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ESCAMBIA CHEMICAL CORPORATION interoffice correbronoencc TO* FROM! SUBJECT* T. L. Carey C. L. Wallace PVC Monthly Summary -July 1968 OATE COPIES August 5, 1968 Marketing Sales for the month were again below budget, and preliminary results reflected a Loss of $43 M versus a forecast of $59 M. The low sales volume of 3, 655 M lbs. can be accounted for in part by the less than normal purchases of Robbins Floor Products and a slow comeback (as a result of belatedly meeting competitive price cuts) at ITT, Blane and Elm Coated Fabrics. Although Robbins has been slow for two months, orders at July month-end for August indicate an upswing. The sales of specialties showed an improvement with 125 M lbs. of fusion and 84 M lbs. of extender resins being sold. The Sales Order Department was relocated to Pensacola. To date customer reaction has not been negative as was initially feared by some sales personnel. ~-- Sales for August are estimated at 4, 100 M lbs. During the month, the 'sales force will be re-organized to cover the accounts handled by Mr. R. F. Porter /who was transferred to Cast Optics. During August it is planned to have data bulletins drafted for all resins and a geographic analysis prepared for all current and potential business, This will be the first step in a planned reallocation of sales territories. Research and Development Research and Development work was centered around the production of /Saran for Union Carbide Food Products Division and the move to Pensacola. A total of 10, 500 Lbs. of Saran was produced and shipped to Carbide, completing the current order. All files, notebooks, etc. relative to R&D work were packed and shipped to Pensacola. Technical Service Visits were made to Armstrong Cork and Continental Can with respect to the bottle compound business. Armstrong was loaned our vacuum hopper to assist them around a moisture problem they have encountered with ours as well as competitive resins. Continental Can was supplied with samples of two FDA type dry blend compounds. AP00045995 T. L. Carey -2- August 5, 1968 Technical Service (cont'd) Robbins Floor Products was visited to assist them in the use of our plastisoi extender resins.. Cost savings in our proposed formulations were explained to Robbins' production and R&iD executives. Additional comparisons were made of Escambia plastisoi extender resin with competition in. plastisoi foams. Escambia's PVC-8250 was inferior to Pliovic's M-90 and FVC-8200 was equivalent to Borden's VC-26Q-S. In a foam formulation using Firestone Exon 605, Escambia PVC-8200 was better than Diamond's 7-44, Pliovic's M-70, and Geon 106-F12. Escambia's large particle size extender resin, PVC-8185 was evaluated in a foam product. It produced a good foam product slightly better than Borden's 260-C, but not quite as good as Firestone's exon 666. (NOTE: Vinyl foam, or sponge, is of current interest in the flooring trade as a backing for sheet flooring. All the major flooring houses are now marketing such products. ) All files, records and equipment to be moved to Pensacola have been packed for shipment. Production PVC production was 4, 165 M lbs. of prime resin versus the budgeted 4, 250 M lbs. Total production was 4,428 M lbs. Off-grade was exceptionally high this month, 5. 9% due to homopolymer contamination of co-polymers and accounting for some off-grade material produced in June. The production run of the co-polymer, PVC-6L80, was the first run made after the dust collecting modifications and without being preceded by a PVC-X6150F run. (The PVCX6150F was not affected by cross-contamination and acted as a clean-up resin; however, this type has been discontinued). Clean-up producers will be expanded to reduce contamination. Additional test variations were made in the FVC-3185 recipe to reduce the bulk density withoutJtffecting other properties. The tests were not successful. The grinding of resin to produce PVC-41852S and 3S was highly successful this month. Only 7% of its production failed, apparently due to cross-contamina tion with non-fusion resins (tails) previously ground. None of the product had the mottled appearance that has often plagued production. The data is being reviewed to determine what we did right. AIL general purpose resin production was routine and within specifications. AP00045996 T. L. Carey -3- August 5, 1968 Production (con^d) A major maintenance problem was incurred during the month with the electrical curcuit breakers in the main substation. Curcuit breakers failed on six occasions. Two of the breakers are being replaced, and repair parts are being purchased to improve the reliability of the remaining breakers. The replacement of the brass bearings in the dryer feed screws with nylon and a small water purge for lubrication seems to have reduced problems in this area. A possible alteration to eliminate the feed screw completely is being considered. Cost variance for the month was $487 unfavorable compared with the projected cost variance of $0. Bulk production variance of $4, 160 favorable was offset by $4,607 unfavorable in nonrecurring packaging costs. 7 Production for August is estimated at 4, 080 M lbs. and cost variance The relocation of the R&D, Technical Services and Sales functions to Pensacola, are procedlng on schedule. Mr. A. R. Dohaghy has relocated his Sales Order office. The npw RiiD and Technical Service building is on schedule for occupancy August 15. Messrs. Gabbett and Johnson have decided to leave Escambia and applicants to fill their vacancy have been interviewed. Two preliminary interviews were conducted in a search for a commercial development minded R&D director to head the department. Each candidate will be interviewed in Pensacola in early August. The 1969 PVC Business Component Budget was prepared and presented to management / ' '---------------- . -- Agreement was reached with Allied Chemical in two cost areas: a 4, l cost (starting October 1, 1968) for VC monomer, and an agreement to produce general purpose PVC resins for our account for 7. 5 FOB Painesville, Ohio. Proposed contracts have been reviewed and, while modifications and clarification is in process,* major problems are not presently evident. We were emphatic in stating that this relationship could be mutually beneficial; we intended no inroads AP00045997 T. L. Carey -4- August 5, 1968 General (cont'd) on their general purpose business and we expected a mutual treatment by them. We also discussed in a very preliminary manner the idea of some sort of trade of their plastisols for our extender resins. G*-isr Wallace AP00045998 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE COPRCftPONDENCE TO t C. L. Wallace from: D. W. Kloha SU9JECTI Monthly Summary -- Sales July 1968 DATE COPIES 1. Dynamics of the Business 28, 117,312 / 1,754,800 K 30,095,947 Because of the moy4 of PVC Sales Service to Pace, 1 am handicapped in writing this month's report. */As of this moment, I do not have a sales breakdown by accounts; therefore, I am only partially aware of the outages for the month, which put us below budgeted sales. In spite of the fact that July, as anticipated, was below budget, we remain about 2, 5 MM lbs. ahead of budget for the year to date. Our average month thus far this year has totaled 4. 28 MM lbs. , which is just about our production level. The principal outage in July occurred at Robbins. They purchased a mere 347 M lbs. against their projection of 850 M lbs. Naturally, had they taken their expectations, we would have met the budget with ease. Thus, Escambia's history in PYC repeats. When Robbins buys what they project they will buy, we can meet our sales volume. When they fail us, we fall on our faces because it is then too late to take corrective steps. Thus far, they have descended on us rather heavily for August; and we anticipate sales of 4 MM lbs. for the month.. rli AP00045999 C. L. Wallace -2- 1968 Also, we sold nothing to Blane itytfuLy; and lost ground at Elm and ITT -- where we have not, as yet, recovered from our attempts to raise the prices. Stan Anton will be working diligently on all thrjte accounts in order to bring them back into the fold with good volume. As stated above, we anticipated that July would be below budget. July is normally the vacation month in the PVC trade, and many companies in this industry close completely for one to two weeks. In addition, we lost the services of Bob Porter early in the month, and I am certain that this hurt our volume in New England. This hole in our sales force has now been plugged. We have hired Robert Weston, who will concentrate on the specialties; and Stan Anton will handle such accounts as USM, ITT, TAMI and Blane. Specialties took on a rosier glow in July in spite of the vacation slow down. We sold 125 M lbs. of 4185 and 84 M lba of plastisol extenders. The latter will pick up sub stantially in September, We now have PVC-8200 approved at Pandel, where antici pated volume is around 50 M lbs. per month. Also, I have asked Bill Lyons for a projection on Chemical Sealing's requirements for 8200 and he stated that he expects 80 M lbs. per month starting in August or September. The Chemical Sealing account could buy from us 1-1/2 - 2 MM lbs. of plastisol extender next year. Further East Coast Chemicals stated that they would need 1 MM lbs. of PVC-6240 in 1989 for sale to Essex Chemical. This will be used in a plastisol for the manf&cture of automotive air filters. During the month, Bob Johnson and I visited Robbins; and we are confident that we got things started there for our plastisol extenders. We had sent the Prescott plant trial quantities of 8200 and 1255. The first two were quoted at 17/lb. and the latter at 12/lb, in truck loads. PVC-8200 will be used to replace Borden's V-C-260-S in plastisois. (Our 17 price may not be competitive, but I'll worry about that after we are approved. ) PVC-8285 and 1255 will be used to replace a plastisol resin in a calendered film which Robbins is making for their own use. They should be able to consume 60-80 M lbs. per month of these combined products , if all goes well in the tests. Prices and Trends Prices continue to soften in spite of our feeling that they can't get worse. . Apparently, no one has told Allied Chemical and Ethyl that the prices are now on the floor. We booked a car of 2225 to Wiman in July, but had to meet a 9. 5 per pound price in order to do so. Both Allied and Ethyl gave them this price; and we had to meet it or walk away from the business. We found out in May that we can't walk away and keep our plant completely absorbed. In addition, Paul Baker called last we and advised me that Allied quoted U. S. AP00046000 C.L. Wallace -3- Auguat 5, 1968 Stoneware 8. 5/lb. for general purpose resin in bags. This is unbelievable; but then most of Allied's recent performance in that business has been. I understand from some of my plastisol contacts that they are also softening the plastisol resin price to the 20/lb. area from 24. It is obvious that Allied can't make all of the resin consumed in the USA, but they don't seem to be interested in letting anyone else make money in this business. Where the general purpose price will end up is now anybody's gueas,_ All we can do is hope that in the near future both Allied and Ethyl totally absorb their production capacity. We can then hope for some reason in this business once again. li/ D.W. Klohs AP00046001 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE CORRESPONDENCE TO* Mr. G. B. H. Speed OATE FROM! M. B. Rogers COPIES SUSJECT** PVC Monthly Report - JuLy 1968 August 2, 1968 SUMMARY July production was 4, 164, 650 lbs. prime resin and 4, 227, 800 Lbs. total, compared with a projection of 4, 250, 000 lbs. prime. Off-grade production of 173, 000 lbs. included mostly PVC 6180 copolymer contaminated with homopolymer. Fourteen types were produced in 16 separate runs. Vinyl chloride efficiency remained above budget at 94. 9%. v/ Additional PVC 3185 fusion resin recipe variations did not produce consistent results, although all the resin product was either sold as prime grade or ground to good PVC 4185-2S and 3S material. Installation of the new controllers on the refrigeration machines has apparently reduced the cycling and improved the reliability of the machines. Variance for July was $487 net unfavorable. Bulk production variance of $4, 160 favorabLe due to monomer efficiency and high volume was offset by .y $4, 607 unfavorable in packaging due to grinding labor costs and exceptional ) fct* supplies purchase and bulk car maintenance cost. x STATISTICS Prime Production, M lbs. Month Year to Date Off-Orade Production, % of Total Month Year tc- Date Bulk Production, % of Prime Month Year to Date July Actual Budget 4, 165 28,253 4, 080 28,560 5.9 3. 7 54. 6 51. 6 3. 0 57.5 57. 5 Actual Budge 4, 045 24,088 4, 080 24,480 2. 3 3. 4 3. 0 3. 0 32. 6 51.2 57.5 57.5 AP00046002 Mr. G. B. H. Speed STATISTICS (continued) -2- July Actual Budget August: 2, 1968 7 y*c ActvJWC Budget Shipments, M lbs. Month - Prime Month - Off Grade Year-to-Date Prime Year-to-Date Off Grade 3, 692 158 f.28, 077 y 1 1, 592 ir - ^ 3, 185 194 24, 385 1, 434 - - - VC1 Efficiency, % Month Year to Date 94,9 95. 3 94 94. 6 94 95.4 94 94 Reactor Availability, % of Available Hours Month Avg. Year to Date 81. 8% 80. 7 % - - 79% 80. 5% - - Reactor Downtime, % of Available Hours Mixing Solutions in Reactors Cleaning & Washing Reactors ^Scheduling Charges Changing Types Copolymer Production. Slow Recovery Dow Drying Rates and Dryer Line Cleanout Hydraulic Motor Repairs Misc. Reactor Maintenance Dryer Maintenance Electrical & Instr. Maint. Miscellaneous Experimental Batches /0.4 8.4 V 3.2 1.2 0. 0 0.3 0. 8 0. 0 1.0 1.5 0.4 1.0 0. 0 0. 5 8. 6 5. 7 1. 2 0. 1 0. 2 1. 7 0. 4 1. 5 0. 9 0. 1 0. 0 0. 0 Total 18. 2 20. 6 AP00046003 Mr. G. B. H. Speed - 3- August 2, 1968 Product Mix, M lbs. Prime Resin July________ Actual Budget Group I Group II Group III Group IV Group V Group VI Group VII 2, 405 1, 165 229 0 282 84 0 2, 154 1, 010 603 23 262 32 0 Total 4,165 4, 084 ________ June Actual Budget 1, 799 1, 120 513 0 613 0 0 2, 154 1, 010 603 23 2 62 32 0 4, 045 4, 084 Off-Grade and Tailings Type Lot Quantity Lbs. 3185 3284-1 3284-2 11, 350 15,000 26, 350 6180 3310 3297 3295 3293 3292 32, 800 33, 600 36, 000 35,800 8, 550 146, 750 Total Off Grade 173, 100 Tailings 80, 050 Reason Off-Grade Contamination 36 Contaminatio n 36 Bulk Density 20. 1 Sediment No. 100 Sediment No. 120 Sediment No. 150 Sediment No. 150 % of Total Production 0. 3 0. 3 0. 7 0. 8 0. 8 0. 8 0. 2 1.8 Floor Sweeps Total 10,000 263,150 0. 2 5.9 AP00046004 Mr, G. B. H. Sp e e d -4- August 2, 1968 Payroll Regular Hours Unscheduled Overtime Hours Percent July June /6, 750 1, 0L4 ^rtTo^ 7, 815 497 6. 0 PRODUCTION 1000 Series Types produced: 1200, 1217, 1225, 1230, and 1250. Ail PVC 1000 series production was routine and within specifications. One bulk rail car compartment of PVC 1250 shipped to Phillips was rejected on the basis of the Phillips wet contamination test. All samples taken during and after loading had checked excellent, but additional samples taken by Phillips were also judged unsatisfactory. The car has not yet returned to Pensacola for determination Of the nature of the contamination found by Phillips. A replacement buLk truck shipment was accepted. 2000 Series Types produced: 2170, 2225, and 2250. Production was normal. 3000 Series Types produced: 3185 and 3225. The PVC 3185 recipe was tested in the following variations: (a) Various UY suspending agent and EZ salt buffer levels and ratios. (b) EZ in solution versus solid. (c) FE seed latex addition before and after the EZ salt addition. AP00046005 Mr. G. B. H. Speed -5- August 2, 1968 The results -were not consistent within each variation, but generally showed the following trends: (a) Bulk density was not controllable in any of the salt variations tested, including those when FE was added last and better control was expected. The lowest salt level was apparently too high for the set in which FE was added last. (b) Increasing the UY gave more excessive fines and did not reduce the bulk density. (c) Liquid solution of EZ salt gave a higher proportion of batches with the desired PVC 4185-SP properties, but the results were erratic. The variation is unexplained. Most of the PVC 3185 has been ground to satisfactory PVC 4185-2S and 3S material for which a moderately higher fines content increases the grinding rate. level High fisheyes in PVC 3225 was corrected by increasing the UY 6000 Series Types produced: 6180 and 6240. The first 4 lots of PVC 6180 were off-grade because of high sediment number, a measure of homopolymer contamination. Another coarse copolymer, or at least a coarse homopolymer, must be scheduled before PVC 6180 in future runs; fine homopolymers cannot be adequately removed by physicaL cleaning to prevent contamination. A problem with Low bulk density and excessive oversize in PVC 6180 was corrected by adjusting the levels and ratio of suspending agent and buffer salt. A difference in a new batch of suspending agent made the standard recipe unsatisfactory. PVC 6240 relative viscosity was satisfactorily adjusted to a customer's special requirements of 2.40 0. 