Document aJLYRgxR1yQ6ZdyZbE8r7m17X

1-2 INTERNAL CORRESPONDENCE METALS DIVISION To(N4meiMr. G. R. Adams c.vmon UCC-Metals Division Location 39th Floor 270 Park Avenue New York, NY 10017 R. E. Byrne, Jr. W. B. DeAtley G. L. Dickson B. L. Ingalls R. J. Kennedy, Sr E. J. Kleber T. P. Norris F. L. Smi th J. E. Walsh o.p box m-4625 royal ave.. Niagara falls, new york 4303 ote OMg*mting Dept. July 11 , 1979 "Calidria" Asbestos Answering letter date s`IBiec: "The Calidria Story" JULj s 19?g Enclosed for your information is a copy of the presentation I made to the group involved with asbestos strategic planning. Joi^L^Myers JLM:dla Enclosure I i X A18550 THE UNION CARBIDE- "CALIORIA" ASBESTOS BUSINESS (J. L. Myers 5/1/79, Rev. 7/11/79) In 1957 a Union Carbide exploration geologist was in central California looking for nickel or other metallic mineral deposits which could be of value to the , Corporation. He took note of a peculiar white, leathery mineral which was eventually determined to be chrysotile asbestos in a unique physical form. Exploration activities were centered in the nearly town of Coalinga, and the deposits have become known as Coalinga Asbestos. Asbestos (from a Greek word meaning non-burning) is a conmercial term applied to several fibrous metal silicate minerals which are fire-proof and capable of being processed into flexible fibers. There are six varieties of asbestos which are divided into two groups, serpentine and amphibole, based on their crystal structure (Att. 1). Chrysotile is the only member of the serpentine group while the amphiboles include crocidolite, amosite, anthophyllite, tremolite and actinolite. Chrysotile accounts for over 95% of world consumption; and, of the amphiboles, only crocidolite and amosite have any commercial significance. Sources and general uses of the three varieties are shown in Att. 2; and Att. 3 summarizes comparative data for them. Based on epidemiological and other data, many medical and scientific authorities agree that crocidolite and amosite are more harmful to human health than chrvsotile. Although U.S. regulations do not reflect this, the UK and other countries have severely restricted the use of crocidolite and amosite. Chrysotile has several characteristics which are responsible for its widespread usage in over 3000 applications: worldwide availability, positive surface charge, flexibility, softness, high tensile strength (see Att. 4). Chrysotile occurs only in serpentine (California's official State Rock), which is a fine-grain rock composed almost entirely of hydrous magnesium silicate minerals similar to chrysotile in composition. Canada is the free world's largest producer of chrysotile asbestos, and supplies about 90% of the U.S. asbestos requirements. The Canadian and most other deposits of serpentine contain chrysotile in cross fiber veins that are rarely more than half an inch thick. A typical ore contains only 6-10% fiber, of random lengths and tightly bonded together in a parallel configuration (see Att. 5). The Coalinga Asbestos deposit bears little resem blance to other serpentine bodies found throughout the world since most of the mass has been highly sheared and pulverized by nature. It consists of soft, friable sheets and clumps of asbestos fibers, and the only other known ore body of this type is the Stragari. deposit in Yugoslavia. In contrast to the cross fiber arrangement of conventional