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To From meoH a**/ tA&M&er^ , ,. ; .. V- " INTER-OFFICE MEMORANDUM fl* March 21. I97y-*^ftafafi ^7"v~ Vv^3. "%~r-*X?:3&ftJ Subject MONTHLY REPORT - FEBRUARY 1972* W. Richard Byrnes V_____________________ (Location, Organization, or Department) (Location, Organization, or Department) * I. Market Development - Film & Sheet # A. Sales | **- " Sales results for February were as follows: Product Resins-401 405 420 470 6180 Compounds 5013 5014 Volume - lbs. . 2,500 250,000 10,000 17,000 745,760 40,000 7,500 Totals - lbs. 1,025,260 47,500 Prime customers for 400 resins included Allied Chemical with 240,000 lbs. of 405 resin, Goodyear Aerospace with IT,000 lbs. of 470 resin, Borden Chemical Co. with 10,000 lbs. of 420 resin, and. Reynolds metals with 10,000 lbs. of 405 405 resin and 2500 lbs. of 401 resin. Sales of 6180 went to Tenneco (425,760 lbs.), General Tire (160,000 lbs.), and B. F. Goodrich (160,000 lbs.) Allied's volume would have been 80,000 lbs. greater but for a plant shutdown for weather reasons. Compound sales were markedly off as Orchard Corporation finally completed the shake down period for their extrusion line. A contract was negotiated In early March and Orchard is expected to start using 5013 at a rate close to 60,000 lbs/week by late March or early April. They are--rtmning their own product at an economic advantage over commercially purchased sheet. The remaining purchase of compound wav made by Hyline- Znc. r ' ; -. B. Market Development. Programs 1.) Orchard Corporation - once again experienced a slow month. The basic .problem has been modifying the operating conditions of their extrusion line (320) AP00047410 MONTHLY REPORT - W. R. BYRNES February 1972 March 21, iy72 Page 2_____________ 1. ) Orchard Corporation- cont, to produce a shoot comparable in quality to the calendered material now purchased from Japan. By the end of February, Orchard had concluded that their problems were solved and that full scale production was to be tried. A contract has been submitted to and signed by Orchard and early orders in March have been strong. Orchard is forcasting a 60,000 lb/week rate for the next several months. 2. ) American Greetings - was given two samples of sheet for thermoforming trial in late February to test for "slip" or anti-blocking properties. A thermoforming trial in early February has resulted in failure, pointing out the need for a silicon based slip additive in the formulation. Both samples, F080 and F081, representing two different anti-blocking additive systems, were accepted by American Greetings. An extrusion trial date has been set up for April 4th. Ethyl Corporation hadan acceptable material running at A-G until early February. A-G discovered that the stiffness of the homopolymer material was causing deterioration of their drive motor windings causing A-G to shut down the PVC line and to return to purchased sheet for raw material. 3. ) Hallmark Greetings Cards - was sampled with some of the sheet sent to American Greetings. It has been found to be satisfactory for their app lications also Hallmark's laboratory extruder is being converted to a production line and work on this is anticipated to be complete by early April. A trial is anticipated then. 4. ) Tulox Plastics - has received a candidate sample of compound F0S2 for tubular containers. A trial is anticipated in mid-to-late March. If we are success ful with this trial, trial purchasers are anticipated for field testing of the product. We are striving to fit our compound into equipment designed for cell ules ics. 5.) Acricite Inc. - is a company supplying heavy gauge *ClpT"sheet-products to the office furniture trade. They purchase laminated sheet now and cannot find enough available. Their current sales are 75,000 lbs. of clear PVC sheet/month and are exploring an extrusion line with us as a source of sheet for their product line. The first meeting was held in late February. AP00047411 MONTHLY REPORT - W. R. BYRNES February 1972__________ March 21, 1972 Page 3 II. Market Research and New Business Development SPI figures released in February show sales of all PVC for calender year 1971 were 3.45 billion lbs. or approximately 15% growth over sales for 1970, A copy of the results for the year accompanies this report along with the charts representing montly growth by major market segment. Although December's rate of sales of 306 million lbs. was below October's record rate of 324.5 million lbs. it still was above the yearly rate on an annualized basis. As was predicted earlier, this level of of sales is very close to the industry's ability to supply. The first wave of price increase has already started. Although most took place in March, it should be reported that 13 of the 21 producers representing 74% of total installed capacity have announced increases of 0.5-1.0/lb. depending upon package. APCI is on this list. Major growth was concentrated in extrusion processes with pipe leading the way at 50% growth over 1970. /djg cc: J, M. Davidson W. R. Byrnes i AP00047412 THERMOPLASTIC RESINS RESIN KIND A USE TOTAL POLYVINYL CHLORIDE A COPOLYMERS UI'W llfstn C--U-nt) Su*p-nsion Homopolymer Resins Su-sprnsion Copolymer Resins Disrersion /fa-*!'-! Resins, 1..ilexes A [llrwlmt Tot*l Expert* Tali-I DorrrMn.' C;ilrnd'tinr. Tolat f IvoMnil Textile Ccwtinpi AM Other Calendering Uses Coutinf. Total Plootme Tcxlile U Paper Condos Fmteetiee Coatings f Adhesives All Othrr Ceatinc Uses Extrusion. Total -Wire Ik fable Film 6 Sheet Rigid l'i|-e k Tobins All Other Extrusions Molding. Total Dottles Sound Rot'vfds All Other Molding Paste I'rocrsse* (Except Copltwe) Plnstisot Formulntioa AH Or her All Olhct Uses SECTION I . MONTHLY STATISTICAL REPORT THE SOCIETY OF THE PLASTICS INDUSTRY. INC. (In thousand* l Pounds, dry waighl basis) DECEMBER1971 PRODUCTION DECEMBER YEAR-TO-DATE 1071 1971 1971 1971 % CHANCE 1971 DECEMBER 1972 SALES J. USE 1971 YEAR-TO-DATE 1972 N CHANCE -322.141 237,023 45,587 39,533 1,439,917 1,474,809 512,459 452,649 308.515 3.451.571 13,630 292,885 74,398 25,284 6,021 43,093 28,437 8,911 12,139 3,927 3,460 124,165 28,269 18,165 52,873 24,858 36,715 4,802 14,033 17,880 ` 13,919 10,628 3,291 15,251 164,796 3,266,775 832,499 289,116 63,205 480,178 350,284 113,385 145,110 45,354 45,435 1,452,794 354,083 203,188 581,809 313,71.4 338,623 49,528 131,734 157,361 153,669 103,680 49,989 158,906 'A AP00047413 Pace 6 compiled *v ERNST l ERNST, mew vork, n.y. `Revised to Reflect Adjustments (Jan, - Dec.)