Document ZBLx9XxzGd0proO1wxejqZaKd

ESCAMBIA CHEMICAL CORPORATION INTEROFFICE CORRESPONDENCE TO* Mr. H. L. Harwell FROM: G. B. H. Speed SUBJECT: March Monthly Report Amines and PVC DATE April 2, 1968 COPIES SUMMARY Amines Total production in both plants established a new record, 7, 659M lbs. of amines. The number 1 plant was in methylamines service the entire month with exceptionally good operation. Only one day's outage was required for catalyst change. All monomethylamines was on-specifi cation and no leaks developed as was expected in the forward flow exchangers. A more expensive catalyst is currently being evaluated in the number 1 plant. The catalyst was purchased based on longer life and an expected higher selectivity towards the dimethylamines. At present no increase in di production has been seen, although operating conditions are different due to a higher tri recycle. The number 2 plant was switched from ethylamine to isopropylamines on March 11. Operations on ethylamines were routine. The isopropylamines run was started up using the recently approved larger cooler on the high pressure scrubber. After lining out with the new cooler production averaged 192M lbs. /day which is about 40M lbs. /day higher than previous operations in either plant. The new 30 inch multi-purpose column was used successfully in TEA service this month. An RFE was submitted to install the necessary equipment to produce IBN in July. During April, the number 1 plant will continue in methylamines service and the number 2 plant will continue in isopropylamine? service. AP00045884 Mr. H. L. Harwell -2- April 2, 1968 The production data for March and estimates for April are shown in Exhibit I. Cost variances are as follows: Me thylamine s Ethylamines Isopropylamine s Total Variance, $ (fav. ) March April (19,319) (10,706) (58,886) (15,000) (45,000) (88,911) (60,000) PVC Prime resin production for March was 4,338,430 lbs. and 254, 430 lbs. above budget. Sixteen different types were produced in 21 separate production runs including seven experimental runs. Variance for March was $26,976 favorable. Quality control showed marked improvement this period. Of the total 122 lots produced, 21 were out of manufacturing specification. Of these 21, 9 lots were so close to specification they were grade A with Sales approval, 3 lots were off-grade, 5 lots were special experi mental runs and 4 were grade SE, The grading of PVC is now under the complete responsibility of the Quality Control Laboratory and the use of the SE (Sales Evaluation) grade discontinued. Type 1200 was switched from CC to KC catalyst with a 25% reduction in cycle time. Product quality appears unaffected. As reported last month we have been unable to produce PVC 1250X-2 to meet the customer's low fish-eye specification. A single batch lot was produced employing excess monomer and early blowdown was tried without success. Recipe variations failed to produce the particle size distribu tion on PVC 2185 requested by Polymers, Inc. Type 2170 was produced with a relative viscosity of 1. 74 as requested by Sales, AP00045885 Mr. H. L. Harwell -3" April 2, 1968 Test work with PVC 3185 indicates that we now have good control over bulk density and oil absorption for fusion resin and Alpine mill feed. Selected lots ground to excellent 2S and 3S fusion resin product. A second trial batch of PVC X-6150F produced a better size distribution, but the bulk density was still low. A trial lot of type 6240 with a 2. 40 relative viscosity ran slightly above target, but sufficient data was collected to be able to zero-in on the 2, 40 relative viscosity. Monomer efficiency for the month was 96. 3%. The projection for April includes the installation of the equip ment for fine particle size resin production and the swap-out of one reactor during the week of April 8. Production for April is estimated at 3, 630M lbs. and variance at $11, 000 unfavorable. DISCUSSION Amines Number 1 Plant The number 1 plant was on methyl&mines the entire month. Operations were exceptionally good the entire month with only 12 hours outage to change catalyst. No leak developed in the forward flow exchangers as anticipated and all monomethylamines production was on specification. The methylamines operations started using plant DME as feed stock near month's end. Although it is still a little early, no problems with using plant DME have been noticed. The use of methanol heads will be delayed until the DME is evaluated. The plant was switched to a more expensive catalyst bn March 21. The new catalyst is expected to last longer and there was some indications that the catalyst was more selective towards dimethyl amines production. To date we have seen no increase in the di produc tion although the current operations are with higher tri recycle and lower temperatures to reduce oil make. Mr. H. L. Harwell -4- April 2, 1968 Both methanol and ammonia efficiencies were above budget as follows: Efficiency, % Actual Budget Methanol Ammonia 91. 5 94.7 90.0 90.0 Amines Number 2 Plant The number 2 plant was switched from ethylamines to isopropylamines on March 11. During the ethylamines run, operations were normal maintaining the high MEA production established in February, The operations of the number 2 plant on isopropylamines using the recently approved cooler on the high pressure scrubber was highly successful. After lining out; production averaged 192M lbs. /day; about 40M lbs. /day higher than ever achieved in either plant. Efficiencies were above budget as follows: Efficiency, % Actual Budget Ethylamines Ammonia Ether 93. 9 81. 3 85. 0 80. 0 Isopropylamines Ammonia Acetone 95. 6 93. 6 85. 0 85. 0 Polyvinyl Chloride PVC production for March was 4, 338, 430 lbs. of prime resin and 140, 100 lbs. of off-grade. Monomer efficiency was 96. 3% for the month and totals 95. 