Document b5zkp2bV76zyj2E1q4pmzYxd0

CH-1903 fCV. t-M eg) E. I. d u Po n t d e Ne mo u r s & Co mp a n y in c o r po mt v o Wil min g t o n . De l aw a r e 19898 CHEMICALS AND PIGMENTS DEPARTMENT JACKSON LABORATORY CC J. P. Glas, B-17206 s. W. Severance, B-6237 R. S. Weis, Jackson Lab March 9, 1982 J. R. Wells CR&DD D-6158 1982 RESEARCH SUMMARY AND TECHNICAL ACTIVITY BRIEF Attached is the Research Summary for Colored Pigments, PAW:jla Attachment N 26960 Role of Technology Superior quinacridone process and product technology is the key factor in maintaining Du Pont's competitive leadership in quinacridones. The quinacridone segment is Du Pont's strength in Colored Pigments. Evaluation Technology Position Opposite Competition Today 3-5 Years Summary Product Quinacridones + + Superior products for auto motive finishes and plastics. Inorganics Q Cl Conventional inorqanics competitive in all areas. "Krolor" superior for plastics applications. Copper Phthalocyanine Q 0 CPC blues are generally equal to competition. Other Organics Q 0 Competitive products for ink and consumer paints, but product line is narrower than competitions. Process 0 Patent Position 0 Low cost producer of quin-r acridone crude ard inorganics. Some copper phthalocyanine and other organic processes are not cost competitive. Du Pont's current competitive advantage in the quinacridone business is a direct result of past strong patent position on process and product technology. Critical quinacridone patents on crude synthesis and solid solution products have expired in the last several years, allowing competition, especially Bayer, to introduce products that had been unique to Du Pont. Patent protection continues through the late 19.80.'s on important treating agents and quinacridone gold products. No strong patent protection exists for other product lines with the esception of silica coated lead chromates ("Krolor"! where product and process patent protection exists through the mid-80's. Competi^tion is marketing "Krolor" type products, which we feel infringe our basic patents. N 26960.01 DUP050146128 Key Technologies Quinacridone .Crude Synthesis Finishing Technology Product Properties DUP050146129 2 Competitive Technical Activity State of the Art Research in Colored Pigments at Du Pont and major competition is generally aimed at modifying and improving existing products to meet the performance needs of changing end-use industries. European pigments manufacturers have also been successful in research aimed at developing completely new pigment chemical types (as judged by patent activity) especially in the yellow, orange, red color areas. Du Pont currently does not have a major technical effort aimed at new pigment development. Major Activity Bayer has developed a small production unit (Bushey Park, S.C.) utilizing Du Pont quinacridone synthesis technology to produce unique red products. Bayer and Sun are actively developing quinacridone solid solution products which had previously been unique to Du Pont. Conclusion Du Pont Assessment Du Pont production scale should continue to yield better economics. Du Pont technical expertise in quinacridone product development and strong ties with Fabrics & Finishes Department will maintain our lead in new product development. Du Pont's strength in Colored Pigments resides in the quin acridone segment of the business. Our large scale production facility based on intermediate synthesis of dihydroquinacridone and our backward integration to dimethylsuccinate (a Petrochemicals Department by-product) combine to make us the low cost producer of crude quinacridone. The requirement for high temperature operation and sophisticated solvent recovery make it difficult for competitors to duplicate our economics without significant investment. Bayer has installed a demonstration facility based on our technology to produce products formerly unique to Du Pont and are now studying the feasibility of using this technology to expand their quinacridone capacity. Improved product introductions are key to maintaining a competi tive advantage. Our technical expertise in quinacridone product development and our close ties to the critical automotive industry through Fabrics & Finishes Department should allow us to continue our product superiority. DUP050146130 3 DU Pont is generally equal to competition in product tech nology in non-quinacridone segments of the business. However, our multiplant configuration and low capacity utilization result in process cost disadvantages in these segments vs. competition. Research Strategy and Programs (1982) Research emphasis will be placed on maintenance of our quinacridone competitive position through improved product development to respond to new automotive finishes technology and to expand quinacridone penetration into high value plastics markets. Develop ment of improved products in non-quinacridone business segments will be minimized over the next several years. Manufacturing technical programs are aimed at upgrading and documenting existing product technology to improve operating reliability, allowing future operation of the Colored Pigments business in a more cost effective manner to improve profitability and competitive position. 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Will we successfully maintain our quinacridone competitive position through new product develop ment programs? R&D MT Total Technical Expenditures ($MM) 1981 (A) 1982(F): 1983 (F) 3.4 2.3 2.9 3.4 4.8 3.8 6.8 7.1 6.7 R&D % S+T Total % S+T 2.6 5.3 1.5 4.7 1. 7 3.9 Cost Reduction Existing Process New Process Capacity Existing Product Improvement New Product Regulations Research Objectives (%) 1381(A) 1982(F) 1983(F) 10 6 553 82 32 12 17 83 P. A. Wriedeijla March 5, 1982 DUP050146133