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UNION CARBIDE CORPORATION RDBINSON P_A2A I!. ROUTE 60. RTTSSJRGH. PA 15205 METALS DIVISION ' To [Name] Qrviaion Locopon Area Mf . J. T* Kelly UCC - Metals Division Danbury, CT J- | Copy CO -------- U . n. Lincoln, Jr. J. L. Myers T. P. Norris W. C. Thurber J. E. Walsh Date July 20, 1983 or^wngbept "Calidria" Asbestos Attached are reports covering commercial, distributor, and export sales for the second quarter of 1983. Also included is the usual quarterly report from Tomoe Engineering Company and a copy of the "Calidria" Sales Summary to date. The latter has been corrected to show the actual export and total sales dollars to date which was erroneously indicated in the original report. GLD:vad Att. G. L. Dickson UCC 005316 k "CALIDRIA" ASBESTOS SALES SUMMARY - Juoe 1983 PRODUCT DOMESTIC SG-103-5 SG-103-7 SG-104 SG- 1 30 SG-2 0 0 SG-210 : HPP HPO , RG-100 ) RG- 11 0 ' RG-149 1 RG-244 i UN I VIS ; csv ! SHUR 1 TELVIS TONS June S ALES % BUD. YTD SALES 1 BUD. $M June SALES j% BUD. < YTD SALES % BUD. 294 163 1,764 176 44 169 265 188 -- 5 365 114 2,461 137 0 . 46 J 31 .Q 300 .136 15 TOO ... 6? 62 r 47 131 t j0 io 4 _j 100 '1 320 11 57 _ 17 139 157 142 68 2 40 ,34 .... 126 9 150 48 131 427 102 64 213_____ ____ 320____ -188___ 15 . 1 94 _____ 3Sl____ 1 109____ J 26 54 ... ! 4! 137 225 80 ___ LB____ ____ 9J2 124 J18 .. . 16. ' 106 . . 115 269 29 104 110 198 116 1 133 110 366 198 116 373 64 --< 98 82 352 . 52 20 83 70 ! 52 24 240 ! 105 140 , 6 ------2-5--0----------11-------2-1-------- !1----1--4--0----- . 75 _ 50 i j 15 ! 1 47 i TOTAL DOMESTIC EXPORT SG-1 00-EX SG- 1 03-7-EX SG- 13 0-EX AS-200 1103 _ _ 120 356 ___ _22______ !1 -- 300 129 400 6.371 1,444 10 j 825 SG-210 HPP-EX -- 431 HPO-EX T-135-P-EX____ 1 ' RG -144-EX \ 32 -- 22 ____ i 304 19 \ i 88 i 119 ... 123. 92 1 166 1 ! 82 ! 111 | 211 i 89 j 286 1 48 -- 51 . ii 14 . 8 !1 17 101 |1 ,676 ! 137 i 196 --------------------1 -- 1 -!' 2 392 ! 140 .. 62 ! ! 94 93 79 15 90 : 106 I ! 89 j ! 167 ! ! 81 I 110 j 214 ; 91 SX-14 RG-244-EX SX-24 -- 29 3 -TOTAL EXPORT 742 _________________________ 1________ ------------j .TOTAL SALESil845 1 29 j 64 ij -- 18 67 112 ' 144 90 1 101 ; 112 490 > 89 6 i 201 : 82 7' 7 488 ! 90 I i \1 : 1------------ ____________ J____________ :_________ 41___________________________________________ _ .123 _ ,3.526 100 7 232 i '77 1 11 93 ------------------------------------------------------------------------------------------------------------------------ 121 9,897 114 518 87 3,267 99 UCC 005317 UC X9-i INTERNAL CORRESPONDENCE METALS DIVISION 4625 ROYAL AVE., P. 0. SOX S7S. NIAGARA ?AU` \E';V YORK .4302 To (Name) G. L. Vick&Otl Division Metals Division Location PittSbuXgk Dale July 12, 19S3 Originating Dept. Metals ViviSiOH Atlanta. Copy to T. P. Nosxls - Long Beach Sub.-ect CAUPRIA VistXibutoX Sola Second Quaxtex Swrnaxy ACT1V1TV Quaxtexly activity staxted with attendance at the Southwut Coatings get together in Valias. This gxoup ha* the second beit attended meeting in the U.S. and txaffic at the V 6 F shaxed suite was unusually high. Joint colli wexe made the last week in Apail in Louisville with L. Callas visiting the laxge number. of home office and specialty coatings manufactuxexs in the axea. The fixst week in May joint calls wexe made with Technical Products' sales people in the Cleveland axea. Suggestions wexe given to both Mameco and Technical on selecting RG244 to meet the cnitical needs of theix uxethane coatings fosmulation. Ceilcote one of Technical's longest 244 accounts advised us that they would no longex use asbestos due to past litagation problems and a eoxposate edict to fosmulate it out. Initial visits wexe made to H $ C's Postland and Seattle sales o f lieu (tuning which businus reviews and joint calls wexe made, The Portland axea appeaxs to have mone potential CALIORTA pxospects than Seattle but both axe limited in quantity. Jane began with joint calls in the Boston and Rhode Island axea fallowed up by a Foxecast III meeting in Vanbuxy. A full week was spent on the OJut Coast xeviewing oux businus activity in nosthexn Califaxnia and