Document YDv9617Be3r80DDk3RMVN9REn

MONSANTO SALES OF CHLORINATED BIPHENYL DIELECTRIC FLUIDS ARE $18 MILLION PER YEAR WORLDWIDE. EQUIVALENT TO 40-45 MILLION LBS. PER YEAR. DS\N 223362 STLCOPCB4053446 MONSANTO ARE SOLE SUPPLIER TO. THE U.S.A. CAPACITOR/TRANSFORMER INDUSTRY, THE DOMESTIC MARKET (25M TO 35M LBS) REPRESENTS OF OUR DOLLAR SALES 61% EXPORT SALES U.S. EXPORTS EX-U.S.A. (Newport, England) 17% 22% 100% DSW 223363 STLCOPCB4053447 MAJOR COMPETITION OUTSIDE U.S.A, (Market Approx. 60 Million Lbs.) Bayer - Germany Prodelec (Rhone Progil) France . (Monsanto U.S.A./U.K.) 13 M Lbs. 21 M Lbs. 15 M Lbs. A9 % 22 35 25 82 DSW 223364 STLCOPCB4053448 KELMARKETING ISSUE 1. Probable That Within Two Years Use Of Aroclor (Chlorinated Biphenyl - PCB) Will Be Unacceptable In U.S.A, 2. CAPACITORS TRANSFORMERS - $6.5 M $4.5 M 3. Resulting In Subsequent Move From Chlorinated Biphenyl Outside U.S.A. sw 223365 STLCOPCB4053449 CAPACITOR RESULT 1. Replace Aroclor With MCS 1238 (Alkyl Biphenyl Based) 2. Against 3 Major Capacitor Industry Alternates a) Alkyl Chlorinated, Biphenyl Oxide - DOW b) Phthalate Esters c) Redesign To Exclude Liquid Completely 3. Major Accounts - 11 G.E. Have 50% Of Market DSW 223366 STLCOPCB4053450 TRANSFORMER RESULT 1. Replace Aroclor By a) Alkyl Biphenyl Based Fluid OR b) Chlorinated Biphenyl Methane 2. Against Major Transformer Industry Alternates * a) Silicone Dow-Corning b) Air-Cooled Designs c) Mineral Oil + Fire Protection Installation d) High Flash Point Oil Distillates 3. Major Accounts - 2 6. E. >37% Westinghouse > 377o DSW 223367 STLCOPCB4053451 3 CAPACITOR MARKET S.A. (Total ^.$140 Million) fm Application Approx, Annual Aroclor H Ube. 1. Bower Utilities (90)0 4-5 (Indicator - Total Installed Mew Generation Capacity) 2. MedinaVoltage Air Conditioner/ Appliances 7-8 (Indicator - A/C Sales Forecast. Consuner Spending) 3. Lighting Fluorescent/Street 4-5 (Indicator - Coaaercial Building Starts 7 Months Lag) Bx-U.S.A, 60-70% Power DSW 223368 STLCOPCB4053452 CAFACirons V.I.i. - m CUSTOMERS (BASED FULL 1974 SALES) F FOHEB . B. VMtinghous* (taivurstl terovox OorMll Dubilior Mallory Sutgaao McOrcw Ipragoa DC Jar4 N- F-HF L S-L II M F F M M L - LIGHTISO Forcent 39.7 11.0 8 8 8 4 3 3 4 4 7.6 DSW 223369 STLCOPCB4053453 U.S.A. - CAPACITOR MARKET 1. POWER CAPACITORS A. 4 Major Producers - 6. E., Hudson Palls Westinghouse, Bloomington - McGraw Edison - Sangamo B. 90% of market is supply to Utilities. C. -From 1955 to 1965 represented 25-30% of Aroclor usage. -Introduction of Magvar type technology has cut Aroclor usage per KVAR by 45%. D. -The demand for power capacitors peaked 1974. -Demand 1975 to 1980 will be 50-75% of 1974 demand depending on level of new system capacity. -Old systems have now substantially completed power factor correction programs. E. -Continued