ores, the Coalinga deposit occurs as a swirling mesh of disoriented fibers (see Att. 6). Each fiber or fiber bundle is only in point contact with its neighbor, and the fiber content ranges from 50-60%. The Coalinga deposit is located in the southern part of the Diablo Mountain range, in Fresno and San Benito Counties (see Att. 7). It is in what is known X41855^ 2- - as the New Idria mining district, which has long been famous as the oldest producing mercury mine (since 1853) in t' United States, and is thought to be the largest single mineral deposit in the world. (Union Carbide's tradename "CALIDRIA" is a combination of "CAL" from California and "IDRIA" from New Idria.) Rich asbestos ore has been found over an area of 40-50 square miles, and to deDths of over 500 feet. Conservative estimates indicate that over one hundred million tons of Chrysotile asbestos are available, while Canada's ore reserves have been estimated at less than 50 million tons. In addition to having a very low fiber content, Canadian ore deposits contain fibers of various lengths, from a few microns up to several inches. These are defined by Canadian screening tests and designated as Grades 3 through 7 (see Att. 8). Conventional Canadian processing techniques include blasting, crushing, grinding and air classifying. A typical Canadian Grade 7 product will contain about 30-40% serpentine rock dust and 60-70% asbestos fibers. Most of the fibers will still be in bundles as shown in Att. 9. Union Carbide mines the Coalinaa ore by conventional open pit methods (see Att. 10). After removing 20 feet or less of overburden, ripper-equipped bull dozers and self-propelled scrapers are used to remove ore from the deposit. Before hauling the ore 55 miles to the plant near King City, it is screened to minus 3/4-inch. Mining operations are carried out eve*-y other year during the dry season (May to October), and ore is delivered to the plant every year during this same period. Mining and hauling are sub-contracted, but supervised by plant personnel. Union Carbide evaluated various dry processing methods but the best product looked little different than that depicted in Att. 9, and performed very similar . to Canadian asbestos. An investment to produce such a product for conventional asbestos applications was not justified. In order to take full advantage of the unique features of the Coalinga ore deposit (summarized in Att. 11), a hydraulic beneficiation process was developed. Conventional mineral processing techniques were combined with the innovative use of special equipment and a plant was designed with three basic systems: rock fiber separation, refining, and special treatment (see Att. 12). This enables production of three basic product categories: fiber, colloidal, and modified, all with liberated fibers as 'shown in Att. 13. The semi-works plant (see Att. 14) was started in 1963 and was expanded to its present capacity, except for RG-244, in 1966. The asbestos business was in the Nuclear Division until 1965 when it was transferred to the Metals Division. In an attempt to achieve better market compatibility, and hopefuily increased sales, the business was transferred to the Chemicals and Plastics Division (Group I) in 1967. RG-244 was introduced in 1968; and, because of lack of sales growth and no apparent upper management interest, the asbestos business was put up for sale in 1969. It should be noted that