making joint calls with H $ C's San Fsandsco salu people. Most of the majox dxiveway seaten manufactuxexs wexe visited and it appeaxs as if Hexeulu's Pulpex has made significant inxoads on asbutos usage in this application A thxee houx seminax was held at Hysol which will be fallowed up by theix visiting oux Niagaxa Falls RSV to txy to solve manufactuxing pxoblems they have been having with oux 244. Leads and contacts wexe developed dosing the txip on pxospective businus in othex pasts of the countxy. The nosthexn Califaxnia txip concluded quastexly activity. PERFORMANCE Vistsibutox businus continuu to s puttex along without any xeal consistency. One good month is followed by a poox one. 244 lossu continue with Ceilcote going asbutos ' fxee this quaxtex. Oil dxilling volume should pick up dosing the next quantex as MontelZo initially stocks Ashland waxehousu and the genexal outlook in the industxy is mone opti mistic. Copiu of quastexly sales and expensu axe attached. Vexy txuly youxs UCC 005318 quarterly sales report mcr 210 0 110 144 244 }J 'JR :vis ms QUARTER .T _^ _ MS.3 16.8 28.0 41.0 186.6 44.0 __ __ 29.9 4.5 21.2 137.7 37.3 8.8 . -- YTV T HI 25.2 6.6 291.8 74.6 42.7 42.0 11.5 32.0 90.6 351.9 302.5 70.4 105.0 __ 21.0 .. 74.9 15.0 BUDGET "r~ M $ 466 41 704 172 84 23 149 in 294 999 1500 300 168 34 300 63 330 69 I BUDGET T HO 30 32 83 87 101 100 56 58 62 61 47 47 125 124 00 45 43 TAL 434.7 239.4 1024.1 533.6 3695 1812 55 59 UCC 005319 JC 14^2 (700) INTERNAL CORRESPONDENCE UNION CARBIDE CORPORATION to [Name) Divisfpn Location g. L. Dickson Metals Division Pittsburgh, PA copy to J. E. Walsh, Atlanta too :: oceangate. long eeach, Californiascs D4,e July 12, 1983 originating oDt. Petals Division Answering tetter date COMMERCIAL SALES 2ND QUARTER SUMMARY MARKET DEVELOPMENT LITERATURE UPDATE Second quarter sales results were above budget as summarized in the following: (Refer to attached table for details.) TONS i_m 1st Quarter Total 2933 617 April May June 2nd Quarter Total Total 1st 6 months X Budget TILE GRADE PRODUCTS 777 724 819 2320 5253 135 131 191' 195 517 1134 131 Above average sales of SG-103, SG-104, continue as Kentile Floors Inc. increases production of VAT. At the Chicago plant, the yearly shutdown for vacations and maintenance, has been reduced from the normal five weeks to four weeks. During this period, one production line will continue to operate while the other proceeds through its yearly maintenance up-date. This is contrary to past shut-downs where both lines were down for the entire five week period. SG-200 AND RG--100 SG-200 sales to RCA Rubber and RG-100 sales to Colonial Rubber continue to reflect higher then budget results. We have been unable to locate new domestic producers of Radial Rubber Floor Tile and it now appears that RCA Rubber and Roppe Rubber are the only domestic producers. A recent trip to 3M Company designed to foster a closer working relationship between 3M Company and their compounder Colonial Rubber, indicated that our sales should continue to show some improvement, but that the long-range outlook is that 3M Company will have an asbestos-free formulation within three years. (0011A-01838.1) UCC 005320 G. L. Dickson -2- July 12, 1983 RG-244 Results continue to show depressed condition in the automotive and construction markets. A pick-up in automotive production will have a corresponding increase in RG-244 sales, but the reluctance of Ford and GM to evaluate new formulations containing asbestos will see this market erode through normal attrition. MEXICO Although we are aware of an order for SG-103-7, Losetas Asfalticas, S.A. has yet to be successful in obtaining an Import Permit at the Preferential Exchange Rate of 110 pesos/il.00. It Is anticipated that a recent trip by John Malloy, Law Department, Danbury, will be successful in dealing with Mexican authorities who are on good relations with our own Carmex personnel. Euzkadi, S.A. is in the process of submitting their sample order for SG-103-7. This sample order should ship during the 3rd quarter. MARKET DEVELOPMENT The proposal on moderately attrited asbestos ore for asphaltic