use of 1975 technology would demand 3-4 M lbs. of Aroclor 1016 per year. 2 DSW 223371 i STLCOPCB4053455 YEAR 1954 55 56 57 58 59 1960 61 62 63 64 65 66 67 68 69 1970 71 72 73 74 1975 1976 1977 1978 1979 1980 3 CHART 1 POWER CAPACITOR HISTORY AND FORECAST MILLION KVAR KVAR/LB. AROCLOR EQUIV. INSTALLED AR0CLOR INSTALLED KVAR M LBS. 4.0 4.2 5.4 5.9 5.0 6.4 8.0 7.4 7.2 8.8 10.3 11.6 12.3 15.1 18.9 16.2 19.1 18.2 18.5 20.5 24.5 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.1 2.25 2.50 2.75 2.675 2.875 3.25 3.75 4.50 4.50 2000 2100 2700 2950 2500 3200 4000 3700 3600 4400 5150 5523 5466 6040 6870 5630 6640 5600 4930 4555 5444 10.5) 4.55 10.5) 4.55 10-5) WestinghouK. 4.55 11.9) Forecast 4.55 14.7) 4.55 14.7) 4.55 2307 2307 2307 2630 3230 3230 TOTAL MKT. CALCULATED M LBS. 2500 2625 3375 3687 3125 4000 5000 4625 4500 5500 6437 6904 6632 7550 8587 7037 8300 7000 6162 5693 6805 2880 2880 2880 3287 4037 4037 ACTl \L 8851 5113 5470 5720 6206 Represent* approx. 80% of total power market. DSW 223372 STLCOPCB4053456 4 YEAR 1968 1969 1970 71 72 73 74 CHART 2 SALES OF AROCLOR TO PF COMPANIES H LBS G. E.. HUDSON FALLS WESTINGHOUSE. BLOOMINGTON H 4 X SANGAMO TOTAL 4000 2500 2091 2471 2280 2462 935 1717 2143 2420 1179 733 933 467 791 1210 945 729 639 717 8851 5113 5470 5720 6208 DSW 223373 STLCOPCB4053457 tv tv K 6 fc * I 2 s* ii*t i O<s4 S % STLCOPCB4053458 c g.S.A. CAPACITOR MARKET 2. BALLAST CAPACITORS A. 3 Major Suppliers - Universal (In house) G. E. (In house & minor supply outside) * . Aerovox (Jefferson, Advance) B. Market approximately 5 M lbs. per year Aroclor. Universal Aerovox G. E. 35-40% 10-15% 45-55% C. Market relates to square feet commerical premises and lags start by 9 months to 1 year. DSW 223375 STLCOPCB4053459 CHART 4 AAOCIflR CONSUMPTION - BALLAST CAPACITOR PttOnnrgpg 1970 1971 1972 1973 1974 1975 G.E. >40% Ft. Ed. 2212 1206 2292 2677 2541 1520 Universal 2258 1220 1918 2366 1950 1170 Aerovox 40% 745 5215 337 2763 658 4868 728 5771 752 5243 770 3460 1976 2200 1660 596 4455 OS'N [ ft STLCOPCB4053460 STLCOPCB40 n k*e : zt**" Q 46 0700 o co CO CM CM Q5(0 U.S.A. - CAPACITOR MARKET PERMANENT SPLIT CAPACITOR MOTORS A. Air Conditioners represent approx. 60% of this narket. B. Major Suppliers are G. E.f Port Edwards E.U.C. Mallory Jard Aerovox Sprague Cornell Dubilier 50-60% 100% 100% 100% 60% 50% 30% More than 50% of total Aroclor used in this sector. C. The "average" air conditioner capacitor contains .6 lb. of Aroclor 1016 in 1975 -(.7 in 1972, .8 in 1970, and .9 in 1965(Schweizer, E.U.C., Sprague) 4-. B. Air conditioner sales figures are extracted from "Appliance" survey. R. 20% of this market is below 370 volts. 