Document Qg4802B8nVYwN2X46O1JaKMKL

PPG Industries, Inc. 76 Euclid Avenue Haddonfield, New Jersey 08033 USA Telephone: (609) 428-7800 Fax: (609) 427-0849 January 26, 1994 Mr. Art Qellner Vice (President - (Polymers Certainteed Corp. (Pete Mannena (Rpad (P.O. $0x253 SuCpfiur, LA 70663 'Dear Art: We are pleased that you anil 6e the guest of PPQ Industries, at the 68th Annual Drug, Chemical and Allied 'Trades Association (DCAT) dinner on Thursday, March 10, 1994. Our hospitality Suite #10h05 zvill open at approximately S:00 pm and uHU Be availa6(e should you need to change into yourformal attire. The dinner Begins at 7:00 pm in the (frondCBallroom zoithguest speaker Jac(i(Kg.mp. Should you need a room at the Waldorf-Astoria hotel, please call `E&e Plom at the aBove listed numBer By !Fe6ruary 11, 1994, in orderfor reservations to Be made. A list ofguests and PPQ attendees willfollow shortly. Sincerely, ppq I'hpusrmjps, Ihc- Chemicals Qroup (Diet (Richard J. Walton RationalAccount Executive WV/t6 CTL014595 PPG INDUSTRIES EflSO jV ' ID :609-427-0849 JAN 31 '94 11=56 No.002 P.01 / V//' The Drug, Chemical & Allied Trades Association, Inc. Cordially Invites Yout Attend The 68th DCAT ANNUAL DINNER & "1994 World Economic Outlook Seminar" Thursday, March 10,1994 - The Waldorf-Astoria, New York, NY & Thi DCAT OpeningRtception - Tuesday, March 8,1994- The WaldorfmAstotia March 8,1994 Opening Reception - 7:00 pjn. - The Empire Room March 10,1994 Seminar 2ffl pjo. - The Empire Room Reception - <fc00 p.m. - The Hfltoa Room Dinner - 7d00 pan. - The Grand BaUroom & other locations DINNER SPEAKER: JACK KEMP Yesl Please reserveticket(s) @ $150 per person or/_____Thble(s) of 10 @ $1,500 per table far DCAT Members by February4,1994 or $160 per person and $1,600 per table alter that date. Non-Member prices are $190 per penoo fay February4,1994 and $200 per person after that date. I have enclosed $in total payment for tbeae ticket*. Please also send me________________ additional registration forms so that 1 and my guests may be listed in the Official DCAT Seating List I wlli also need_____ places at the Seminar and___ Places at the Opening Reception (Tickets to the 1994 DCAT 68th Annual Dinner include atten dance at the .Seminar and Opening Reception) Names'lltic:__________ _________________________________________________________ Company: _________ __ ___________ Phone: Address;Rue City, State, Zip: Member /Non-Member An funds must be in U.S. Dollars and drawn against a US. Bank. Please return this farm toe DCAT 68ih Annual Dinner, Two Roosevelt Avenue Suite 301, Syossct, NY 11791 (You may fax this form to: 516-496-2231) For further information call: 516-496-3317 or 1.80&64&DCAT 36 CPI Purchasing/ fanuaty 1994 CTL014596 '* 1 SPECIALTIES SURGE FOR I i PPG'S CHEMICALS GROUP 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 fast-growing use as a membrane separa tor in batteries. This was consolidated by its acquisition a year ago ofthe former A big push for international growth j Katalistiks catalyst plant at Delfzijl, the ! Netherlands, to be converted to give PPG its first European silicas plant. Besides Di uring the past 12 months, PPG with Dean Witter Reynolds, "with lots silicas for battery separators, in which Industries' (Pittsburgh) chemicals of room to grow geographically." In PPG competes with Degussa and Akzo, group launched a growth strategy particular, Stober says, PPG is "quite the plant will provide silicas for the \ that is giving its specialties portfoliowaeak in Europe." company's coatings opera major boost. The company has in Chemicals repre tions. creased the international reach of its sented 20% of PPG's PPG has also announced silicas, surfactants, and Transitions total 1993 sales and it is studying production at Optical eyewear venture, and is ex 19% of operating in its Lake Charles, LA site of a panding its line chemicals operation. come, with coatings new proprietary silica to im PPG has further developments in and resins (40% of prove tire performance, but the pipeline. Its capital spending this sales and 56% of oper Bogus says more testing is year is targeted at $100 million, similar ating income) and glass required by the tire and auto to last year, with additional funds avail (38% and 27%, respec companies before invest able for acquisitions, says Peter Heinze, tively) making up the ment goes ahead. Apart group v.p./chemicals. Chlor-alkali and balance. from a second-stage expan derivatives, still the biggest portion of In precipitated sili sion at Delfzijl to increase PPG'sSl.15-billion/yearchemical busi cas, with sales a little capacity from 15,000 m.t./ ness, are having a rough ride because over $100 million/ year to 25,000 m.t./year by caustic soda prices have plummeted. year, PPG's moves have Still, PPG is optimistic that prices will been positioning it for HthUK Mon outside U.S. April 1995, "we're unlikely to announce additional sili bottom out during first-half 1994 and "a couple of key markets," says Donald cas moves in 1994," says Bogus. "We're has its eye on some moves for that Bogus, v.p./specialty chemicals. First, pretty busy." business too. there is substantial silicas demand The surfactants business, with sales SHIFTING PORTFOLIO. The push is in line growth in the Far East, running at more of $125 million/year, is also being posi with PPG's strategy since than 10%/year. Major tioned for fast growth even by its own the mid-1980s to shift end uses are in reinforc standards, having racked up 15%-20%/ its chemicals portfolio ing elastomers for foot year growth in recent years. In the past from being primarily i a commodity chlor- wear and mechanical six weeks, PPG has announced plans to goods, such as belts and build a 5,000-m.t./yearalkoxylationunit alkali business to one