8% year-to-date. Quality control shows marked improvement this period as discussed in the summary. A total of 7 experimental runs were made as follows: PVC 1200 - The recipe was changed to IPP from the standard peroxide catalyst. The cycle was reduced from 8 to 6 hours AP00045887 Mr. H. L. Harwell -5- April 2, 1968 without any apparent affect on product quality. PVC 3185 - A series of recipe changes was successful in producing the desired bulk density and oil absorption properties for 4185SP and Alpine mill feed. Reproducibility was good and selected lots produced excellent 4185-2S and 3S. Additional variations in recipes are underway at month's end to produce the 4185-2S and 3S in the reactors rather than having to grind the resin. X-6150F - An additional batch of X-6150F, flooring -grade copolymer, was made with better size distribution but the bulk density was still too low. PVC 1250X-2 - A single batch was produced using excess monomer charge and early blowdown in an attempt to reduce the fisheye level. This procedure had been successful on type 1200, but no significant reduction in fisheyes were seen in 1250X-2. PVC 2185 - Five recipe variations were made in an unsuccessful attempt to produce a finer particle size product requested by Polymers, Inc. PVC 2170 - The recipe was varied to increase the relative viscosity to 1.74 as requested by Sales. The variations in chain transfer agent and temperature had no effect on particle size or bulk density. PVC 6240 - A trial lot was produced with a slightly higher relative viscosity than the 2.40 requested by Sales. However, suffic ient information was obtained to zero-in on the target relative viscosity The operation of the new refrigeration machines and high pressure water cleaning equipment were routine. The installation of the equipment to produce fine particle size resin is scheduled for April 8. During the outage a reglassed reactor will be swapped out and a new chip filter will be installed on the north stripper line. Production for April is estimated at 3, 630M lbs. ; variance at $11,000 unfavorable due to production loss and excess maintenance during the shutdown. APO EXHIBIT I AMINES PRODUCTION SUMMARY Methylamines, MMA DMA TMA total Ethylamines, MEA DEA TEA total Isopropylamines, total MIPA D1PA Isobutyronitrile To lal GBHS-4/2/68 ** All time record. March Actual Production. M lbs.__________________ April Monthly Year-to-date Estimated Budget Actual 3, 156 1,339 1, 533 284 2, 750 1, 200 1, 350 200 2, 249 . 750 1,083 416 5, 083 2, 065 2, 591 427 825 776 0 49 3,678** 3, 675 3 - 5, 350 5, 250 100 1,353 1, 083 20B 62 1, 383 1, 333 50 4,676 4, 472 49 155 7, 271 7, 268 3 0 0 150 0 7,659** 8. 100 5, 135 17, 030 Plant Inventories, M lba. April l May 1 Actual Estimated Estimated 4, 511 546 2, 810 1, 155 3, 848 380 2. 475 973 4,470 750 2, 820 900 3, 541 2, 927 491 123 3,743 2,925 628 190 2, 010 1, 580 370 60 2, 470 56 1,402 1, 349 53 5, 700 5, 600 100 532 605 410 11,110 9, 598 12,590 AP00045889 068St000dV P e rs o n n e l AP00045891 ESCAMBIA CHEMICAL CORPORATION Interoffice Memorandum To: Mr. T. L. Carey From: E. M. Spurlock Date: May 6, 1968 Re: Monthly Report - Personnel Department - April. 1968 PERSONNEL Activity for the Month Division No. of Employees 3/31/68 Apr. Addit . Apr. Separa. No. of Employees 4/30/68 April 1968 Budget Executive Office 3 Accounting & Credit 42 Plant & Wilton Labs. 80 & Planning & Dev. Plant Admin. & Process 197 Plant Eng. & Maint. 125 Personnel & Safety 12 Purchasing & Traffic 29 Sales - Agri, Chem. 167 Sales - PVC & Ind.Chero. 16 00 00 02 00 21 00 0 0 46 01 3 42 78 197 126 12 29 165 15 5 43 86 201 131 12 29 215 15 Total Escambia 671 6 10 667 737 Carroll Construction Co. No. of Employees 3/31/68 No. of Employees 4/30/68 Office 22 Maintenance Insulators Mechanics Yardmen Trashmen Laborers Janitors Painters Total Maintenance 33 35 22 22 47 77 77 28 33 AP00045892 Monthly Report PERSONNEL (Cont'd.) Carroll Construction Co. 2- - No. of Employees 3/31/68 May 6, 1968 No. of Employees 4/30/68 PVC Laborers Area B Laborers Truck Drivers (Traffic) Railroad Crew 7 24 3 1 8 27 3 1 Total Carroll Grand Total 65 74 671 667 736 741 There were 73 walk-in applicants, 65 applications were issued and 4 were received by mail. Forty applicants were interviewed and 24 were tested. SAFETY The Corporation worked approximately 120,000 man-hours during the month. The approximate man-hours and the days worked to date without a lost time injury are as follows: Division Man-hours Days New York Office Research Sales Pensacola Plant Corporation 433,500 1,041,000 59,000 147,000 221,000 2,461 3,941 53 55 53 Semi-annual inspection for fixed fire equipment was completed. Annual inspection of all water type fire extinguishers was completed. Medical Section The Medical Section treated 9 injuries for Escambia and 13 for Carroll, performed 2 pre-employment and 10 annual physicals and gave a total of 21 immunization injections, EMPLOYEE RELATIONS Eight (8) 5-year service awards were presented. AP00045893 Monthly Report -3- May 6, 1968 EMPLOYEE RELATIONS (Cont'd.) Five (5) 10-year service awards were presented. TRAINING School was held for the operation of the Forklift and seven operators were licensed. School was held for the operation of the 100 Ton Diesel Electric Switch Engine and one operator was licensed. LABOR RELATIONS I advised last month that the Textile Workers of America had petitioned the American Cyanamid Company's Pace Plant for an election for their Production and Maintenance employees and the International Chemical Workers Union had intervened. The Chemical Workers requested that all nonexempt technical employees (laboratory technicians and analysts) be added to the bargaining unit or that a separate election be held for all of this group. Cyanamid, of course, has objected to the inclusion of these employees in the bargaining unit and they have gone to a formal hearing. The first meeting was held on April 24, 1968 and the next hearing will be held on May 8, 1968. It will take some time for the brief to be filed and for a verdict from the NLRB. Cyanamid feels that this is a ''stalling tactic" on the part of the Chemical Workers because they did not have the strength for an election and were stalling for time to obtain more converts. INSURANCE We paid a total of 54 claims under our Group Hospitalization