50% below 440 volts. DSW 223378 STLCOPCB4053462 YEAR 1965 66 67 68 69 70 71 72 73 74 75 CHART 5 10 PSC MOTOR CAPACITOR MARKET NO. OF ACS SHIPPED (000) (60%) EQUIVALENT M LBS AROCLOR 3773 4305 5176 5261 7060 7458 7314 6942 8185 7053 5000 3395 3874 4658 4735 6354 5966 5851 4859 5729 4937 3000 ADJUSTED TO LBS. 100% 5658 6456 7763 7891 10590 9943 9751 8098 9548 8228 5000 DSW 223379 STLCOPCB4053463 IX CHART 6 AROCLOR USAGE BY MAJOR MOTOR CAP. PRODUCERS-000 LBS CUSTOMER 1970 1971 1972 1973 1974 G. E.,Fort Edwards 60% E.U.C. Mallory Jard Aerovox 60% Sprague 50% C-D 30% 3352 1414 2206 268 1118 516 743 9617 1828 789 799 .474 511 569 364 5334 3474 600 1398 632 998 546 483 8131 4057 1250 1548 963 1104 637 427 9986 3850 966 1003 677 1140 450 461 8547 1976 Budget corresponds to AC shipment of approx. 7M units. 1975F 2280 450 600 370 330 315 300 4645 1976E 3300 800 800 550 894 360 363 7067 os**11*0 STLCOPCB4053464 s a * fc V D D M D $ o s o 0 I *i STLCOPCB4053465 13 TECHNOLOGY POWER CAPACITOR (1) 1. Polypropylene has widely replaced PART of the solid dielectric system - Low loss - Better stress properties 2. 1975 - paper is required to ensure complete impreg nation - Toids are weakness point - Technology can not produce today imperfection-free film 3. If paper is required, a fluid with dielectric con stant similar to paper is valuable; l.e. 1016/1588, etc. Todays cost of avoiding paper use gives - More expensive construction - Less reliable unit 5. When these two technologies improve - A fluid will be required - DK will not be important - Stress carrying capability will be Important 8*& STLCOPCB4053466 TECHNOLOGY POWER CAPACITORS (2) Position of Major Producers GE: kO% - DOP will WOT work in Power Capacitors. 1588 is better than 1238 (stress) but not as good as Aroclor 1016. Fire resistance is significant in 10-20# of narket (NEMA Standards). If all plastic used, Sulfone technology la not important - base stock may do job. If Aroclor not available short term 1588 favoured. STLCOPCB4053467 15 TECHNOLOGY POWER CAPACITORS (3) Position of Major Producers Westlnghouse: 23% - Have not thought thru possibility of sudden Aroclor demise. Have specific toxicity concerns which are inhibiting 1588/1238 work. DOP/esters will not work. Have wade wore advances with non-Monsanto non-PCB alternates (not clear if these are low DK synthetics; e.g. DDB or Dow products). Do not favour separate developments, will tend to follow GE. m oS'N STLCOPCB4053468 TECHNOLOGY POWER CAPACITORS (4) Position of Major Producers McGraw Edison; 20j - Have commercialized all film unit at 15# premium. - After GE good name for technological advance. - Ho major program on Monsanto non-PCB fluids. - Review July 23/24, 1975. Sangamo: 15# - Will follow market. . 