considerable losses had been experienced since startup and negative net income was shown through 1970. The asbestos business has never had a good "fit" in the Corporation and probably never will have unless other non-metallic minerals can be developed and marketed by the same group as a separate entity or department. The business was not sold but it was transferred back to the Metals^Division in 1970; and, in 1971, the first positive net income was realized, during 1970 the marketing philosophy was changed from trying to develop new products and X 418552 -3- markets, to selling existing products to conventional asbestos markets and spending a minimum amount of resources on develooment. Personnel who had been with the business for several years in production and technical capacities were transformed into a sales group which also performed technical and marketing service functions. This group is essentially still intact and the financial performance of the business for the last seven years is shown in Att. 15. A historical summary of the asbestos business is shown in Att. 16. Although, on paper, the asbestos business conforms to the regular organization of the Metals Division, there are some aspects which, in reality, are consider ably different when compared to other Division product lines. There are basically two groups which operate the business: plant production and product marketing. In addition to production, plant personnel also handle order entry, invoicing, shipments (domestic and foreign), inventory control, warehousing and associated responsibilities. In addition to direct sales, marketing personnel handle technical service, orders, health and regulatory matters, product and market development, sales promotion and literature development, international sales and other associated responsibilities which are normally handled by special departments within the Division. There is very close cooperation between plant and marketing personnel with little involvement by New York management. There is obviously some concern over this type of operation but a small business, such as asbestos, can be ope'ated successfully in this manner. (Plant and Marketing organization charts are shown on Att. 17 and 18.) Union Carbide's asbestos business involves the mining, milling and production of short fiber, high quality asbestos fiber products for world-wide marketing into relatively small segments of various industries. Major tonnage sales are to the vinyl-asbestos floor tile industry and similar applications for short fiber asbestos. "Calidria" asbestos does not compete with non-short fiber asbestos in other markets, which comprise the major share of the asbestos indus try. Major dollar sales of our asbestos business are from viscosity control markets where the competition is non-asbestos products. Again, "Calidria" asbestos does not compete with these non-asbestos products in the major share of their markets. As ipentioned earlier, asbestos, especially chrysotile, is mined and produced throughout the world. Att. 19 summarizes the major sources of asbestos. Apparent consumption of chrysotile asbestos in the U.S. has dropped from a peak of 876,000 tons in 1973 to an estimated 641,000 tons in 1978. Union Carbide is responsible for about 25% of U.S. production and supplies about 3% of total U.S. comsumption (see Att. 20). According to USBM estimates, UCC was responsible for 36% of