program which amounted to a total of $ 6,860.15 during the month of April. We settled four Auto Physical Damage claims in the amount of $ 1,869.78 during the month of April. EMS:kc AP00045894 MONTHLY REPORT APRIL 1968 INDUSTRIAL CHEMICALS & PLASTICS DIVISION H. L. Harwell AP00045895 MONTHLY RT APRIL 1955 INDUSTRIAL CHEMICALS & PLASTICS DIVISION Statistics $(000) Sales Plastics & Compound $ 393 Methanol '` 233 Methylainines 228 Higher Amines I BN 507 18 DNC 56 TOTAL $1,435 Production* $ 312 204 138 352 88 $ 1,094 Inventory** Net Change Ending Planned $ - 36 -r 24 + 17 + 70 - 12 + 57 $ +120 $ 481 68 270 729 - 103 166 $1,817 $ 426 149 29S 631 64 64 $1,630 ^Actual Cost **Scancard Cost AP00045896 Profit of $184,000 was slightly above original budget. We experienced unfavorable sales variances of price volume and product mix principally in Methanol and PVC. To a large extent such was offset by favorable manufacturing variances except in PVC, which was down for modifications to produce specialty resins. The performance year to date is $417,000 over budget (including $208, 000 of relief of MMA charges). Although sales were down somewhat we see no special change in the markets. Business is generally brisk and price the everlasting issue. Geigy will drop about 2. 0MM pounds against their first 6 months forecast, a portion of which may be picked up in the latter half of the year. Geigy Switzerland is interested in Escambia as a partial amine supplier to the extent of 2-4 MM lbs. per annum and we hope for the first order from them late this fall. Meanwhile the European price on methyl amines has declined and it appears that 8 F. O. B. Pensacola will be required if we are to stay in the market. Sales of other amines were in reasonably good volume, especially with 100M lbs. of high value triethylamine. Plant problems associated with production of the latter appear to have been corrected. The new methyl amines catalyst is performing excellently, showing about four times the life of the previous. Further utilization of by product di methyl ether and methanol heads as raw material has been resumed with no problems. The next IBN run is scheduled for July and it is anticipated production rates will substantially exceed budget. With approval of the DMF RFE, raw materials have been ordered and the first production of this new product is expected in late June. AP00045897 2- Methanol prices have continued to 6often. Discussions which will set the last six months price with Reichhold will be' held this month with a carry over into the MCA meeting in June. Reichhold reports they expect to consume 10 MM gallons (the contract maximum) during this period and it would appear that we have no volume problem. We know of places in the trade where methanol is currently selling at 13. Fortunately the new Borden plant has not yet come on stream. DNT sales have been having ups and downs as Wyandotte has been struggling to get out of their carbon monoxide supply difficulties due to the Borden explosion. This is reported to be now solved and Wyandotte will be running in excess of 2. OM pounds per month for the next several months. Fortunately due to sales to Olin, finding tank cars and moving DNT by tank truck we have not had to curtail production significantly. In fact, April production was a new all time record of 1.8 MM lbs. The new and proposed RFE's constitute an excellent solution to this very vexing p r ob lero and in fact will make the product look fairly attractive. April was a frustrating month in PVC. Our sales were down because 400 M lbs. shipped didn't get into the April books and because of plant shutdowns, we are back ordered. Sales and profits were hurt also because Escambia has temporarily lost an art it thought it had to make fusion grade resins (our most profitable product) sales of which dropped 100 M lbs. from March. A concentrated effort is being made to effectuate an early solution and hopefully get us back into production now that the demand for these products is beginning to develop. Success was achieved AP00045898 -3- with the plastisol extender modification which was done on schedule costing about $J.O M in production variance. The xeeins were subsequently produced at reasonably good rates; they equalled the quality of the control and the first truckload shipment was received with enthusiasm. Additional sales are in various stages of development and we expect to be at the 200M pound per month rate by July. All actually hinges on quality and reproducability, a program for the control of which has been Inaugurated. Preliminary negotiations on vinyl chloride monomer appear to confirm our conviction that lower prices can be obtained. Meanwhile, we heard from Sumitomo that one Escambia PVC line could produce 22 MM lbs per annum of plastisol resins selling at 20-24p. They estimate conversion investment and royalties at $1,5 MM. This is the best way there is for Escambia to put PVC in a very respectable profit position. Profits for the first quarter of chemical industry are in showing a mixed pattern. Some companies in synthetic textiles such as DuPont and Celanese look good with price improvement. Allied and Monsanto are down vs 1967 14% and 22% due to troubles in Agricultural chemicals. Carbide is off because of heavy start up expense at Taft. Rohm and Haas is plus 22%. These figures add substance to the prediction that 1968 will be better than 1967, but only modestly so. ji HLH/nc AP00045899 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE CORRESPONDENCE TO'* Mr. H. L. Harwell FROM! G. B. H. Speed SUBJECT* April Monthly Report Amines and PVC OAT C COPIES May 3, 1968 SUMMARY Amines The No. 1 plant was in methylamines service the entire month. With the exception of two shutdowns the operation was routine. The plant was down for 18 hours on the 7th due to an electrical power outage and for 12 hours on the 13th due to leaks in the forward flow exchangers. This exchanger now has about 25% of the tubes plugged. The more expensive catalyst currently being used for methylamines is not giving the higher DMA product hoped for but has given the same conversion for a longer period of time. It is expected to last longer than the cheaper catalyst. Both purchased and plant produced dimethyl ether were used as feed stock without any adverse side effects. The use of methanol heads was also resumed and has caused some increase in high boiling impurities. .The No. 2 plant was in isopropylamines service until the 30th at which time the plant was switched to ethylamines. The plant was down for 18 hours on the 7th due to lose of electrical power and for 30 hours on the 30th to switch products, Production rates were down considerably during the latter part of the month due to fouling of the vaporizer and catalyst bed. The total MIPA produced with this charge of catalyst in the new converter was 12, 157 M lbs. costing about 0. 