16 eP& STLCOPCB4053469 17 TECHNOLOGY POWER CAPACITORS (5) Costs A. - $ .Sales price of l8o KVAR unit is approximately 360 Cost of Aroclor content (4o lbs.) is $15; i.e. 4#. V' Cost of paper content (4o lbs.) is $60; i.e. 16#. V' Cost of film content approx. (40 lbs.) is $100; i.e. 275*. Total RM cost is probably 52#. B. Move to 1588/1238 would have minor impact on cost. Would need 29 lbs. x 65^ = $18.76 A Cost $3.76; i.e. 1.04#. STLCOPCB4053470 18 CONCLUSION POWER CAPACITORS (6) MCS 1^88 has good chance of acceptability in this sector. For MCS 1238 to be preferred, we or our customers must demonstrate better corona initiation/extinction characteristics than 1388. Potential improvements in film technology could limit product life (TXS component) and profitability. Industrial power units (10-20#) of market present fire resistance problem short term. Sudden Monsanto announcement to drop Aroclor could lead to Import of German/French product, followed only possibly by move to 1588/1238. Canada OE/Vestinghouse will follow U.S. practice. Potential use of 1588/1238 - 3-5 H lbs. ft*' STLCOPCB4053471 19 TECHNOLOGY BALLAST (1) 1. A radical change in capacitor design involves major retooling by the ballast producer; i.e., GE/Universal can move more easily than Aerovox. 2. One major (Universal) is planning switch to dry metallized polypropylene ballast without can for purely economic reasons. 3. Inhibiting factor is voltage limitation on dry film construction - 370-440 V. 4. European suppliers claim 440 volts plus now achievable. 5. New investments required in winding, metallizing film casting equipment to supply market. 6. MCS 1388 works in ballast unit but fire resistance is a hang-up. ' 7. MCS 1238 not widely tested in ballast units. 8. Universal prefer 1588 to DOP. GE undecided between DOP/1588. This market has lower research priority. Aerovox have better results on DOP than 1388. 0S>N M3888 STLCOPCB4053472 CONCLUSION BALLAST (2) Can, terminals, fuses and labour make up a high proportion of cost compared with the dielectric raw materials. Elimination of can and fluid effect a substantial saving. Ideally the industry would like 5 years grace to run present Aroclor design before move to new technology. If Aroclor was suddenly unavailable 1. Import if possible would be preferred to change. 2. If import not available Universal would move to MCS 1588 for 3-5 years. 3* Aerovox would probably go to DOP. 4. GE would probably go to DOP. In absence of Imports, potential is 1.0-1.4H lbs. of 1588 (or 1238 if Universal completes satis factory test program). This volume would be available for 3-5 years. 1 STLCOPCB4053473 Jt. '7SF&t*SOC*4t. J tkf*A c&AetreAS USA ____ Jn__f9fS___fO% jenr /fcoaoA tote JRl fba._______ fW**_____ O*. a*-- tM*r_ /*#OCLO*,J0ie______ _ . AC_./piL _________ JPJf* /7*9l vrtohte*?. .___&* itStf ___ /t**** /4> ^Am Cls*. ^Vriki W* - t*tud* jQ/~OLi\0LcUneC. ________ . ~7hjt oft*\cL*ut Jbr /f/M flc6 Ud.fx4.i9 ____yvu^or 4* C(trA4u^ f. tiJY*--* _ 0/ -/?u* _________ _ __________ co+r*c (*0f) . scot fattfj______________________ ___________ fitflexjftt yrtofYu**-; ................. .... Ac fare _ ______ eu* jQtifyo/i nti Jlb_*4xMr /of'Qurffi+d* jkofri ujUufc.