Document VJ1d5eRNYe1VBOOO7eBmNmwgZ

CH-2 REV. 7-*0 E. I. d u Po n t d e Ne mo u r s 51 Co mp a n y INCORPORATED Wil min g t o n , De l a w a r e 19898 CHEMICALS AND PIGMENTS DEPARTMENT PAHopkins RJPavlin JSThackrah EADonald/DWHoppenjans PAWriede, Jackson Lab July 14, 1983 DU PONT CONFIDENTIAL SPECIAL CONTROL G. C. TUNIS, JR. 1984 TECHNOLOGY SUMMARY COLORED PIGMENTS Attached for your review is a draft of the 1984 Technology Summary for Colored Pigments. Please give me your comments by July 25. (?5. R. S. WEIS RSW/cv Attachment ! Business Mission - Harvest Manage quinacridone in a strengthen mode and Krolor in a sustain mode, while managing remaining products in a harvest mode. Improve cash flow by reducing costs and maintain an assured supply of quality pigment to F&FP. Role of Technology superior quinacridone process and product technology is the key factor in maintaining Du Pont's competitive leadership in quinacridones. The quinacridone segment is Du Pont's strength in Colored Pigments. Evaluation Technology Position Opposite Competition 1983 1988 1993 Summary Product Quinacridones + + + Superior products for automotive finishes and plastics. Inorganics 0 0 0 Conventional inorganics competitive in all areas. Krolor superior for plastics applications. Copper Phthalocyanine 0 0 0 CPC blues are generally equal to competition. Other Organics 0 * 0 Process 00 0 Competitive products for ink and consumer paints, but product line is narrower than competition's. 0 Low cost producer of quinacridone crude. Some copper phthalocyanine and other organic processes are not cost competitive. DUP050146152 Patent Position Du Pont's current competitive advantage in the quinacridone business is a direct result of past strong patent position on process and product technology. Critical quinacridone patents on crude synthesis and solid solution products have expired in the last several years, allowing competition, especially Bayer, to introduce products that had been unique to Du Pont. Patent protection continues through the late 1980's on important treating agents and quinacridone gold products. No strong patent protection exists for other product lines with the exception of silica coated lead chromates (Krolor) where product and process patent protection exists through the mid-BO's. Competition is marketing Krolor-type products, which we feel infringe our basic patents. Key Technologies Quinacridone uRp) * H r0H) UUe00CHO) m & o 0) aocP* H Q3 +m> xu0o:) M n0><d)i Crude Synthesis Finishing Technology Product Properties AHI M MO M A AMO M AA Life Cycle E " Emerging EV " Evolving M * Mature Competitive Position LEGEND Business Impact MA Major PMA " Potentially Major MO Moderate MX ** Minor Mtfer f>>mw Miwiug* A Mmk iAh w i * ee A ItaprA*** LI . MsMhkM a wwuh DUP050146153 Competitive Technical Activity state of the Art Research in Colored Pigments at Du Pont and major competition is generally aimed at modifying and improving existing products to meet the performance needs of changing end-use industries. European pigments manufacturers have also been successful in research aimed at developing completely new pigment chemical types (as judged by patent activity) especially in the yellow, orange, red color areas. Du Pont currently does not have a major technical effort aimed at new pigment development. Major Activity Du Pont Assessment e Bayer has developed a production unit (Bushey Park. S.C.) utilizing Du Pont guinacridone synthesis technology to produce unique red products. e Du Pont production scale should continue to yield better economics. e Bayer and Sun are actively developing guinacridone solid solution products which had previously been unique to Du Pont. s Du Pont technical expertise in guinacridone product development and strong ties with Fabrics S Finishes Department will maintain our lead in new product development. Conclusion Du Pout's strength in Colored Pigments resides in the guinacri done segment of the business. Our large scale production facility based on intermediate synthesis of dihydroguinacridone and our backward integration to dimethylsuccinate (a Petrochemicals Department by-product) combine to make us the low cost producer of crude guinacridone. The requirement for high temperature operation and sophisticated