15^/lb. With the old converter and catalyst the cost was about 0.40^/lb. This is equivalent to about $40, 000/yr. savings. Request for expenditures to produce DMF and IBN were approved. Current plans are to produce DMF in June and IBN in July. AP00045900 Mr. H. L. Harwell -2- May 3, 1968 During May the No. 1 piant will be on methylamines and the No. 2 plant on ethylamines the entire month. The estimated productions are shown in Exhibit I. Cost variances are as follows: Methylamines Ethylamines Variance, $ (fav. ) April May ( 2,529) (29,173) (15,000) (15, 000) Total. (31,702) (30,000) PVC Prime resin production for the month was 3, 601M lbs. Production was 30M lbs. below projections and 479M lbs. below budget due to the shutdown to install the fine particle size resin dust collector equipment. Off-grade product was only 18M lbs. or 0.5% of production. Production variance was $17, 935 unfavorable. Production costs are now based on actual monomer cost. The shutdown for the above mentioned equipment was com pleted ahead of schedule and was handled very successfully by maintenance and construction. All equipment is working satisfactorily. Another"trial run on PVC-4185M micropearls was only partially successful with only one batch out of eight meeting specifications. An evaluation of Escambia's fusion resins is being made to determine future plans. A carefully controlled run of PVC 3185 LG this period did not produce the excellent product obtained in March with the same recipe. Analysis of the data is being continued, but the catalyst is the only suspect to date. During the shutdown, baffles were installed in the blend tank to improve the slurry feed uniformity and subsequently product uniformity. A test program has been started to obtain the data. Plastisol extender types 8200, 8250, and 8285 were successfully produced in the plant and reproduced the properties of earlier batches. AP00045901 Mr. H. L. HarwelL - 3- May 3, 1968 Modifications to the bulk transfer rotary valves by Escambia personnel has increased bulk handling rates by 50 to 100%. month. Monomer efficiency was down to the budgeted 94% this Production for May is estimated at 4, 160M lbs. and no production variance. DISCUSSION Amines Number I Plant The number 1 plant was in methylamines service the entire month. Two shutdowns were required during the month. The first, on April 7, was due to the failure of the main electrical supply cable to the No. 2 plant. Due to interconnecting cooling tower water service the No. 1 plant had to be shut down also. A revision made to the electrical system will now permit one pump to operate in the No. 2 plant from the No. 1 plant power supply. The plant was down for the second time on April 13 to plug leaking tubes in one of the forward flow exchangers. This bundle with 304 b. b. tubes has about 25% of the tubes plugged as compared to only 3% plugged tubes in the other forward flow exchanger with high temperature carbon steel tubes (SA-214). Bids are being obtained for replacing the stainless steel bundle with the high temperature carbon steel. The current charge of methylamines catalyst has not given the increased yield to dimethylamines as expected. However, it has already lasted two weeks longer than previous catalyst with equal conver sions. The catalyst must last at least four months to justify the additional cost. Plant DME was used in plant this month along with purchased DME, No adverse side effects were noticed. Methanol heads were also used but additional high boilers were produced. The accumulation of the high boilers has been controlled taking a 6ide stream purge from the tri-column and dumping when necessary the dehydration column. The additional high boilers have not been excessive to date. Both ammonia and methanol efficiencies were down this period due to the leaking forward flow exchangers. Efficiencies, % Actual Budget Methanol Ammonia 85.1 91.4 90. D 90.0 AP00045902 Mr. H. L, Harwell -4- May 3, L968 Amines Number 2 Plant The number 2 plant was in isopropylamines service essentially the entire month. The plant was shut down on April 7 due to an electrical power failure and on April 30 to switch to ethylamines. The electrical failure was believed due to a cut in the insulation made during installation of the line a few months before. Production rates on MIPA were down considerably over March. The lower rates were due to fouling of the vaporizer and catalyst. The new converter purchased on AFE 6758 has permitted the production of 12, 157M lbs. of MIPA using a catalyst that cost onLy $18, 000. With the old converter the maximum production obtained was 5, 000M lbs. with catalyst costing $22,000, This is equivalent to a savings of about $40, 000/yr. Both ammonia and acetone efficiencies were above budget. Efficiencies, %_____ Actual Budget Ammonia Acetone 97. 8 89.0 85. 0 B5.0 Polyvinyl Chloride April production was 3, 601M lbB. of prime resin and 18M lbs. of off-grade. Production was under budget due to the shutdown to install the equipment for the fine particle size resins. The shutdown was completed ahead of schedule and all equipment is operating satis factorily. Additional work required to complete the modification includes: 1. New steam line to dryer (completed May 3). 