05. AP00046006 Mr. G. B. H. Speed -6- August 2, 1968 8QQQ Series Types produced: None Ground Resin Of 77, E50 lbs. of ground 4185-2S and 3S fusion resin, only 5, 250 lbs. did not pass the fusion test, and this failure was apparently from contamination with non-fusion types previously ground in the mill. None of the product had the mottled appearance so often a probLem in the past. MAINTENANCE Both dryer feed screw bearings were changed from brass to nylon with small metered water purge for lubrication. Both nylon bearings appeared in good shape after 1/2 and 2 weeks service, respectively. Both feed scrolls were cut off at the trough discharge port to prevent forcing PVC into the bearings. It was learned that two other PVC manufacturers use gravity feed in place of feed screws to avoid this contamination and maintenance problem source. Measurements were taken for a chute to eliminate the feed screws in both dryers when shutdown time permits installation. The major maintenance problem in July was six circuit breaker failures in the main substation. Two of the worst breakers are being replaced in conjunction with the PVC Research and Technical Service laboratory building, and repair parts were purchased to make the remaining breakers more reliable. The refrigerated water strainers were cleaned 7 times this month to remove trash. The new temperature controller was installed on the east machine and is performing well in conjunction with the controller previously installed on the west machine. The epoxy coating in the Alpine mill failed and was replaced. The No. 4 reactor removed in January was sent to Glascote for reglassing and nozzle and baffle modifications. Routine maintenance in July included the following: Replace shaft seaLs, change valves, (north unit only) and repair relief valves on recovery compressors. Instrument calibrations on No. 4 and No. 7 reactors. AP00046007 Mr. G. B. H. Speed -7- Auguet 2, 1968 Drop valve repairs on No. 1 and No. 9 reactors. Cleaning monomer purification still and miscel laneous vapor lines. GENERAL A Simco static electricity analyzer was obtained to study this phase of the low and sometimes variable screening capacity with some resin types. Initial readings show surprising variations in the size and sign of charges on the Rotex screens with and without humidifying steam. A non-hazardous Polonium radioactive static eliminator was received for trial in the Rotex screen cover and is to be installed in early August. A Pfaudler representative recently suggested that the location of the reactor baffle adjacent to the thermowell would increase the fouling tendency at that point, The baffle in No. 10 reactor was moved opposite the thermowell, but there is no apparent effect on fouling. Installation of a motor operator on the south stripper drop valve was completed this month. The automatic valve will reduce losses from overflowing the blend tank chip baskets and improves operator utilization. The PVC Tech Service and Research Lab building is nearing completion for occupancy August 15, A 50 gallon reactor for the PVC pilot plant is due the end of August, and quotes have been received for a 500 and 1000 gallon reactor to be selected for the pilot plant. AUGUST 1968 PROJECTIONS August projections are as follows: Projection Budget 4, 080 2, 700 (2, 200) 4, 080 AP0004 Mr. G. B. H. Speed -8- August 2, 1968 7 VARIANCE ANALYSIS ' At July variance wafl as folio; FAVORABLE PRODUCTION UNFAVORABLE Monomer Efficiency <^ffy-pT6duct Credit* Process Costs Salaries Misc., travel, comm. Rental and training Other $ 2, 152 Volume Variance 9, 675 w Monomer to Pff-Grade xJProccss Chemicals* V?CA Monomer * 4, 007 Process Costs 1,270 Laboratory 623 Taxes & Insurance Utilities - 62 Maintenance $17,789 * Off-set by by-product credit. NET PRODUCTION - $4, 120 favorable $ 156 / 5,856 * 1, 184 1, 620 1, 494 695 1, 249 1, 415 $13, 669 PACKAGING Bags to Off-Grade, etc. Process Costs Salaries (to Alpine Mill) Mat'is & Supplies $ 871 1, 189 1, 203 158 $ 4, 607 $ 487 AP00046009 ESCAMBIA CHEMICAL CORPORATION interoffice correspondence TOJ C.L. Wallace FROM! R.E. Johnson SUBJECT: Monthly Summary July 1968 OATE August 1, 1968 COPIES Technical Service ARMSTRONG CORK A Technical Service visit was made to Armstrong to assist them in the blow-molding of PVC bottles. It appears that Armstrong is having a definite moisture problem. . They have had difficulty processing PVC-2185 as well as competitive resins and compounds. Armstrong has been loaned our vacuum hopper from the 2-1/2" extruder and has been instructed as to its use. The hopper is currently being installed on their Fischer molding machines. The results of this will be reported as soon as received. They anticipate their consumption of PVC for bottles will be 2 MM lbs, /month in another year or so. CONTINENTAL CAN Aa part of oux efforts to supply Continental with resin for bottles on a contractual basis, we have supplied them with approximately 50 lbs, each of two FDA type dry blend compounds for use in their machines. Based on the results of these trials further dry blends will be provided incorporating any suggestions either of us feel should be made. ROBBINS PRODUCTS, INC. A Technical Sexvice visit was made to Robbins to review the work that we had been doing fox them. Plastisol extender resins and their use in Robbins' applications were discussed and samples using plastisol extender resins were presented. It was recommended that PVC-8250 be used in their foam applications. Robbins* vinyl asbestos program was also discussed. It is expected that this line will be in production by September 1. Unfortunately, at this time, Escambia does not have a copolymer that will meet Robbins1 requirements, PLASTISOL EXTENDER RESIN EVALUATIONS A. The main emphasis this month was placed on evaluation of our resins in plastisol foams. A comparative evaluation of PVC 8200 vs. Borden VC-260-S and PVC 8250 vs. Pliovic M-90 was carried out in a formulation containing medium molecular weight paste resin. The AP00046010 C, L. Wallace -2- August 1, 1968 experiment was repeated using a high molecular weight paste resin. It was shown that the extender resin used should closely approximate the molecular weight of the paste resin to get the best results and that M-90 produces superior foam than PVC 8250, while YC-260-S and PVC 8200 are approximately equivalent. B. The large particle sized extender resins PVC 8185, Fire stone's Exon 666 and Borden 260-C were evaluated in a foam formulation. Escambia PVC 8185 produced a good foam product, but the Exon 666 formulation was slightly better. The particle size of the extender resin has little affect upon foam quality; the most important thing is the surface tension and melt viscosity of the formulation. C. Escambia PVC 8200 extender resin was compared to Daimond 7-44, Pliovic M70 , Borden 260-S and Geon 106-F2 in a foam formulation containing Firestone Exon 605 paste resin and D. O.P. as plasticizer. The best foam qualities were exhibited by the PVC 8200 formulation. D. Stablizers; Nuostab V-1367, Mark 739 and Ferro 12-V-C were evaluated to determine their effect on the fusion of PVC 8200. Nuostab V-1367 promotes much faster fusion. E. The quality of PVC 8200 extender resins lot 3231, 3234, 3236 and 3239 was investigated. All were deemed satisfactory. F. The following experiments were worked on but need further investigation in the designated areas because the equipment necessary for their completion was shipped to Florida. Research Project 2758-51 (Resin Development) Experimental Resins #5-148, 5-151, 5-153, 5-154, 3-789, 3-780 and 3-800 were evaluated in the standard paste formula vs. 8185. AP00046011 C. Lu Wallace -3- Auguat 1, 1968 Samples were made for the evaluation of tensile properties to be carried out at a later date. Robbins Floors #2758-52 Evaluation, of Properties contributed by various fillers. The paste properties of a comparative formulation containing the fillers PIG #33 (clay), Surflex-mm, Atomite, Duramite, #1 White, #3 White and 40-40 White were evaluated. Samples were prepared for comparative stain and tensile properties. Relocation of Technical Service Laboratory The equipment in the Technical Service Laboratory is all packed and crated for shipment to Pensacola. AP00046012 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE CORRESPONDENCE TO l C. L. Wallace DATE August 1, 1968 FROM: V.J. Grande F. L,. Riddle COPIES SUBJECT* Monthly Summary -- Product Development July 1968 PVC Research A. Saran The present Saran run being conducted in the pilot plant is due to be concluded on Friday, August 2. The following quantities of Saran will have been prepared and shipped to Union Carbide;. 8000 lbs. 500 lbs. 500 lbs. 500 lbs* V1710E SBV 1710E SOV 1710E SV 1710E The complete file of Saran technology is being obtained from Mr. Gabbett and sent to Pensacola. B. Plastisol Extender Resins Research efforts in this area have been terminated for 6-8 weeks. Prior to this , considerable laboratory and pilot plant activity was conducted which will be resumed in Pensacola. All of this data has been reported and is in our files. C. Micropearls Pilot plant runs were recently stopped. Such reaction variables as agitation, "order ot reagent addition, and temperature profiling were studied. Each variable significantly effected particle size and bulk density. Much information has been learned concerning the mechanism of this reaction. When the Pensacola pilot plant is in operation this effort can be continued. D. Miscellaneous Projects with a lower priority such as X-130 (isobutylene/ vinyl chloride co polymer), solution, grade, flooring grade, and electrical grade resins are also dormant at the present time. AP00046013 c. L. Wallace -2- August 1 , 1968 E. Move to Pensacola All equipment haa been packed and either shipped or waiting to be shipped, as have all notebooks and pertinent data. II. Technical Service The Technical Service Monthly Summary describes the customer request status on PVC bottle programs and plastisol extenders. It is apparent that added technical effort will be required in each area. 11 -------------------- --'** / A. Project Status 1. Resin for Bottles Contract R. E. Johnson is presently reviewing the entire blow molding program and will provide New Product Development with the best available information for a technical presentation including resin specifications, compounding equipment, formulations, physical properties, dry blending and pelletizing procedures, etc. This handwritten information will be available from Technical Service late the week of August 5 for review by New Product Development. All records in this area will be under P. R. Browne subsequent to shipment. 2. Plastisol Extenders The analytical procedures for evaluating extender resin production . have already been transmitted to Pensacola. Quality Control S Technical Service has provided its complete file on plastisol 0 extenders to New Product Development for future reference. Generally, the acceptability of each plastisol extender resin depends upon the end use requirements, but these have not been specifically defined as yet. B. Technical Service Move to Pensacola All packing will have been completed by July 30, 1968 and awaits shipment to Pensacola. The pelletizing equipment units are waiting to be sold or otherwise disposed of. AP00046014 C. L. Wallace -3- August 1, 1968 III. New Product Development A. New Product Development will vacate the Wilton laboratories on July 30, 1968 p after shipping one file cabinet and some relevant books to the New York office. B. Two budget related visits were made to Pensacola in July. C. Data bulletins will be pursued with Technical Service in August and drafted by late August. ''Plan alternatives" will be defined in writing subsequent to review of information and data from Technical Service and Production. D. The geographic analysis of sales and territories is being delayed to clean up loose ends with Technical Service and moving. Preliminary analysis of data provided will be ready by late August. AP00046015 AGRICULTURAL CHEMICALS DIVISION MONTHLY REPORT August, 1968 AP00046016 AP00046017 ESCAMBIA CHEMICAL CORPORATION Interoffice Memorandum To: Mr. T. L. Carey Date: September 4, 1968 From: E. M, Spurlock Re: Monthly Report - Personnel Department - August. 1968 PERSONNEL Activity for the Month Division No. of Employees 7/31/68 Executive Office Accounting & Credit Plant & Wilton Labs. & Planning & Dev. Plant Admin.& Process Plant Engr. & Maint. Personnel & Safety Purchasing & Traffic Sales - Agri. Chem. Sales - Ind, Chem.fit PVC Total Escambia 5 45 62 211 125 12 27 156 16 659 Aug. Addit. Aug. Separa. No. of Employees 8/31/68 005 4 1 48 2 22 42 0 4 207 1 3 123 0 0 12 1 3 25 11 11 156 2 1 17 21 45 635 Aug. 1968 Budget 5 44 86 201 131 12 29 189 15 712 Carroll Construction Co. Office Maintenance Insulators Mechanics Yardmen Trashmen Laborers Janitors Painters Total Maintenance No. of Employees 7/31/68_____ 2 3 12 2 2 15 7 _6 47 No. of Employees ______ 8/31/68 2 3 12 2 2 9 7 _5 40 AP00046018 Monthly Report -2- September 4, 1968 PERSONNEL (Cont'd.) Carroll Construction Co. No. of Employees 7/31/68 No. of Eraplo 8/31/68 PVC Laborers Area B Laborers Truck Drivers (Traffic) Railroad Crew 8 17 3 1 10 20 3 1 Total Carroll Const. 78 76 659 635 Grand Total 737 711 We had a total of 82 walk-in applicants, 74 applications were issued and 16 were received by mail. Thirty-six applicants were interviewed and 34 were tested. SAFETY The Corporation worked approximately 100,000 man-hours during the month. The approximate man-hours and the days worked to date without a lost time injury are as follows: Division Man-hours Days New York Office Research Sales Pensacola Plant Corporation 443,500 1,066,500 56,000 72,000 103,000 2,584 4,064 71 32 32 Medical Section The Medical Section treated 19 injuries for Escambia and 17 for Carroll, performed 9 pre-employment and 21 annual physicals and gave a total of 13 immunization injections. EMPLOYEE RELATIONS Two (2) 5-year service awards were presented. Five (5) 10-year service awards were presented. TRAINING We held one Trackmobile class in which two operators were licensed. AP00046019 Monthly Report 3 September 4, 1968 LABOR RELATIONS The union activities of International Chemical Workers Union and the Textile Workers Union of America have picked up momentum at Cysnamid and Monsanto. On Sunday, August 25, 1968, the ICWU sponsored a half-hour television program directed at the organizational drive at Monsanto. They have opened what they term "Permanent Headquarters ICWU" near the Monsanto plant. As I outlined several months ago, it was inevitable that some of this activity would be directed at our employees. On Friday, August 23rd, we were handbilled at the plant entrance by the ICWU inviting Escambia employees to contact the ICWU relative to membership. Since that time we have received several reports of organizers visiting the homes of our employees. All of this activity will probably increase in tempo until such time as they feel that they are strong enough to request an election. INSURANCE Last month I reported that one of our temporary employees in the Albany Distribution Center, Mr. LeRoy Clinton, had died. As I reported, we have now received a letter from an attorney who allegedly represents Mr. Clinton's widow and he alleges In his letter that his death was caused by Insecticide poisoning. Our insurance carrier is fully apprised of the conditions of this death and of all the circumstances of our investigation into the probable cause. We received notice from the Metropolitan Life Insurance Co. that our Group Hospitalization premiums were being increased 9% due to our unfavorable experience. Our claims amounted to $ 169,674 as against premium payments of $ 156,406 during 1967. We paid a total of 68 claims under our Group Hospitalization program which amounted to a total of $ 14,892.08 during the month of August. We settled the following claims during the month: Six (6) Auto Physical Damage claims in the amount of $ 506.64. One (1) Manufacturers Output Insurance claim in the amount of $ 63.61. EMS:kc AP00046020 PLASTICS AND RESINS MONTHLY REPORT AUGUST 1968 AP00046021 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE CORRESPONDENCE TO i T. Li. Carey DATE September 5, 1968 FROM! C. L>. Wallace COPIES SUBJECT! PVC Monthly Summary -August 1968 MAJOR FACTORS AFFECTING BUSINESS Progress has been made on some of the major items affecting the PVC business. The Allied Chemical monomer contract has been reviewed by Reid &. Priest and returned to Allied for acceptance. An explosion in Allied's chlorine plant has eliminated the possibilities of preshipping the monomer in September. Allied has assured us they would honor the October 1 contract. The agreement with Allied to produce general purpose resin for our account has come to a standstill awaiting resin samples from Allied. We are continuing to prod Allied; we have also taken steps to plan for an initial order which will reduce freight costs via Paine sville. MARKETING Sales for the month were 4, 700 M/lbs. exceeding budget by 137 M/lbs, During the month Robbins purchases were close to projections and Sim Coated Fabrics and ITT are again taking product. Plastisol extenders showed a healthy comeback from last month with 158 M/lbs. being sold. This is also a moderate increase over the previous months. Our objective, through 1969, is roughly 7% of plant-produced product in these two resinB (#8200, #8217). Our plan (being implemented via this month's sales to 11 accounts) is to give wide exposure to the product. We also plan to make an arrangement with a plastisol producer to swap our extenders for his plastisols, thus increasing the "market basket" of both producers. Specialty sales were up with 147 M/lbs. being sold. Here our problem is plant reproducibility; as stated elsewhere our R&zD efforts are being concen trated in this area. The increase in specialties and extender Bales is reflected in a slightly higher average price of 11, 2 /lb. for the month. An announcement in the C&E News to the effect that PVC is now being sold at 8 1/2 has produced a very adverse reaction in the industry. Query of the editor indicates his incorrect interpretation of his.notes. (The 8 1/2 is for polyethlene. ) We are currently awaiting C&E News' agreement to retract the error; otherwise several of us in the industry are planning a jointly signed statement denying the item. AP00046022 T. L. Carey -2- September 5, 1968 During the month of August Mr. R.E. Weston joined the sales force to cover the New England area and Mr. S. J. Anton was introduced to some of Mr. Porter's accounts. Sales for September are forecasted at 4, 400 M/lbs. Robbins is expected to be about 250 M/lbs. short due to their annual inventory shut-down. A sales meeting haB been scheduled for September 26 and 27 at Pensacola. In addition to discussing current and new accounts (and individual salesmens' budgets by month for 1969). the recently prepared geographic analysis of PVC business and updated resin data bulletins will also be presented. The sales force will also discuss a sales incentive program based on profits for 1969. RESEARCH AND TECHNICAL. SERVICE The transfer of Research and Technical Service personnel from Wilton is essentially complete and the new building will be ready for occupancy the first week of September. Installation of all tech service and lab equipment is expected to be complete prior to October. Dr. David Mann has accepted the position of Director of Research and Technical Service and will be reporting to work in early September. In conjunc tion with Dr. Mann's employment, steps are being taken to consolidate R&tD , Technical Service, and New Product Development, etc. into one group. During August, Research efforts were directed toward improving the consistency of product quality, particularily in the fusion resins. This work will be continued through September. Preliminary indications are favorable. Efforts of the Technical Service group were centered primarily around the establishment of the new laboratory at Pace. Layouts for the new PVC pilot plant have been completed and the building contract will be awarded by September 15. Final completion is not expected before December, due to an approximate six week delivery of the building. PRODUCTION PVC production was 4, 179 M/lbs. of prime, exceeding budget by 96 M/lbs. August was an exceptionally good month. In addition to exceeding budgeted production, the following improvements were made. 1. Off-grade production was only 0. 7% of production and tailings only 1. 9%. 2. Monomer efficiency was above budget at 94. 5%. 3. Reactor downtime was down to 16. 6% of available time. 4. Unscheduled overtime was only 2. 