U.S. production in 1978 and provided 4.1% of total U.S. consumption. Based on preliminary estimate for 1978, chrysotile was used in the U.S. as shown in Att. 21. This was a typical year and shows that the construction industry continues to use about 63% of the total consumption. The markets in which we are able to at least partially compete with Canadian asbestos are marked and total about 282,000 tons. Attachment 22 summarizes the domestic applications for various "Calidria" products. As shown in Att. 23, the asbestos industry consumes 95% of tons and X 41 8 b b 3 -4- 65% of dollars, while the non-asbestos industry consumes only 5% of tons but provides 35% of sales dollars. Attachments 24-32 describe how "Calidria" asbestos fits into the potential domestic asbestos and non-asbestos markets as previously described. X418554 ATT. 1 ASBESTOS - HYDRATED METAL SILICATE SERPENTINE Chrysotile AMP HIB 0 LE Crocidolite Amosite Anthophyllite Tremolite Actinolite X 418555 GENERAL ASBESTOS INFORMATION - U.S. ATT. 2 Chrysotile Crocidolite Amosite Kajqr Sources U.S., Canada . Aprlkatiqns 1978 Estimated U.S. Consumption CEMENT, TILE, FRICTION MATERIALS, TEXTILES, PLASTICS, INSULATION, ASPHALTICS 632,000 .T So. Africa So. Africa REINFORCING, INSULATION INSULATION, PACKINGS 16,500 T 1,500 T TOTAL 641,000 T X 418556 ah. 3 COMPARATIVE DATA FOR ASBESTOS MINERALS FORMULA CHRYSOTILE 3Mg0-2S102- 2H20 CROCIDOLITE Na20*Fe203*3FeO* 8Si02'H20 AMOSITE 1. 5MgO* 5.5 8Si02*H2 COMPOSITION,% Si02 MgO FeO Fe203 AI2O3 H20 CaO Na20 Ca0+Na20 CRYSTALS COLOR TEXTURE FLEXIBILITY HARDNESS,Mohs FIBER DIA., A TENSILE, Mpsi SURFACE CHG. RES. TO ACID RES. TO ALK. 37-44 39-44 0-6 0-5 0-2 12-15 0-5 - FINE FIBERS GRAY/GREEN SOFT/SILKY VERY GOOD 2.5-4 180-300 800 POSITIVE POOR GOOD 49-53 0-3 13-20 17-20 2-5 4-8 - BRITTLE FIBERS BLUE HARSH GOOD 4 600-900 600 NEGATIVE GOOD GOOD 49-53 1-7 34-44 - 2-9 2-5 0-3 PRISMATIC CRYSTALS GRAY/BROWN HARSH GOOD 5.5-6 600-900 200 NEGATIVE GOOD FAIR SOURCE: MODERN PLASTICS ENCYCLOPEDIA (1972-3), AND ENCYCLOPEDIA OF CHEMICAL TECHNOLOGY, VOLUME 2, P. 136 (1948). X 41 8557 ATT. A ADVANTAGES OF CHRYSOTILE FIBER Worldwide Availability Positive Surface Charge Flexibility High Tensile Strength Softness X418558 t= X418560 ATT. 7 X 418561 Canadian Chrysotile Asbestos Classification Afedarrf Designation Of Grade wr Mesh Guaranteed Minimum Shipping Test* 4 Mesh 1C Mesh Pan Group Numbef 3F 10.3 3.9 xa 3K 3ft 77 47 1.5 0.5 41 Group 3 (Spinning Fibre) 3T 28 42 3Z 19 47 AA 0 62 40 07 63 4K 94 93 Group 4 4M 04 B4 (Shingle Fibre) 4T 02 10 4 4Z 0 1.5 9.5 5 SO 0 0.3 10.5 5 SK 00 12 4 Group 5 5M 00 n5 (Paper Fibre) SR 00 10 6 60 00 79 Group 6 (Waste) 70 7F 7H 7K 7M 7R 7T 7RF (Floats) 7TF (Floats) es 0 0 0 0 0 0 0 No Test No Test No Test 0 0 0 0 0 0 0 5 11 4 12 3 13 2 14 1 15 0 16 0 16 Group 7 (Shorts) 1 'Guaranteed minimum shipping test is that test below which the actual shipping test shell not fall. The shipping test is the average for each carload or smaller shipment of tests of representative samples taken at time of shipment. Uses of Asbestos with Corresponding Recommended Carey Grades Canadian Chrysotile Asbestos is an essential raw material for a wide variety of products To meet the requirements of specific industries, sub-grades, or grades within grades, have been developed by rcse.