2. Install filters in south dryer (about May 15). 3. Install south centrifuge gutter (July). 4. Relocate air compressor and enclose (May 15). The production of plastisol extender resins, types 8200, 8250, and 8285^ uere 70% of the design capacity of the revised equipment. With the above listed jobs to be completed, and those completed after the extender resin run it is expected that design capacity can be obtained. The extender quality was essentially equal to previous lots used to sample the trade. AP00045903 Mr. H, L, Harwell -5- May 3, 1963 A trial run of PVC 4185M micropearls was made with limited success thi6 period. Only one batch out of eight meet specifications. The reactor charge was reduced to 30% to assure adequate agitation but micropearls were not produced. All previous data are now being evaluated to determine the best possible route to micropearls. The evaluation will also include grinding and other fusion resins. A carefully controlled PVC 3185 LG run this period did not produce the excellent product obtained with the same recipe in March. The data are being analyzed by Research and Production to determine the cause. To date the only suspect found is the catalyst which was from different lots. The reglassed reactor was installed during the shutdown. The reglassed agitator and baffle were damaged before delivery but not so Beverly to delay installation. Modifications to the bag packer made during the shutdown have improved weighing accuracy. Additional changes are being made to reduce spillage , G. B. H. Speed AP00045904 AP00045905 Methylamines, total MMA DMA TMA Ethylamines, total MEA DEA TEA Isopropylamines, total MIPA DIPA Is ob uty r on itr ile Total GBHS-5-2-68 EXHIBIT I AMINES PRODUCTION SUMMAR Y April' Actual 2, 730 1, 190 1,286 254 0 0 0 0 4,571 4, 533 38 0 7, 301 Production, M lbs. May Monthly Estimated Budget Year to Date Actual 2, 800 1,200 1,200 400 2,250 750 1,083 417 7,813 3,255 3,877 681 2, ZOO 2, 100 0 100 1,353 1,083 208 62 4, 676 4,472 49 155 0 1,383 11,842 0 1,333 11,801 0 50 41 0 150 0 5,000 5,136 24,331 Plant Inventories,M lbs. May 1 June 1 Actual Estimated Estimated 5,016 1,011 2, 941 1,064 4,470 750 2, 820 900 5,700 1,400 3, 300 1,000 1,966 1,482 462 22 2, 010 1,580 370 60 Z, 580 2, 030 450 100 5, 311 5, 277 34 5, 700 5, 600 100 3, 880 4, 300 34 467 410 347 12,760 12,590 12,507 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE CORRESPONDENCE TO: Mr. G. B. H. Speed FROM: M. B. Rogers SUBJECT: PVC Monthly Report April, 1968 DATE COPIES May 2. 1968 SUMMARY April production of 3, 601,290 lbs, prime resin essentially equaled the projected 3, 630, 000 lbs. Production was below the monthly budgeted rate of 4, 080, 000 lbs. because of the shutdown to install the fine particle size specialty resin dust collector equipment. The shutdown and specialties equipment installation was completed ahead of schedule, and the equipment is working well. A PVC 4185M micropearl trial run April 1- 3 was only partially successful. One of eight trial batches was excellent but was not reproducible. Reducing the reactor charge as much as 30% to assure adequate agitation did not improve the product. A carefully controlled PVC 3185 run April 20-22 did not reproduce the excellent product obtained with the same recipe in March. Different results among the 25 individual batches are unexplained and data analysis is continuing. The catalyst is suspected as the only major variable between the two runs. PlastiBol extender types 8200, 8250, and 8285 ran smoothly in the plant and reproduced the properties of earlier trial batches sampled successfully to the trade. The bulk loading system transfer capacity was increased 50 to 100% by modifications in our shop to the rotary valves, April cost variance was $17, 935 unfavorable, of which $16, 558 was volume variance due to the shutdown to install fine particle size specialties equipment. AP00045906 Mr. G. B. H. Speed -2- May 2, 1968 STATISTICS April Actual Budget March Actual Budget Prime Production, M lbs. Month Year to Date 3, 601 15,424 4, 080 16, 320 4, 338 11, 823 4, 080 12,240 Off-Grade Production, of Total Month Year to Date % 3. 1 3. 0 3. 8 3. 0 3. 1 4. 0 3. 0 3. 0 Bulk Production, % of Prime Month Year to Date 65.4 54. 4 57.5 57.5 51.8 51. 1 57.5 57.5 Shipments, M lbs. Month - Prime Month - Off Gra.de 3, 886 191 Year-to-Date Prime 16, 363 Year-to-Date Off Grade 1, 097 VC1 Efficienty, % Month Year to Date 94. 0 95. 4 m- 4, 560 - 229 12,478 - 907 94 96. 3 94 95. 8 - - - 94 94 Reactor Availability, % of Available Hours Month Avg. Year to Date 81.2* 80. 1 78.2 80. 1 - # Downtime excludes 778 reactor hours shutdown for specialties installation Reactor Downtime, % of Available Hours Mixing Solutions in Reactors Cleaning & Washing Reactors Scheduling Charges Changing Types Copolymer Production 0. 5 7. 3 3. 0 0, 5 0. 0 0. 8 8. 0 4.0 1. 1 0.2 - Slow Recovery 0. 3 0. 4 _ AP00045907 Mr. G. B. H. Speed -3- May 2, 1968 Reactor Downtime, % of Available Hours {cont'd) April Actual Budget March Actual Budget Low Drying Rates & Dryer Line Cleanout 0. 7 - 4. 8 - Hydraulic Motor Repairs Misc. Reactor Maint. Dryer Maintenance Electrical' or Instx. Maintenance 0. 1 0. 8 0. 2 0 - - - 0. 6 0. 1 0. 5 0 - - - Miscellaneous Experimental Batches 5. 0 0 - _ 1. 3 0 Total 18. 8* - 21.8 - * Excluding 778 reactor hours specialties installation shutdown time Product Mix, M Lbs. Prime Re6in Group I Group 11 Group III Group IV Group V Group VI Group VII Total 2, 294 821 468 0 0 18 (24)' 3, 601 2, 154 1, 010 603 23 262 32 0 4, 084 2, 713 831 268 9 511 6 (62)1- 4, 338 2, 154 1. 010 603 23 262 32 0 4, 084 * Ground resin not included in total. April_______ Hours % Payroll ______ March Hours % Regular Unscheduled Overtime 5, 528 292 7, 074 - 5.2 325 4. 5 AP00045908 Mr. G. B. H. Speed -4- May 2, 1968 PRODUCTION 1000 Series Types produced: 1250, 1225, and 1200. Replacement of "CC" (peroxide) catalyst with "KC" (IPP) continued to give excellent results in PYC 1200. Reaction cycles were 6 to 7 hours, the product dried well, and lot yields are high. A lot of PVC 1250X-2 produced by charging excess monomer and stopping the reaction early did not show the hoped-for reduction in fisheyes. A problem with excessive fines in PVC 1225 was corrected by reducing the suspending agent concentration. 