3% of total hours. AP00046023 T. L. Carey 3- September 5, 1968 These achievements were made in spite of producing 20 different type resins during the month, A PVC fusion resin run was generally satisfactory. The initial production containing excessive fines was successfully adjusted through recipe modifications. The success we experienced with this run can be attributed to having Research at Pensacola and wholeheartedly working with Production. The same success was experienced with PVC-6180 to correct bulk density and particle size. An attempt to eliminate static electricity on the product screens with an alpha emitter (Polonium 210) was not successful. Static electricity causes blinding of the screens and slows down production. The use of ionized air will be considered next. A ball valve installed in the reactor slurry drop leader in place of a diaphram valve has been preforming satisfactorily. The diaphram valves have a costly maintenance history and tend to plug, slowing down production. Messrs. M. B. Rogers and N. P. Barranco visited Allied Chemical to discuss product types for toll conversion and analytical methods. Production, for September is estimated at 4, 080 M/lbs. and variance at $600 unfavorable. C, L. Wallace AP00046024 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE CORRESPONDENCE TO! C. L. Wallace FROM: D.W. Klohs SUtJECT*. Monthly Summary - - Sales August 1968 DATE September 5, 1968 COPIES I. Dynamics of the Business Type August 1968 M Lbs. M Lbs, Budget Sales Year to Date M Lbs. M Lbs. Budget Sales General Purpose Off-Grade Specialties 3, 800 122. 5 405. 0 4, 126,250 195,600 287,650 27,400 980 2, 325 31,987,262 1, 950,400 1, 723, 500 Total 4, 327. 5 4,609,500 30,705 35,661,162 Compound (To May 3 1) Total 4, 327. 5 1, 190 4,609,500 31,895 223,835 35,884,997 August was one of our best months this year. Total pounds sold were exceeded only by January and May. We had orders for about 600 M/lbs. of resin, which we carried over into September because of the unavailability of product and cars. We sold resin to about 65 customers in August, exceeded our budget in poundage for general purpose and made good progress in the specialties category. Our records showed sales of 4, 609 M/lbs. , whereas accounting shows 4, 699 M/lbs. at an average price of just a shade under 11. 2/lb. , or total sales of $526, 340. Specialties, and 6180, improved our average price for the month. In the specialties group, sales break down as follows: 4000 series (fusion) 6240 8000 series (plastisol extender) 9010 Total 57. 500 lbs. 35,000 158,300 36, 850 287, 650 lbs. AP00046025 C.L. Wallace -2- September 5, 1968 Although I am disappointed in our progress with the 4000 series, I am sure that we will ultimately solve our problems and reach the 150 M lb. /month level. This is the #1 priority problem of the new laboratory in Pensacola. IX. Account Status Volume buyers for the month were as follows: Account Pounds Armstrong Cork Borden (Columbus Coated Fabrics) Cabrera Vulcan East Coast Chemicals (resale) Elm Coated Fabrics Phillips Films Plastic Calendering (Lamcal) Robbins Seilon Tenneco (Nixon) USM Chemicals Wiman Manufacturing 254,700 94, 000 86,000 195,850 257,860 404,200 400.000 718, 570 161.000 504,240 274,180 151,800 In spite of these good volumes, we had outages for the month in excess of one million pounds. Thus, our potential for growth and for achieving a 6MM/lb. month are excellent. Outage occurred at the following accounts: Account Burton Rubber Robbins TAMI O'Sullivan Texon Calumet Chemical Industrial Vinyls International Shoe Flicoflex<3) Continental Plastics Product 3185 1200 1217 1217 1225 4185-SP 1225 1225 1225 1225 1230 Volume 20- 30 M 200 M 160 M 150 M 150 Jvi 32 M 30 M 104 M 40 M over 100 M 40 M AP00046026 C. L. Wallace -3- September 5, 1968 (^Robbins had ordered and released over 200 M pounds, but we didn't get the material shipped until September. In view of the fact that Robbins normally closes down for one week in September for inventory purposes, our sales to Robbins for the month will not be as bad as is normal for the month. ' 'O'Sullivan's outage was caused by price problems. We did not make the "first move" and we lost an order or two to a 9/lb. price. We've decided to meet 9/lb. on 1225, but raise 1217 to 10/lb. ^Plicoflex says they are slow; we suspect we've lost business because of price. We will investigate. III. New Business and Prospects Some new business was booked in August -- and again, this increases our total potential. New business booked for the month, and potential volumes are as follows: Account Product Potential Protecto Wrap Bata Shoe Essex Chemical Southbridge Plastics B.F. Goodrich (Little) Pandel Polyplastex Rohm & Haas Clopay Glamorgan# 3250 2225 6240 8217 2170 8200 6150 1225 1225 1230-X 600 M/year 1000 M/year 750 M/year 1-2 MM/year 500 M/year 500 M/year 50 M/year 1000 M/year 1-2 MM/year 2 MM/year * Glamorgan did not buy in August, but we are now approved and should get a bulk truck trial in September. IV. Price Levels and Trends As opposed to last year, there is an improvement in 1968's consumption of PVC. We are presently consuming resin in the U. S. at a 2. 5 billion pound level, as compared to just over 2. 0 billion pounds for all of 1967. Prices continue to soften, however. We, of course, can not refuse to meet prices {other than refuse the business, which we may do in 1969), and must remain competitive if we want to continue to move money. The recent article in C&iE News which states, "General - purpose- grade resin is now trading at 8 1/2 a AP00046027 C. L. Wallace -4- September 5, 1968 pound. ..." does our cause no good. There have already been trade repercus sions to this statement; the Ethyl general manager ( who knows the editor) stated that the editor had admitted his notes were in error. The 8 1/2 pur portedly is for polyethlene. We are waiting for a retraction, and I'm certain that the "hurt" will be felt throughout the industry. D. W. Klohs AP00046028 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE CORRESPONDENCE TOt from: SUSJECTt G. B. H, Speed M. B. Rogers PVC Monthly Report -August 1968 OATE COPIES September 5, 1968 SUMMARY August production was 4, 179. 280 lbs, prime resin -- about 100, 000 lbs. above the 4, 080, 000 lbs. budgeted and projected. Off-grade and tailings of 110, 000 lbs. totaled only 2. 6% of production. Twenty different types were produced in 22 separate production runs. Vinyl chloride efficiency remained above budget at 94. 5%, and reactor downtime was reduced to 16. 6%. A PVC-3185 fusion run was generally satisfactory. Particle size was adjusted successfully with recipe modifications. The PVC-6180 copolymer recipe was modified to adjust bulk density and particle size within specifications. The alpha ray emitter antistatic device did not eliminate static electricity blinding on the product screens. Variance for August was $4, 273 unfavorable. Almost $300 of $3, 500 unfavorable in packaging was due to downgrading ground resin previously carried as prime. STATISTICS Prime Production, M lbs. Month Year to Date Off-Grade Production, % of Total Month Year to Date August Actual Budget 4, 141 32,394 4, 080 24,480 2. 6 3. 7 3. 0 3. 0 July Actual Budget 4, 165 28,253 4, 080 28,560 5. 9 3. 7 3. 0 3. 0 AP00046029 G. B. H. Speed -2- September 5, 1968 STATISTICS (Cont'd) Bulk Production, % of Prime Month Year to Date August Actual Budget 38.4 49.9 57. 5 57. 5 July Actual Budget 54. 6 51. 6 57. 5 57. 5 Shipments, M lbs. Month - Prime Month - Off-Grade 4, 199 143 - 3, 692 158 - - Year to Date Prime Year to Date Off-Grade 32,276 1,735 - 28,077 1, 592 - VCI Efficiency, % Month Year to Date 94. 5 95.2 94 94 94. 9 95. 3 94 94 Reactor Availability, % of Available Hours Month Avg, Year to Date Reactor Downtime, % of Available Hours Mixing Solutions in Reactors Cleaning & Washing Reactors Scheduling Charges Changing Types Copolymer Production Slow Recovery Low Drying Rates and Dryer Dine Cleanout Hydraulic Motor Repairs Misc. Reactor Maintenance Dryer Maintenance Electrical & Instr. Maint. Miscellaneous Experimental Batches Total 83. 4% 81.0% - 0. 3 7. 1 3. 3 0. 7 0. 4 0. 4 1. 6 0. 5 0. 7 0. 0 0. 3 1. 3 0. 0 16.6 - . - . 81.8% 80.7% - 0.4 8.4 3. 2 1. 2 0. 0 0. 3 0. 8 0. 0 1.0 1. 5 0. 4 1. 0 0. 0 18.2 - . - AP00046030 G. B. H. Speed -3- September 5, 1968 Product Mix, M lba. Prime Resin Group I Group II Group III Group IV Group V Group VI Group VII August Actual Budget 1, 965 1, 371 364 0 425 55 *(55) 2, 154 1, 010 603 23 262 32 0 July Actual Budge1 2, 405 1, 165 229 0 282 84 0 2, 154 1, 010 603 23 262 32 0 Total 4, 180 4, 084 4, 165 4, 084 * Ground resin not included in total Off-Grade and Tailings Off-Grade Type Quantity (lbs.) Reason Off-Grade % of Total Production 6180 28,750 Tailings 81,250 Floor Sweeps 0 Total 110,000 Payroll High sediment number-homopolymer contamin ation. 0. 7 1. 9 2. 6 Regular Hours Unscheduled Overtime Hours Percent of total hours August 7088 170 2. 3 July 6750 1014 13. 0 PRODUCTION 1000 Series Types produced: 1185, 1200, 1217, 1225, 1230, E, and 1250 AP00046031 G. B. H. Speed -4- September 5, 1968 PRODUCTION (Cont'd) 1000 Series (cont'd) Production was normal. 2000 5eries Types produced: 2160, 2170, 2200, 2225 and 2250 Production was normal. 3000 and 4000 Series Types produced: 3185 and 3250 A 42 batch PVC 3185 run this month was generally satisfactory, although some production was finer than desired. The fine material can be ground at higher rates to premium fusion grade resin. Reducing the FE seed latex level reduced the percent fines in the product. A similar reduction in UY suspending agent had no effect. The bulk density of the last few batches in the run dropped markedly when a new batch of UY was used; returned UY samples are being analyzed for differences to explain this effect. PVC 3250 production was normal. 6000 Series Types produced: 6180 The WA suspending agent and EY salt were adjusted to control bulk density and oversize material. Reaction cycles were lengthened and bulk density reduced when recovered momomer was used, but recovered monomer performed satisfactorily with increased catalyst. 8000 Series Types produced: 8217 Production was normal. Increasing the OX suspending agent slightly did not eliminate the small quantity of material retained on a 100 mesh screen. AP00046032 G.B.H. Speed -5- September 5, 1968 PRODUCTION (Cont'd) Ground Resin All of the 55MAb. 4185-2S and 3S ground fusion resin produced this month was good product. Alpine mill was used to grind tails most of this month. MAINTENANCE The south hydraulic pump bearing failed and the impeller vane9 were damaged. The oil filter cartridges were changed and all hydraulic pump motor strainers were cleaned to remove metal parts. The bearings were changed on the north pump and the steam turbine driven pumps. One hydraulic motor was changed because of leaking oil seals. The west absorption refrigeration machine crystallized when air leaked in from the solution motor purge, and the solution motor was replaced. The east unit tripped off once and was reset. All reactor instruments were checked. A ball valve installed to replace a diaphram valve on the reactor slurry drop header is performing satisfactorily. The 10 inch Alpine mill exhaust line failed and was replaced with aluminum. One step bearing, and three drop valves, and the phenol and step bearing purge pumps were repaired in routine maintenance. GENERAL) An alpha ray emitter antistatic bar installed in the Rotex screen assembly did not eliminate static electricity blinding. Static electricity measurements at the Rotex screen assembly show rapid variations and indicate that the charge is beingbeing generated on the screen. AP00046033 G. B. H. Speed -6- September 5, 1968 GENERAL (Cont'd) A speed recorder was installed on #10 reactor and others are to follow. Agitation variations are suspected to cause product property variations. A trip was made to Allied Chemical to discuss product types for toll production. Loading and shipping methods and types involved were clarified, and N. S. Barranco worked on analytical methods with the Allied analytical group. SEPTEMBER PROJECTIONS September projections are as follows: Projection Production Month-End Inventory Production Cost Variance 4, 080 3,614 600 Budget 4, 080 VARIANCE ANALYSIS August production variance is summarized below: FAVORABLE BULK PRODUCTION UNFAVORABLE Monomer Efficiency Volume Variance Process Costs Salaries Mat'ls & Supplies it Cont. Other $ 830 2, 653 - 981 775 37 $5,176 XA Monomer By product credit Process Chemicals Process Costs 1 : Utilities Laboratory Taxes & Ins. Maintenance Misc. $ 720 1, 080 1, 046 1, 637 370 695 228 125 $5,901 NET PRODUCTION VARIANCE - $725 Unfavorable AP00046034 G. B. H. Speed -7- September 5, 1968 FAVORABLE UNFAVORABLE PACKAGING AND GRINDING Volume Variance Process Costs Maintenance Other $3,756 297 ; 642 Ground resin off-grade $2,828 Process Costs Salaries Mat'ls & supplies Rental Containers 855 1, 126 707 2, 727 $4,695 $8,243 NET BAGGED VARIANCE -- $3,548 Unfavorable NET PVC PRODUCTION VARIANCE -- $4, 273 Unfavorable Most of the $2,828 unfavorable to bagged ground resin off-grade was due to downgrading ground fusion resin previously graded prime. AP00046035 AGRICULTURAL CHEMICALS DIVISION MONTHLY REPORT September, 1968 t t - AP00046036 AP00046037 ESCAMBIA CHEMICAL CORPORATION Interoffice Memorandum To: Mr. T. L. Carey Date: October 4, 1968 From: E. M. Spurlock Re: Monthly Report - Personnel Department - September, 1968 PERSONNEL Activity for the Month Division No. of Employees Sep. 8/31/68 Addit. Sep. Separa, No. of Employees 9/30/68 Sep. 1968 Budget Executive Office Accounting & Credit Plant & Wilton Labs. & Planning & Dev. Plant Admin. & Process Plant Engr. & Maint. Personnel & Safety Purchasing & Traffic Sales - Agri. Chem. Sales - Ind. Chem. & PVC 5 48 42 207 123 12 25 156 17 0 1 3 9 1 0 4 8 ____0 1 1 9 6 1 0 2 4 __ 2 4 48 36 210 123 12 27 160 15 5 44 86 201 131 12 28 181 15 Total Escambia 635 26 26 635 703 Carroll Construction Co. Office Maintenance Insulators Mechanics Yardmen Trashmen Laborers Janitors Painters Total Maintenance No. of Employees 8/31/68 2 3 12 2 2 9 7 5 40 No. of Employ 9/30/68 2 3 8 2 2 5 7 5 32 AP00046038 Monthly Report -2- October 4, 1968 PERSONNEL (Cont'd.) Carroll Construction Co, No. of Employees 8/31/68 No. of Employees 9/30/68 PVC Laborers Area B Laborers Truck Drivers (Traffic) Railroad Crew 10 8 20 24 33 11 Total Carroll Construction Grand Total 76 635 711 70 635 705 We had a total of 102 walk-in applicants, 82 applications were issued and 14 were received by mail. Sixty-one applicants were interviewed and 58 were tested. SAFETY The Corporation worked approximately 120,000 man-hours during the month. The approximate man-hours and the days worked to date without a lost time injury are as follows: Division Man-hours Days New York Office Research Sales Pensacola Corporation 437,000 1,067,000 90,000 179,000 248,000 2,614 4,094 101 62 62 Mr. John Turnage, Loss Control Engineer, American Motorists Insurance Company and Mr. W. J. Skwarlo, Engineer, Oil Insurance Association, both made their annual inspections of the plant. A plaque was awarded to the personnel of the Ammonium Nitrate Plant for having completed 10 years without a lost time injury. Medical Section The Medical Section treated 22 injuries for Escambia and 10 for Carroll, performed 18 pre-employment and 14 annual physicals and gave a total of 25 immunization injections. AP00046039 Monthly Report -3- October 4, 1968 EMPLOYEE RELATIONS We granted a 5.5% general increase to all nonexempt plant employees effective September 15, 1968. Labor Day Picnic was held with 886 in attendance. Two (2) 5-year service awards were presented. Two (2) 10-year service awards were presented. TRAINING We held four Trackmobile classes in which eleven operators were licensed. We held one class for the operation of the 100-ton Diesel Electric Engine and one operator was licensed. We sponsored four supervisors to the Executive Development Seminar sponsored by West Florida University during the month of September. LABOR RELATIONS In my March, 1968 report, I advised that the Chemstrand plant of Monsanto Company had been petitioned by the International Brotherhood of Electrical Workers to "carve out" a bargaining unit consisting of electrical workers only. This hearing went to the National Labor Relations Board in Washington for a ruling and they have now ruled that it is inappropriate to have such a bargaining unit and that the only true bargaining unit would be that of production and maintenance employees. Since this ruling has been handed down, the IBEW has agreed to cooperate with the International Chemical Workers Union in their drive to organize the entire plant. This organization drive is in full swing at the present time. In my April report I advised that the American Cyanamid Plant had been petitioned for an election by the Textile Workers of America and the International Chemical Workers Union had intervened. The Textile Union desired a bargaining unit composed of production and maintenance workers and the ICWU de-sired a bargaining unit composed of production, maintenance and laboratory employees. This hearing was held and was forwarded to the Regional National Labor Relations Board for a decision. The Labor Board's decision was that there must be two units; one composed of the maintenance and production workers and the other, laboratory workers, and they ordered an election within 30 days of the receipt of the order. AP00046040 Monthly Report -4- Octoher 4, 1968 LABOR RELATIONS (Cont'd.) The election will be held on October 10th and 11th. On the ballot there will be three choices for the production and maintenance workers; the Textile Workers, International Chemical Workers or.: none. On the laboratory workers ballot there will be two choices; the International Chemical Workers or none. At the present time the officials at Cyanamid feel that they can win the production and maintenance workers election but feel that the laboratory workers will be very close. While these two efforts are progressing at the two local plants, our employees are being contacted at home and in the plant by representatives and members who are sympathetic to the Chemical Workers Union. Regardless of the outcome of the other two elections, I feel sure that we will be petitioned for an election following the conclusion of the election at American Cyanamid. INSURANCE We paid a total of 100 claims under our Group Hospitalization program which amounted to a total of $ 13,821.89 during the month, of September. We settled the following claims during the month: One Manufacturers Output Insurance claim in amount of $ 1,921.10. One Auto Liability Insurance claim in amount of $ 85.87. We received the following refunds during the month: Boiler and Machinery coverage in amount of $ 287.00 on Wilton Laboratory. Fire Insurance coverage in amount of $ 2,511 on Wilton Laboratory. EMS: kc AP00046041 PLASTICS AND RESINS MONTHLY REPORT SEPTEMBER 1968 AP00046042 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM To: T.L. Carey From: Re: C. L. Wallace PVC Monthly Summary September 1968 Dote: Copies: October 5, 1968 MAJOR FACTORS AFFECTING THE BUSINESS Allied Chemical, as of October 1, 1968, is now Escambia's primary source of vinyl chloride monomer. Savings on this lower cost monomer will start late in October as the last of the Ethyl material is used. The agreement with Allied to produce general purpose resin for our account has picked up momentum during the month. Samples of Allied equiv alent PVC-1225 were so close to our PVC-1225 that one bulk car was ordered for trial shipment to one of our accounts. Entree has been made with Union Carbide Corporation into the possi bility of licensing our Saran technology. Preliminary proposals and reports covering Saran production have been sent to Reid and Priest for comments. Completion of a proposal for consideration by our executive management is expected in mid October. Subsequent acceptance by Union Carbide Corporation could add substantial dollars to our PVC business. MARKETING Sales for the month established a new record of 5, 258 M lbs. , and exceeded budget by 1, 090 M lbs. Off-grade, floor sweeps and tailings accounted for 209 M lbs. New business in large volume was attained at four accounts. Plastisol extenders showed volume slipping this month, with only 124 M lbs. being sold. Two steady accounts (Plastic Lace and Lakeside Plastics) did not take resin; however, Pandel came in for a larger volume. To meet our AP00046043 T.L. Carey -2- October 5, 1968 1969 objective of about 3 MM lbs. of extender business, we need and are actively screening candidates for a technical service engineer, suitably oriented in plastisols and extenders. Our R&D force is at this time making a visit to Lakeside Plastics to assist this account. Specialty sales were up slightly with 174 M lbs. being sold. Research efforts are continuing to be directed in the specialty area to improve plant reproducibility and product quality. The average selling price showed a slight decrease in September as compared to August, due to the lower sales volume of plastisol extenders and specialties. Prices in both bag and bulk were about 1. 