applications did not receive capital funding that would have provided production samples for customer evaluation. Since this funding Is not available, it would appear that the future viability of the project has been halted and that Market Development should cease efforts on this project. Please advise if you feel our efforts should continue. LITERATURE UPDATE RG-244 Revised Brochure has been mailed from New York to members of the Marketing Staff for final comments. Product literature update sheets are still in the hands of John Crane. A copy of my quarterly expenses is attached. Very truly yours, TPN:rt At tach (0011A-0183B.2) T. P. NORRIS UCC 005321 i T. P. NORRIS COMMERCIAL SALES QUARTERLY SALES REPORT 1983 SECOND QUARTER Product SG-100/103 SG-104 SG-130 SG-200 SG-210 HPP HPO T-135-0 CG-135-P RG-100 RG-1I0 RG-144 RG-244 VISB CSV SHUR Quarter T $M 777 116 1089 143 25 6 120 22 29 8 -- -- 62 -- 18 -- -- -- 128 22 59 9 -- 108 8 54 34 -- -- -- -- -- _________ YTP T $M 1769 265 2453 320 46 11 300 56 36 10 27 8 150 43 -- -- -- -- 320 55 81 269 18 73 16 -- 61 -- -- -- -- -- Budget T $M 1100 155 2000 40 256 8 240 44 30 7 30 7 114 30 -- -- -- -- 192 153 62 17 44 33 45 155 -- -- -- -- -- -- Z Budget T $M 161 171 123 125 115 137 125 127 120 143 90 114 131 143 167 89 184 35 176 106 221 39 Total 2320 517 5253 1134 3897 865 135 131 UCC 005322 Tomoe Engineering company. Ltd. main OFricffj DA.INI MARUZtM 9UU.D1NQ 2. MHONlAftMJ KHQMI, CMUO-KU TOKYO, JAPAN (ANNEX OFFICE) SHIN SHIN KAIKAN BUILDING 14-1, NIHONBASHI 3-CHOME, CHUO-KU TOKYO, JAPAN CAIU AODUU) "COWOT~ TCLtXi 02142202 fOMOT J TdZPMONC , TOKYO *74-0411 July 8, 1983 Mr. 6. L. Dickson Manager, Asbestos Sales Metals Division Union Carbide Corporation Robinson Plaza IX - Route Pittsburgh, Pa. 15205 60 Subject: Calidria Asbestos Quarterly Report Dear Mr. Dickson: Enclosed please find our Calidria Asbestos Sales Report for the 2nd Quarter 1983. On this opportunity, we wish to repeat our thanks for your assistance in our development of Southeast Asian markets, particularly in the recent affair involving a parallel export to Taiwan, which cleared our way for this new market. May we expect continuance of your support of our future sales efforts in the increasingly tough environment of this business. With sincere regards, Very truly yours, TOMOE ENGINEERING CO., LTD HF/yk Enel. cc: Mr. J. T. Kelly cc: M. Kanno H. Fukuma, Manager Inorganic Chemicals Section UCC 005323 Calidria Asbestos Sales Report for the Second Quarter 1983 General Market Review The domestic importers of Canadian asbestos are to enjoy an ocean freight down of $12.72/metric ton for a period of June 10 through Sep. 30- This means a decrease from early this year of almost $20.00. Since the situation does not permit them to transfer the recent FAS price increase by Canadian makers to end users, they are trying to maintain their selling prices by having shipping lines reduce ocean freight rate. However, for unfavorable market situation and surplus inventories, the trend of drastic market pricedowns is still going on for 7 class asbestos. We would like to watch out on the move of the ocean freight rate after the end of September as it would play a vital role in the asbestos market. Meanwhile, as for Calidria, we have been trying to absorb the FOB price difference by scraping off the transportation and other charges to maximum extent, but lately this measure came to a limit and our prices are becoming higher than competitors'. It is virtually no longer possible for us to keep our price down by manipulating ocean freight. While we are doing business by further scraping off our scanty margin, we cannot be much flexible in our pricing. Under the situation, priceup of your products, especially standard grades, will deal a fatal blow to our business. We therefore wish your soonest possible development of new grade to remedy the situation. Regarding the resin grade, in line with the recent expansion of PBT market, our sales for this application area are showing relatively sound growth, and this trend is expected to continue further. However customers' departure from asbestos for the dust