2000 Series Types produced: 2200, 2225, and 2250. Production was routine. 3000 and 4000 Series* Types produced: 3185, 4185M and 3250. A PVC 4185M micropearl run April 1-3 produced only one good batch out of eight triaLs. The other batches which produced the required fine particle size product all crusted over and gave a mixture of fine and coarse material. Reducing the reaction charge by 10, 25, and 50% to improve agitation, did not improve the product size distribution. Four other batches dried in various lot combinations and scalped to remove oversize material gave good quality fusion properties, although the size distribution in the batch slurry samples was not satisfactory. A 5 lot (25 batch) PVC 3185 run did not give the quality product and excellent reproducibility gotten with the same recipe last month. Of the 25 batches, 11 gave the desired size distribution, 10 had excessive fines, and 4 slurry samples were not analyzed. All the batches got hotter than normal in spite of successive 200 gm. catalyst reduction Id 5200 from 5800 gms. CC (lauroyl peroxide). The only known raw material change between the March and ApriL runs is in the CC catalyst, and the possibility of differences is being pursued with the manufacturer. No catalyst AP00045909 Mr. G. 6. H. Speed - 5- May 2, 1968 abnormalities were shown in laboratory analyses at Pensacola, and no other leads are apparent from an initial analysis of the data. The same catalyst lot was used in the unsuccessful micropearl trial discussed above, and two PVC 3185 batches during that run gave excessive fines. The investigation is continuing and a report will be issued. 6000 Series Types produced: 6240. Production was normal. This fine particle size product was produced before installation of the new dust collectors and the capacity of this type resin with the new equipment could not be tested. 8000 Series Types produced: 8200, 8250, and 8285. These plastisol extender resins were produced this month for the first time in multilot quantities. The products ran well in the plant and appear to be very similar to earlier trial batches successfully sampled to the trade. The product did not build up in the drying Line and did not create a cleaning or drying problem. Drying rates with the new dust collector equipment were doubled from previous runs to about 70% of design. Additional equipment included in the specialties AFE but not installed at the time of this run should give the design capacity. This extra equipment includes the timers for the Dustex reverse cleaning air and the new air compressor - which are now installed - a new steam line to increase the dryer coil steam pressure, and a centrifuge discharge chute to feed the dryer more uniformly. TaiLings and Off-Grade Off-grade production was as follows: Off-Grade Type Lot Reason Off-Grade Quantity ' Lbs. % of Total Productior 1250 2250 3185 3004 3006 2977 Fi6heyes & Volatiles Cont. and fines Excessive fines 11,000 2, 950 4, 000 0. 3 0. 1 0. 1 Subtotal - Off Grade 17,950 0.5 AP00045910 Mr. G. B. H. Speed - continued Type Lot Tailings Floor Sweeps Total -6- Reason Off-Grade - May 2, 1968 Quantity Lbs. % of Total Production 98,750 2. 7 22,000 0. 6 138, 700 3. 8 MAINTENANCE AND CONSTRUCTION The shutdown for installation of the Dustex product collector for small particle sire specialty resins was completed ahead of schedule and the equipment is operating smoothly. The air slide conveyors necessary because of elevation problem are trouble-free so far and have recovered from overloading material surges. The new 515 SCFM vertical Joy air compressor was put in service April 24. A 4 in. steam line to increase steam pressure at the dryer coils will be complete thi6 week. Filters for the dryers are expected by mid May for the frames' installed during the shutdown. The centrifuge discharge scroll is expected in mid June. The reglassed reactor was installed as No. 4 during the shutdown. The baffle and agitator were both damaged before or during delivery, and liability has not yet been established. An electrical power outage April 25 was caused by a.phase-tophase short between busses in the high-voltage section of the PVC substation. The separator causing the short was removed, insulation repaired, and power was restored in 1-1/2 hours. Recurring tripouts on the north hydraulic pump were traced to a faulty breaker. The dryer feed screw bearings were replaced with Olite brass bushings which apparently have not aggravated the contamination problem. The No. 4 blend tank lining is failing. Temporary patches should hold until general repairs can be made in May or June. GENERAL Operation of the new dust collection equipment is discussed under PRODUCTION, 8000 Series, above. AP00045911 Mr. G. B. H. Speed -7- May 2, 1968 Micropearl and PVC 3185 plant trials were discussed under PRODUCTION, above. Product variability within a given lot compounds the problem of poor reproducibility from lot to lot. A PVC 4185 SP (special PVC 3185) from Texon showed marked differences among the drying composite, samples taken by Texon, and samples taken from the bags at Texon by Escambia personnel. Baffles were installed in the blend tanks to improve the slurry feed uniformity and a test program was started to determine product consistency at the blend tanks, from the dryer, in transferring, and in bagging. There appears to be some classification in the dried material which varies among types and with the type screen distribution. A broad size distribution in PVC 3185 gives the greatest variation of the types studied to date. Although the PVC 3185 produced was finer than normal specification grade, a selected, low bulk density Lot was ground to 4185- 3S at a rate of 1200 to 1500 lbs, /hr. compared with a normal rate of 300 to 500 lbs. /hr. Reducing the rotary valve blade clearance in the bulk loading and transfer system increased the