0% lower as shown below: Average Price, /lb, September August Bag 11.96 12.07 Bulk 9. 69 9. 75 On September 26 and 27 a sales/plant conference was held at Pensacola. Good communications were established between Sales, Production and Research and Development on the various problems related with specific resins and cus tomers. The 1969 Sales budget was reviewed by individual salesmen. A recently prepared geographic analysis of PVC business was presented by Mr. V. J. Grande. The analysis showed that approximately one billion pounds of merchant business is available, of which 95 MM pounds is within a 600 mile radius of Pensacola, Florida. During the month Mr. S. J. Anton and Mr. D. W. Klohs resigned from the company. A new salesman, Mr. Thomas E. Chalmers, was added to the force. Sales for October are forecasted at 4,600 M lbs. Sales are forecasted down from the previous two months, due to the recent turnover in our sales force, and the present extremely low inventory. AP00046044 T. L. Carey -3- October 5, 1968 RESEARCH AND TECHNICAL SERVICE Research effort continued through the month towards improving product quality. Plant assistance was given on IPVC-3185LG production. Plant problems and procedures were reviewed on all resins to develop a plan for approaching and solving the various problems that contribute to quality variations. Technical service was supplied to Dayton Aircraft, Pandel Incorporated, Chemical Sealing and Colorite Plastics. Additional work was also done on escalating Escambia's plastisol extender resin production. Final completion of the new R&D building will be delayed until December 1968, due to the long delivery of the laboratory benchs. The installation of other equipment is essentially complete. All equipment for the new PVC pilot plant has been specified. Completion is expected to be in January 1969. PRODUCTION PVC production was 4, 267 M lbs. of prime, exceeding budget by 183 M lbs. September was another good production month. Better than budget performance was made in the following areas: 1. Reactor down time was 14.4%, the lowest outage obtained this year. 2. Unscheduled overtime was only 1. 2% of total hours. 3. Monomer efficiency was above budget at 94. 4% 4. Off-grade production was only 0. 5% of production. The low inventory of resin necessitated frequent switching of product types. During the month the average run was only three days. Changes in recipe were made for PVC-1230X in an attempt to lower the fisheye level. The only noticable difference was found in one lot made with CC catalyst, rather than the normalKC catalyst. Additional test are being made to verify this one observation. The production of plastisol extender resins has been satisfactory as far as reaction time and product quality are concerned. However, drying and screening rates have been extremely low due to excessive moisture retained in the centri fuge wet cake. Available adjustments in the centrifuge operation had no effect on the moisture content. A recommendation by the supplier to increase the speed of the centrifuge will be considered. The use of screen vibrators will be evaluated to increase the screening rates of these fine particle size resins. AP00046045 T.L. Carey -4- October 5, 1968 Maintenance problems have developed in the hydraulic oil system that drivesthereactor agitators. A chloride contamination, of the oil is being followedup with representatives of the Texas Oil Company. One of the hydraulic oil pumps was damaged when a coupling siezed. Repairs are being coordinated with Rockwell, the manufacturer. The repairs are complicated by the fact that the rotor assembly is no longer being manufactured and spare parts are not available. Special emphasis this month was placed on the bulk transfer system, to increase its capacity and on the high pressure water cleaning equipment to improve operation and reduce maintenance. Production for October is forecasted at 4, 080 M/lbs. and variance at $3, 600 favorable C. Lu Wallace AP00046046 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM To: From: Re: C. L. Wallace D.W. Klohs Monthly Summary -- Sales September 1968 Date: Copies: October 5, 1968 I. Dynamics of the Business Type September M Lb 9. M Lbs. Budget Sales Prime Resin Off-Grade Total * Specialties General Purpose 3, 898 123 4, 021 264 4, 820 5, 084 5,089 * 209 5, 293 Year to Date M Lbs. M Lbs. Budget Sale 9 33,746 1, 103 34,849 38,795 2, 159 40,954 September was one of our best months this year. Total pounds sold per our records (all of which may or may not have gone through accounting for invoicing as of the end of September) were as follows: Pounds Sold Plus Off-Grade Less Returns Grand Total 5,083,950 209,150 5,293,100 - 35,080 5,258,020 We sold resin to about 61 customers in September, In addition, we sent out 53 samples of our product. Although we exceeded budget in both the prime and off-grade categories, we again fell short in our effort to move the money makers -- the specialties, This can be attributed to the slower than hoped for sales development of the 8000 series, and slow re-development of the sale of AP00046047 C, L. Wallace -2- October 5, 1968 the fusion grade resins. More emphasis must be placed by the Sales Department on the sale of both of these groups in the specialties category. In September, specialties sales approximated: Type 4185 9010 6240 8000's 3185 (fusion) Pounds 96, 750 12,000 26, 000 130,050 30,500 Total 295,300 This is about 100 M lbs. short of target, but it does show genuine progress. Including resin converted into compound, year-to-date resin sales now total about 41 million pounds for a monthly average of over 4. 5 million pounds. If the Sales Department continues to sell at the average monthly rate, a total of 54. 5 million pounds will be sold by year end. This would, of course, top all previous years "by a substantial number of pounds. II. Account Status We had good volume this month at the following accounts: Robbins Lamcal (Plastic Calendering) Phillips Films Armstrong Continental Plastics Cabrera Vulcan Protecto Wrap Wiman Tenneco (Nixon) USM Chemicals Against salesmen's projections, we experienced the following outages for the month: Account Volume M lbs Bata Shoe Chemical Sealing Columbus Coated Fabrics 40 16 32 AP00046048 C. L. Wallace -3- October 5, 1968 Account (Cont'd) Volume M lbs. (Cont'd) Continental Plastics Custom Chemical Custom Plastics Gates Rubber Gem Plastics ITT Jordan Manufacturing Lakeside Plastics Macoid New England Plastics Pandel Phillips Films Pioneer Paint Plicoflex P ode 11 Raffi and Swanson TAMI Tenneco (Nixon) Thermoclad Weymouth Art Leather Total 40 5 40 104 32 40 5 L0 34 40 28 40 24 104 10 2 130 125 10 10 941 New business and/or trials were booked at the following accounts: Federal Color Labs Clopay Corporation Goodyear Premier Thermoplastics Schlegel Manufacturing Kentile Floors Protectowrap 500 lbs. 70, 000 lbs. 40, 000 lbs. 20, 000 lbs. 500 lbs. 2, 500 lbs. 104, 000 lbs. 111. Price Levels and Trends Prices remained static during September. There didn't seem to be any further softening, and they certainly did not go up. There is some industry wide talk, however, about another pass at raising the prices of general purpose resin to 10/lb. bulk and 10. 5/lb. in truckload bags. Such a move, would, of course, raise Escambia's average price; and might make the operation profitable. Until Ethyl and Allied are sold out, however, I wouldn't count on a general increase. These companies are still trying to buy business. D. W. Klohs AP00046049 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM To: From: Re: G. B. H. Speed M. B. Rogers PVC Monthly Report September 1968 Date: Copies: October 5, 1968 SUMMARY September production was 4,267,000 Iba. prime resin -- almost 190,000 lbs. above budget and projection. Off-grade and tailings of 140, 000 lbs. was 3. 2% of total production or nearly the 3% budgeted. Fifteen different resin types were produced in 20 separate production runs. Vinyl chloride efficiency of 94.4% was above budget.but still below earlier performance in cooler weather. Reactor downtime was a low of 14. 4%. A PVC sales/plant conference at Pensacola in September helped define production quantity and quality goals for the coming year. Favorable September variance of $1110 in bulk production and $1120 in packaging totaled $2, 230. Volume variance was the major favorable factor. Noncontrollable factors of catalyst royalty and monomer freight variance totaled $4000 unfavorable. STATISTICS Prime Production, M lbs. Month Year to Date September Actual Budget 4, 267 36, 661 4, 084 36, 748 Off-Grade Production, % of Total Month Year to Date 3. 2 3. 7 3. 0 3. 0 August Actual Budge 4, 141 32, 394 4, 080 24,480 2. 6 3. 7 3. 0 3. 0 AP00046050 G.B.H. Speed -2- October 5, 1968 STATISTICS (Cont'd) Bulk Production, % of Prime Month Year to Date September Actual Budget 47. 6 49. 7 57. 5 57. 5 Shipments, M lbs. Month-Prime Month - Off-Grade Year to Date Prime Year to Date Off-Grade 4, 255 138 36,531 1, 873 -- _ -- VCl Efficiency, % Month Year to Date 94.4 95. 1 94 94 Reactor Availability, % of Available Hours Month Avg. Year to Date 85. 6 82. 0 Reactor Downtime, % of Available Hours Mixing Solutions in Reactors Cleaning & Washing Reactors Scheduling Charges Changing Types Copolymer Production Slow Recovery Low Drying Rates and Dryer Line Cleanout Hydraulic Motor Repairs Misc. Reactor Maintenance Dryer Maintenance Electrical & Instr. Maint. Miscellaneous Experimental Batches 0. 1 7. 9 2. 3 0. 6 0. 0 0. 8 1. 7 Q. 3 0. 2 0. 0 0. 2 0. 3 0. 0 -- ---- -. --- Total 16. 6 August Actual Budget 38.4 49. 9 57. 5 57. 5 4, 199 143 32,276 1, 735 -- _,, 94. 5 95. 2 94 94 83. 4 8 1.0 0. 3 7. 1 3. 3 0. 7 0. 4 0. 4 1. 6 0. 5 0. 7 0. 0 0. 3 1. 3 0. 0 14.4 ---- --. -- -. -- AP00046051 G. B .H. Speed -3- October 5, 1968 STATISTICS (Cont'd) Product Mix, M lbs. Prime Resin Septemb er Actual Budget Group I Group II Group III Group IV Group V Group VI Group VII 2, 448 1, 070 425 0 324 0 0 2, 154 1, 010 603 23 262 32 0 Total 4, 267 4, 084 * Ground resin not included in total Off-Grade and Tailings August Actual Budget 1, 965 1, 371 364 0 425 55 *(5 5) 4, 180 2, 154 1, 010 603 23 262 32 0 4, 084 Type 6180 Quantity (lbs.) 2, 000 6150 Tailings Floor Sweeps Total Payroll 23,050 84,950 30,000 140,000 Regular Hours Unscheduled Overtime Hours Percent of total Hours Reason Off-Grade High sediment number -homopolymer contamin ation Oversize Production 0. 6 1. 9 0. 7 3. 2 September 8823 105 1. 17 August 7088 170 2. 3 AP00046052 G.B.H. Speed -4- October 5, 1968 PRODUCTION 1000 Series Types produced: 1200, 1225, 1230, and 1250 The PVC 1230X recipe was adjusted to reduce fisheyes to meet critical customer specifications for Colorite. Variations in the dual suspending agent system had no apparent effect. Fisheyes were lower than normal in one lot made with CC in place of KC catalyst, and the effect of CC catalyst is being checked in two lots in process at month's end. Low fisheye PVC 1225 was selected for bulk shipments to Clopay and was apparently satisfactory. Proposed toll production of PVC 1225 will reduce the probability of having premium grade product for this customer, and additional downtime may be required for reactor cleaning to upgrade the product. Efforts to improve the water blaster cleaning are discussed in the GENERAL section of this report. Other production was routine. 2000 Series Types produced: 2160,2170, 2200, 2225, and 2250 Production was routine. 3000 and 4000 series Types produced: 3185 and 3250 PVC 3185 production was the end of the run reported last month, and discussed in detail in F. L. Riddle's September 24 report. PVC 3250 production was routine. 6000 Series Types produced: 6150 and 6180 The single lot of PVC 6150 produced was oversize. No abnormali ties were apparent from the reactor charging records, and the shortness of the run prevented further analyses. AP00046053 G.B.H. Speed -5- October 5, 1968 The PVC 6180 run following the PVC 6150 was excellent in quality and production rate. Extra cleaning efforts and close monitoring of the initial production minimized off-grade due to homopolymer contamination. 8000 Series Types produced: 8200 and 8217 Reaction was routine for both types, but drying rates remain below budget: excessive moisture is retained in the fine particle size resin in spite of adjustments to the centrifuge overflow height and wash water temperature. The centrifuge manufacturer is to supply recom mendations to improve dewatering. The three lots of PVC 8200 were screened through 100 mesh at the drying rates attainable. Traces of 100+ mesh are suspected by Sales to cause excessive screening losses in one customer's plastisol mixture. Ground Resin Production for September was as follows: Type Total Ground lbs. 4185-2S 4185-3S 48,350 25,850 Failing Critical Fusion Test Weight lbs. Percent 32,900 6 2,000 8 Most of the product not meeting the critical fusion test will be used at non-critical accounts. Analysis of the passing and failing resins show no major differences in the properties routinely measured. There may be a higher probability of success in 2S product with higher bulk densities. Bulk density had no apparent effect in the finer 3S material. Obviously the probability of success is higher in the finer product as shown in the high percentage of passing 3S. The specifications call for 35-50% through 200 mesh for 2S and 50-65% for 3S materials. We appear to have the 3S product under control, but have not satisfactorily defined the feed properties and operat ing conditions required for the courser 2S product. MAINTENANCE The north hydraulic drive system pump was damaged when a shear coupling siezed after shearing and put a sudden load on the pump. Two vane shafts were bro ken. The manufacturer, Rockwell, recommended replacing the entire rotor assem bly, which is no longer standard and would have to be specially fabricated. The AP00046054 G. B. H. Speed -6- October 5, 1968 MAINTENANCE (Cont'd) damaged assembly is being returned to Pensacola for shaft and vane replacement to be available as a spare, and a new replacement assembly may not be required. Texaco reported that water and chlorides in the hydraulic oil are contributing to bearing failures and recommended flushing the system and changing the oil at the expense of considerable downtime. The addition of alkaline, detergent oils to safely defer the shutdown is being investigated by Texaco and in our laboratory. Low capacity in the north bulk transfer system was traced to low capacity of the vacuum blower. Replacing the blower bearings and seals did not help signi ficantly, and a more extensive inspectionand repair is scheduled. The water blaster system and pump manufacturer's representatives visited the plant September 30 to investigate a cracked head and check the system generally. Piping and control revisions are being made as suggested to minimize shock loads to the pump. Several different nozzles and nozzle arrangements sug gested to improve cleaning speed and effectiveness are also being tried. A 12, 000 gallon XA monomer tank was installed by Maintenance to prevent material shortages and hand drumming of deliveries in excess of the old tank capacity. Other maintenance items were as follows: Replaced bearings on number one blend tank agitator shaft. Overhauled all controls on the bagging machine. Repaired five bulk rail cars. Repaired three reactor drop valves. Obtained machine drawings from Yorway to repair and reface the pistons locally Repaired and replaced the north dryer hammer band. Replaced the pistons and rings in the north monomer recovery compressor. GENERAL A PVC sales/plant conference was held in Pensacola September 26 and 27. Markets were discussed by customers and resin types. Special customer requirements, procedures for handling customer complaints and our ability to meet them were clarified. Manufacturing costs and economics of Saran production were calculated for a licensing proposal for Escambia technology. Saran production is attractive above eight million pounds per year sales rate. AP00046055 G.B.H. Speed -7- October 5, 1968 GENERAL (Cont'd) Representatives of Nash Engineering Company visited the plant September 19 to gather information for a proposal for a recovery compressor to evacuate reactors to increase production. Reactors are now tied up during the entire stripping operation. OCTOBER PROJECTIONS Production, M lbs. Inventory, Mlbs. Production Cost Variance Projection 4,080 3,200 $(3, 600) Budget 4, 080 VARIANCE ANALYSIS September production variance is summarized below; Bulk Production 7421 FAVORABLE______ VCl Monomer Efficiency Volume Variance By Product Credit ____ $ 680 3, 760 410 UNFAVORABLE VCl Freight Variance XA Monomer Efficiency Process Chemicals Catalyst Royalty Process Costs Salaries Maintenance Laboratory Miscellaneous Sub Total 1, 550 2, 700 360 1, 290 $10,740 Process Costs Utilities Taxes & Ins. Other Net Bulk Variance $1, 110 Favorable $1,850 1,130 1,250 2,110 2,010 700 590 $9,630 Packaging 7424 FAVORABLE Volume Variance By Product Credit Process Costs $1,120 350 0 UNFAVORABLE Bag Costs Budget Adjustment Error Process Costs Salaries $ 70 690 1,000 AP00046056 G. B. H. Speed -8- October 5, 1968 VARIANCE ANALYSIS (Cont'd) Packaging 7424 (Coat'd) FAVORAB LE Allocation to Group VII Ground Resin Other Sub Total Net Packaging Variance 2, 000 $3,470 $1, 120 Favorable UNFAV O RAB LE Maintenance Mat'is, Supplies, & Rental 330 260 $2,350 TOTAL NET VARIANCE $2, 230 Favorable M. B. Rogers AP00046057 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE CORRESPONDENCE TO*. C. Lu Wallace DATE FROMJ D. J. Mann COPIES SUtJECTl Monthly Summary PVC Research & Development September 1968 October 5, 1968 Assessment and Planning During the past month, the Research and Development Department has been in the process of assessing our resin technology and determining how best to utilize its limited resources so as to maximize the benefit of its future efforts. In reviewing current activities, particularly production, quality control and sales reports, there is good evidence that the reproducibility of several products is less than acceptable, and this is reflected in sales intelligence from the field, even though not every incident becomes the subject of a formal cus tomer complaint. In addition, there appears to be a trend toward narrower specifications for certain special applications, and the result is a compounding of the quality assurance problem -- that is, the customer is often more con cerned about variability from lot to lot (and even from bag to bag within a lot) than absolute specifications. Thus, even though the material i9 within Escambia specifications, it may be unacceptable to the customer because of its variability. The conclusions to be drawn from this situation are obvious -- namely, narrower specifications. The problem of non-reproducibility, or reproducibility within too broad a specification needs attention. The problem resolves itself into the statistical behavior of the processes involved. Either the processes are not in statistical control, or they are in control butgive a much broader normal distribution curve , resulting in larger variances from the mean than are permissible. The source of these problems may be chemical, mechanical or a combination of both. As such, they must be attacked by the combined efforts of R&D, Production and Quality Control. Another potential source of variability is in the raw materials. Presently, no test exists for determining the acceptability (or non-acceptability) of raw materials. Until some such (empirical) test is developed, this source of variability will continue to exist. AP00046058 C.L. Wallace -2- October 5, 1968 The Research and Development Department has, as its immediate objective, the assistance of Production and Quality Control towards the establish ment of processes, providing both higher quality and quality assurance. Work has already begun on this problem with the 3185 series resin. The immediate plans are to develop a priority listing of problem areas, and then develop for each area a statement of the problem as we understand it. Each statement will be a report reviewing the history of the product line up to the present time. Approaches to the solving of the problem will be presented, and, with the concurrence of Production and General Management, a project will be undertaken. Most of the effort planned will be performed in production equipment, since the pilot plant will not be available until late 1968, and it is questionable whether further pilot plant runs would be meaningful at this stage. Operations During September research efforts were continued towards improving the consistency of product quality in fusion resins. In this regard, a report was prepared on the data obrained from the production of 42 batches of series 3185 resin, run in late August. The results were encouraging and recommendations were made for future runs. Research will continue its close support of 3165 production. Data from experiments conducted earlier this year at Wilton on plastisol extender resins (8000 series) were tabulated and presented at the sales /plant conference. Facilities: The R& D building was occupied in early September. The status of major components is as follows: Technical Service Laboratory -- will be completed and operable by October 15, 1968, Polymerization Laboratory -- completion will be delayed three months pending delivery of explosion proof motors. General and Constant Humidity Laboratories -- expected completion date is December 1, 1968, due to delayed delivery of laboratory benches. AP00046059 C.L. Wallace .3. October 5, 1968 General To summarize, the efforts of the Research and Development Department were directed during the month of September towards improving product quality. The procedures used and various problems encountered were carefully considered on all resins, with the objective of developing plans for overcoming the various factors that cause quality variations. Because of the delayed delivery of the laboratory benches, the new R&rD building will not be totally completed until December 1968. The installation of all other equipment is virtually complete. The new PVC pilot plant equipment has been specified, and completion of the facility is scheduled for January 1969. Technical Service Dayton Aircraft Products A fluid Bed Compound (2750-20) has been sent to Dayton Aircraft for their evaluation. Requests We have sent out information to the following companies and/or salesmen upon request; FandeL Inc. (R. E. Weston) -- Screen data on PVC 8200 Chemical Sealing Corp. -- Brookfield Viscosity data on PVC 8200 Colorite Plastics (D. W. Kloha) -- Complete data on PVC 1230 X Plastisol Extender Resin Evaluation The Quality Control Laboratory is going to run Brookfield Viscosities on all lots of PVC 8200 made to date. This will give us some much needed background information as to consistency, etc. D. D. AP00046060 v , V. I r r AGRICULTURAL. CHEMICALS DIVISION MONTHLY REPORT c October, 1968 r t e : j c c c AP00046061 AP00046062 ESCAMBIA CHEMICAL CORPORATION Interoffice Memorandum To: Mr. T. L. Carey Date: November 5, 1968 From: E. M. Spurlock Re: Monthly Report - Personnel Department - October, 1968 PERSONNEL Division Activity for the Month No. of Employees 9/30/68 Oct. Addit . Oct. Separa. No. of Employees 10/31/68 Oct.* 1968 Budget Executive Office Accounting & Credit Plant & Wilton Labs. & Planning & Dev. Plant Admin. & Process Plant Engr. & Maint. Personnel & Safety Purchasing & Traffic Sales - Agri. Chem. Sales - Ind. Chem. & PVC 4 48 36 210 123 12 27 160 15 Total Escambia 635 * As Amended 00 12 20 77 41 00 11 94 11 25 16 45 47 50 38 48 210 213 126 132 12 12 27 28 165 177 15 16 644 631 Carroll Construction Company Office Maintenance Insulators Mechanics Yardmen Trashmen Laborers Janitors Painters Total Maintenance No. of Employees 9/30/68 2 3 8 2 2 5 7 5 32 No. of Emplo-' 10/31/68 2 3 8 2 2 7 7 __ 5 34 AP00046063 Monthly Report -4- November 5, 1968 INSURANCE We paid a total of 86 claims under our Group Hospitalization program which amounted to a total of $ 14,931.10 during the month of October. Mr. Self of EBSMCI and I met with representatives of the Hartford Steam Boiler Insurance Company relative to the renewal of our Boiler and Machinery Property Damage and U & 0 coverage. This coverage was renewed at a satisfactory rate and coverage for the next three years. Return premium in amount of $ 1,178.00 under retrospective rating feature of Workmen's Compensation Insurance was received for period January 1, 1964 to January 1, 1967. Tank Car Insurance claim in the amount of $ 451.83 was settled during the month of October. ems ; kc AP00046064 PLASTICS AND RESINS MONTHLY REPORT OCTOBER 1968 AP00046065 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM To: From: Re: T. Li. Carey C. L. Wallace PVC Monthly Summary October 1968 Date: Copies: November 5, 1968 MAJOR FACTORS AFFECTING THE BUSINESS Several factors indicate that the PVC business industry-wide is on the upswing, Escambia has been sold out for several months running and production scheduling has become a major effort to make shipments. It has also been reported that Allied Chemical (recently being stated to be long on capacity) is now sold out. In addition, we (among others) have been asked by Goodyear to consider production of very substantial quantities of resin for their account. Further, there is "rumor" in the east that Goodrich and Union Carbide are hinting at upcoming price increases in selected accounts. Prices, although not increasing, s-eem to be firming u.p. The average price for the last few months has been 11.0/lb. , with little variation. Reports of lower prices from the field are becoming less frequent. The switch to a new supplier of VCL> monomer has been completed. The agreement with Allied to produce general purpose resin for our account has gained tremendous momentum during the month and the supply has .undoubtedly saved Escambia some customers. To date Allied's equivalent to our PVC 1200, 1225 and 1250 have been approved. At month's end a total of nine bulk and eight bag car shipments totaling about 2, 200 M lbs. have been ordered. Continued negotiation with Union Carbide into the possibility of licensing our Saran technology iB awaiting the completion of review in New York of our proposal for submission to Union Carbide. MARKETING Gross sales for the month were 5, 002 M lbs. of which off-grade, tails and floor sweeps were 217 M lbs. There were also 263 M lbs. of returns, chief of which was a rejected bulk car from Phillips Film on which the problem of contamination again appeared. AP00046066 T. L. Carey -2- November 5, 1968 MARKETING (Cont'd) Plastisol extender sales showed an increase this period with 179 M lbs. being sold. As a result of R&D's visit to Lakeside Plastics last month, a 5 M lb. shipment of PVC 8200 will be tried in November. We have now established rapport with this company and their production manager no longer foresees any problems with our resin. A visit to Robbins Floor Products by the General Manager and R&D personnel resulted in a better understanding of the reasons for extender resins having failed in their operations. Robbins has left the door open to us for a more suitable grade of extender resin, which our R&D feel will satisfy their requirements. Robbins showed interest in using Escambia's resins in three areas: the foam under lay, the base color coat and the clear film overlay in their expanded sheet flooring line at Prescott, Arkansas. This would all be new business to Escambia. The volume is unknown but "substantial'1. Other specialty sales were steady with 164 M lbs, being sold. R&D worked closely with Production on specialty resin production during the month. Some progress was made, but considerable work remains to consistently produce quality resin. Another specialty resin, PVC 9250, was added to our product line. This resin, a modification of an existing resin, is designed for the medical tubing industry and will command a pxemium price. Sales efforts to supply a satisfactory "bottle" resin to Armstrong are continuing. Meetings with Armstrong indicate that the properties which are mandatory for an acceptable bottle resin require further definition. Escambia's R&zD efforts at this time are directed to correlating particle size with film fisheyes. In addition, bulk density, contamination and relative viscosity are also apparently factors in determining a suitable resin. Sales for November are forecasted at 4, 741 M lbs. RESEARCH AND TECHNICAL SERVICE Research efforts for the month.were associated with assistance and evaluation of PVC 3185 production. Reactor charging procedure and raw materials were found to have the greatest effect on product quality. The particular property of raw material that varies from lot to lot has not been isolated at this time. During the PVC 3185 run, particle size wag found to vary from start to finish while drying some lots of resin. The data suggests insufficient agitation in the blend tank. AP00046067 T.L. Carey -3- November 5, 1968 RESEARCH AND TECHNICAL SERIVCE (Coat'd) As previously mentioned, a visit was made to Lakeside Plastics. We feel the visit was successful and will result in substantial sales of extender resins. Also, a visit was made to Robbins Floor Products to improve working relations and provide closer technical support, A tentative date of November 11 has been set to evaluate Escambia's extender and a 1000 series resin in their expanded vinyl flooring. During the month Technical Service assisted in evaluating four customer complaints, three technical service requests and 20 requests for statistical informa tion or data. The new R&D building is essentially complete except for benches and explosion proof motors for the bottle laboratory. The technical service lab is operational. All major equipment has been ordered for the pilot plant and completion is expected in January 1969. PRODUCTION PVC production for the month was 3, 903 Ivi lbs. , below budget by 177 M lbs. The lower production is a reflection of a much higher (about twice) budgeted production of slow drying specialty resins. Improvements were made in the following areas: 1. Reactor downtime was-only 13. 1 %, a new record low for the year. 2. Unscheduled overtime was again exceptionally low, only 0. 5% of total hours. 3. Monomer efficiency was up to 95, 3%, exceeding budget. Off-grade production for the month was 5% of total production, exceeding budget by 2%. Contamination from the north dryer coils was the primary reason for off-grade. An extended run of PVC 3185 was made during the month with R&D assisting. Although the run resulted in. severe variations in particle size and bulk density, all product is presently considered prime by judiciously selecting lots for special customers and by grinding. Revisions were made to the high pressure water cleaning system as recommended by the vendor. This should markedly reduce maintenance. AP00046068 T. L. Carey 4 November 5, 1968 PRODUCTION (Cont'd) The problem with contaminated oil in the hydraulic oil system that drives the reactor agitators has been lessened to some extent by replacing four drums of old oil with new. Tests also indicate that we can add a detergent additive recommended by the Texaco Oil Company without any adverse effects. A major improvement in drying capacity may well have been achieved when the speed of the south centrifuge was increased from 1200 to 1400 RPM as recommended by the vendor. Initial results show a 10% wet cake moisture reduction in general purpose resin. A larger reduction is expected on the finer particle size resins. Since the run was made at month's end, results are only preliminary. One bulk car of PVC 1225 was returned by Phillips Film due to contamination. Our loading and shipping samples showed the product to be contamination free, but returned samples were definitely contaminated. The source of the contamination is still undetermined, but extra precautions are being taken in cleaning the bulk system and cars. Plant production for November is forecasted at 4, 080 M lbs. and variance at $$, 000 favorable. AP00046069 To: From: Re; ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM G.B.H. Speed M. B. Rogers Date: Copies: PVC Monthly Production Report October 1968 November 5, 1968 SUMMARY October prime production was 3, 903 M lbs. compared with 4,080 M Ibe. budgeted and projected. Poundage production was reduced by a high proportion of specialty resins------about twice the budget level of 20%. The specialty resins volume production standards reflect their slower drying rates. Tailings and off-grade totaled 5% of total production, or 2% above budget, due primarily to contamination from one set of dryer steam coils which was replaced. Thirteen different resin types were produced in 15 separate runs, including four specialty types. A 385 M lb. PVC 3185 fusion resin production run showed variations in bulk density and particle size experienced previously, although all the product was recovered as prime grade by selection for special customers and for grinding. Monomer efficiency was 95. 3% compared with 94. 4% last month and the budgeted level of 94%. Unscheduled overtime was reduced to 0. 5%. Reactor downtime was 13% of available hours, a new low. Bagged production increased to 67% from a budget level of 42% of the total, reflecting increased specialties production and the effect of toll production of bulk general purpose resins. Eleven of 27 vinyl chloride cars used this month were lower priced monomer from Allied Chemical. The first three bulk shipments of toll general purpose resin production by Allied were made this month to relieve the Pensacola plant for a greater proportion of specialty resin production. AP00046070 G. B. H. Speed -2- November 5, 1968 Variance of $84 favorable in bulk and $2, 137 favorable in packaging totaled $2, 221, due primarily to more efficient resin grinding operations. STATISTICS Prime Production, M lbs. Month Year to Date Off-Grade Production % of Total Month Year to Date Bulk Production, % of Prime Month Year to Date Shipments, M lbs, Month - Prime Month - Off-Grade Year to Date Prime Year to Date Off-Grade VC1 Efficiency, % Month Year to Date Reactor Availability, % of Available Hours Month Avg. Year to Date Reactor Downtime, % of Available Hours Mixing Solutions in Reactors Cleaning & Washing Reactors October_________ Actual Budget 3, 903 40,564 4, 080 24,480 5. 0 3. 8 3. 0 3. 0 33. 5 48. 1 57. 5 57. 5 4, 289 182 40,820 2, 055 --- 95. 3 95. 1 94 94 86. 7 82 -- 0 7. 0 -__ September Actual Budget 4, 267 36, 661 4. 084 36,748 3. 2 3. 7 3. 0 3. 0 47. 6 49. 7 57. 5 57. 5 4, 255 138 36,531 1, 873 -- 94. 4 95. 1 94 94 85. 6 82. 0 0. 1 7. 9 -" _^ AP00046071 G.B.H. Speed -3- STATISTICS (Cont'd) Scheduling Charges Changing Types Copolymer Production Slow Recovery Low Drying Rates and Dryer Line Cleanout Hydraulic Motor Repairs Misc. Reactor Maintenance Dryer Maintenance Electrical & Instr. Maintenance Miscellaneous Experimental Batches Total Product Mix, M lbs. Prime Resin Group I Group II Group HI Group IV Group V Group VI Group VII Total * Ground resin not included in total October Actual Budeet 2. 9 0. 6 0. 0 0.4 ---- 0. 4 0. 2 0. 0 0. 6 0. 0 1. 2 0. 0 13. 3 -~ .- --"- 973 1, 375 608 0 891 56 (75)* 3, 903 2, 154 1, 010 603 23 262 32 0 4, 084 November 5, 1968 September Actual Budget 2. 3 0. 6 0. 0 0. 8 --- 1. 7 0. 3 0. 2 0. 0 0. 2 0. 3 0. 0 14. 4 -__ -- -- 2, 448 I, 070 425 0 324 0 0 4, 267 2, 154 1,010 603 23 262 32 0 4, 084 AP00046072 G.B. H. Speed -4- November 5, 1968 STATISTICS (Cont'd) Off-Grade and Tailings Off-Grade -T_YPe 6180 8217 1250 1230 Quantity (M lbs. ) 33 8 14 54 Tailings 96 Floor Sweeps -0- Total 205 Payroll Regular Hours Unscheduled Overtime Hours Percent of total hours Reason. Off-Grade Contamination Contamination Contamination Contamination O ctober 11, 489 55 .5 % of Total Production 0. 7 0. 2 0. 3 1. 3 2. 5 5. 0 September 8, 828 105 1. 