Document kmMq4VL67gMG96vONbL4wDxVn

MITSUBISHI MONSANTO CHEMICAL COMPANY PNOM LOCATION , Tokyo , January 31, j 972 MMK'a' PCH PtlQGRAM , Your Memo 1/6/72 TO Mr. George F. Wingr.vd iSt. I.ouis, Mo. I Messrs.. . J. A, Bryan W. R. Corey Howard Bergen Monsanto's proprom has been reviewed here. M.MK will institute h similar plan but leading to complete elimination of this product line. yen 1. Plasticiser or "Open" use Discontinued all sales as oi 12/31/71 2. Electrical Customers advised to switch to substitute materials January, 1972. Target date to terminate salps: July 31, 1972 3. Heat Transfer Applications Target date for soles termination a) For rev. inotnlUtions: Match 3), 1972 b) For replenishing on previous ablest- March 31, 1973* * lJo shipment where there is possibility of pollution. Also, an earlier date may occur if MMX can switch cut tome vs to Kaneka .. source. Disposal: At customer's request for disposal of Santothcrm . FR and customer expeoso of Y5,000/drum, returned material will be accepted until March 31, 1973. (This will be incinerated at Yokkaichi.) HONS 099790 MITSUBISHI MONSANTO* CHEMICAL COMPANY Mr. G. F, Wingard- 2- January 31, 1972 PCX i MMK has been re-selling material made by another company. By July 31, 1972, all customers will be converted to purchase from the basic manufacturer or referred to Kaneka. Exports Aroclore will be exported only on Monsanto orders and will follow the lirr:o-table of Monsanto. If ''Hold Harmless" letters are acceptable, shipments will continue until June 30, 1972, if not, exports will terminate March 31, 1972. The facilities Involved at MMK hove estimated book value on June 30, 1972 of the following: Biphcnyl/Terphenyl Chlorinatic.u area Blending Hydrogenation (lift-40) Total y230,545,000 91.708.000 15.220.000 23.685.000 Y361,158,000 The chlorination and blending area will be shut down and, if not operated, depreciation need not be taken, effective July 1, 1972. We will keep on stand-by while we look for other processes which might use this facility (limited possibility so very likely the chlorination unit will be cannibalised for value and the remainder writt en off - - probably Y71,000, 000, approxi mately $230,000). MMK cannot lake the write-oft in 1972, bo perhaps it will be 1973. V'o Jtojge to be able tc> justify continuing. biphunyl/tssphenyl. Justification depends cm volume of operations. V;e are trying to persuade Yawata Chemical to shut down, since they can produce only blphenyl/terpbenyl ratios of 90/10. MMK can simply Japan's needs at 50/50, a better balance with reduced demand lor PCB. "Mold Harmless" In MMK's view from our business relationships, It will be impossible in Japan to expect our electrical customers of Aroclors to maintain 100% of the liability for damage*. Kanckafuchi Chemical will not follow such a procedure. Furthermore, Kaneksfuchi is involved as manufacturer of HONS 099791 MITSUBISHI MONSANTO CHUMiCAL COMPANY Mr. C. F. Wingard t January 31, 1972 Kanoclor in the rice-bran oil incident and probably cannot terminate operations. At the moment, Kaneka apparently will continue selling on a broad basis subject only to regulations or laws of individual countries. From the legal viewpoint, MMK's attorney is discouraging because of the lack of precedent. Moreover, in Japan, it is his opinion that the Hold Harmless contract ' is likely to be Invalid and unenforceable as an agreement against public policy, on the ground that Monsanto's torts are induced by such undertaking (an agreement which haa such effect has been held invalid). " Please let me know if there are questions. The MMK program will bo formally approved by MMK in early February. JRDifu R. Durland HONS 099792