore. As these test approvals are not required for either the USA or Saudi market, PID will be required to fund this additional testing effort. F. VI. R. Grace/Honq Kong Pacific Partitions diverted "Alaska" Monokote to Singapore to avoid the higher PID price. Due to jobsite problems in Singapore, several bags were returned to the USA for testing. The material, then approximately 3 months old, had passed its useful shelf life and had sets in the 17-18 hour range. This reconfirms the necessity for the plastic lined bag for export Monokote. Bill Culver worked closely with Lloyd in Hong Kong to explain to principals of both the USA and Singapore, companies the meaning of the test results and how to avoid future reoccurances. III. Peters A. Sales Peters gross sales for September were $31,769, 73% ahead of budget. Sales in September, 1982 were $0 - so prior year 0641761 GRADE P. E. Korenberg Monthly Report Construction Products Division Page 3 comparison is invalid. YTD Peters sales total S294.417 112% favorable to budget and 64% ahead of YTD 1982. B. Japan Yamato has obtained a temporary permit from the Japanese Department of Agriculture to import professional Peters into Japan. A permanent license.is expected to be granted upon submission of our comparative analysis - Hyponex vs Peters. C. Brinkman - Holland A meeting is scheduled with Brinkman for 24 October to discuss various options to increase our European market penetration. D. General A Peters sales and market exploration trip has been scheduled for early November and will be combined with Zonolite meetings in Saudi. As scheduled, I will meet with distributors representing 84% of our Peters export business and will explore - new opportunities in Singapore and Malaysia. There are recent articles indicating that significant quantities of Orchids and Chrysanthemums are grown in these areas, and our present sales are minimal. Grace/Hong Kong and Grace/Singapore and a new potential distributor are aiding me in making initial contacts- E. Grace/New Zealand Neil Burns - Porirua - has submitted a full set (28 pages) of Peters literature masters prepared for the New Zealand market for our review and comment. They have only just arrived, but upon initial review seem excellent both technically and with respect to detailing Peters benefits. IV. Darex Corrosion Inhibitor Fahad Mira has, on his own Initiative, advised that he has sold 30 drums of DCI to Tradco Vulcan for use on Aramco projects at a price of between SR29 and SR39 (S8.53-S11.47) per gallon. Fahad indicates that since taking over DCI administration, the Italians have not mentioned DCI nor are they aware of the sales. While this is no longer our area of administration, it would be regrettable if our initial specification efforts were not followed up to make the best of any available sal$s opportunities. DCV /Via