17 PRODUCTION 1000 Series Types produced: 1200, 1225, 1217, 1230 and 1250. Seven bulk truck shipments of PVC 1225 to Clopay, a new customer using our product in clear film, were apparently satisfactory, andrealistic customer Specifications are being established. A shipment of PVC 1250 rejected by Phillips on the basis of con tamination is discussed under the GENERAL, section of this report. Other production was routine. AP00046073 G. B. H. Speed -5- November 5, 1968 PRODUCTION {Cont'd) 2000 Series Types produced: 2160, 2170, 2200, 2225 and 2250. PVC 2170 cycle times were excessively long and increasing the catalyst level gave only slight improvement. Both PVC 2250 and 2200 produced excessive tails. Increasing the suspending agent levels in the PVC 2250 recipe had no apparent effect. It appears that higher levels of KC catalyst possible with the new refrigera tion machines may be causing the excessive oversize. The effect of catalyst level and the type of buffer salt are being investigated in the PVC 2200 run in progress at month's end. A different buffer salt, "EZ" in place of "EY" is being tested in PVC 2225 to reduce residual calcium in the resin. Retained calcium is believed to cause a phenomenon called "plate out" which occurs in calendaring operations. Wiman Manufacturing noted the plate out problem in our last shipment, although the product was produced by the same recipe used previously. Production on PVC 2160 was routine. 3000 and 4000 Series Types produced: 3185 and 3250. An extended PVC 3185 run produced 14 lots from 62 batches. The recipe was unchanged for all except the last 11 batches; however, bulk density and particle size reproducibility was poor. Changing lots of UY suspending agent appeared to make a major difference, although ash and moisture analyses by the Pensacola laboratory and pH, moisture, and activity analyses by the vendor showed no apparent difference in the three lots of suspending agent used, Increasing the level of one problem lot of suspending agent did not compensate for whatever factor was causing abnormally low bulk densities. The supplier has been contacted for more information to explain the functional differences among the three lots of suspending agent in a program to determine what compensating factor can give consistent performance. The desired increase in particle size was obtained in 8 of 11 batches charged with a reduced seed latex Level. AP00046074 G. B. H. Speed -6- November 5, 1968 PRODUCTION (Cont'd) 3000 and 4000 Series (Cont'd) All 14 lots of the PVC 3185 run were recovered as prime resin in spite of particle size and bulk density variations by selection for specific customer applications and for grinding. Three lots were excellent fusion grade resins without being ground and were, in fact, the much sought after micropearls. The desired excellent products can be made; the paramount job now is to identify the factors necessary to establish control over the recipe. PVC 3250 production was routine. 8000 Series Types produced: 8217 Production was routine, and all the product was screened through 100 mesh. Modifications to reduce centrifuge product moisture to increase the drying rate are discussed under the GENERAL section of this report. Ground Resin A total of 75, 000 lbs. product consisted of 59, 000 lbs. 4185-2S and 14, 000 lbs. 4185-3S. An average ground production rate of 870 lbs. / hour was achieved compared with a previous norm of 400-600 lbs. /hour. A trial grinding of PVC 2185 to 2S in place of PVC 3185 yielded an excellent fusion product, but screening losses were excessive and the particles retained on 80 mesh were above specification. MAINTENANCE Major maintenance this month included the following: 1. Replaced north dryer steam coils. 2. Repaired and replaced dryer hammer bands on both north and south dryers. AP00046075 G.B.H. Speed -7- November 5, 1968 MAINTENANCE (Cont'd) 3. Repaired broken piston arm on step bearing purge pump and repaired the bearings and arm adjustment to prevent a recurrence. 4. Repaired the bottom bearing on #2 blend tank agitator shaft. 5. Removed the north bulk system, vacuum blower and had it factory rebuilt. 6. Repaired leaking shaft seal on the north stripper. 7. Repaired leaking seals on number 1, 2, and 8 reactor hydraulic motors. 8. Installed a cleanout strainer on the refrigerated water inlet line to eliminate frequent shutdowns to empty the in-line strainers. 9. Replaced shear pins in the south, hydraulic pump three times and inspected pump and bearings. 10. Revised the hydraulic system pressure control line to the deaereation tank to come from the top of the return line to improve defoaming and reduce shock loads from pump cavitation. 11. Replaced the north recovery compressor relief valve twice, 12. . Repaired the south bulk system rotary valve. An inspection of the south hydraulic pump showed no abnormal bearing wear. Apparently draining and adding four drums of fresh oil reduced the con tamination level below the danger point. Shear pin failures in the south pump were apparently caused by abrupt operational changes in starting motors and the fact that the tolerances are closer in the south pump than in the north. AP00046076 G. B. H. Speed -8- November 5, 1968 GENERAL The water blaster operating pressure was reduced and a restricting orifice was removed from the system dump valve at the recommendation of the manufacturer. Packing maintenance was reduced markedly and a leaking cracked head is much less of a problem as a result. Use of long-taper and fan-shaped tungsten-carbide nozzles recommended by the manufacturer was not as satisfactory as the original, small, straight-stream stainless steel nozzles. Tests were made with detergent additives for the reactor drive hydraulic oil to check the hazards of increased foaming; reduced viscosity; and emulsion, gel, or precipitate formation. Texaco had reported the oil now in the system to be too acid and contaminated with chlorides and recommended a complete oil changeout to prevent bearing failures prevalent at the time the oil was tested. The tests showed no adverse effects of mixing, and a detergent oil additive recom mended by Texaco was purchased to prevent equipment damage until the necessary time is available for an oil changeout. Tests with a smaller bag valve and tapered, non-vented bag filling nozzle showed no advantage to the smaller valve and demonstrated that a positive vent is essential. Bag weight variation and dusting is a minor problem with coarse resins, but is magnified with the fine particle size specialties. Bagging importance increases as the proportion of bagged product increased from a budget level of 42% to 64% in October. The centrifuge speed was increased to 1400 RPM from 1200 RPM and the liquid depth was lowered to improve dewatering especially of the fine particle size specialty resins. Initial results show a 10% moisture reduction in a standard general purpose type, and a 15-25% reduction is expected with the fine resins. Resin loss in the effluent was negligible. An automatic sampler was installed on the south line to assure a more representative lot sample during the normal 8-12 hour drying cycle. A bulk rail car of PVC 1250 was rejected by Phillips Films because of contamination. The loading and post loading samples at Pensacola showed the product to be exceptionally contamination free. Samples from the customer were badly contaminated, and the contaminants sunk to the bottom of a mixture in carbon tetrachloride in which PVC floats to the top. Four retained samples mixed in carbon tetrachloride had virtually no particles fall to the bottom. Apparently the contaminants were in the car when it was loaded or entered during transit. Car inspection and cleaning procedures were reintensified and the practice of covering the hatches with polyethylene film was restarted. AP00046077 GB.H. Speed -9- November 5, 1968 NOVEMBER PROJECTIONS Production., M lbs. Inventory, M lba. Production Cost Variance Projection 3, 900 2, 546 $2,000 Favorable Budget 4, 080 2, 791 VARIANCE ANALYSIS October production variance is summarized below: Bulk Production 7421 FAVORABLE UNFAVORABLE VCL Monomer Volume Variance By Product Credit Process Costs Salaries Miscellaneous Taxes & Ins. $ 1,325 1, 165 6, 153 889 2, 310 2, 029 $13,871 XA Monomer Process Chemicals Royalties Process Costs Utilities Maintenance Laboratory Other $ 980 286 1, 670 1, 282 2, 710 4, 637 2, 222 $13,787 Net Bulk Variance $84 Favorable Packaging 7424 Volume Variance Process Costs Maintenance Group VII Other $1, 005 446 2, 138 1, 284 $4,873 Budget Error Bags Process Costs Salaries Miscellane ous * Net Packaging Variance $2, 137 Favorable $1,040 204 1, 289 203 $2,736 TOTAL PRODUCTION VARIANCE $2, 221 Favorable M.B. R'ogers AP00046078 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM To: From: Re: C. L. Wallace D. J. Mann Dote: Copies: Monthly Summary PVC Research & Development October 1968 November 5, 1968 ASSESSMENT AND PLANNING 1. Pursuing the broad plan discussed in the September MonthlySummary for PVG Research and Development, priorities for the study of resin quality and reproducibility were established (references 1 & 2), and a technical report reviewing the research and development history of the Pearl resins (2000, 3000 and 4000 series) (reference 3) was prepared and distributed. 2. In addition, a summary of the process for manufacturing extrusiongrade Saran resin was prepared (reference 4), This will be followed by the prepara tion of two technical reports reviewing the research and development history of (1) extrusion-grade and (2) solution-grade Saran resins. OPERATIONS 1. During October, the R&search and Development Department con tinued its close support of manufacturing by monitoring the production of 63 batches of 3185 resin. Fourteen lots of material representing approximately 385, 000 lbs, were made. Five batches were mischarged at the beginning of the run and coarse polymer resulted. The next 18 batches, prepared with recipe T19, yielded excel lent material, with the exception of four batches that had excessive fines. It is not presently understood why an erratic high percent of fines is periodically obtained. A change to a different lot of Sulfr&min 85 lowered the bulk density. Also, some crusting in the reactor was observed, which required premature termination of the run. Eight batches were prepared with good particle size control, except for two -- one with 96% fines, the other with 66% fines. A third lot of Sulframin 85 was then tried for 15 batches. Again, good particle size was obtained and the bulk density increased. During this series of runs, four batches had excessively high fines. AP00046079 C. L. Wallace -2- November 5, 1968 OPERATIONS (Cont'd) The first lot of Sulframin 85 was then used again, along with a lower level of Geon latex. This produced generally satisfactory material somewhat coarser than before. Attempts to use the second lot of Sulframin 85 at slightly higher levels did not appear to improve the product, although only two batches were tried. The effect of raw material on. quality appears to be a source of variability, and is being studied in preparation for the next 3185 plant run. Product variability studies were made in the blend tank and dryer. Samples were taken from the blend tank and then the dryer every two hours during the drying cycle. In the first lot studied, a high level of fines (low bulk density) was noted at the end of the run with fairly good.uniformity up to this point. In the next lot studied, the mixing appeared to be somewhat better and the last sample was not high in fines. However, the fines distribution during the latter run did vary from 18. 0 to 33. 8%. A compilation, analysis and interpretation of the data obtained is presently underway. 2. Research and Development personnel visited Lakeside Plastics in Oshkosh, Wisconsin for the purpose of technically evaluating problems related to the use of Escambia 8000 series resins here (reference 5). Laboratory tests were conducted on-site and recommendations made on the basis of the data obtained. As a result. Lakeside will make a plant trial with 5, 000 pounds of 8200 series recently shipped. If possible (i. e. contingent on other demands), an Escambia Research and Development representative will be present to witness the trial. 3. A visit was made to Robbins Products, Inc. , Tuscumbia, Alabama, for the purpose of improving working relationships and providing closer technical support. Plant trials to evaluate Escambia 1000 and 8000 series resins in their expanded vinyl flooring applications have been tentatively arranged for the week of November 11, at the Prescott, Arkansas plant (reference 6). 4. Increased Technical Service support of Sales occurred during October in terms of customer inquiries and complaints answered, directly or indirectly. The following activities were recorded: .Customer Complaints During this period, work was performed on three formal (Nos. 32, 33 and 34) and one informal (Creative Packaging) Customer Complaints. AP00046080 C. L. Wallace -3- November 5, 1968 OPERATIONS (Cont^d) Technical Service Requests (TSR's) The following TSR's were completed: 813 - Elm Coated Fabrics 814 - Industrial Solvents 815 - Colorite Plastics Corporation Customer Inquiries Approximately 20 customers were provided with technical information/ data. FACILITIES. 1. Research and Development Building Technical Service Laboratory -- All major equipment has been installed and full operations will begin the week of November 4. Polymerzation Laboratory-- Completion will be delayed two months pending delivery of explosion-proof motors. General and Constant Humidity Laboratories -- Expected completion date is December 1, 1968, due to delayed delivery of laboratory benches. 2. Pilot Plant The building and all major equipment is on order. The completion of the facility is scheduled for January, 1969. FUTURE PLANS 1. Technical reports will be prepared reviewing the research and development history of both the extrusion and solution grades of Escambia's Saran, along with an R&tD assessment of this technology. 2. The 3185 series will be run in the plant the week of November 17 (tentative) and efforts will be continued-to study the variability problem with this product. 3. The effect of replacing KC with CC in the 2185 recipe for reducing fisheyes will be studied. 4. A report on the last 3185 run made in October will be issued. 5. Products. Plant trials will be conducted at Lakeside Plastics and Robbins AP00046081 C. L. Walla.ce -4- November 5, 1968 FUTURE PLANS (Coat'd) 6. The Technical Service Laboratory will begin full-scale operations during the week of November 3, 1968. T).\YrNiw^ D.V. Mann Reference 1 Reference 2 Reference 3 Reference 4 Reference 5 Reference 6 Memo to D. J. Mann and G. B. H. Speed from F. L. Riddle, Jr. and M. B. Rogers, titled ''Priority List for PVC Plant Problems", dated October 25, 1968. Memo to C.L. Wallace from D. J. Mann, same subject, dated October 29, 1968. Polymer Research Project R-eport #2, titled "Synthesis and Development of Pearl Systems", by F. L. Riddle, Jr. and J. F. Gabbett, dated October 7, 1968. Memo to File from F.L. Riddle, Jr. titled "Summary Report of Escambia Saran Process", dated October 25, 1968. Memo to File from F.L, Riddle, Jr. , titled "Lakeside Plastics, Oshkosh, Wisconsin", dated October 7, 1968, Memo to File from F. L. Riddle, titled "Robbins Floor Products, Inc., Tuscumbia, Alabama", dated October 31, 1968. AP00046082 AGRICULTURAL CHEMICAL DIVISION MONTHLY REPOR T November, 1968 AP00046083 1 Sv \ ri < !" > AP00046084 PERSONNEL ESCAMBIA CHEMICAL CORPORATION Interoffice Memorandum To: Mr. T. L. Carey Date: December 5, 1968 From: E. M. Spurlock Re: Monthly Report - Personnel Department - November, 1968 PERSONNEL Activity for the Month Division No. of Employees 10/31/68 Nov, Addit. Nov. Separa. No. of Employees 11/30/68 Nov.* 1968 Budget Executive Office Accounting & Credit Plant & Wilton Labs. & Planning & Dev. Plant Admin. & Process Plant Engr, & Maint. Personnel & Safety Purchasing & Traffic Sales - Agrt. Chem. Sales-Ind. Chem. & PVC 4 47 38 210 126 12 27 165 15 00 36 21 13 00 00 20 48 0 ___1 4 44 39 208 126 12 29 161 14 5 50 46 214 133 12 30 178 ___16 Total Escambia 644 12 19 637 684 * As Amended Carroll Construction Company No. of Employees 10/31/68 No. of Employees ____ 11/30/68 Office Maintenance Insulators Mechanics Yardmen Trashmen Laborers Janitors Painters Total Maintenance 22 33 87 22 22 77 77 _5 _7 34 35 AP00046085 Monthly Report 2- December 5, 1968 PERSONNEL (Cont'd.) Carroll Construction Co. PVC Laborers Area B Laborers Railroad Crew No. of Employees 10/31/68 8 35 ___1 No. of Employees 11/30/68 8 25 - __ 1 Total Carroll Construction 80 644 71 637 Grand Total 724 708 We had a total of 77 walk-in applicants, 57 applications were issued and 9 were received by mail. Twenty-eight applicants were interviewed and 42 were tested. SAFETY The Corporation worked approximately 113,000 man-hours during the month. The approximate man-hours and the days worked to date without a lost time injury are as follows: Division New York Office Research Sales Pensacola Plant Corporation Man-hours 440,500 1,068,500 36,000 117,000 149,000 Davs 2,675 4,155 40 43 40 Medical Section The Medical Section treated 9 injuries for Escambia and 5 for Carroll, performed 6 pre-employment and 16 annual physicals and gave a total of 17 immunization injections. TRAINING We held one Trackmobiie class in which three operators were licensed. We held one Forklift class in which two operators were licensed. AP00046086 Monthly Report -3 December 5, 1968 EMPLOYEE RELATIONS Open House for employees and their families was held on November 23, 1968 and 205 people toured the plant. Plans are being made to hold our annual Children's Christmas Party at Martine's Restaurant on December 21, 1968. Two (2) 5-year service awards were presented. One (1) 10-year service award was presented. LABOR RELATIONS Gulf Power Company's contract with the IBEW has expired and they began renegotiating their contract on August 1, 1968. The last meeting with the union was on October 1, 1968 and Gulf Power offered them a 3-year contract with 5.57 increase in salaries the first year, 5.2% the second year and a wage reopener only during the third year. This offer has neither been accepted or rejected at the present time. The union activity as far as the nonunion plants in the Pensacola area is concerned has decreased considerably. Certain of Monsanto 's employees are still meeting with the union representatives in the area but there is no great amount of pressure at the present time. INSURANCE We paid a total of 46 claims under our Group Hospitalization program which amounted to a total of $ 9,050.44 during the month of November. Check was received from Hartford Steam Boiler Insurance Co. in the amount of $ 32,684 which represents return of premium due to our good experience during the policy years from October 1, 1965 to October 1, 1968. Claim in the amount of $ 37,968.00 was submitted to Travelers Insurance Company for damage by spent acid to leased tank cars. We settled the following claims during the month: Two Automobile Physical Damage claims in amount of $ 117.68. One Comprehensive Commercial Bond claim in amount of $ 5,381.85. EMS:kc AP00046087 PLASTICS AND RESINS MONTHLY REPORT NOVEMBER 1968 AP00046088 To: From: Re: ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM T. L. Carey C, L. Wallace PVC Monthly Summary November 1968 Dote: Copies: December 5, 1968 MAJOR FACTORS AFFECTING THE BUSINESS PVC operations will report a profit of $44,000 for November. This is the first month for which the new monomer price was fully reflected. Of major importance is a reported up-coming price increase. There have been two rumors from the industry. One concerns a 0. 