problem is in progress, making it extremely difficult for us to explore new customers. Thanks for your recent arrangement, our sales to Southeast Asian market will proceed smoothly from now on. Development of Korean market is going on smoothly, and we were able to place first order for a 20-ft container in June. We may be credited for this success but your kind support is a key factor and we are thankful indeed for it. UCC 005324 2 1. SG-100-EX for PVC Tile and Asbestos Cement Products Apr May Jun. (Unit: M. ton) Nittobo Nozawa 54 187 45 l40 42 213 Total 24l 185 255 Nittobo is using average 47 tons a month, a 8% down from the same period last year. This might still be a good performance though, since they reduced their production lines from 3 to 2. Nozawa is averaging l80 tons/month, up 9% from the same period last year. Their "Aslock," an extrusion-molded asbestos cement board, still holds a leading position, but Mitsubishi Cement Kenzai Co. quickly catching up and Kubota Steel Works and other makers' imminent participation in this market will intensify competitions. This industry is growing fast penetrating into ALC and regarded as a prospective business, although it accounts for only 3% of the entire ALC market at present. It will therefore invite severe competitions among asbestos suppliers but we will be aggressive to outmarket others in this business area. 2. HPP-EX and AS-200-EX for Ceiling Tile Apr. May Jun. Matsushita Daiken Total 82 119 201 71 119 190 82 8l 163 Matsushita's consumption is averaging 78 tons/month. The wall material developed last year is selling very poorly for the flat housing business. Sales marked a k% increase from the same period last year. Daiken is using an average 106 tons/month, a 25% up from the same period last year. For the 3rd term we expect respective monthly usage of 110 tons, 80 tons and 110 tons. This sales increase is attributable to their plan to increase output of 1st class nonburning ceiling boards, and 2nd class nonburning boards of lower values added are decreasing drastically. The increased production is expected to continue until October. UCC 005325 3 3. HPP-EX and T-135-EX for Paper Tokai Pulp Taihei Seishi Total Apr. May Jun. 66 20 6 2 868 This industry offers virtually no hope for our sales expansion for intensifying departure from asbestos among makers and the stringent dust control. Amidst such a barren atmosphere Tokai Pulp Co. is keeping more than sound pace in consumption. It used to be 6 tons/2 months pace but the amount has increased as their application expanded to include a new tissue paper. We expect similar amount of usage by this customer for the 3rd quarter except August. 4. HPO-EX and Telvis for Drilling Mud, Phenolic and Other Materials Telnite Phenolic Others Total Apr. (Telvis) 10.0 34.0 15.1 15.0 40.1 34.0 May 5.0 0 10.5 17.6 33.1 Jun. 16.0 0 15*9 17.4 49.3 The deliveries to Telnite in the 2nd quarter were rather small, but this is their normal rate of consumption. Telvis replaced HPO in April to circumvent the dust control, but it presented a dispersion problem. At present, HPO is still being used for most of geothermal wells. This Telvis may be exported to China. From around April demand is getting brisk for phenolic resin for consumer electric items, VTR's in particular, as well as for automobile parts, and reflecting this trend our sales to phenolic makers were sound during this quarter. According to phenolic makers, the current favorable trend is likely to continue for the time being. For others, shipments to the texture paint market were smooth as they met the peak demand period. Sales were especially good for Shikoku Kaken Co. UCC 005326 4 5. RG-144-EX Apr. Cemedine Co. 4.6 Nippon Special Paint 1.0 PBT Makers 7.6 Others 6.4 Total 19.6 Max 4.2 0.2 8.5 5.8 18.7 Jun. 3*3 0.2 5.9 7.0 16.4 Cemedine keeps sound pace in consuming our material : line with the improving automobile industry. To our regret, however, the Nippon Special Paint appears to succeeded in its development of asbestos-free produc We could expect further growth of PBT resin in favor our business. RG-244-EX Apr. May Jun. Hitachi Cemedine Co. PBT Makers Others 2.3 0.9 0.7 7.4 4.5 0.7 1.6 5.9 2.3 0.9 1.0 8.0 Total 11.3 12.7 12.2 We appreciate your cooperation in pricing for Hitachi up to June. The situation with this customer would increase severity as we cannot expect priceups of Aerosil, but we will do our best efforts to keep them using our material somehow. Toray is our only PBT customer in RG-244 market, but shipments are smooth and we expect more sales in future to this account. 