Document g22LrOVOZq389qMRrwYr3vR0G

U M*wW .VO/.W TOR INTERNAL COKKiSH^NDENCz ; V'V UNION CARBIDE NUCLEAR COMPANY ------------------------------------------------ 41133,------------ -------------------------------- 30 EAST -42nd STREET, NEW YORK 17, HtW YORK Mr. L. A. Bliss Union Carbide Nucltac Co. 30 East 42nd Street Room 1722 ***** December 22, 1959 tulimr t4i Salas Development Ciw ** Mr, A. Q Lundqu Lc Dr. C. 0, Strother Mr. w. M. Smart Mr. s. J. C route r Mr. w. N,. Johnson Mr. H. LWMdKinley Mr. J. L, Xake s Mr. T. SKf ^7 Mr. H. , Vltz Mr, L. P. Twiche11 Mr. J. A. Connors Asbestos Mirkits Status Report,- Dear Mr, Blisr: Messrs. Hill, Reichard and Austin have in recent weeks established a large number of contacts with asbestos users -- over 200 of an estimated 450 multiple carload buyers. This is to summarize in brief form their findings to date. We believe the salient points are these; 1. The present West Coast market la almost entirely for short fiber material (6 and 7 grades and floats), amounts to at Least 100,OOP _tona_e^jmmui_no\v, will be about 125,000 tons in 1960; adding Chi cago and Southwestern areas (where _i_I--roughly a toss-up) would about double this accessible short fiber market. About 507. of this volume is for use in vlnvl and asphalt tiles. the remainder being divided between roofing and undercoating. Insula tion, joint cements, brake linings, plastic cements and stucco, and phenolic resins. 2. Essentially all the above market areas can use the fiber length we have at Coalings questions are the degree of opening, dust content, etc., which can be resolved by adjustment of the final grinding equipment. For vinyl tile uses there are additional and Interrelated ques tions concerning color and oil absorbency. Likely high iron oxide content (as much as 37. in the fiber) accounts for Bakelite discolora tion experience during tile calendaring, can be eliminated by mag netic separation. Discoloration due to high absorption of plasti cizer might be corrected by surface treatment with a humectant. UCC 000196 2- - 3. Our greatest laboratory eikphasi# should be put on vinyl tile uses ----- opening an initial sales ara of upwards of 50,000 tons per annum. This would automatically provide useful material for the other areas. The laboratory effort would consist of two parts: (a) preparation of suitable treated asbestos samples to be carried out at Sterling Forest; and (b) sample performance tests In experi mental tile preparation (including adjustment of formulation). We believe the latter can best be carried out at Che development laboratories who have done initial test work gratis. Us have requested a cost estimate frost this group for a 1-3 month accel erated study program. 4. Numerous small samples have been distributed, to the limits of applicable material availabla from the first 2,500 pounds prepared at the Danville pilot plant -- and additional samples from the second run just completed. Good response to initial examination gives rise to the following anticipated evaluation timetable: a. Sstall Test Lots, 5-100 Pounds. (S, F. Pilot Plant) by mid-January, I960, performance reports will be in for about 10 potential custotaer* (accounting for over 50,000 tons consumption per year) who have samples of 5 to 100 pounds each. / We can expect about two more rounds of sampling (similar test size) to these and others (at least 30), with adjust ments aiming for more suitable material. Including customer evaluation time, this phase should be completed in early April and maximum test quantities required would amount to 6,000 pounds of fiber. b. Ton Lots. (S. 7. Pilot Plant) We anticipate two test rounds on quantities of this size - and aim for completion of customer evaluations by July 1st. Not all customers (eut. 20) will require two; total test quan tities required would amount to about 40,000 pounds of fiber. c. Carload Test Lots, (On-site Unit) With ell customers, final approval calls for plant evalua tion of carload lots. Vinyl tile producers will require at least on* carload tast lot -- others may approve on the basis of 2,000 pound