___________________ __ EVC cue /tJtec&iuy,___ JEVCANOL 4 / tfCS tfS* *_____ ,_______________ ____ _76i^ ^ /*4/tooCu&ujp. ^Hi fin6. 0* DSW2233: STLCOPCB4053474 7ec*#ojLQGY. MoTtA Torts g^e,/ BvROP Ht&tcrm 'ctbi&i JSJJl JbuuUa^t /)nti*Ktotf" ^jslo ~?dt^er _ /7**t<s* /+t&. _ tfurtp* 6&iL&f t/aj^L cti* 'Ce+^czitte.*' _ . . _________ _____ ___________________________________________________________ Tbcr* og+x clt&jpx tt* tzcuyte. ^kp^U ~4eaJzjZf^, cl /<e*+* _____________________ ____________ '._._. _ "thui CoafUsLC* Os* 1** ~/t\JL ^Costs' y&lhxMi csx Cc tVU~.CS tUu?i jbcLtCtec*#) s&vXj?(jL '^c\se4ytu+r*'*S o/ c(t<j/ jQ/ac/ic t Jxtu*<& tz&sQC&cg,______________ ... _ _ / /Lou*v&trsj*, *4&cs ^esy*c+*/vc*Sr. . ......... ................. /Zio (U&U'^pt cl /touiMbt Jbr /fruzf'aZ'ut&sf _Cr^/' y}*/fje7yiy/e* y&&*. ______^ 223391 ^ 2. -__7b* p/&&tU (U'ujuy* Ustwipf 4U^ U'Kth of ^fua/xcs' ttitycii UAJMu . Ck^jfH4_/Tr>0_ jfl& a y*vi, \j>0p*s _ /pfdu^i'ut+La__reyfaalccyg __l_h_ * 4LCC*c**uU qU4*&*-<& A 4*a& ~4& 4***pa sjfizcfat* &{e&3cj J%yu*r yPKPP^r yu> /pyLch^J_ _ _ Cfracf C& reUZy c* i*Z$ ^ j&U uA -<4y;us STLCOPCB4053475 CfiPRcncPs Buftofe fa). * Crtu"O&J. ~fel*u*Lrf<f, C>J drUf'a&bjett Gt*d~ /** ___ . #v|v ' ^ yr* c ^ fc / y %rr^&/J- 5ArxrA^.*.&t.escjh*ruf>,/te*/A*% 4e./J&ir/*jfrifW 4U* _______ SUyi&*j$ , /pLCtfa's). -- . 0rjf &**?*&** _ /jnJcsfe/' ^Avce/f^f _____ Hc'Ut^ Cc*& A>W i7tYKj*i*Cto ` Q_*>yijiiAZ_. #--u--U--*--4--(------i--t-e--/---C-----&--r-t--c-,f C&H/if'i'u cZn%o (/t*. OS ^yy*jirc^" . OS Vc^fa^/o as*~ ji* ,jfe* *6ec*+'&tcf*i . ^). /fejj >4<H& ____i^^<3czwu*/. o&jiyoj -& GLce. /TLC^ 61 6cxS ^ c STLCOPCB4053476 tfoTc* ePlPACtTORZ - 3>UftL VrfiN&llOq Ml. I. r y Ta. t fi&jKuSch ncH E eUtr*clu. _ i^S -c T 7f TC t?iVc U Fuvw r.c STLCOPCB4053477 1 ~TeCHrtOL0$'/ Ho T0& CGPACi Torts SoMrtfrftY. -U <*_ W75 fared** 10*V xCfi jpM't*. cjyd U _._- Jbd'iJ' perf? /rvw>ra.tvo2.. _. l flyrrcLr* \QtU \fl &ji\iiaijJtjL~ _- fHitcdlhixel _____UmK vvvvj <^j&/ C4*Jt /iflc-uvj jC*+ ofc> -2,5 Jo *>< 3- lj tbvcbrr I#ffe i^, nVK avcufahbL r\olU**j aJr pyerw^ir ____ ._.<d "live, ft/***Cu>^ol. ............i>j . eyuM*k*Jr <Joe*pr+*a**<*- ___________ .._... ............ fc ov -JK TTvfi^e (We!-------------- -------- ^ -,----------- -- . (J?h*|7Vt,,n* ..- |----------------- ------------------.