`>rch. Grades are divided into sub-grades according to fibre length, degree of "crudiness" and amount or size of fines. Variations of this combination can change such characteristics as density, absorption, wet volume and setting rate. Carey Canadian produces a wide range of sub-grades as shown in the table below. Jm/><>rr<inr PrOv'lucfi Conminring Aibeuos Recommended Carey-Canadian Grade** Important Products Containting Asbestos Recommended Carcy-Canadian Grades* Acoustical Plaster Adhesives Asbestos Cerr ent Products Asbestos Millboard Asbestos Papci anil Felt Asphalt Compounds Caulking and Sealers Ccmer.ts Dry Wall Joint Ki reproofing insulation Finishing Refractory Fibrnted Creases 6D-1, 7D-3, 7MS-1, 7M-5 7R-3, 7T-5, 7RF-9, 7TF-8 4K-1, 4T-1, 5D-1, 5K-1, 5R-L, 5R-5, 6D-1, 6D-5 4T-1, 5D-1, 5K-1, 5R-1, 6D-1, 7D-3, 7M-5 5D-1, 5K.-1. 5R-1, 6D-1, 6D-01, 7D-3, 7M-S 7D-I, 7F, 7K3, 7KS-1. 7MS-1, 7M-5, 7RS-1, 7R-3, 7TS-1, 7T-5, 7RF-9, 7TF-8 7D-3, 7F, 7K-3, 7MS-1, 7M-5, 7RS-1, 7R-3, 7TS-1, 7T-5, 7RF-9, 7RF-10, 7TF-8 7RF-9, 7RF-10, 7TF-8. 7TF-12 5D-1, 5R-1, 6D-1, 7D-3, 7MS-1 6D-1, 7D-3, 7M-5, 7M-90, 7TS, SR-1, 6D-1, 7M-5, 7M-90, 7MS-1 7F, 7RF-9, 7RF-10 Floor Tiles Asphalr Vinyl Asbestos Rubber Friction Marerial Magnesite Flooring Oil Well Muds Pipe-fibre Plastics Cold Molded Molding Compounds Pre-mix Molding Radiator Sealing Compounds Sheet Packing Textiles Welding Rods 7R-3. 7RS-3 7R-3 7R-3, 7T5 5K-1. SR-1, 5R-5, 6D-1, 6D-S, 7D-3, 7D-5, 7F, 7K-3. 7MS-1, 7M-S 7T-5, 7RF-9 7R-3, 7RF-9 7M-5, 7R-3 5R-1, 6D-1, 7D-3, 7M-5. 7T-5, 7RF-9 7RF-9, 7TF-8, 7TF-12 7T5, 7TF-8 7M-5, 7T-5, 7RF-9 4K-1, 4T-1, 5D-1, 5K-1, 5R-1, 5R-01, 6D-1 3T-1, 4K-1 7M-5. 7R-3, 7T-5, 7RF-9 Suh tfrad*jcv0ndlon*foraU c'*de s e*ceol Shorts indicate: ( )) well opened, (-5) seml-crudy. Sub-grade designations for Short grades indicate: ( I) I'rK*' buh end ol absorption. (-3) ( S)(-9)( I0(medium bulk and oil absorphon,(B)(-yO) lo bulk and oil absorption X 4-1 8562 X 418564 UNIQUE CHARACTERISTICS OF THE COAL INGA ORE DEPOSIT All Chrysotile All Short Fiber Random-Oriented Fibers Over 50? Fiber 15-20? Moisture Easy to Mine X 418565 CALIDRIA ASBESTOS PRODUCTION X418566 t X418567 X 418568 69s8lfrX _ tn o*> rPC--h> +<-J* (A VO co vo CCMO CCpOMO. GCOOO cn CCCMOM 0 CcMo r-- Ph OCOM P01--0h 0m0 cn CM o o co CM ^CCMM UCr--O0 <J> <U p#0--h> 0Tc333r O OCrjM- 0 0 CM O O ID VO rO-- CM CO 0 0 <4* 0 C0M CM VO ph vo o oo o oo\ O o M3 Ol O o o VO CZDO <V-- O z: < 0 cn rv. 00 UJ f___ \ <in m x CO o CO co < or o -J < O 0Ph0. cn VO VO in 0 cn in CM VO ri--n ph 0rc--0n m rC--M CM *4" cn CM rin_ Ph r-*. o> <n ph 3* CT Ocn co CinO in o CM PPhh rc--n in <n CM CO in 0 C0M O O CO in cn 00 CM CM in CM co co *3* O CM co CpHO 10 VO rO-"* CM 00 <n CO VO 0 0 co Cr--M O O r-- PVhO rc--n in 00 0co Ph p*h r-- cn m co in in in CM COM cn CM CcOn cn r-- cn vo M1 Ph. O f-- in 10 co CO in *T o CO in o CM CM m Ph cn CM CO CO 0 <n CM ro <3- co 0 0 CO r-. ph. cn CM in rCv""Oo O ^T VO O 10 o> m 0 CO pH CM CM O cn CM VPOh pH. r<--n CO CO CM 0P>0. CM ,-- VPOH CO pH. vP*oH in CM 0 CvMo PH in - PH in Ph 00 VO CCMO Ph 00 r-* O vo CM ,_ CPMH co r-. CM CM cn in CM PH Ph cn O CM r-- 00 cn d- *3* in PH cn vo CO PH CO ^3* CO in co f-- #-- CM r* CO O CM r- 0 co r--- CM PH PH CM CO O CO VO CM CO O 00 CM cn CM in m co PH cn PH cn 0 cn r-- in 0 pH 00 00 in CM CM CO r-- r-- 0 O 1 CO r-- CCoMO CoM CO CM CcOn vr cn cn vo <-- o <n CM PH O co co -- Xto 00 --0) 03 I/O 0 f" 4-J uo 0) E O x bo at bxO 00 t--<i> in a; IQ on 03 4-> 10 i- O |Q CL XO l/> C O I-- * in a; r-- |Q in iQ 4^ O V. +- ir/--l a