tests. For this phase a total of 20 carloads (800 tons) are ex pected to be required, and we would hope to be well Into this evaluation stage by September 1st. UCC 000197 ASBESTOS - STATUS REPORT I. General Markets. U. S. asbestos market* will total over 850,000 tons of fiber, all grades, in 1959 -- will go to somewhat over one million cons in 1960. About 707. of this is short fiber requirement (5-7 grades and floats) and the trend is increasingly in this direction. There are at least 450 asbestos consuawirs in Che United States who use multiple carload quantities of fiber, and many of these are accessible for direct sales. Hot accounted for in this number are smaller consumers served through distributors, resellers, etc. Although the over-all asbestos market is in an overaupplv eandlrInn, an anomaly exists in thac there is a definite shortage of short fibers. This comas ebout because of the general industry shift from use of long fibers to short fibers over the past faw years; e case in point is brake ilninae. origin ally employing woven end braided long fibers, now shifted entirely to short fibers, matteJ sml bonded. Quebec production by the nature of the ore yields both, end long fibers ere accumulating in inventory causing over-all cutback in production. (Hots: California cross-fiber deposits face same problems.) There is good evidence that various building materiel industries employ sizable tonuages of fibrous materials other than asbestos - could swing to asbestos under reasonable competitive conditions. This is especially true on the West Coast where manufacturers of products such as plaster board, paints, etc., use jute, sisal, fibrous tele, asbestine, etc, -- and wnara delivered costs might be met with asbestos shorts originating from a West Coast plant. II. Meat Coast Markets. The West Coast market now runs about 157. of the U. S. total, is ex pected to go to about 2071 in the next few years. Hew home construction starts run higher than the U. S. average, and the building materials Industry accounts for better than 901 of asbestos consumption in the form of short fibers (grades 6, 7 and floats). AbOUt constitute the core of the sizable users on the West Coes_t -- whom we have contacted and either sampled in 5 to 10 pound quantities, or are scheduled to sample from the latest Danville pilot run. Following is a rough cabular breakdown of end uses among these customers: UCC 000199 -2- Tote 1 U. S. Western A. Vinyl and asbestos tile B. Roofing end undercutting C. Insulation D. Wallboard Joint cement 75,000 tons/yr. 9,000 M 3,000 11 9,000 It 44,000 cons/yr. 2,600 " b-- ooo 3,000 " E. brake linings F. Plastic Ceucnts and stucco 13,000 3,500 it H 1,000 3,500 " " C. Phenolic rested 6,000 H 500 " 55,600 (This doe a not include John* Henville, whose requirement amounts co 25,000 ton* p*tr annum on the Vest Coast.) Presently there i> no asbestos production of consequence on the West Coast. Hence there ie no firm freight clas*ification foe shlpuants hawed ou production in the area, and the reii rate* quoted to data cover ell type* of asbestos classified a* Chemical* HIOfiN. Thus traffic indication* of shipping charge* of $7.90 per short ton from Fresno to San Francisco and $9.50 per short ton from Fresno to Los Angela* are likely high end could be improved upon. Ncvarrheless, these compare with Quebec freight rates on comparable grades of $31,10 to each area. (Freight rata* attached.) III. Chicago and Southwestern Areas. Counting Texas, New Orleans area, and Chicago and vicinity, larger consumers in this area account for annual short fiber asbestos consumption of over 100,000 tone. Contact has been made with 12 large consumers (who account for 40,000 cons per annum) and will be expanded to others. In this cone the freight rate advantage for a California plant drops co zero, or becomes a disadvantage (depending on delivery point). Using present traffic Information, the maximum disadvantage in shipments to this area would amount to $15,00 per ton. However, the figures provided on ship ment* from Fresno are again the general NI0BN classification and