5/lb. increase "soon" and another 0, 5^/lb. increase in the late spring on general purpose resins, and the other an increase in specialty resin prices after the inauguration. The Escambia PVC business continues in a "sold-out" position, which is expected to last into next year. As a result of a sold-out position and the ability of Allied Chemical to produce only a limited amount of resin for our account, we have had to turn down orders totaling 440 M lbs. at ITT, New England Plastics, Elm Coated Fabrics and Continental Plastics. Although our agreement with Allied Chemical is working smoothly. Allied has not been able to meet our needs in timing and total pounds due to Allied's sold-out position. A total of 3, 300 M lbs. foT the year have been ordered for delivery through December and approximately one half of the orders have been shipped. MARKETING Grose sales for the month were 4, 710 M lbs. of which 161 M lbs. were off-grade, floor sweeps and tailings. Returns for the month were 29 M lbs. Sales of plastisol extenders are holding steady with 145 M Lbs. being moved. A trial run of extender resin PVC 8200 was highly successful at Robbins Floor Products. Both Robbins and Lakeside Plastics, who approved our resin in October, will be ordering in December as soon as their supply of competitive resin is used. AP00046089 T. L. Carey -2- December 5, 1968 MARKETING (Cont'd) Other specialty resins continued strong with 143 M lbs. being sold. Production and Research are continuing to work on the reproducibility of our primary specialty PVC 4185-SP. A production run in November was unsuccessful in meeting the rigid SP specifications. Research assisted the Sales Department during the month on establishing a bottle compound formula for Elm Coated Fabrics and obtaining an additional test by Armstrong to assist in establishing quality parameters. Sales for December are forecasted at 4, 500 M lbs. This will be lower than normal due to year-end inventory and holiday shut-downs. RESEARCH AND TECHNICAL 5ER VICE Major efforts during the month were concentrated on the problem of reproducibility of 3185/4185 (fusion) resins. The problem attack is necessariLy via production equipment and consists of isolating and monitoring the many variables in the process. To date no positive data has been assembled which reasonably assures immediate correction of the problem. The early availability of the pilot plant facilities should provide expanded "answer capability" on this problem. ' In other areas customer service efforts were rewarding. Two accounts of substantial size were successful with trials of plastisol extenders {Robbins and Lakeside Plastics) and this business should be forthcoming following balance-out of competitive products by the customers. Further, an encouraging start has been made (on an exclusive basis) on the resin specifications for medical/ surgical tubing end use (Elm Coated Fabrics). Work also continues on the development of bottle resin specifications with two customers (Elm Coated and Armstrong Cork). PRODUCTION Production for the month was 4, 009 M lbs. , below budget by 80 M lbs. The lower production is a continuing reflection of the higher than budgeted production of slow drying specialty resins, and excessive cleaning time required in both the''reactors and dryers to meet critical customer specifications. Reactor downtime increased to 17. 6% of available time due primarily to the need for extra cleaning as mentioned above. Tailings, floor sweeps and off-grade were 3. 5% of production. An excessive amount of tailings were produced when variations were made in recipes to reduce reactor fouling. AP00046090 T. L. Carey -3- December 5, 1968 PRODUCTION (Cont'd) Monomer efficiency was 94. 6%, and above budget. Direct production variance was approximately $33, 000 favorable, with an added $3, 000 favorable overhead variance allocation. Another extended run of PVC 3185 was made during the month with Research and Development assisting. The same recipe was used throughout the run and "master solutions" were used to minimize the variability in charging individual reactors. Even with the master solutions, batch to batch reproducibility was extremely poor. A lowering of space charge to insure adequate agitation throughout the cycle did not improve quality or batch reproducibility. In order to meet sales requirements of PVC 4185-SP, out of specification resin is being rescreened. In the finishing area of PVC production studies are being conducted in the following areas: 1. Blend Tanks Studies are being made to improve agitation in the blend tanks to prevent classification of resin particles. 2. Centrifuge Speed A study is continuing on the effect of increasing the centrifuge speed from 1200 to 1400 RPM. As reported last month, a 10% decrease in wet cake moisture has been noted on one type re sin. 3. Dryer Speed In an effort to increase drying rates the manufacturer has recommended a reduction in dryer speed from 4. 35 to 3. 63 RPM. 4. Stainless Steel Screens A visit to Allied Chemical revealed that they are using all stainless steel screens treated with an anti-static material, and are not having any problems with static blinding as we experienced. Two stainless steel screens have been ordered for trial. AP00046091 T.L . Carey -4- December 5, 1968 5. Bulk Transfer A study of our bulk transfer system is being made to reduce the time (new 24 hours) and labor required to load bulk cars. Maintenance for the month was centered around the centrifuges. Both machines had to be taken apart for cleaning and the south centrifuge was taken apart twice, once to install a new gutter and then to take the gutter out to clean paint off that was contaminating the resin. Plant production for December is forecasted at 4, 080 M lbs. and variance at $10, 000 favorable. 00^^ C. L. Wallace AP00046092 To: From: Re: ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM G.B.H. Speed D. V. Lowe Dote: Copies: PVC Monthly Production Report December 5, 1968 SUMMARY Production of prime PVC resins during November totaled 4, 009 M lbs. as compared to 4, 080 M lbs. budgeted. Of this amount, 3, 586 M lbs. (or 89. 5%) were general purpose and 423 M lbs. (or 10. 5%) were specialty resins. The proportion of specialty resins dropped considerably this month and their drying rates continue to lag the general purpose rates somewhat. Tailings and off-grade totaled 3, 5% of total production, or 0. 5% above budget. This is, however, a 1. 5% reduction from the previous month. Seventeen different resin types were produced in 22 separate runs, including nine specialty types. A 140 M lb. PVC 3185 fusion resin production run showed extreme variations in particle size, as previously experienced, despite a concerted effort from Production and Research and Development personnel to assume greater control. Appropriate lot blends are being rescreened over 140 mesh for fines removal to meet 4185-SP requirements. Monomer efficiency was 94. 6% in November compared with 94. 3% during October and the budgeted level of 94%. Reactor downtime was 17. 6% of available hours, up from 13% last month, reflecting the need for cleaning of reactors prior to the PVC 6180 run, and special cleanout efforts on the south drying line to eliminate contamination. Also, time was lost while changing the oil seal in #5 reactor agitator and preparing special charge solutions for the experimental 3185 run. Bagged production, was 49. 1% of total prime production, exceeding the budget level of 42. 5% by 6. 6% of total. This reflects high demand for bagged general purpose types. All PVC production for the month came from Allied monomer. AP00046093 G. B. H. Speed -2- December 5, 1968 Variance o $35, 966 favorable in bulk and $3, 190 unfavorable in packaging totaled $32,776 favorable, due primarily to VC1 price variance, XA monomer inventory adjustment for the year, a credit for overaccrual for reglassing reactors, and a credit for overcharges on depreciation. STATISTICS Prime Production, M lbs. Month Year to Date Off-Grade Production % of Total Month Year to Date Bulk Production,% of Prime Month Year to Date Shipments, M lbs Month - Prime Month - Off-Grade Year to Date Prime Year to Date Off-Grade VC1 Efficiency, % Month Year to Date Reactor Availability, % of Available Hours Month Average Year to Date November Actual Budget 4, 009 44,573 4, 080 44,880 3. 5 3, 8 50. 9 48. 3 3, 640 161 44,460 2, 216 94. 6 95. 1 3. 0 3. 0 57. 5 57. 5 -- __ 94. 0 94. 0 82. 4 82. 0 --- October Actual Budget 3, 903 40,564 4, 080 40,800 5. 0 3. 8 33. 5 43. 1 4, 289 182 40,820 2, 055 95. 3 95. 1 3. 0 3. 0 57. 5 57. 5 -- -- 94. 0 94. 0 86. 7 82. 0 AP00046094 G.B.H. Speed -3- December 5, 1968 STATISTICS (Cont'd) November Actual October Actual Reactor Downtime, % of Available Hours Mixing Solutions in Reactors Cleaning & Washing Reactors Scheduling Charges Changing Types Copolymer Production Slow Recovery Low Drying Rates and Dryer Line Cleanout Hydraulic Motor Repairs Misc. Reactor Maintenance Dryer Maintenance Electrical & Instr. Maintenance Miscellaneous Experimental Batches 0. 4 9. 2 1. 7 0.4 0. 1 0. 4 3. 1 0. 1 0. 4 0.6 0. 1 1. 1 0. 0 0. 0 7. 0 2. 9 0. 6 0. 0 0. 4 0. 4 0. 2 0. 0 0. 6 0. 0 1. 2 0. 0 Total 17. 6 13. 3 oduct Mix, M lbs. Prime Resin November Actual Budget October Actual Budget Group I Group II Group III Group IV Group V Group VI Group VII 2, 337 1, 175 423 0 74 0 0 2, 154 1, 010 603 23 262 32 0 973 1, 375 608 0 891 56 (7 5)* 2, 154 1,010 603 23 262 32 0 Total 4, 009 4, 084 3. 903 4, 084 * Ground resin not included in total AP00046095 G.B.H. Speed -4- Decembcr 5, 1968 STATISTICS (Cont'd) Off-Grade and Tailings Off-Grade Type 1250 Quantity M lbs. 2 Tailings 134 Floor Sweeps 10 Total 146 Reason Off-Grade Contamination -------- -------- % of Total Production 0,05 3.21 0. 24 3. 5 PRODUCTION 1000 Series Types produced: 1200, 1225, 1185, 1230 and 1250. Five more bulk trucks of PVC 1225 were shipped to Clopay, a new customer, along with 600 lbs, of PVC 1185 in bags. All resin supplied has apparently been satisfactory. Phillips rejected a total of 52, 000 lbs. of PVC 1200 in bulk due to excessive gels. The resin was rerouted to other less critical customers. Other production was routine 2000 Series Types produced: 2160, 2200, 2225, and 2250. Production runs were normal. No conclusions have been drawn, as yet, concerning the effect of catalyst level and the type of buffer -- salt used in production of PVC 2200 and PVC 2250 upon their resultant quality. Tailings were of normal proportions. AP00046096 G.B.H. Speed. -5- December 5, 1968 PRODUCTION (Cont'd) 2000 Series Cont'd Wiman Manufacturing returned 11,640 lbs. of PVC 2225 in bulk, presumably because it caused "plate out" in their calendering operations. Reasons for this phenomenon are not concrete and analysis of the problem must be attempted by our R&D personnel before recommendations can be made. 3000 and 4000 Series Types produced: 3185 and 3225. No problems were encountered with the 3225 run. A 140 M lb. production run of PVC 3185 was made consisting of 24 batches to which 6 lot numbers were assigned. The basic recipe remained unchanged throughout the run so that the effect of making "master solutions" of "UY-FE" and "EZ" could be studied. It was thought that elimination of variability in charge weights of all raw materials to individual reactors might provide reproducible end-product results. The test was hampered at first by mechanical difficulties which rendered any conclusions meaningless. Thereafter, good test conditions with use of "master solutions" proved that no increase in control of-PVC 3185 is gained with this technique. As a matter of fact, individual batches yielded such varied particle sizes and bulk densities, regardless of raw material addition techniques, that there was clearly no control. Although none of the resultant lots passed screen specifications for 4185-SP, some of this material is being rescreened over the secondary rotex for fines removal, so we may meet 4185-SP sales. It is interesting to note that although the last five batches were run at 7 5% normal charge size (to lower agitator power requirements) they also exhibited entirely non-reproducible end-product results. In other words, providing rather constant speed of agitation to the reactor from beginning to end of all PVC 3185 batch cycles via utilizing the lower power-draw did not solve the problem. It is our feeling that the problem should be solved by improving our understanding of the effects of changes in "UY-FE-EZ" concentrations. AP00046097 G. B. H. Speed -6- December 5, 1968 PRODUCTION (Gont'd) 6000 Series Type produced: 6180 Production of PVC 6180 has been good to the end of the month. 8000 Series Type produced: 8217 The PVC 8217 run was normal. It was observed that centrifuge wet cake moisture content fell in the range of 25-30%, a definite improvement attributable to speeding up the centrifuge from 1200 to 1400 RPM. Ground Resin No resins were ground other than tailings. MAINTENANCE Major maintenance items completed during the month of November included the following: 1. Added one 55 gallon drum of detergent oil to the hydraulic oil system, to neutralize the acidity of the system until changeout. 2. Replaced leaking agitator oil seal on #5 reactor. 3. Removed heavy buildup of hardcaked PVC resin on interior of south centrifuge bowl which was causing contamination on the drying line. 4. Installed gutter in wet cake effluent port on south centrifuge to improve feed characteristics to screw conveyor. 5. Removed gutter from south centrifuge wet cake effluent port when discovered that it had caused accumulation of buildup and contributed to contamination. 6. Installed spare 60 HP motor on south centrifuge. Old motor had many shorts and the armature housing was cracked. AP00046098 G.B.H. Speed -7- December 5, 1968 MAINTENANCE (Cont'd) 7. Inspected both hydraulic oil pumps and found them to be in good condition. 8. Replaced the discharge lines on both recovery compressors. The old lines were partially plugged causing excessive pressures and lifting of the relief valves. 9. Inspected interior of both recovery conpressors. Pistons were found to be in satisfactory condition, but valves and much of the interior compartments are badly corroded. GENERAL A new crack has been discovered in the head of the high-pressure water blaster pump. The unit continues to operate satisfactorily at this time, but there is a misunderstanding with the manufacturer concerning which party must stand liable for the cost of repairs. It is our contention that the unit has been properly installed and maintained to date and that the manufacturer should bear such expense. Increasing the speed of revolution of the south centrifuge has given all appearances of a definite improvement in wet cake moisture content. A reduction of at least 10% in wet cake moisture was experienced during November -the PVC 8217 run. It is planned to closely scrutinize the up-coming production runs of PVC 8217 and PVC 8200 during December. If this improvement in performance is verified, the north centrifuge should be speeded to 1400 RPM as soon as possible. A total of 6,000 lbs. of coarse size PVC 2185 was rescreened and upgraded to prime. The water demineralizer unit was regenerated and put into service for November's PVC 3185 run. Use of DM water yielded no improvement in endproduct results. See the PRODUCTION section, subtitle 3000 and 4000 Series, for a more detailed discussion of the 3185 run, A new drive sprocket has been ordered which will hring about a reduction in the south rotary dryer rotation from 4. 35 RPM to 3. 63 RPM, a 16. 6% reduction. This will constitute an experiment to determine whether an increase in absolute water removal rates is obtainable with an increase in resin retention time within the dryer. The south rotary dryer was chosen to be able AP00046099 G.B.H. Speed -8- December 5, 1968 to determine the total effect of centrifuge speed-up and dryer slow-down. If this test indicates any improvement in slurry drying rates over present maximum rates, the revision will be considered for the north line also. Allied Chemical is reported to be using stainless steel wire screens in their PVC rotexing operations with good results. We now have two stainless, one 80 mesh and one 100 mesh (Nitex series screen opening equivalency), on order for trial within our own plant. They will be tacked onto one primary rotex, grounded to drain off static charges on PVC particles, sprayed with a newly purchased liquid anti-static agent, and observed for possible elimination of "blinding". If we should desire to change over to all stainless steel rotex screens, it would be necessary to purchase additional screen frames or consider installation of new ail stainless steel rotex units. A study of our blend tank agitation problem is nearly complete. It is apparent that better mixing of particle classes throughout the tanks can be achieved by simple replacement of agitator blades with different types. Reports from several vendors are forthcoming and a recommendation awaits these reports. It is hoped that greater in-lot particle size consistency will be the result. A more complete study of the rotary drying operation ha3 been underway and nears completion. Its purpose has been to determine the current limiting factors on absolute drying rates and make recommendations on the most practical and economical method or methods to raise them (irrespective of any smaller increase which may be gained by speeding the rate of rotation). This would be particularly beneficial to our slower drying specialty PVC types, which we hope to produce in greater proportion eventually. It is clear that some new capital investment would be required, but that the capacity improvement might justify this. The cost estimates can be submitted soon. A survey of our bulk transfer systems has just been initiated and will progress through the coming weeks. Tfre effort will be geared toward raising the maximum rates of bulk loading and unloading and in-system transfers. This will result in greater economy of operation and lower labor costs. It will also facilitate better versatility of operation since the transfer units would be available more often. DECEMBER PROJECTIONS P rojection Budget Production, M lbs. 4, 080 4, 080 Production Cost Variance $10, 000 Favorable AP00046100 G. B. H. Speed -9- December 5, 1968 VARIANCE ANALYSIS November production variance is summarized below: Bulk Production 74E1 FAVORABLE UNFAVORABLE VC1 Efficiency VC1 Price Variance By Product Credit XA Monomer $ 2,597 17,631 1,802 5,787 Volume Variance Process Supplies And Chemicals Royalties $ 3,929 1, 192 2, 236 Process Costs Maintenance Taxes & Ins. Depreciation Other 4, 268 1,932 12,155 6, 163 $52,335 Process Costs Salarie s Utilities Laboratory Miscellaneous 1, 554 1, 17 1 1, 837 4, 450 $16,369 NET BULK VARIANCE $35,966 Favorable Packaging 7424 Volume Variance $ 954 Bags Process Costs Salaries Maintenance Miscellaneous $1,244 1, 309 696 186 $ 954 Other NET PACKAGING VARIANCE $3, 19Q Unfavorable 709 $4,144 TOTAL PRODUCTION VARIANCE $32, 776 Favorable D. V. Lowe AP000461Of To: From: Re: ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM C. Li. Wallace Dote: D. J. Mann Copies: Monthly Summary PVC Research &c Development November 1968 December 5,1968 OPERATIONS 1. A report, compiling and analyzing the data from the 3185 production run made in October, was prepared and distributed. The conclusions and recommendations reached as a result of Research and Development monitoring the production of 105 batches of 3185 since late August, 1968, were reported in a memo to C, L, Wallace from D. J. Mann, dated November 14, 1968. (References 1 & Z) Z. Another 3185 plant run was made during the period, November 19-23. during which time Research and Development attempted to study the affect of three minor process modifications on batch-to-batch reproducibility, as follows: a. The use of a standard masterbatch of recipe ingredients for all batches, b. The addition of calcium chloride solution after evacuating the reactor, to minimize foaming and standardize addition procedure. c. The reduction of batch size to get more constant agitation during the polymerization cycle. Twenty-four batches comprising six lots and totaling 140, 150 lbs. of resin, were prepared using recipe T20 in an effort to make 4185-SP. Eleven of the batches were charged from a masterbatch solution of Sulframin 85, Geon 450X3 and calcium chloride. Several of these batches turned out very well; unfortunately, an undetected water leak into the masterbatch solution tank changed the solution concentration and added an unexpected variable to the study. Also, mechanical problems in the centrifuge and dryer caused delay in dropping the product slurries and again interfered with the planned set of controlled experiments. AP00046102 C.L. Wallace -2- December 5, 1968 In an attempt to minimize the agitator speed variance, five batches with a 25% reduction in size were run; however, only three of these five batches gave constant speed agitation at 130 RPM, Although it was not possible to draw any conclusions from only three batches, the results were not encouraging. This approach may be worth further study. A compilation and analysis of the data is currently underway. When completed, this report will be reviewed with Production and a plan for the next 3X85 run will be developed jointly. 