-r-v-^--------- ___ i^weic 4uU*c CL-ffc i/+'C4^> y4~ CC^t QU^k . J3^TpO*'AMC/ . ___tiujeutabiy^ of yclu. (p\aJ~^vi'oX*, nJLid.pp/ <p>w> cm \/t4Jhr*J2A~j?. _. Nf0___ OW <*J ti\4sia. jus 'ft'otol 07^| ____ jQupjtfb* oQ 01 a) _#oil fVtfr*____IjW _ lei/C t; foiL PfHV* IW75 DSVJ 223394 _) -fdlL ,, pAC* TX>P . .6* .4/ Fok Ttovelfitfi Ver* Qe t) fo\L <S|N<k Anvc f) tM/ojib&ot fhpgr .................. .. _ Sciuo'C/jev' cy He^AjC&W p6^,rHfi^fit /0e*ev<~ 4>_.,, jLt dtti^ <|| dstcicU tJIuck ____ jQ\p* j^CZ^C*) rnpjp* ofc produce** uMl *-/crge^ ra^vCft STLCOPCB4053478 liorofi CfirttaTotfs: _________________ _ - ________________________________________ _____ J. .7h'S /ikdtcnr Q&JJ dJbJtUf a JxdtU^'zU if................ ____ (h-crdj?* Qc. -________ ____ _____________________________________ ______ _J?,-Jrou^ '^Lv.cls* ^o// cpy^ve. f>m*\. _____________ ____ mvc _ ____ ____ __ ____________________ ___________________________________________________ _________ __________ &&*<& C'-> _ _ . _____________ __ _____ __________________ ______ ^ _ _. ____ ___ ... . . . _______________ 3. cjuj ouppyM' ^ 1)CP j Gfc EcL'jtL+ti^ ______________________________ ............ .... . _ ___ A<**\m* . ____ _______________ _____ _____ ... . . -------------------------------- $f**#+*------------------------------------------------------.--------------------------- i~Chtj ]te^ 2~~0) J^cuT^ .TifS /S&S' .'__ _____(t22& rjiv {jAdti^ Jr^zJted) ._ ajU*L sOuj?pj?r4r _ l^l S' _5._Jfcfi=su OJr JUvelb Hoi^AwJte ^*c/ /iuppH^_______ ______ ^l07 ^ ^ _ Stffl /*>* .*_3(?7o.__________________ ____________________ if-67* (tlffHJL.: . i4. /\ c^nr*. /V1*^^ ... _____ ___ jCl^^ ct^^ do /o???. :_________ _ .J___________ __ ' " ; . >: .. __JLu* fysMcb* &c*JA ypJr iW^cJ' c? *3 *0 ; . 2 * d ^ 1_____ njujr<s< jJkck 4>.<jVM ^ fb ^ ^Tf . i- --------------------- . - - ovc^ fi^ua^ ?.>*& . i .. -... i DSW 223395 iy& _ i- - - STLCOPCB4053479 2? _ niU h^v^T /FtG _ fftosecr^ - USft. o ft^oGL^vC. |__ ._.. Kotor . _ N**5e. " *7t ___ 3o l.o .. o . 1-0 17 7e 7*? - So 25. 3.0 3^ . _ 35 -- 3 7 . (f-V I - 3 ..._. 10 _ '7 ___o . . ... d ..._ S-B <0*5 <2o . ff-S .. O - So /'0 / 0 /*0 I'O 10 [__ Tcfaf 7-o 7 15 7 2 _'. ~7 2 % 5 - /C ` .............. ....... Tg)C. . ____________J................... .............. . .J^ .... (&*&*. fircrdt* j01&_ 'py* cf... e| /fO ffb. ._ ... .. . . . . ^,u* v/aie*-^ rie** TC6 prx cs- ijvukf Jhe. 5^3 qf, J jlo. 3.(J{- UfjxnJd Jut, __ 5V / I(d . uoa. ccmM J0*V ^tu*''-_____ 4 o^_ cu*' Ki?uv pC^ \stfhy*** *3-3 Mlb'* 4| fl/ bS # (lb (thcve J^veo^t Mscnuld '-fhfid. _____ $. Qt 7^<//t Hob* --------------- ---- c^d . __ ______________ V STLCOPCB4053480 DIELECTRICS CAPACITORS - Devices For Storing Electrical Energy, Sales Per Year U.S.A. Monsanto Sales U.S.A. $140 M 5,5 ^ FIRE RESISTMT TRANSFORMERS - Devices For Converting High Voltage To Low Voltage Sales Per Year U.S.A. Monsanto Sales U.S.A. $ 60 PI 4.5 M && STLCOPCB4053481 MONSANTO SALES OF CHLORINATED BIPHENYL DIELECTRIC FLUIDS ARE $18 MILLION PER YEAR WORLDWIDE. EQUIVALENT TO AO-45 MILLION LBS. PER YEAR. STLCOPCB4053482 MONSANTO ARE SOLE SUPPLIER TO THE U.S.A. CAPACITOR/TRANSFORMER INDUSTRY. THE DOMESTIC MARKET (25M TO 35M LBS) REPRESENTS OF OUR DOLLAR SALES 611 EXPORT SALES U.S. m EX-U.S.A. (Newport, Encland) 17X 22Z 100Z && STLCOPCB4053483 MAJOR COMPETITION OUTSIDE U.S.A. (Market Approx. 