Document bBw90GZR3gEdEBZb47gbQL9po
MONSANTO INDUSTRIAL CHEMICALS COMPANY WELCOMES
MR. M. J. MC DONOUGH WESTINGHOUSE ELECTRIC CORPORATION l
<1
St. Louis, Mo. June 1, 1972.
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C INDEX \ BACKGROUND DISCUSSION PAPERS
SECTION
PAGE
I MICC SUMMARY POSITION o n d i e l e c t r i c a r o c l o r s
II WESTINGHOUSE PURCHASES OF CAPACITOR AND TRANSFORMER INERTEENS 1968-1972 (Est.)
1 2
III MONSANTO DIELECTRIC FLUIDS
- Pricing Capacitor Aroclor to Westinghouse 1953-1972
3
- Pricing Transformer Inerteen to Westinghouse 1968-1972
4
- Pricing Characteristics and Cost Increases
( IV MONSANTO PRESENTATION TO FEDERAL GOVERNMENT PCB TASK FORCE
5 6
V SUMMARY GOVERNMENT PCB TASK FORCE REPORT AND RECOMMENDATION
21
VI MONSANTO RESEARCH PROGRAM - PCB REPLACEMENT PRODUCTS.
COOPERATIVE PROGRAM WITH WESTINGHOUSE
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MONSANTO INDUSTRIAL CHEMICALS COMPANY 1 SUMMARY POSITION ON DIELECTRIC AROCLORS
In view -e4- the PCB ecologi.ccaall situationaf* / j /
Monsanto decided to4
dielectri
Aroclor business because of the electrical ?
industry's need for these products based on
their unique performance characteristics,
and because iindustry supported Monsanto with
special agreements of indemnification.
7 y f e
2) Monsanto hi voluntarily phased out of^many r f f iT ]'
tnd we*l selllonly to approved
h?4Lc"
This decision was
/
supported recently by'the U.S. Government
PCB Task Force.
3) Monsanto wit a/more
.s
/)
\ '4^ Monsanto^costs for dielectric Aroclori have
increased because of:
- Lost sales volume/lower production divisor - Pollution clean-up costs - Research & development expenses on new
products - Toxicity, biodegradation test work - Plant investments
5) Monsanto develop in the
ince 1969) a research and to find "PCB" substitutes
area:
To date A capacitor Transformer At least
ising leads xperimental sample
- no candidates as yet away from commercialization
6) On balance, the ecological risks have been substantially reduded by Monsanto and customer actions.
B) Moiksanrto has long valued our relationship with vrestir.chci::^
and jj|4 desire to\work closie^y with youvat all levels of
Man^gaqjent.
\
\
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.' $
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WESTINGHOUSE PURCHASES OF
CAPACITOR AND TRANSFORMER INERTEENS
POUNDS
LOCATIONS Bloomington, Ind. Total Capacitor Inerteen
1968 3 ,6 10 ,0 0 0
1969 2 ,7 2 4 ,0 0 0
3 ,8 3 9 ,0 0 o 1 2,724,000
Notes: 1) Includes small sales to Vicksburg 2) Includes small sales to Cleveland 3) Annuallized, from first four months
1970
1971
1972 Est3
2,557,980 1,032,600 2,046,000
2,566,38o2 1,0 5 1,6 5o 2 2,100,00o2
Sharon, Pa. So. Boston, Va. Phoenix, Arlz. Service Shops Total Transformer
5,873,000 -- --
1 ,0 0 3 ,0 0 0 6 ,8 7 6 ,0 0 0
2,596,000 2,051,000
237,000 740,300
5,624,300
2,244,520 3,469,120
323,900 1,399,866
7,437,406
1 ,2 13 ,0 0 0 4,083,000
225,000 285,000
5,806,000
270,000 3,927,000
270,000 393,000
4,860,000
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Total Westinghouse
1 0 ,7 1 5 ,0 0 0 8,348,300 10 ,0 0 3 ,7 8 6 6,857,650 6,960,000
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Historical Price of Capacitor Aroclor
Sold To Westinghouse
..
Year
1953 1957 I960 1964 1966 1970 1971 1972
Price Per Pound (Bulk)
l4.0# Not Delivered 13.88^ Delivered 14.98# Delivered 14.50# Delivered 14.95# Delivered 16.00# Delivered 18.00# Delivered 20.50# Not Delivered
Product
Aroclor 1242 Aroclor 1242 Aroclor 1242 Aroclor 1242 Aroclor 1242 Aroclor 1242 Aroclor 10l6 Aroclor 1016
*
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c Historical Price of Transformer Inerteen
Sold To Westinghouse Electric Company
Year
June 1968
Jan 1, 1971 April 1, 1972
Price Per Pound (Bulk)
13.^5^ Not delivered.
16.50^ Not delivered.
19.5C# Not delivered-
I
Product Inerteen 54201CM
(100 Aroclor 1242)
tl
Year July 1, 1970
Jan 1, 1971 April 1, 1972
Price Per Pound (Bulk)______
l4.7<# Not delivered
16.7C# Not delivered 21. (X# Not delivered
Product
Inerteen 54201 KA (70% Aroclor 1254 +
30# TCB)
ft
ft
(
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MONSANTO DIELECTRIC FLUIDS Pricing Characteristics
1, Unusual price stability until 1970 even though --
Cost Increases
Labor Coats: Raw Materials: Indirect Fixed
Costs:
197# Increase (1953*1972) 20# Increase (1953*1972)
41# Increase (1953-1972)
(e.g. Capacitor Fluids increased by only 7%, 1953-1969)
i
2. Increase 1970 - 197l^due to:
A. Successful Development of Aroclor 1016
B. Loss of 45# PCB Sales to other markets -- Divisor loss.
C. Costs of Environmental Control Programs --
( Incinerator Program Plant Clean-up
> (
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