a u> O O +j c IQ 21 bO * bO * m bsO: cr* <4-> in 0O3 o> u O O a> X iQ X cn c: 0 in r i/> ITS Oi- r-- a; 4-> O bXO- at VXA o> OE k 0) u c HH E O Uc S- 0> Q. 01 <i-v IQ X C-HO^ -tf m cn c r* C u (O <c 0 q; X b*V *o 0J 4- ms0) c 0) 0 X 0 <Q O LU h- 1-- 0. O CO H- O X UJ O h-- **^AH "f--H^ bO- O 3 ft M VA |Q O >O 4-> M uU 3 *0 3 *o OU Ou O. cu 1957 8/63 1965 1/66 1966 1/67 2/68 1969 1/70 1970 1971 1972 1973 5/74 1975 1976 1977 1978 "CALIDRIA" CHRONOLOGY ATT. 16 MINE DISCOVERED (NUCLEAR DIV.) SEMI-WORKS PLANT STARTED TO METALS DIVISION PLANT EXPANDED SALES OVER ONE MILLION DOLLARS BUSINESS TRANSFERRED TO GROUP 1 INTRODUCED RG-244 BUSINESS FOR SALE BUSINESS TRANSFERRED TO METALS SALES ALMOST TWO MILLION DOLLARS FIRST POSITIVE NET INCOME SALES NEAR PLANT CAPACITY, OVER 3 MILLION DOLLARS SALES ALMOST 4 MILLION DOLLARS INTRODUCED RG-600 PLANT ON 21 SHIFTS/WK., SALES OVER 4 MILLION DOLLARS FIRST POSITIVE CASH FLOW SALES ALMOST 5 MILLION DOLLARS SALES OVER 5 MILLION DOLLARS, CASH FLOW OVER 1 MILLION DOLLARS SALES OVER 7 MILLION DOLLARS, RECORD PRODUCTION AND EARNINGS X4'fr7c "CALIDRIA" ASBESTOS MARKETING ORGANIZATION - 4/1/79 ATT. 17 *4/857/ Union Carbide C orporation M etals D iv is ic "C a lid ria " Asbestos Operations (5/15/78) 3 H- Z LU a: UJ oo UJ 0 J-- U --** T*- 0u < LO .--. >< tO /-N <c UJ ui ce: cc CD -- CO UI cc 2: to CD rz UJ Lul O < 2: Jh LU cr to Ui z a. CO C CD O LU H- CL 2: UJ 0 > 0: -- 2: 00 LU CD Z QC -- -- H- ZO LU O LU LU cc. cd CO LU 0 O LU *-- --j O U. u_ <c ^ a- ' 0 2: cd ZD LU _J 2: -d--O 1" OO _J Q_ C *-* ui 0 a: O CO UJ --' ad co iZ C cd Xd CD < O C3 O CO Q 00 Ou 23 O . -U 0 Qd }-- Cd zz 0 <c 0 _ 0 *-- ---- O >- -- H- Z LU SI __ 1 *-- 1-- <~3 --1 JC 1-- s--* __ IU < LU ZD h~ UJ CO O' O CO 2* < O Z z 0 LU 1-- CO c --J cc z lu <C LU z LU z--* ad co Lu LU H2-: >J--- <C LU Q--.1 L.<u 00 LU >-- > z --> CD 2= O OOf-C--D- *-3 cd -J 00 >- --- CC _J cc a >- cr _j 0 00 <q:ucd -- > Cd z LU 0 Q_ to z z 23 OS C < >CO LU CD CD LU a O cd ad h--* z or a: co Lu <OC32 22 > CO s: --J Lu LU 00:003 cd cd ID z Cd UJ aLU. h- ZD z 00 < _Q__ U2CJ OO C<d o z or 2 LU a. LU a. ^ O' 0 0: O Z LU LU CD O UJ O Cd **--*-- 2: or 0 --< z c z 0-^ 0 CO Q LU 31 LU 2u <X. ad -U Lu or LU h* LU to =c 2: 0*1 & Or 79 *0 ATT. 19 MAJOR WORLD SOURCES OF ASBESTOS (Based on 1977 USBM Estimates) COUNTRY USSR Canada So. Africa So. Rhodesia P.R. of China Italy Brazil U.S.A. Australia TOTAL SHORT TONS 2,710,000 1,700,000 419,000 220,000 220,000 170,000 105,000 102,000 61,000 5,879,000 ATT. 20 ASBESTOS STATISTICS, M Short Tons (JLM, 3/27/79) 1978 Estimates 1973-1978 Average U.S. Consumption U.S. Imports U.S. Exports U.S. Production m* 588* 35* 100* 728 658 47 113 UCC Production UCC Dom. Shmpts. UCC Export 36 26 9 29 22 7 USBF!"From reports and private communication with R. A. Clifton of USBM X A ` Cr 7 4 U.S. Chrysotile Consumption - 1978 Asbestos-cement pipe Flooring Products'* Friction Products Roofing Products* Asbestos-cement sheet Coatings & compounds* Packings & gaskets Paper Insulation (Thermal & Electric) Textiles Plastics* Other* Tons 153,000 147,000 86,400 61,000 41,400 35,200 25,600 22,400 19,200 9,600 6,400 32,000 TOTAL 640,000 % of Total** 24.0 23.0 13.5 9.5 6.5 5.5 4.0 3.5 3.0 1.5 1.0 5.0 100 ** - "Asbestos", December 1978, pp. 16-18 * - Markets in which UCC partcipates REB 4/30/79 ATT. 22 "CALIDR1A" ASBESTOS PRODUCT APPLICATIONS PRODUCT _ _ _ _ _ _ _ _ _ _ APPLICATIONS SG-100 Vinyl-asbestos