60 Million Lbs.) Bayer - Germany Prodelec (Rhone Progil) France (Monsanto U.S.A./U.K.) 13 M Us. 21 M Lbs. 15 M Us. 49 X 22 35 25 82 6,0 & STLCOPCB4053484 KEY. MARKETING ISSUE 1. Probable That Within Two Years Use Of Aroclor (Chlorinated Biphenyl - PCB) Will Be Unacceptable In U.S.A. 2. .CAPACITORS - $6.5 R TRANSFORMERS - $4.5 R 3. Resulting In Subsequent Rove From Chlorinated Biphenyl Outside U.S.A. 0s^ STLCOPCB4053485 CAPACITOR RESULT 1. Replace Aroclor With MCS 1238 (Alkyl Biphenyl Based) 2. Against 3 Major Capacitor Industry Alternates a) Alkyl Chlorinated, Biphenyl Oxide - DOW b) Phthalate Esters c) Redesign To Exclude Liquid Completely 3. Major Accounts - 11 6.E. Have 50Z Of Market STLCOPCB4053486 TRANSFORMER RESULT 1. Replace Aroclor By a) Alkyl Biphenyl Based Fluid OR b) Chlorinated Biphenyl Methane 2. Against Major Transformer Industry Alternates a) Silicone Don-Cornin6 b) Air-Cooled Designs c) Mineral Oil + Fire Protection Installation d) High Flash Point Oil Distillates 3. ftuoR Accounts - 2 I. E. >371 Mestinghouse >372 && 5 STLCOPCB4053487 POLYPHENYLS FAMILY TREE STRENGTHS - Best technology, worldwide - Sole U. S. producer of synthetic biphenyl - Modern plants, Anniston and Newport - Low sulfur process, only major commercialization of terphenyl derivatives - Fairly diversified outlets WEAKNESSES - Competition of by-product (HDA) biphenyl - Under-utilization of capacity - Anniston location not ideal - Running unbalanced on hydrogen - No technical continuity - Aroclor is largest outlet (50%) 6. STLCOPCB4053488 POLYPHENYLS FAMILY TREE ANNISTON Capacity M pounds per year 90 1976 Budget Requirement 37 Capital investment ($M) GROSS NET 3024 390 Fixed + Budgeted costs Total Mfg. Budget $2M/year $8M/year * NEWPORT 16 11 686 185 N/A N/A HB-40 FAMILY TREE Capacity M pounds per year 1976 Budget Requirement Capital Investment ($M) GROSS NET Total Mfg. Budget 27 14 713 222 $3M/year 3.3 3.3 354 314 N/A os**3105 STLCOPCB4053489 POLYPHENYL FAMILY TREE (DOMESTIC + US EXPORT) 1976 BUDGET SALES - GROSS PROFIT Biphenyl Therminols Santosols Dielectrics IDV-Plasticizers Total MAT PI M Lbs. 1.5 6.5 10.7 33.8 5.8 58.3 M$ 0.6 4.7 4.5 13.8 1.5 25.1 $M` 0.2 2.5 1.5 4.8 0.5 9.5 2.5 7.0 % Sales 37 53 33 35 36. 38 10 28 223406 ds>n STLCOPCB4053490 1976 BUDGET PERFORMANCE INCOME POLYPHENYL TREE DSW 223407 STLCOPCB4053491 POLYPHENYL FAMILY TREE DOMESTIC AND US EXPORT 1976 BUDGET NO AROCLOR 8M # 1238 NO DIELECTRIC NO DIELECTRIC NO S200 BIPHENYL Unit Cost ($/CWt.) 19.20 HB-40 Unit Cost ($/Cwt.) 23.64 FAMILY TREE Performance Income ($M) 7.0 24.04 29.50 3.6 27.27 33.07 1.9 28.02 33.81 1.7 IPAO* STLCOPCB4053492