hoses, and as a tire build at Antwerp and to acquire Nalco's Free with 50% of revenues er. PPG is keying on Chi port, TX ethoxylation unit. At Antwerp, derived from specialties na and Indonesia. Its PPG will make ethoxylated polyols for by the late 1990s. From main competitors are De- the company's coatings operations and 17% of sales in 1986, gussa, Rhfine-Poulenc, ethoxylates for its surfactants operations when PPG acquired sur and J.M. Huber. in Europe, based on its 1990 acquisition factants maker Maser, To meet this demand oftheFrench surfactants maker Ets. Rob specialties now account growth, PPG has made ert Ouvrie. The 30-million lbs/year Free for 35%--about $450 mil three moves in the region port unit will supply Nalco's new oil lion--of sales. during the past year, field chemicals venture with Exxon and The chemical group's total operating income logas: 'Nt'rt pretty twsi.' building on its existing will be expanded to supply the needs of positions in Taiwan, PPG's surfactants business. dropped from $185 million in 1992 to Thailand, and China. The company G10IAI LEADER. PPG's push is in "soft $138 million in 1993; sales rose 3%. raised its stake in its PPG-Nanchang detergent compounds," says Bogus, However, specialty sales grew 23% and Chemical venture in Nanchang City, based on sodium and ammonium acyl profits jumped 50%, says Heinze. Jiangxi province, China, and expanded isethionates, where he claims PPG is The second dimension to Heinze's capacity to 15,000 m.t./year. Last De the global leader in technology and growth strategy is to boost international cember, it announced a multimillion- supply. PPG also offers a "lot of niche business. "More than 90% of [PPG's dollar expansion at PPG Siam Silica, its services in ethoxylates and in the chemicals business] is domestic," says precipitated silicas jointventure in Thai emerging science of propoxylates," he 51-year-old Heinze, who came to PPG land's Rayong province. In January, it says. This capability is based at Gurnee, 18 months ago, after 23 years with formalized a second Chinese venture, IL, its principal surfactants site, and BASF, 12 of them in the U.S. "We want PPG-Liangji Chemical Industrial, origi will be installed at Freeport and, even to have 25%-30% outside the U.S." nally announced last summer, for a tually, Antwerp. "There's plenty there in the five or 5,000-m.t./year precipitated silica plant In fine chemicals, also with sales six specialty areas to grow the busi at Lianyungang, northern Jiangsu prov over $100 million/year, "we've target ness," concurs Harvey Stober, analyst ince, in northeast China, scheduled to ed to make a significant acquisition in 26 CHEMICALWEEK March 2,1994 CTL014597 1994," says Bogus, either in the U.S. or Europe. Based on its La Porte. TX site, PPG is the biggest custom phosgenator in the U.S. The new acquisition will be in another technology, to broaden PPG's base. Meanwhile, a multimillion-dollar in vestment is under way to install a mul tipurpose capacity expansion. PPG 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 [operating in fine chemicals] 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 demand growth--running at 7%/ year--during die next three years, Bo gus says. SOCQR 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 % ofthe 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 bought a soccer World Cup sponsorship for Transitions and the franchise as "of ficial eyewear" for the series taking place in the U.S. this summer. The final $100-million/yearsegment 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 has at least two new product developments under way: deinking chemicals (an out growth of its surfactants business] and photochromic dyes (an outgrowth ofthe photochromic optical resins business). Still the biggest part of the chemicals As with specialties, PPG is looking portfolio, PPG's chior-alkali business, to boost its overseas presence in chior- the third biggest in the U.S. behind Dow alkali. Burton expects to have a project Chemical and QxyChem, has been run as by the fall--probably in China--to com a cash generator to support expansion in plement PPG's single overseas chior- specialties, it has been hit hard by the alkali stake in Taiwan. slump in caustic, but it remains a strong "We think having chior-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'sTOrg competencies year since 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 jiTftTea by PPG's chlor-al- Coast," says Rae Burton, kali business. He is proud v.p./chlor-alkali and de of the chior-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 Bortoa: Otlorlic shift. award. "We outperform our competition by huge pects to have a project to further expand amounts in regard to response to cus VUM by year end. _ tomer needs and accuracy of informa r'l'U s biggest cmor-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 chior-alkali and extended it to the ethylene dichloride, VCM, chlorinated specialties business." solvents, ethyl chloride, and vinylidene FAIR PRICE. It is the 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 apply equally 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 Beauhamois, 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 for Calgon ene feedstock, while ICI and Elf Water Treatment last year. He 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 the 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 C2 tary is knowledge of the customer, he feedstocks for nonozone depleting fluo says, the other is PPG's operating excel rocarbons," he says, and expects to see lence, which combine to achieve PPG's the decline in chlorinated solvents de goal of customer satisfaction. mand to bottom out in 1995. DA VID HUNTER in Pittsburgh March 2. 1994 CHEMICALWEEK 27 CTL014598