capacities 100% and 40% on the north and south units, respectively. Increasing the bulk truck loading line to 4 in. from 3 in. gave less than the expected improvement because of the overriding effect of the rotary valve improvement. The bag packer weighing accuracy was improved by modifying the air system and increasing the feed hopper vent opening. The Trane Company is trying to renege on its commitment to furnish explosion proof motors for the new refrigeration machines. The background on the problem and definition of the Trane commitment was presented with copies of supporting correspondence in memoranda from M. B. Rogers and W. T. Vance. Purchasing is pursuing the problem with Trane. MAY, 1968 PROJECTION Projections for May are as follows: Projection Budget Production, M lbs. Month End Inventory, M lbs. Production Cost Variance* 4, 160 2, 366 0 4, 080 3, 095,,':,,' * Variance excludes monomer price variance. Budget adjusted to 4. 85^/lb. including freight as of the April, 1968 "E" Schedule.** ** Based on 1967 year-end inventory and budgeted sales and production. AP00045912 Mr. G. B. H. Speed -8- May 2, 1968 VARIANCE ANALYSIS Variance analysis for April is as follow s: Favorable Unfavorable By-product Credit $ 607 Process Costs Salaries &r PR Over head Maintenance Utilities 2, 215 1. 551 1, 564 Volume Variance (bulk) Process Chemicals Process Costs Lab Expense Taxes it Ins. $16,558 3, 465 1, 149 695 Packaging Volume Process Costs Salaries Materials, containers Rental Other 1, 440 295 32 3 159 00 00 00 r--. TOTAL $5,937 $2 3, 872 NET VARIANCE - $17,935 Unfavorable <^7 . M. B. Rogers AP00045913 yrXT' T'r'Tr*'-'*-p " ^7 ^2 *X AGRICULTURAL CHEMICALS DIVISION MONTHLY REPORT May, 1968 AP00045914 P e rs o n n e l I I AP00045915 ESCAMBIA CHEMICAL CORPORATION Interoffice Memorandum To; Mr, T. L. Carey From; E. M. Spurlock Date; June 6, 1968 Re: Monthly Report - Personnel Department - May, 1968 PERSONNEL Activity for the Month Division No. of Employees 4/30/68 May Addit. May Separa. No, of Employees 5/31/68 May 1968 Budget Executive Office 3 Accounting St Credit 42 Plant St Wilton Labs. 78 & Planning & Dev. Plant Admin. St Procesis 197 Plant Eng. & Maint. 126 Personnel St Safety 12 Purchasing St Traffic 29 Sales - Agri. Chem. 165 Sales - PVC St Ind.Chem._15 Total Escambia 667 00 3 5 1 4 39 43 0 1 77 86 4 2 199 201 0 0 126 131 0 0 12 12 1 1 29 29 4 5 164 214 _2 _1 16 15 12 14 665 736 Carroll Construction Co. No. of 1Employees 4/30/68 No. of Employees 5/31/68 Office 22 Maintenance Insulators Mechanics Yardmen Trashmen Laborers Janitors Painters Total Maintenance 33 ii52 i2 9 2 2 7 20 76 79 33 51 AP00045916 Monthly Report (2) June 6, 1968 PERSONNEL (Cont'd.) Carroll Construction Co. No. of Employees 4/30/68 No. of Employees 5/31/68 PVC Laborers Area B Laborers Truck Drivers (Traffic) Railroad Crew 8 27 3 1 9 33 3 1 Total Carroll 74 99 667 665 Grand Total 741 764 There were 91 walk-in applicants, 77 applications were issued and 21 were received by mail.. Fifty-three applicants were interviewed and 41 were tested. SAFETY The Corporation worked approximately 120,000 man-hours during the month. The approximate man-hours and the days worked to date without a lost time injury are as follows: Division Man-hours Days New York Office Research Sales Pensacola Plant Corporation 436,000 1,050,000 17,500 219,000 66,000 2,492 3,972 17 86 17 The Sales Division experienced two lost time injuries at the Camilla, Georgia Farm Service Center. Medical Section The Medical Section treated 27 injuries for Escambia and 22 for Carroll, performed 4 pre-employment and 11 annual physicals and gave a total of 29 immunization injections. EMPLOYEE RELATIONS Seven (7) 5-year service awards were presented. One (1) 10-year service award was presented. AP00045917 Monthly Report -3- June 6, 1968 TRAINING We held three (3) Forklift classes in which nine people were licensed to operate forklifts. LABOR RELATIONS Relative to the union organizing campaign at American Cyanamid, they have completed their hearings and are awaiting a decision from the National Labor Relations Board for the determination of a proper bargaining unit. Since this will take some time for the Labor Board to decide, some of the employees are petitioning the Labor Board to withdraw the election petition. The reason for this action is due to the fact that while theLabor Board has this hearing under consideration, the company cannot change its wages, working conditions or benefits. This is the time of year that American Cyanamid normally grants a general wage increase to this group of employees, SALARY ADMINISTRATION In line with the instructions of the Salary Administration Program adopted by Ebasco Industries for Escambia, 1 am specifically charged with the responsibility of evaluating and administering the program on Levels 22 and below. In order to properly evaluate these positions, we have requested a position description cm each job of exempt employees. We have received approximately 30% of these position descriptions and are proceeding to obtain the balance. As soon as they are all received, we will review the proposed salary level again with each department head. At the conclusion of this procedure, we will then forward the proposed levels and position descrip tions to Mr. Sanders with Ebasco for approval. INSURANCE You will recall that on January 1, 1967 we changed our insurance carrier for our Workmen's Compensation, Public Liability and Automobile Liability from the Fidelity and Casualty Company to Travelers Insurance Company so that all of the subsidiary companies would be covered under the same policy as the parent company. The Travelers experience in losses under these policies and, specifically, under the Errors and Omissions endorsement has been poor. Therefore, the Travelers cancelled the Errors and Omissions coverage and made certain other limitation to the policy. These changes were not acceptable to Ebasco Industries and they changed carriers effective May 1, 1968 to the Kemper Group or, more specifically, American Motorists Insurance Company. AP00045918 