floor tile S6-130 Masonry coatings SG-200 Rubber floor tile Super Visbestos Drilling muds SG-210 Mastics Asphaltic coatings Phenolic molding compounds HPP HPO RG-110 RG-144 RG-244 Rubber sheet goods Mineral board (Japan) Paper (Japan) Asphaltic coatings. Adhesives Asphaltic spray coatings Aluminized coatings Mastics, caulks & sealants (E ,Adhesives poxy casim, phenolics) Coatings Vinyl plastisols (High build, dip coatings) Mastics, caulks & sealants (Vinyl, butyl, polysulfide, bituminous) X 418576 Polyester resins (Laminating, gel coats, putties) Caulks & sealants (Vinyl, butyl, acrylic, polyurethane) Coatings (Epoxy, urethane, asphaltic) ATT. 23 1978 CALIDRIA ASBESTOS DOMESTIC APPLICATIONS AREAS (1) Floor Tile (1) Phenolic Compounds (1) Roofing Compounds (1) Asphaltic Coatings (1) Rubber-Sheet Goods (2) Adhesives (2) Sealants (2) Polyester Laminates (2) Coatings - 0) Drilling Muds (1) Miscellaneous SG-100 SG-200 SG-210 HPO SG-210 HPO SG-130 SG-144 RG-110 HPP RG-100 RG-144 RG-244 RG-144 RG-244 RG-244 CG-135 RG-144 RG-244 Visb. CSV SHUR T 17,500 350 510 940 370 280 430 100 550 3,000 1,920 25,950 $M 1800 % of Total T$ 67 39 80 1 2 100 . 2 2 180 4 4 130 1 3 230 1 5 540 2 12 200 0.5 4 630 2 14 400 n 9 280 4570 76 (1) Asbestos Industry Summary: Asbestos Industry Non-Asbestos Industry (2) Non-Asbestos Industry 24,590 1,360 2970 1600 95 65 5 35 X418577 ATT. 24 "Calidria" Participation in Typical Domestic Asbestos Markets in 1978 Flooring Products Domestic Market, Tons 147,000 Roofing 61,000 Coatings ' compounds (Asphaltic Coatings) 35,200 Plastics (Phenolic & Rubber) 6,400 Drilling Muds 8,000 Other 24,000 Potential Seqments, Tons 75,000 "Calidria" Share of Seqment Tons * 17,500 23.3 6,000 500 '8.3 12,000 1,000 8.3 6,000 8,000 24,000 (?) 700 3,000 2,300 11.7 37.5 9.6 TOTAL 281,600 131,000 25,000 19.1 RE8 4/30/79 A 4 1 8 L> 7 R DOMESTIC MARKET DETAIL Typical Asbestos Markets for "Calidria" ATT. 25 I. Flooring Products Total market 147,200 tons "Calidria" share 17,500 tons (11.9% of total) Total market includes both tile 8 sheet goods. "Calidria" participation only in tile market which is about 1/2 of total. "Calidria" share of this reduced market is, therefore, about 24%. Major competitors - Carey Canadian - Canada Atlas Mineral - California Floor tile market is split as follows: Carey 50% Atlas 20% "Calidria" 24% Others 6% 11. Roofing Compounds Total market 61,000 tons "Calidria" share 510 tons (0.8% of total) Market includes primarily asphalt compounds using asbestos as a flow control agent. Much of the market requires slightly longer fibers than "Calidria" has available. Realistically we can probably only compete for perhaps 10% of the total or 6100 tons. X4 1 8579 ATT. 26 Major competitors - Johns-Manvilie Carey Bell Market is split as follows: J-M 60S Carey 20% Bell 19% "Calidria" 1% Most Canadian suppliers II II H II M H III. Coatings & Compounds Total market 35,200 tons "Calidria" share 940 tons (2.7% of total) "Calidria" particpates primarily in the asphaltic coatings portion of this market which excludes roof coatings. Products include automotive undercoats, coatings for waterproofing below grade concrete and for driveways and tennis courts. The portion of the market in which "Calidria" might compete is unknown, but is probably at least 1/3 of the total market. Major competitors - Canadian producers Market is split by all manufacturers (primarily Canadian) and represents