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
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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.
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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
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Competitive Position
LEGEND
Business Impact
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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.
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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.
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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 -
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