Document bBw90GZR3gEdEBZb47gbQL9po

MONSANTO INDUSTRIAL CHEMICALS COMPANY WELCOMES MR. M. J. MC DONOUGH WESTINGHOUSE ELECTRIC CORPORATION l <1 St. Louis, Mo. June 1, 1972. NEV 028033 ) 741287 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 741288 NV 0 2 8 0 3 5 741289 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. \ \ ' NEV 0 2b 0 3 o .' $ 741290 NEV 02 037 741291 ma 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 NEV 028038 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 020039 NfcV 741293 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 * NEV 0 2 8 0 4 0 741294 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 ( NEV 02 8 0 V I 741295 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 > ( Ntv 028042 741296