likely could be improved upon. This might shift the maximum disadvantage versus Quebec to no more chan $5.00 at the extremities of the market reached in this area. JiLm Coalings Product Evaluation. For the uses & through G in the above tabulation of Wast Coast cus tomers, Coalings material can be employed with proper `'opening1'. This is a function of the machine employed (!.., atetopuLvertzer) and the machine setting and should give no real difficulty. Some blending may be required. UCC 000200 -3- U<mt area A, vinyl and asphalt tiles, require* size adjustment a* Above, but also corrections for color end oil Absorbency. A typical vlayi tile formulation is *d follows: X by Wt. VTHii resin Plasticizers Plasticizer Extender* Pigment (Ti<>2) Stabilizer Lubricant Limestone Asbestos (shorts) 14.75 5.75 1.20 3.00 1,50 50.20 23.60 100,00 X In e standard formula, Coallag* short flbr asbestos absorb* plasticizer to the extant of doubl* that of Quebec material, The six has low hot strength, tears during calendaring, and the final sheet is stiff and brittle, During the heat experience (140 -ISO^C.) in calendaring the mix darkens in color, indicating sow* catalytic degeneration of reslu -- likely by metallic con taminant in the asbestos. Advantage: The finished tile has such higher strength, possibly due to More unifore fiber length. Various corrections to these problem* are possible, some being examined by consumer*. Coaling* fiber has about the same iron oxide content as Quebec material (3-4X1), but way differ in ratio of oxide* (K2O3 vs. F3O4). Dry magnetic separation way remove appreciable portion. Soma indication* have already been obtained by our people that oil ebeorbency (end hence plasticizer) way be reduced by ixelnteinlng optimum moisture content on the surfaces, "blocking" th* plasticiser. Use of humectatit treatment should be studied. The basic tile formulation* can be adjusted to compensate for other shortcoming*, (such a* shift of llmestons/asbeatos ratio); here economy governs. Although consumers will do Chi* type of work, a collaborative program with Bakelite to sat Che significant factors is called for. We feel the problem* are not serious, and there are promising avenues to their resolution; a direct arrangement with the Bakellte Development group, who have the test equipment and vinyl tile background, should resolve chest in a matter of months (1-3) and hopefully reveal advantages of Coalings fiber which can be turned co our benefit, V. Competitive Situation. Aa Is known, 95X of the asbestos used in the United States costas from Quebec. The West Coast freight differentials between Quebec and Coaling* sources are also clear, and will be increased with California freight rate improvement. UCC 000201 -uExploration for large asbestos deposits In the California area is inc reaa tug; while publicity deals with smaller concerns and smaller deposits (1, *,, Jefferson Lake and Clues), the larger Quebec people -- Johns Manvllle, Nicolet, American Smelting Refining Co. -- are stepping up their search activitias. Our Exploration people feel the general *rna is geologically favor able toward eventual diacovary of a large cross-fiber deposit of the Quebec type -- and possibly additional large deposics of slip fiber. As of today tha deposit of consequence is Coalings, and if we capitalise on this atarting position, the ore grade, open pit mining factors (without blasting), predom inance of desirable short fiber all can be genuine advantages. Timing is all-important. The aim of the marketing group is to be in a position to present a favorable Justification for management decision on investment no later than mid-1960. This will call for complete cooperation from laboratory, engineering and production groups. /P fYV\ R. hi. Austin dh UCC 000202 ASBESTOS FREIGHT KATES I, Freight rates to San Francisco A. From Danville or Warwick, Quebec Fiber, 80 M lb. min. carload Refuse, shores, or wasta, 80 H lb. Kin. $ 35.10/short ton 31.10/short ton B. From Fresno, Calif., rail Asbestos, all typas, 40 H lb, min. cl. 7.90/short ton C. From Globe, Aria., rail