7. Southeast Asia Apr. May Jun. Unichemi (RG-244) 0 0.2 9.1 UCC 005327 * 5 0.2 ton. of RG-244 was shipped to Korea in May. Future shipments will be made directly from the States in containers to this country. To Taiwan, 2 containers (20,000 lbs) of RG-244 were shipped in June. In sales to this market, the Chai Seng case caused a little trouble, but thanks to your effort our routes to Taiwan was cleared. Through such a smoothened channel we will do our utmost in grasping and developing this market. END UCC 005328 INTERNAL CORRESPONDENCE UNION CARBIDE CORPORATION robinson plazan. route bo.pittssjrgh, pa 15205 METALS DIVISION -"o Ckv-sor-* T. P. Norris J. E. Walsh Copy cc D" July 20, 1983 Qr-^n.cr^oooc. "Ca 1 idria" Asbestos Arts 5ut>iscc 2nd Quarter Export Sales Export sales for the second quarter versus budget are summarized by month as follows. (Refer to attached table for complete quarterly and year to date results): Actual Jons % Budget % Budget^ Apr i 1 May June Total 656 383 742 1,781 97 57 123 91 100 59 113 91 (1) Sales/Offtcial "skewed" budget (2) Sales/Annual budget * 12 Actual 330 241 232 803 $M m % Budget)'^ 101 73 77 84 % Budqet^ 102 75 72 83 Sales dollars dropped markedly in the last two months of the quarter and for the first time this year sales to date were below budget for the period. Some of this can be attributed to late invoicing in June, but in general reflects the continuing poor performance of resin grade products in both Western Europe and the Far East. Recent shipments (not invoiced) of SX-24 to Grace GmbH have been greater than normal and could possibly bring this grade back to expectations by the end of July. SX-14, although not a signi ficant budget item, will probably remain below budget for the remainder of the year. In an effort to increase our sales in the Far East, the territory covered by Tomoe Engineering Company (TEC) was expanded to include the following: Japan, Republic of China, Peoples Republic of China, Hong Kong, Republic of Korea, Thailand, Singapore and Indonesia. Sales in the expanded area will be carried out by a relatively small distributor known as Unichemi, with TEC providing technical and marketing guidance. Although it is too early to make any judgements It appears that the new arrangement is ,being successful with shipments this month going to South Korea and Taiwan, UCC 005329 -2- July 20, 1983 Concerning sales to Taiwan, a recent problem was encountered In that a trading company in Taipai, Chai Seng, purchased a container of RG-244 from Harrisons and Crosffeld (Pacific) which was subsequently sold to one or more unknown companies, probably in Taiwan. Since then a second order was entered by Chai Seng for a 40 foot container of RG-244 but which was not accepted by either Harrisons and Crosfield or ourselves. TEC reported that the original shipment caused some disruption in their sales effort but at this point it is felt that the problem has been solved to their satisfaction. A summary of quarterly travel and leased car expenses is attached. GLD:vad Att. L. Dickson UCC 005330 EXPORT SALES QUARTERLY SALES REPORT 1983 Second Quarter PRODUCT QUARTER TONS YTD BUDGET X BUDGET QUARTER $M YTD BUDGET X BUDGET SG-IOO-EX SG-I03-7-CX SG--1 30-EX AS-200 SG-210 HPP-EX HPO-EX t-135-p-ex RG-144-EX SX-14 RG-244-EX SX-24 694 1,444 1,575 0 0 45 92 0 10 10 13 77 543 825 495 166 0 0 NB - 188 431 524 82 109 304 275 111 0 19 9 211 62 119 134 89 5 29 45 64 8o 144 160 90 90 201 245 82 94 196 221 89 0 0 60 2 2 3 67 92 140 84 167 0 0 NB - 40 93 115 81 28 79 72 no 0 15 7 214 48 90 99 91 3 18 27 67 274 490 552 89 222 488 539 90 TOTAL 1,781 3,526 3,520 100 803 1,611 .72? 93 GLD 7/20/83 UCC 005331