Document XRnDQNpQGrxJ1VzjwkXo9qk2g

St. Louis - General Office February 20, 1969 ANALYSES OF TRANSFORMER-^ / /C_ ASKAREL SALES 1967 VERStJS^ 1968, U.S.A. DOMESTIC' D. A. Olson - DOLSO - HBERG J. Gr Bryant l^rT. Johnson D. R. Pogue - DPOGU Including the transformer Pyranol blends made by General Electric, and the blends made by Monsanto, the 1967 total use was 22, 405, lib pounds. The similar figure for 1968 was 21, 038, 000 pounds. This is a reduction of 1, 3b7, 116 pounds of blends used in 1968 versus 1967. Resulting from switching to Aroclor-rich blends and to the use of 100 percent Aroclor at Westinghouse, the Aroclor content for 1968 increased b23, 436 pounds over the 1967 consumption. In 1967 the Aroclor content was 14, 481, 664 pounds, and the Aroclor content in 1968 was 15, 105, 100 pounds. As yet we have not fully realized our potential Aroclor use within this framework of blends. As based on 1968 sales, we foresee that further switching out of Inerteen PPO to Inerteen 70-30 would result in using 200, 000 pounds more Aroclor. The switch by Westinghouse to Aroclor 1242 from Inerteen 54201KA automatically now calls for the use of about 320, 000 pounds more Aroclor. The strike at Rome, Georgia in 1968 caused us a loss of 500, 000 pounds of Aroclor 1242. We anticipate that Rome, Georgia will now revert to more normal use as the strike is over. Then there remains an outside possibility that there can be some switching from the Inerteen 70-30 blend to 100 percent Aroclor 1242. This would increase the Aroclor use by about 300, 000 pounds. Accordingly, as based on 1968 sales, it is indicated that given a little more time there can be increased demand for Aroclor amounting to about one and a quarter million pounds for transformer fluids. This realistic potential, plus the actual realized increase in Aroclor use in 1968, reflects the increased use of about two million pounds of Aroclor. Fortunately the switch to increased use of Aroclor saved our transformer askarel business in the recent past when we were not able to get the otherwise required chlorobenzene. However, as this increased use of Aroclor was being experienced, our factories found much difficulty in meeting the increased Aroclor demand. Now that increased Aroclor production has been provided this is no longer a problem. DSW 200054 STLCOPCB4058118 D. A. Olson. February iO, 1 -} u V However, the harassing experiences along the way led to assumptions and forecasts of requirements and future sales that are difficult to account for on a realistic basis. Transformer askarel consumption is a difficult thing to forecast precisely. Noting a drop of b percent in the amount of transformer fluid used in 1968 from 1967 in our U.S. A. market does not give us a particularly bullish base on which to forecast a very large increase for 1969. The 4-1/2 percent Aroclor increase accomplished, and as indicated above, significantly more Aroclor increase is realistically anticipated--all of this, however, results merely from our own technological maneuvering within the framework of the over all existing business. Of course, looking beyond this in the U.S. A., we do look forward to enhanced sales from our advertising-promotional pull through efforts. On the other hand, this campaign was in effect in 1968 and we actually experienced a drop in total volume of transformer askarel fluid. Of course, we do not mention this factor as any reason for alarm as we look ahead in our program toward future increased use of trans former askarel. /ecd P. G. Benignus DSW 200055 STLCOPCB4058119