Asbestos, all types, 36 H lb. min, cl. 22.70/short ton Conclusions: In the San Francisco area we have a freight advantage of $27.20/sho ton on fibers from Quobec; an advantage of $23.20/short ton on shorts and wasta from Quebec, and au advantage of $14.80/short ton on all types of asbestos from Globa, Arlz. II. Rail freight rates to Los Angelas A. From Danville or Warwick, Quebec Fiber, 80 K lb. min. carload Refuse, shorts and waste, 80 M lb, min. cl. $ 35.10/short ton 31.lO/short ton B. From Fresno, Calif. Asbestos, all types, 40 M lb. uin. cl. 9,50/short ton C. From Globe, Arlz. Asbestoe, all types, 36 M lb. min. cl. 13.10/short ton Conclusions: In the Los Angeles area we have a freight advantage of $25.o0/short ton on fibers from Quebec; an advantage of $21.60/short ton on refuse, etc., from Quebec, and an advantage of $3.60/short ton on all types of asbestos from Globe, Arizona. III. Rail freight rates to Chicago A. From Danville and Warwick, Quebec Fiber, 80 H lb. min. cl. Refuae and shorts, 80 K lb. uin, cl. $ 21.50/short ton 13.30/short ton B. From Fresno, Celif. Asbestos, all types, 60 H lb. uin. cl. 27.70/short ton Conclusions: Chicago is an important asbestos consuming area. Wa suffer a freight disadvantage chare of $6.20/short ton on fibar and a disadvantage of $14.40/short ton on refuse and shorts. I think, however, that the disadvantage on fibers is not serious and could be absorbed. UCC 000203 2- - IV. Freight race# co New York City A. From Danville end Warwick, Quebec Fiber, BO M lb. min. cl, Refuse, shores, BO M lb. sain. cl. $ 16.90/short ton 12.90/snort ton (a) Fresno Co Sen Francisco Asbestos, all types, 40 M lb. min. cl. 7.9C/short ton (b) San Francisco to N.Y.C. via boat Asbestos, all types, 40 M lb. win. 2$.40/short con Total, San Francisco to N.Y.C. , rail and ship $ 33.30/short ton Conclusions: Our freight disadvantage in the New York City tree on fiber is $16.40/shore Con, end Che disadvantage on refuse and shores is $2G.40/hort con. The fiber disadvantage could be absorbed by us, but Che disadvantage on refuse end shorts is probably coo high to absorb. UCC 000204 Company Flintkote Company Armstrong Cork Company flestwall Gypsum Company Hooker Chemical Corporation Lahabralite Company Perwanente Cement Company Raybestos-Manhattan, Inc. U. S. Gypsum Company Uvalde Riverside Cement Company California Portland Cement Co. Monolith Portland Cement Co. Southwest Portland Cement Co. Standard Oil of California BIB Engineering Co. Gulf States Asphalt Co. Railton Mfg Co. Bird j* Son, Inc. Coopers Creek Chemical Co. Daubert Chemical Company Eagle-Picher Company Fibreboard Paper Products Corp. 48 Insulations, Inc. W. W. Henry Company Kaiser Gypsum Company Kentile, Inc. Levis Tar Products Company Levis Asphalt Engineering Co. Mastic Tile Corp. of America Mousey Manufacturing Co. Reilly Tar & Chemicals Corp. Trumbull Asphalt Company Union Asbestos b Rubber Co. Weatherguard Products Company Asco Products Union Carbide Plastics Co. Japanese Laoco Brake Products Corp. Western Chemical & Mfg Co. Diamond Springs Lime Co. Runt Process Co. Lunday-Thagard Oil Co. Plastics A Coal Chemical Div.- Allied Chemical Corp. Ovens Corning Fiberglass Co. Zone A,, B, A,, B, B, A A B, A, B, B A A A A A A, A A A> B, B B, 3 A* B B A A A A A B B Size (tons/yr.) 18,000 25, coo 500 2,0CG 600 500 12,000 8,000 2,000 400 1,000 500 500 120 250 320 CL/yr. 200 200 i,8oo 2,oca 1,700 50 500 500 20,000 not now 4,000 9,000 1,600 none nov 3,000 none nov 720 500 500 35 40,000 6oc 1,200 LCL 120 Status Will evaluate 11 II l 11 M II M If Are evaluating Will evaluate II M It 11 It rl II If It II II 11 It ft If II If II If It AIrf e evaluating 11 it 11 if it It H If II M It II It Will evaluate - Are ll evaluating It It li - Are evaluating - ll ti it It it ll Import longer fiber tariff Will. evaluate H H . ore " fiber sometime Will evaluate Use only long fiber hiostiy long fiber ir^r "B" > West Coast Midveat and Southwest East UCC 000205 Company Singa Chemical Co. Plant Asbestos Western Asbestos Barret Div.