solvent recovery make it difficult for competitors to duplicate our economics without significant investment. Bayer has installed a production facility based on our technology to produce products formerly unique to Du Pont. Improved product introductions are key to maintaining a competitive advantage. Our technical expertise in guinacridone product development and our close ties to the critical automotive industry through Fabrics & Finishes Department should allow us to continue our product superiority. t DUP050146154 Du Pont ie generally equal to competition in product technology in nonquinacridone segments of the business. However, our multiplant configuration and low capacity utilization result in process cost disadvantages in these segments vs. competition. Research Strategy and Programs (19841 Research emphasis will be placed on maintenance of our quinacridone competitive position through improved product development to respond to new automotive finishes technology and to expand quinacridone penetration into high value plastics markets. Development of improved products in nonquinacridone business segments will be minimized over the next several years. Manufacturing technical programs are aimed at upgrading existing product technology to improve operating reliability and product quality and reproducibility. Success in these programs will allow future operation of the Colored Pigments business in a more cost effective manner to improve profitability and competitive position. DUP050146155 Key Issues Can we be successful in process improvement program to achieve cost reduction goals of Colored Pigments business? e Will we successfully maintain our quinacridone competitive position through new product development programs? Summary Data 1983 (E) MP $MM R&D 17 2.9 MT _ 1.6 Total 26 4.5 1984 (F) $MM 14 2.7 8 LdL 22 4.1 R&D * S+T Total X S+T Cost Reduction Existing Process New Process Capacity Existing Product Improvement New Product Regulations 2.7 2.3 4.2 3.5 Research Oblectives f%) 1982 J[A1 1983 (El 1984 (FI 17 29 34 - - 72 71 66 11 - * -- PAW/ jxng 03006 DUP050146156 0O00e0D oj \ 1983 n d it 0>H 0 0oa1 Ha 0 104 a P <0 44 CO *rl o< a r4 0 0 0X *1 & WX 000 51 P 0 Curl <oM 0 tPJ Q. 0 aa0 *Q4 X 0rl W %OB pa -cwwh 43 r04 04 9 Pa O c a 0 .a4 4a3 a0C 4pJ r4 Ol 43 H "rt XSnrlcmrao1lt e4*OoJ* 01 4>r4l v44i 0O> o6 u <o 0 PO <44 o 40On4 O0 4a04 --4h44 oa uo a> a 4r4l & <44 0Mrl O00 4P3 <0 a -0n X 00H Od*rXo 4p130 -r4H4l H P <44 o 0 14 * -0OH a CO 44 4r-3t eGnO 4p3 r4 *4 X O mGiO 0 404 GoB aHt o(I 00 oO N in (M m r4 P* t H om oi--i CM so r4 O0rl a 40aa3 44 O Pa 0 ru0O4. oM0 oO N 44 44 <44 0 ao oo o aa a 4Or4l 00-* ai rl 0*4 0P 00 0 01 rl O0 44 X XM* rIO0HI 6&00H00> r- H< *0HU r04 00 o IM 01 at 0o> CO 0o X H *i &X o XI GO M fO 00 0o 0 0 rl < 44 P 0 O0 P00 44 0 1 OOP S P Cl rl <Q 4 >0 <0 44 rl 0o 001 4003 -0H1-0H0 O 10 Pi 0 >o 0 SO -OH 01 rl 0 _ 44 0 44 tj 9 <rl >> OM O< OC0 S BQ p(4 01 0 0JU80 H0P r01lOto fi G 0 0BO0 O r4 00 0 0 0 r4 010 0O0m 0 3n4 rl 00 01 o 0O 44 >0H H r>POl><<r0ol *>4>4H4 r04*00 0 >e >o a0 O0t 0 44 0O6O P 0 0OO0 lH000 00 06 0f0ib O 0 0 O 0 0 -rl O 0 <0 > lr>l 0to -0rl 01 0 0 0 0 0 rO-t OP >O 4U4 r-l O 0ih 4 O *P 0 O 1-4 > O A 0 ft O0 P0 r8rlr0l 00 0Pi 01 > O 0 O t> 0 Oo-ri 43 O <00 t0o >0 rO4-0H 00 rA4 p0 U O 0 r4 0 0 0 B0i4U3 -Or4 0OHrrl 6 OO H6 40>W0 OO 00O<m A0 0 Orl 4O4 0 0 0 >1 H ft O 00 3 00< 0 0 8 0 O 0 0rl a DUP050146157 r* GO 01 H 10 CO Oft E-s HI to O 10 W CO 05 0* Ofe H CO 0ft H C*1 CO 0 H O'* 01 i-i N (0 O OS H O ro O* N I-l OS N O OS -i SO CM O i-t - CM OS N to o uJ n < O<0 NN SO N O CD CM l*> SO oo so w .10 O 01 r4 fH CmO in g o in H O OO CO m H O CO 0 m H in g o m ** H O Oft t* in H O 10 SO N m m< Nn CM oo s-4 N N CM mo C CM CO M tMo >M Q Qw8 05 1 lI so n so 1 m so so I SO n I so | n SO I SO I os CM 1 r CM i-l I f <-* *> o t- I CO CM c- o ro CO rH in O so CO *- in H . a * .14 O > X O Os e x > 0a * c d ft 0a it OMs M WW a ^\ rl m e <0 14 O X Os fr 0 4 X 9 MU a e os 0 9a 9- Os oMa DXa OS SS4 X dp H * 0sa a M _9 X0 > Ps b 0IQ X u A (3 U O B Os E9-s Os a XX |H t4o > rl U O rA O O 4 05 su O C O rl 44 P AH *Ur4S Q V 9 O O . ua (3 0. 09 *4 0 4O4 -arl 0>4 9 44 0. O o -(h0 Si 35 X O ca x 4a4 1 1 0 u 44 A S O > O u Os s w 44 O P 0 0 M 0. 4N4 0 *OaH4* a Os rl oXa New P ro d u c ts DUP050146158