Document gbD6Bb8nDm7YEd7Qbo95rX9v3

Dr. A. E. Pufahl Union Carbide Nuclear Company Bui lding Mr. R. M. Austin Mr. H. F. Reichard Mr. L. P. Twitchell Mr. T. S. Ary - Mr. W. H. Kohler June 15. 1959 (Dictated 6/12/59) Sales Development 1 ____" 1|l------- _ 1 PLAINTIFF'S EXHIBIT ASBESTOS MARKETS 11 UC-2642 From June 1 to Juno 9, call* were mad* on West Coast asbestos conaumara to determine the aiae of the markets and the types of asbestos used in that area. Theae calls indicate the large potential asbestos markets available on the West Coaat to a local producer of suitable quality asbestos. A summary of the customers and their respective required volumes follows: COMPANT TYPE TONS /YEAR Armstrong Cork Company 7R 2,000 Celotex 7D 30 Certain-Teed 7M fc 7D 40 Flbreboard Paper Products 5K Corp. 6D 7K 4K 7M Shorter than 7 - Arizona material 800 300 50 25 400 500-1000 The Flintkote Company 7R 7M for tiles 5K 7D 7M for roofing 4.400 1,000 240 120 2,900 The W. W. Henry Company 7M 500 Lasko Brake Products Corporation 7K It 7D 5K 480 200 Mastic Tile Corp. of America 7R06 1,440 Standard Oil of California 7R05 120 U. S. Gypsum Company 7RF-1 400 UCC 005332 2 The total ittlmtcd uitt by these customers by grad* are: No. 4 Approximately 100 tons No. 5 Approximately 1,200 tons No. 6 300 tons No. 7 Over 14,000 tons Not included In th** overall total* ar* u** of 500 to 1,000 tons of smaller than No. 7 Grad* derived from Arizona asbestos and the Japanese uses of 40-50, 000 tons of No. 5 and No. 6 Grades. Individual comments on each customer follow: ARMSTRONG CORK COMPANY 5037 Patata Street South Gate, California Interviewed: Mr. William Lowe, Purchasing Agent Armstrong uses several carloads per week of Grade 7R asbestos. It is purchased mainly from on* supplier. Their requirements are up about 25% over 1958, which was not a depression year in their business. They would be glad to purchase at least part of their requirements from us if our quality were equal and if some price advantage could be shown on a delivered basis. Mr. Low* will not give us purchase specifications and methods until we have material for them to look at. They would need about 5 lbs. for initial testing and would test any material w* submit as long as w* told them it was representative of commercial production. The testing would be done at their South Gat* plant. Mr. Low* felt that the Canadian Government exercised considerable con trol over the asbestos price and probably would not allow the Canadian asbestos producers to freight equalize with a West Coast asbestos producer - at least on the lower priced items. Such freight equalization would bring the selling price down so low that the Canadian producers would be only exchanging dollars. If Mr. Lowe's feelings are substantiated, we could probably obtain essentially all of the West Coast asbestos business for at least the cheaper grades. We will further explore the Canadian Government control over aebestoe pricing. 6/15/59: Today, I asked Mr. H. J. Scarth, Manager of Purchases, Union Carbide Limited la Toronto, to determine whether the Canadian Government exercises any control over the sales prices on Quebec asbestos. Mr. Scarth checked a source in the Canadian Govern- UCC 005333 3. ment and find* that there is no Government control. (R. M. Austin) riBRKBOARO PAJPXR PRODUCTS CORPORATION 475 Brennan Street San Francisco 19, California Interviewed-, Mr. B. A. Wilson, Director ,pf Purchasing Mr. J. G. Genet, Purchasing Agent, Raw Materials Mr. Harry Hoopes, Sales Manager, Insulation Division Fibreboard uses asbestos in insulation and in vinyl asbestos floor cover ing (not tile at this time). They are now using 800 tons per year of 5X and 300 tons per year of 6D in asbestos siding; this phase of their business is greatly depressed because of competitive factors but should grow in the near future. They use 50 to 60 tons per year of 7K in asbestos paint. They use 25 tons per year of 4K In insulation and also 4T in magnesium oxide insulation. 400 tons per year of 7Mare used in asbestos cement insulation. If a cheaper source were available, they could use an additional carload per month in this field. Long-fiber, South African (Amosite) is used in blocks and pipe covering. 500 to 1,000 tons per year of very short fiber is used in floor covering. This material is shorter fiber than any of the 7 grades and is priced under the 7 grades (under $40). It comes from the Ariaona mines, probably via Western Chemical Company in Los Angeles, on a special freight rate. Fibreboard would be very interested in buying asbestos from a Western source, even if we would "split" the freight savings with them. They gave us their test methods and specifications for all of their requirements. They now buy in pressure-packed, 100 lbs. bags and feel that the Asbestos Corporation has tiie best packaging system. They would start their testing with 5 lbs. quanti ties. If satisfactory, they would then go to about 10 tons for a plant run. Mr. Hoopes feels that the total market for short-fiber asbestos on the West Coast is about 50, 000 tons per year. This number was confirmed by the California Bureau of Mines. THX FLBfTKOTK COMPANY Pioneer Division 5500 South Alameda Street Los Angeles, California Interviewed: Mr. Arthur R. Hooker, Jr., Director of Purchases Flintkote uses asbestos primarily for floor tile but it is also used in asbestos shingles and cementing. In 1958, they used 4,400 tons of 7R Grade and 1,000 tons of 7M Grade for tiles. In addition, they used 6 cars per month of 7M and 2 to 3 cars per year of 7D in liquid asphalt and 1 car every 1 to 2 months of 5K. UCC 005334 4 Flintkot* would be interested In a West Coast producer of asbestos even though the problem of buying asbestos from us instead of using their own mait-ex.ial would be a top-level decision. Mr. Hooker gave us copies of their specifications and their grading methods. He examined our material and felt that it was a very high-quality with no apparent "tale" or "grit. " Uniformity of color is very important