-Allied Chem. Norton & Sons Seaboard Supply Belknup-Moran-Allen Benson-Hanson Empire Asbestos Minivax Co. L. Sonneborn St Sons Westchester Roofing Adhesive Products, Inc. Hiller Aircraft Adhesive Engineering Hill Bros. Chemical Co. Warren & Bailey Gladding, MeBean 1 Co. Frank V. Enderle Coast Insulation Thorpe Insulation Mefford Chemical Carboline Co. Paul W. Wood Co. Lynch Asbestos Western Gasket J. H. Bryant Acorn Mfg Co. Aerojet General Gaskets Mfg Co. W. F. Webster Cement California Stucco Los Angeles Chemical Co. Muralo Co. Devoe & Reynolds (Bishop-Conklin Div.) "A*-"3" "C" - West Coast ~ Midvest and Southwest East Zone A A A A A A A A A A A A A A Size (tons/yr.) - - 1,000 50 480 1&0 200 CL CL 500 1,000 LCL LCL 720 LCL LCL LCL LCL LCL ' ' " CL LCL LCL LCL LCL Status Experimenting now Philip Carey reseller J~M reseller Must have JU. Would evaluate It H II tl Hn n ii 11 !l 11 it It If No interest No interest Will evaluate Buy fabricated products Buy from distri butor Buy from distri butor 3uy from distri butor J-M distributor Jobber No interest J-M distributor Buy from distri butor Buy fabricated products Buy fabricated products Buy fabricated products Buy fabricated shapes Buy fabricated shapes Would evaluate 11 M II 11 MU Not interested UCC 000208 Arco Co. H. R. Hunts Putty Kelite Products Cq. u n Hfg Co. Bechtel Corp. Proctor & Gamble Pipe Linings, Inc. United Packing & Gaaket Felt Products Fllpaco Geroghty Gasket W Mfg. Insulation Kfgr. Corp. Standard Asbestos Mfg Corp. Logan Long Co. Lus Stevenson Co. Victor Mfg it Gasket Co. Zonolite Co. Union Asbestos & Rubber Co. R. Hopac, Inc. Leho&i Globe Roofing Co. Be11co Products Corp. J. V. Mortell Grant Wilson Armstrong Paint A Varnish Co. Celotex Paint Point Products Sun Chemical Bonafide Mills B. F. Goodrich Empire Asbestos Products Stovey Co. Bitucate Products Co. Frank L. Cushing ftA" - West Coast : "B" - Midvest and Southwest "C" - East Zone A A A A A A B B B B B B B B B B B B B B B B, C C C c c B B B B Sire (tona/yr.) LCL LCL LCL (long fiber) LCL CL CL CL CL 4.000 CL CL CL LCL 50 1.000 3,000 250 CL Status No use Not interested Bay fabricated products Not interested Use fabricated products No use Would evaluate Buy fabricated products Not interested Buy fabricated products Buy fabricated products Buy fabricated products Would evaluate longer fiber No use now Buy fabricated products Would evaluate n tl it ii Buy fabricated products Philip Carey sub sldiory No fiber use Producer (?) Asbestos Corp. interest Would evaluate II N II II No Interest Ho interest Would evaluate M II' n ii Reseller Would evaluate No use UCC 000209 CANADIAN JoTyiys -Manville CO. LIMIT*D AS6EST05 Fl6t DIVISION US PiilCE LIST NO 6 Daia Ay-guit 26. 195/ CANCELLING US FSlCE LIST No 7 ijl Ni.vamlwr 28, )V55 tlANOARO G&Abt 01 SIGNAt ION No. 1 Cruda No. 2 Cruda 3fC ftbra 3* " 3T " 31 " 4* " 4M " 4T " 41 " so ' SK " 5* " *D " 70 " 7F " 7H " 7K " 7M " 7* " 7T " 7Ilf Float! 7Tf Float! IS - CARLOAD PRICES PER SHORT 10N F.Q.D. MINE ASQE3TQ3, QUEBEC, CANADA IN C ANA0IAN FUNDS GUASANJttO MINIMUM TIM 4-7-4-1 2 6 4-2 17-4-2 0 E-4-2 0-a 9-3 0 4-6-4 0-2-10-4 0 i'/i 9'A - 5 0- `A iOVS 5 Q - 0 12 - 4 0 0-10-6 0 0-7 ; 0 0 S- II 0-04-12 0-0-313 0-0 2-14 0 U 1 IS 0 - 0 0 14 No Tail NO Tati No Tail No Tt!) NiiCli TON (IKCIIVI OCTOBER T, 1957 $1,470 00 768.00 504 00 423 00 402 00 37000 200 00 200 00 IS 1.00 161.00 14200 142 00 120 00 84 00 7500 7100 61.00 50 00 44 00 43 00 4100 44 00 44 00 29 00 MINIMUM CAILOaO QUANIlIY 20 Ton! 4 1* tt *t 1 tt <1 tt ** 30 Ton! '* ' A<U $2,00 to tha abova pricai (or lari than carload loti Standard packaga, 100 Hi Lg Wtvara pacltagai olhar than tlaodatd ara raquirad, quotation! will ha lurniihad on raqoai.1. All pricat ara nat and vubjan to changa without noticu. All olfart ara tTiada lubjact to prior tala and ordan ara accaplad jubiatl io our ability to Jc-liu Should ntw Covoru<ikii.T lAiti ba titi^oVvJ will fc, fu iti-j iavoics Ttnint 1% On^-OLtfit Kt |ti'r>nrM: 10 d^yt afivr d'Mpntunl or nal JiJ tl.iy;. fundt Paymanl accwplahlw i.. lii .Jolh.r uttuivuh-ni >i 'iivoicad, -4l -t,l ' * ,W = . A * H#N Cruda t1 Frbra '* ** 1' *i ** t/ t * WaHa Short! rt t r 4* t* t1 1 1* I -r. UCC 000211