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JN-TRACOMPANY CORRESPONDENCE R.98 (Rov. M8) FROM: --T O : CO P y : Norton 'TonfoKins --77 C. C. Craig / W. R. Nelson, J. C. Tiffany, J. B. Melton DATE 6 SUBJECT: 12/1/71 Insulation PLAINTIFF'S EXHIBIT RMC-46 t This memo needs your immediate attention. For many years Unibestos pipe insulation has been our standard. The attached letter from Pittsburgh Corning explains that Unibestos will no longer be available after 12/6/71. We are faced with the decision of selecting a substitute insulation. Unibestos has been our choice because of its durability. It will withstand fairly rough treatment and can be used over and over on lines that require mechanical scaling. Unibestos is primarily long fiber asbestos with sodium silicate used as a binder. Most of the other pipe insulations depend upon calcium silicate as the insulator with asbestos being a reinforcement material; consequently, those insulations other than Unibestos are more brittle and subject to breakage. Aber Co. has been our supplier of Unibestos. They are offering as a substitute Kaytherm (see attached brochure). Kaytherm will be similar to Therrrobestos which we have used at times in the past. Our present order for Unibestos from Aber expires 1/31/72. I have received a quote for a new blanket order. The prices quoted for Kaytherm compare favorably with Unibestos. I need your decision on the selection of a substitute. Should your selection be other than Kaytherm, I will need some time to contact other vendors and obtain price quotations. 1 5 NT/mgs Enel. Norton Tompkins n.000004 RICHARD W. GAfN2LE oiKEcroN or marketing PITTSBURGH CORNING CORPORATION THRU GATLVYAT CCNfER PITTSBURGH, PA. JS222 November 9, 1971 V T^-n TO: OUR VNIBESTOS CUSTOMERS Pittsburgh Corning Corporation acquired the UNIBESTOS product line in 1962. At that time the product made only a very modest profit, however, we hod great hopec that we could develop new production methods. Unfortunately, our production development efforto have not been successful, end the factory efficiency is about the Game os in 1962. On the other hand, the costs for labor, freight, raw materials and sulllng cost have increased substantially over the past nine yearo, while the market prices for high temperature insulationo hove not changed significantly. The result is that Pittsburgh Corning can foresee only continued deterioration of the already small profit generated by UN1BEST0S. Under these circumstances, we cannot justify additional investments In needed new production equipment, nor in the manpower and resources for continued promotion and 6ale cf UNIBESTOS. Therefore, Pittsburgh Corning has reluctantly decided to stop accepting orders for UNIBESTOS ns of December 6, 1971. All firm ordero uow on hand and new orders received before Deceaibcr 6, will be filled if the items can be manufactured and shipped prior to December 31, 1971. He thank you for the interest and confidence you have had in our UNIBESTOS product and for this opportunity to explain the background of our difficult decision to withdraw this product from the marketplace* Very truly, RUG:Jy Richard W. Gaensle B.000005