for their uses. They would be glad to test our material when representative product is available. Would want 5 lbs. initially and the next step would be a plant run using about 1, 000 lbs. Mr. Hooker felt that a profitable operation at an asbestos mill would require processing at least 1.000 tons of ore per day with yield of 12-15% fiber from the ore. He said that the large producers have dona away with the manufacturer's discount. Within the last year, at least two ocean ship ments of asbestos have been made to the West Coast. This competition has brought about a reduction In rail freight rates for asbestos. THE W. W. HENRY COMPANY 5731 Bickett Street Huntington Park, California Interviewed: Mr. Dale Stutsman. Technical Director The W. W. Henry Company uses asbestos in adhesives for all building trades, coatings for roof applications, and sealers of the caulking type. The asbestos is used primarily as a filler for viscosity control. This company uses about 500 tons per year of No. 7M Grade. In addition to the Canadian grade specification, they have their own screening test used for each batch of material. We have a copy of their method. They cannot use fiber longer than 7D because of need to separate and brush their end products. Asbestos is purchased in car load quantities in 100 lbs. pres sure-packed bags, Henry, like all of the users, buys asbestos on a "spot" basis and does not contract for it. This company would welcome our entry into the market and would be glad to test our material when representative quality is available. Would want a few pounds for initial testing and then go to a full batch requirement of 1/2 to 1 ton, Mr. Stutsman remarked that our material appealed to be very pure asbestos but that it was not well fiberixed. JAPANESE ASBESTOS USES Interviewed: Consul Nishi Wakl - Japanese Consulate Mr.. R. K. Tibbits arid Mr. Takeshi Moricka of Mitsubishi International Corporation, San Francisco Branch 206 Sansome Street San Francisco 4, California UCC 005335 5. Consul MliU VtU ladiuttd that about 40-50,000 tons par yuar of asbestos ware Imported into Japan from Canada but be was unaware of the exact amount and the grades used. He said that, because of several small mines in Japan, imports were limited by quota restrictions. We were referred to the Mitsubl&i international Corporation for further information. Mr. Tibbits was not sure of the Japanese use pattern but wrote to Japan that day requesting full information on sine of requirements and the grades required^ as well as asking for an indication of the Japanese interest In purchasing asbestos from us. Mr. Tibbits indicated that they would have a strong interest in buying from Union Carbide Nuclear Company because of our stability and proven ability to supply quality products. He indicated that they might be interested in a long-range contract. If so, they would undoubtedly want to examine the extent of our property. Subsequently, we received a letter from Mr. Tibbits indicating that he has asked Japan for the full story on requirements lor asbestos and that we should hear from them by the end of June* LASKO BRAKE PRODUCTS CORPORATION 26th and Magnolia Streets Oakland, California Interviswed: Mr. Harry Hunt, Purchasing Agent, and Mr. Maurice Ridker, Director of Research It Production Asbestos is used in brake lining and is most Important part of their operation. They use about a carload per montit of 7KOS and 7D24 Grades and a carload every 2 to 3 months of 5K Grade. They buy from both Johns-Manville and Asbestos Corporation. Mr. Ridker has had previous troubles with Arizona asbestos and is very hesitant to change to some unknown quality. However, he would be glad to test our material when good quality is available and, after full evaluation, would probably permit us to share in their business. MASTIC TILE CORPORATION OF AMERICA 2340 East Artesia Street Long Beach, California Interviewed: Mr. Walter Boyd, Plant Manager Mastic uses asbestos for floor tiling. They buy several carloads (40 teas per carload) per months of Johns-Manville 7R06. This use ie expending. They would welcome our entry into the field and would be willing to give us an order for a carload immediately. If we enter the market, we can obtain a large share of their business because of our ''reputation" and because af our initiation of a price drop. We could never obtain all of their business becauae of their need for a second source. They have no other buying specification for material. I Jr UCC 005336 6. When we haw representative material, they will ba glad to look at a 5 lb. quantity and than go to a ton and than carloads. They would welcome a West Coast asbestos producer. Within the last two months, three groups * including Jefferson Lake Sulfur Company - have approached Mastic concerning their interest in West Coast asbestos. STANDARD OIL OF CALIFORNIA Western Operations, Inc. San Francisco, California Interviewed: Mr. P. J. Byrne, Buyer, Central Division Purchase fe Stores Department Standard Oil, as well as many other petroleum producers, purchases asbestos for incorporation into asphalt roofing. They buy 2 to 3 carloads per year of Johns>Manville 7RO$. Their standard purchasing requirements were obtained along with specifications. They would be glad to look at our material when avail* able and would be most interested in our supplying diem from the West Coast. U. S. GYPSUM COMPANY 4500 Ardine Street South Gate, California Interviewed: Mr. C, V. Shock, Purchasing Agent Asbestos la used by U. S. Gypsum Company as a filler for other products but is not used in roofing material. They use 6*10 carloads per year of 7RF>1 Grade from Johns-Manville, Small quantities of 7K and 7E arc used. All purchas* ing and evaluation would be done in Chicago after initial examination In Los Angeles. With the apparent freight saving, they would be very interested in our supplying asbestos and feel that we could get a large share of, the business. They will send us their specifications and test methods. T. J. Hall/dk UCC 005337