an outlet for as much short fiber product as can be allocated to this high volume, low cost application. IV. Plastics Total market 6,400 tons "Calidria" shares 720 tons(11.3% of total) Market includes primarily plastics used for structures, molded goods, etc. Larger segments include chemical resistant fibers, molded phenolic parts and some rubber goods. X^fgsgo ATT. 27 "Calidria" participates primarily in the latter two areas. Major competitors - Johns-Manville Market is split as follows: J-M 89% "Calidria" 11% V. Other (Oil and gas well drilling) Total market for short fiber asbestos 20,000 tons "Calidria" share 4,000 tons (20% of total) Current market is about 6-8000 tons because of regulatory restraints. Total market could be realized in the absence of regs. Major competitors - Johns-Manville (Flosal) Current market is shared by "Calidria" and Johns-Manville about equally. Production capacity is adequate for full development of market. X 41 8 5 8 t DOMESTIC "Calidria" Markets - Not Typical Asbestos (Viscosity Control) ATT. 28 Adhesives Sealants Polyester Laminates Coatings Tons 280 430 100 550 Total Market* 2500 1500 3400 4600 UCC % 11.2 28.7 2.9 12.0 TOTAL 1360 12,000 -11.3 *Total Market estimates - - Modern Plastics, January 1979 - C & P sources (Skeist Laboratory Market Analyses - 1978) - Assumed nominal loadings for "Calidria," i.e., 1% in polyesters, etc. REB 4/30/79 X418582 ATT. 29 Markets for "Calidria" - Not Typical Asbestos I. Adhesives Total market 3MM tons - portion requiring viscosity additives 125,000 tons - assuming 2% addition level - market "available" 2500 tons "Calidria" share - 280 tons (11.2% of total) Major competitors - National Lead (Bentones) Cabot Corporation (Cab-0-Sil) Other (Thixcin, etc.) Market share: C-jbot 45% National Lead 39% "Calidria" 11% Others 5% II. Sealants _ Total market about 150,000 tons split as follows: Construction Automotive Glass (Insulating) Aircraft Highways & Airfields Appliances 90,000 tons 30,000 II 6,000 M 1,000 II 15,000 II 7,000 II Assuming a 1% loading of viscosity additive, a market of 1500 tons is available. X4I85G3 "Calidria" share 430 tons (28.7% of total) Major competitors - Cabot (Cab-O-Sil, National Lead (Bentones) Market share is split as follows: Cabot 45% National Lead 26% "Calidria" 29% ATT. 30 III. Polyester Laminates Total market for thixotropic laminates 340,000 TPY Assuming 1% average addition, 3,400 TPY available "Calidria" share 100 tons (2.9% of total) Major competitors - Cabot Corp. (Cab-O-Sil) DeGussa (Aerosil) Others (Thixcin, Ircogel, etc.) Market share is split as follows: Cabot Corp. 70% DeGussa 24% Others 3% "Calidria" 3% IV. Coatings Total market for thixotropic, viscosity modifying and pigment suspending agents is 4600 TPY (1% of 460,000 TPY) "Calidria" share is 550 TPY (12% of total) X4I8584 Major competitors - Cabot Corp. (Cab-O-Sil) DeGussa (Aerosil) National Lead (Bentones) Baker Castor Oil (Thixcin, Thixatrol) Others Market is split as follows: Cabot 30% DeGussa 20% National Lead 20% Baker Castor Oil 13% "Calidria" 12% Otners 5% ATT. 31 REB:dal 4/30/79 /* & f (O r rv c ATT, 32 COMPETITORS AND MARKET SHARE Short Fiber Asbestos Market U..S,A,. UCC 197 J-M 23 Carey 47 Atlas 11 Japan 167 11 73 0 Total 137 20. 53 9 Viscosity Controi Markft U.S.A, UCC (G-144 & -244) 11 DeGussa 25 Cabot 49 National Lead 10 Baker 5 Japan 25 70 2 2 1 Europe 19 70 5 3 -7 U Total 15 40 40 3 2 X418586