Monthly Report June 6, 1968 INSURANCE (Cont'd.) We have spent a good deal of time with the representatives of this company to set up our procedures and coverages. We paid a total of 65 claims under our Group Hospitalization program which amounted to a total of $ 11,047.49 during the month of May. We settled the following claims during the month of May: Two (2) Auto Physical Damage claims in the amount of $ 302.72. Two (2) Comprehensive Commercial Bond claims in the amount of $ 292.95. EMS: kc E. M. Spurlock AP00045919 r MONTHLY REPORT MAY 1968 INDUSTRIAL CHEMICALS & PLASTICS DIVISION L_ ~1 H. L. Harwell AP00045920 MONTHLY REPORT MAY 1968 INDUSTRIAL CHEMICALS & PLASTICS DIVISION Statistics $(000) Sales Production* Inventory** Net Change Ending Planned Plastics 6c Compound Methanol $ 568 279 Methylamines 124 Higher Amines 448 I BN 37 DNT 160 TOTAL $1,616 $ 370 207 132 232 78 $1,019 - 44 - 39 + 84 + 79 - 23 - 45 $+ 12 $ 438 28 354 808 79 122 $1,829 $ 448 149 298 596 64 62 $1,617 * Actual Cost ** Standard Cost AP00045921 Good production, combined with the capture of 110 M of accruals (Lamcal and spent acid tank cars) produced an excellent month of $281 M: over budget by $145 M. Sales were lighter than recently in Industrial Chemicals, but were a volume record in FVC. This, combined with the Lamcal adjustment, brought PVC into the black by $ 30 M. Before tax profit year to date of $1,255 M, aided by the absence of $281 M in idle MMA plant expense, exceeds the 1968 annual budget of $1,007 M. This is the result of continued high performance in sales and in the plant operations, the combination of which has generated favorable production variance of $367 M. The outlook for the balance of the year is for generally above monthly budget performance. As indicated, sales of PVC stimulated by the high rate of automotive production, increased housing starts and good busines were an all time record in excess of 5.0 MM lbs. of prime. Robbins had a good month - 1.1 MM lbs.; Lamcal took 240 M lbs., Phillips Film - 400 M lbs., and U.S.M, - 560 M lbs. This puts Escambia in a completely sold out position, as a consequence of which prices were increased at three marginal accounts where the volume totals 600 M lbs./month. The latest projections show the plant sold out for the balance.of the year without this volume. Meanwhile, the price of PVC is ambivalent. Some producers are moving prices up others are not. APOOO 2- - Sales of specialty and/or higher priced resins were also a record 1,027 M lbs., including 42 M lbs. of the new plastisol extender resins, which favorable product mix increased the average unit price of prime resin 0.3c? over the previous month. The PVC plant had a good month with a high rate of production (4.6 MM lbs.). The monomer yield was 96%. Much progress was made with the fusion resin problems with an almost successful run of 3185-LG, which was high on bulk density only and apparently satis factory to Texon. Screening of 4185-2S resulted in satisfactory fusion resin, thus making potentially saleable 150 M Lbs. of doubtful inventory. It appears that until Micro Pearls, closely related to 3185-LG, evolve sales can be supplied with grinding and screening. During the month several minor revisions (increased drier steam line, the installation of the chip filter baskets and hydraulic oil temperature controls) were made, all designed to increase production, reduce losses and improve quality. Thus, as the expense burden on PVC is reduced, the raw material cost reduced and the product mix improved, the business should turn into the black during the last quarter. AP00045923 3 Industrial Chemicals sales -were off some in May. This is due more to customer buying pattern than change in demand. Methanol and DNT were above budget in volume. We expect the methanol volume to remain favorable for the balance of the year, although, as previously reported, prices have declined. The long awaited production increase from the new Borden plant is now here as they were reported on-stream last week. Meanwhile, it is rumored that Commercial Solvents have cancelled their expansion. This leaves the number of new centrifugal plants now commited to three: Borden, Hercules and DuPont. We are constantly making efforts to move Methanol in directions other than Reichhold and have had recent discussions with Shell, Hercules, Pfizer and are soliciting resellers in the southeast. Prices, however, are generally no more favorable than the 14.5b now in effect with Reichhold. Amine sales were down because of slowness at P & G, Monsanto, Hoffman-Taff and Geigy. This appears to be temporary, as we already have June orders on hand for higher amines totalling 3.8 MM lbs. The Wyandotte position continues to be favorable and we expect them to be at 2.0 MM lbs. per month as projected. The plants ran excellently in May, although Methanol production was down as anticipated because of the ammonia turn around. Methylamines were again fed byproduct methanol heads and Dimethyl Ether with no adverse effects. Production of MEA averaged AP00045924 4 77 M lbs. per day. Revisions for the DMF run are almost completed and the IBN equipment is expected to be installed in June. A run of n-propylamines Is now tentatively scheduled for October, subject to managerial approval of our plans for this product. Spent acid is now required for the bulk blend operation and will be carried at cost, bringing an additional $14 M per month into DNT. A purchase raw material (ethyl ether) price variance will cause the usual favorable production variance in higher amines to disappear in June. This is because of spot purchases above volume in the basic Enjay contract. Prices will revert to the contract level of 250/gallon August 1st. GENERAL The industry reports -for basic chemical commodity producers show a profit increase of a disappointing 6% for the first quarter, price being the major problem. During the month Reichhold announced two acquisitions:- Chemico, Inc. and Rubber Latex Co.; and Ethyl Corporation bought Imco Container (FVC bottles) for $25 MM. KLK: A AP00045925