Document Z444RjzaLeNvxw4bQm5pYMzGd

industrial Chemicals Co, -at. Louis Pecember IT, 1971 TO ; Director! of Marketing field Stole* Director* Field Sales Managers District stole* Directors GQSFXDiamAL At ti*lr Board meeting on December 9, 1971, Monsanto'a Board of Directors approved corporate Monsanto decisions previously taken a* folio**: 1, terminate all sale* of BOB fluid* for uee In heat transfer applieatlon* by formal notice to all custo mers. 2, Immediately Implement a plan to terminate all sales of polychlorinated terphenyl* by March 31, 1972 for plastl- claere. 3, Sale* of FOB fluids for transformer or capacitor use *111 be dependent upon the receipt of agreement* ac ceptable to Monsanto, holding Monsanto harmless from legal liability associated with the use of FOBs in transformers and capacitors from customers whose financial responsibility makes such agreement* mean Ingful in Monsanto's opinion. Since Monsanto Industrial Chemicals Company sells these products to many key corporate Monsanto customers, we want you to he attar* of these decisions and their Implementation so that customer visits don't lead to surprises. What MICC products are involved? Meat transfer fluid* s thsminol* FR-Lo Temp Thsminol* FR-G Therminol* F8-1 Q*| - 2- OApneitor Meleetrle Fluids: Capacitor 21 Areeler 1036 Areolor* 1842 Aroelor 3248 Aroolor* 125# Vranaforner AsWarel Fluids i Inerteen 100-42 Inerteen T0-30 Inerteen PP0 Pyranol A13B3B group cals' Mvision Plasticisers *roolor^l221B Aroclor*5432 Arwslor^lsWZ Aroclox^*546o Aroclor6000 Series Nontar 5 Santlclzer 301 Saatictaser 311 Santiclzer 326 Santiclzer 327 Sentlclzer 335 Santlsizer 33 Santiclzer 337 MXP 101 Wills everyone wishes theas decisions did not have to be tafcen, sad while they will cause boss Inconvenience to euetomere, the picture Is not ss gloomy as night he supposed, 1. These decisions should not coais as a couplets surprise to any clistener. We have been alerting customers by letter periodically sine# February, 1970 oftbe problsna associated with PCBe. 8. We phased out PCTs fro* certain applications (plasticisers, hydraulic fluids, and process fluids) from mid-1970 to early 1971. ' 3, We discontinued sales of PCBs to new heat transfer fluid systems several months ago. 4, Sines August, 1971, many existing PCS heat transfer fluid users have effected conversions to non-PCB fluids, (to date over 150 of such systems have converted. We have retained 90% of these conversions for Monsanto with our .)non-PCB heat transfer fluids Tberainal 55 and 66 0 mb*" TOWOLDMONOQ57959 - 3- offering our cuitount If*t fragafor BUdds As explained lp our customer notification letter, we have assembled an experienced engineering team to give help to customers as they decide on conversions. We also offer the service* of a high temperature Incinerator to dispose of used FOB heat transfer fluids, and will accept return of originally packaged FCB fluids. .2 Pieiectries The decision e dielectric fluids will probably not affect most ef you since transformer and capacitor manufacturers are a reasonably small and separate group. We emphasise that we are not discontinuing dielectric PCS* since their usage is Important to the national interest. Monsanto is conditioning such salss, however, on obtaining certain financial safeguards, while acting responsibly in the interest of the electrical industry, its consumers, end thus the country. We are also active In AMSX 6107, a committee set up to develop guidelines and policies for handling PCB in the electrical Industry. 3. Plaatlclsers Monsanto is working to develop a list of suggested re placement products sad suppliers to be used ae a guide in replacing our Aroelo# products in existing formula tions, mmMmt erom.. customers Customers are going to ask questions about these decisions. Wo would suggest that your salesmen not try to answer these questions but to refer the customer to St. ioals: Telephonei Mail; smmmm T. l>. Ooasage P, a. Benignus C. Baton (31*) 694-251* Camming Baton Monsanto Company P. 0. Bm 1*617 St. louis, Missouri 63178 TOWOLDMONOQ57960 Plasticisers *. S. Clark (31k) 694-2510 Direct inquiries fro* customers to Monsanto district offices should be handled in the seme *ty. If you wish to pass on questions or statements from customers, please feel free to do so through the same channels. Attached you will find a list of key corporate Monsanto customers who will be given special notification of Monsanto's decisions. Separate lists are given for Seat Transfer fluids and chlorinated tsrphenyl plasticisers. Mo list is given for dielectric custom ers since discontinuation of sales will not result unless our terms are rejected. Customers not Included in these lists will receive the formal notification letters by mail (copies attached) Key customers will be notified ea followss J^lJEMBfer 1. By maili formal letter plus cover letter indicating wSf^iwonvorsloBa are already underway or (in the * ease of multi-plant locations) have actually taken plaoe at some locations. 2. By Phones formal letter will then be mailed. 3 jjaafeSJjgttg-aaflsgjsaaflJi8. category we maayy ask assistance from Re_gional Vice freaidenta or Directors of Sales/Marketlng to introduce us to the "right people, the personnel primarily involved from Specialty Products Group in notifying key customers will he* . 8. S,-Bergen* Jr - Business Group Director T, i. Ooesage - Director of Marketing M. T Johnson - field Sales Manager C. Baton - Product Manager Plasticisers 1. By mail* formal notification by letter addressed to tie.Office of the fresident to be mailed on 1S/3J/71. 2. By phone 8 By regional managers and salesmen during peHSd from IZ/SO/71 to XS/31/71. This will cover all important accounts. 0^,76316 -5- 3- Personal calls; By regional Managers and salesmen ^rom ii/25/71 to 1J/3V71 with follow-up vialta by St, Louis management personnel from 1/V72 to 1/14/72 at key accounts as appropriate. Customer Notification . V, g. Domestic Customers Heat transfer Fluids: December 15-20, 1971 Plasticizer Aroclor December 20-31, 1971 Canada notification will follow the U. S. pattern as quickly thereafter as practical, I.Bt8raaa.ojii.l ' Action will be taken through World Area Marketing management in the first quarter of 1972, It is very Important that you do not make thia subject a deliberate topic of conversation in your dealings with your customers. Please do not preempt the business groups in volved in notifying customers. We have alerted you so that you are not caught unaware should delicate negotiations con cerning your products be going on. We would ask in return that you treat this information in confidence so that we can implement these corporate decisions as effectively as possible for both Monsanto and our customers. Competition Be particularly careful in how you handle this Information at the following accountss ' Dow Dew Corning All oil companies Dow is Monsanto's major competitor in synthetic heat transfer fluid. They have never had fire-resistant fluids like Therminol 1 fluid. However, they will be out to obtain refills of fluid with Dowthsns against our terminol 66, If the customer oper ates at temperatures below 0%. or so, he may sleet to go to lower cost fluid each aa terminal 55, In these cases, our competition will be petroleum-based fractions from Humble, Mobil, Shell, ete. TOWOLDMONOQ57962 finally, say we male that thi# memo be fttrniahad only to thoae with a need to know. C, Fata* ' Product Manager Olelactrio, Heat ftraaeFer & Frooeaa Fluids Specialty Product* Business Oroup l^SCCaJL M. S. Clark Product Supervisor Flaafcioiaer fcteloeaa Group *, C, <S, Fluid latter) (Plaetlelater Aroclor latter) (Key 8. f. Fluid Aaaounts) (ley Flaatlolaar Aroelor Accounts) 0<t/03i8 TOWOLDMONOQ57963