3. A follow-up visit to Lakeside Plastics,Oshkosh, Wisconsin, was made by Mr. F. L. Riddle, Jr. on November 11 to evaluate the $200 plastisol extender resin in a plant trial. The trial was an unqualified success and we are anticipating that the customer will switch from Geon 106-F-2 to 8200 before the end of the year (Reference 3) 4. This same product (8200) was also evaluated as an extender resin for expanded vinyl flooring in a trial at the Prescott, Arkansas plant of Robbins Floor Products. No problems were encountered and, if further runs with the remainder of the 2000 pound shipment of resin prove conclusive, 8200 should replace the Borden VC-260S resin in the near future. (Reference 4) Tentative product specifications for 8200 were issued by Research and Development. 5. A visit to Mr. Warren Sechrist of Elm Coated Fabrics was made by Mr. R. E. Weston and the undersigned on November 18 to discuss joint efforts on the evaluation of medical grade tubing and bottle resins. Good rapport was established between Escambia and Elm Coated personnel and meetings with the latter's customer for medical tubing will be arranged for December. (Reference 5) 6. A meeting was held on November 7 between Research and Development and Market Development personnel to review laboratory data on 2185 and develop a future plan of action for the Armstrong bottle resin program. As a result of this meeting, seven additional samples of 2185 were submitted to Armstrong and tentative plans for visiting their customer during the week of December 8 have been made. (Reference 6) 7. Decreased Technical Service activity occurred during November due to Mr. P. R. Browne's temporary transfer to other functions during part of the month. The following work was accomplished: Customer Complaints During November, work was initiated on two formal customer AP00046103 C. L. Wallace FACILITIES 1. 2. -3- December 5, 1968 Customer Complaints (Cont'd) complaints (numbers 35 and 37). Technical Service Requests The following Technical Service Requests were completed: Armstrong Cork Elm Coated Fabrics Customer Inquiries Approximately ten customers were provided with technical information/data. Samples Twenty-two PVC samples (115 pounds total) were sampled to nine customers. Three PVC compounds (8 pounds total) were sampled to two customers. Research and Development Building Polymerization Laboratory -- completion is programmed for late December. General and Constant Humidity Laboratories -- Laboratory benches will be shipped from Houston, Texas, by December 16, Pilot Plant The foundation has been completed and the prefabricated building shell is due momentarily. The completion of the facility is still scheduled for early January, 1969. AP00046104 C.L. Wallace -4- December 5, 1968 FUTURE PLANS 1. A report on the November 3L85 run will be issued and reviewed with Production prior to the next run of 3185. 2. The next 3185 run (scheduled for mid-December) will be followed closely by Research and Development, in an attempt to gain better hatchto-batch control, 3. Technical reports will be prepared reviewing the research and development history of both the extrusion and solution grades of Escambia's Saran, along with an RtD assessment of this technology. 4. A visit to Armstrong Cork on bottle resins is tentatively planned for the week of December 8. 5. A visit to Elm Coated Fabrics on medical grade resins is tentatively planned for the latter part of December. 6. Recruitment activity directed toward acquiring a Technical Services Supervisor will be intensified during December. Reference 1 Reference 2 Reference 3 Reference 4 Reference 5 Reference 6 D. J. Mann Memo to D, J. Mann from F. L. Riddle, titled "Production 3185-L.G, 10/3/68 - 10/12/68", dated November 12, 1968. Memo to C. L. Wallace from D. J. Mann, titled "3185 Production", dated November 14, 1968. Memo to File from F. L. Riddle, Jr. , titled "Lakeside Plastics, Oshkosh, Wisconsin", dated November 12, 1968. Memo to File from F. L. Riddle, Jr. , titled "FVC 8200 Evaluation at Robbins", dated November 20, 1968. Memo to C.L. Wallace from D. J. Mann, titled "Visit to Elm Coated Fabrics, November 18, 1968", dated November 26, 1968. Letter to Mr. Don Straub, Armstrong Cork Company, from D. J. Mann, dated November 25, 1968. AP00046105 !>?u & AGRICULTURAL CHEMICALS DIVISION MONTHLY REPORT December, 1968 t i l AP00046106 AP00046107 ESCAMBIA CHEMICAL CORPORATION Interoffice Memorandum To: Mr. T. L. Carey Date: January 7, 1969 From: E. M. Spurlock Re: Monthly Report - Personnel Department - December, 1968 PERSONNEL Activity for the Month Division No. of Employees 11/30/68 Dec. Addit . Dec . Separa. No. of Employees 12/31/68 Dec .* 1968 Budget Executive Office Accounting & Credit Plant & Wilton Labs. & Planning & Dev. Plant Admin. & Process Plant Engr. & Maint. Personnel & Safety Purchasing & Traffic Sales - Agri. Chem. Sales-Ind. Chem. 6c PVC 4 44 39 208 126 12 29 161 14 00 4 5 1 1 44 50 1 0 40 46 23 01 00 01 22 0 __ 0 207 125 12 28 161 14 214 133 12 30 166 16 Total Escambia 637 6 8 635 672 * As Amended Carroll Construction Company No. of Employees 11/30/68 No. of Employee 12/31/68 Office 22 Maintenance Insulators Mechanics Yardmen Trashmen Laborers Janitors Painters 3 7 2 2 7 7 __ 7 3 8 2 2 8 7 ___7 Total Maintenance 35 37 AP00046108 Monthly Report -2- January 7, 1969 PERSONNEL (Cont'd.) Carroll Construction Co. No. of Employees 11/30/68 No. of Employees 12/31/68 PVC Laborers Area B Laborers Railroad Crew 8 25 ____ 1 8 30 ____ 1 Total Carroll Construction 71 637 78 635 Grand Total 708 713 We had a total of 73 walk-in applicants, 58 applications were issued and 12 were received by mail. Thirty-two applicants were interviewed and 26 were tested. SAFETY The Corporation worked approximately 120,000 man-hours during the month. The approximate man-hours and the days worked to date without a lost time injury are as follows: Division Man-hours Days New York Office Research Sales Pensacola Plant Corporation 442,000 1,069,000 67,000 213,000 278,000 2,706 4,186 71 74 71 Medical Section The Medical Section treated 21 injuries for Escambia and 9 for Carroll, performed 4 pre-employment and 12 annual physicals and gave a total of 25 immunization injections. TRAINING We held one Trackmobile class in which three operators were licensed and one license was refused. EMPLOYEE RELATIONS One (1) 5-year service award was presented. Two (2) 10-year service awards were presented. AP00046109 Monthly Report -3- January 7, 1569 EMPLOYEE RELATIONS (Cont'd.) Annual Children's Christmas Party was held on December 21, 1968 with 184 adults and 288 children in attendance. LABOR RELATIONS Gulf Power's contract with the IBEW has been renewed effective August 15, 1968 with the following changes: 5.5% increase retroactive to August 15, 1968. 5.27* increase effective August 15, 1968. An additional holiday to be the employee's birthday -- this gives them a total of eight per year. The union activity in the nonunion plants in the Pensacola area declined during the month of December. In all probability there will be no further push on union activities until the spring. INSURANCE We paid a total of 74 claims under our Group Hospitalization program which amounted to a total of $ 17,290.44 during the month of December. The claim submitted to Travelers for damage by spent acid to leased tank cars has been settled. Travelers agreed to the payment of the damages but not to the cost of investigation. Total recovery will be $ 35,252 out of the total claim of $ 37,968, Payment will be received within the next 10 days. We settled the following claims during the month: Two Manufacturers Output claims in amount of $ 3,794.69. One Comprehensive Commercial Bond claim in amount of $ 100.30, One Auto Liability claim in amount of $ 21.71. EMS:kc AP00046110 C.L. Wallace -6- January 5, 1969 Reference 5 Reference 6 Memo to D. J. Mann from P. R. Browne, titled "Wiman Manufacturing Company, Complaint #35, Bulk PVC 2225", dated December 19, 1968. Memo to D. J. Mann from P, R. Browne, titled "Ohio Sealer (Zapata) Complaint #37, dated December 5, 1968. AP00046Ilf ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM To: T.-L. Carey From; Re: C. L. Wallace PVC Monthly Summary December 1968 Date: Copies: January 5, 1969 SUMMARY Although shipments were below forecast, PVC Operations showed a net income before F.I. T. of $19 M. The volume losses were in the general purpose resins. Plastisol extenders, copolymers and other specialty resin sales continued strong. Purchases from Allied lagged behind schedule; this condition is promised to be up to date by 1/31/69. Volume poundage was thereby lost to a few accounts (ITT, Goodyear). In an effort to improve our profit picture (and to test the market pricing status), the price was increased 0. 5/lb. at Calumet (New Jersey) without any adverse effect. A 0. 25$ increase was also imposed on Cabrera Vvilcan (Florida). The latest sales forecast for 1969 was computed and sent to the individual salesmen for their review. We apparently have sales fox 10 MM pounds of resin beyond the 12 MM pound purchase arrangement. In the production area, excellent results were obtained on the production of fusion resin. MARKETING Gross shipments for the month were 4, 126 M lbs. {reported sales were, however, 4, 709 M lbs. ) of which 90 M were off-grade, floor sweepings and tail ings. Returns totaled 127 M lbs. Although shipments were expected to be short in December due to the holiday shutdowns and year-end inventory depletions, they were actually lower than anticipated (4, 126 M lba, vs. 4,710 M lbs. in November). The loss in. ship ments,however, was in general purpose resin rather than the higher priced specialties-. AP00046112 T. L. Carey -2- January 5, 1969 MARKETING (Cont'd) Specialty sales (3000 series through 9000 series), in spite of the overall sales volume decrease, were 982,000 lbB. as against 963, 000 in November. Major outages for the month were at Robbins for 300 M lbs. , USM Chemical for 130 M lbs. , and Elm Coated for 140 M lbs. Industrial Vinyl of Florida was also short by 100 M lbs. but for credit reasons imposed by us. Robbins was apparently making a special effort to minimize year-end inventory. As of January 2 we had "rush" orders to ship at once totaling 250, 000 lbs. For the entire year 1968, although the poundage per se does not approach that of general purpose resins, a growth comparison with 1967 is of interest. Type 1968 Order9 Shipped - M lba. 1967 % Increase 1000 General Purpose 2000 General "Pearls" 3000 Special "Pearls" 4000 Fusion Resins 6000 Copolymers 8000 Plastisol Extenders Off-Grade and Other Totals 28,856 11, 815 2, 289 1, 109 5, 582 1, 275 1,479 52,405* 26,943 11,634 1, 647 927 3, 636 124 3, 006 47, 917 Represents a new high; previous high: 1966 -- 50. 2 MM lbs. 7. 1 1. 6 39. 0 19. 6 53. 5 928. 2 (50.8) 9. 4 Revised 1969 sales forecasts by individual salesmen have been returned to the salesmen for their comments. These forecasts indicate that we could sell about 10 MM lbs. of resin over and above the 12MM lbs. purchased resin commitments from Allied. Sales for January are forecast at 4, 746 M lbs. PRODUCTION Production for the month was 4, 279 M lbs. , exceeding budget by 199 M lbs. Off-grade was limited to 34 M lbs. of PVC 6180 or 0. 8% of production. AP00046113 T. L. Carey -3- January 5, 1969 PRODUCTION (Cont'd) Production variance for December was $54, 640 favorable, of which approximately $18 M was due to monomer price reduction. Reactor downtime was 15. 9% of available hours showing an improvement over last month. Part of this efficiency improvement can be attributed to a long (approximately 2 weeks) uninterrupted run of the fusion resin. Monomer efficiency was 95.6% exceeding the budgeted 94, 0%. Of major importance was the highly successful run of fusion resin, PVC 4185-SP,during December. Out of a total of 71 batches produced, 67 met the critical SP specification. The success of the run can be attributed to the use of a less sensitive recipe and constant monitoring by both Research and Production personnel to assure reproducibility in the procedure. Major problems were encountered during the month with the production of PVC 6180 meeting the bulk density specifications. A number of recipe changes were made without success. This run, watched closely by Research, will be studied for changes in recipe or procedure during the next run. The status of process improvement projects are as follows: 1. Blend Tanks New agitator blades with a partial pitch design have been ordered for trial in one blend tank. The new blades should improve agitation to prevent classification of resin particles. 2. Centrifuge Speed Additional data substantiates the early results showing a 10% reduction in wet cake moisture with the increase in centrifuge speed. However, no increase in dryer feed rate has been obtained probably due to the fact that the moisture reduction is from the surface rather than from within the PVC particles which limits drying rates. 3. Dryer Speed and Stainless Steel Screens As of this writing the dryer rotation is being reduced from 4. 35 to 3. 63 RPM, and a stainless steel screen is being installed on the primary rotex in an effort to increase drying rates. AP00046114 T. L. Carey -4- Janu&ry 5, 1969- PRODUCTION (Cont'd) 4. Bulk Transfer An inexpensive vent bag and a spare higher horsepower motor are being installed on the bulk transfer system to increase the capacity of the system. Plant production for January is forecast at 4, 100 M lbs. and variance at '$2, 000 favorable. Maintenance costs are expected to exceed budget due to a complete overhaul of the freight elevator. RESEARCH AND TECHNICAL SERVICE Major effort during the month was concentrated on the successful production of PVC 4185-SP previously mentioned, plus following the production problems with PVC 6180. A visit was made with Sales to Armstrong Cork to witness plant trials on PVC 2185 resin for bottles. The results of the trials indicate that there is little correlation between bulk density or particle size distribution and acceptable bottle resin.. A complete literature search of Escambia's saran technology was compiled during the month. The pilot plant and the constant temperature/humidity rooms are estimated to be ready for work prior to the end of January. C.L. Wallace AP00046115 To: From: Re: ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM G.B.H. Speed D. V. Lowe Dote: Copies: PVC Monthly Production Report January 5, 1969 SUMMARY Production of prime PVC resins during December totaled 4, 279 M lbs. , as compared to 4, 080 M lbs. budgeted. Of this amount, 3, 554 M lbs (or 83. 0%) were general purpose and 725 M lbs. (or 17. 0%) were specialty resins. The proportion of specialty resins improved somewhat this month and drying rates showed similar improvement. Tailings and off-grade totaled 3. 0% of total production, or equal to budgeted off-grade. This represents a reduction of 0. 5% from the previous month. Twelve different resin types were produced in 17 separate runs, including three specialty types.. A 476 M lb. production run of PVC 3185 fusion type was successfully made, with 60 M lbs. being labeled as 3185 and 416 M lbs. of resin meeting 4185SP requirements. The success of the run was attributed to a return to previous recipes and operating instructions and careful monitoring of the process at all times to insure proper procedures, VC1 monomer efficiency was 95.6% in December, compared with 94. 6% in November and the budgeted level of 94%. Reactor downtime was 15, 9% of available hours, down from 17. 6% in November, primarily due to improved drying rates for 3185 type. Time for clean ing and washing reactors remained high to augment quality control during the specialty production runs. Bagged production was 65. 8% of total prime production, exceeding the budget level of 42. 5% by 23. 3% of total. This reflects high demand for both general purpose and specialty types on bags. All PVC production for the month came from Allied monomer. AP00046116 G. B. H. Speed -2- January 5, 1969 Variance of $ 57,725 favorable in bulk and $3, 085 unfavorable in packaging totaled $ 54, 640 favorable due primarily to a) monomer price $18,500, b) monomer efficiency $2,000, c)volume variance $13,400 and d) depreciation, taxes and insurance credits $26, 600 Prime Production, M lbs. Month Year to Date Off-Grade Production % of Total Month Year to Date Bulk Production, % of Prime Month. Year to Date Shipments, M lbs. Month - Prime Month - Off-Grade Year to Date - Prime Year to Date Off-Grade VC1 Efficiency, % Month Y ear to Date Reactor Availability, % of Available Hours Month Average Year to Date December Actual Budget 4, 279 48,852 4, 080 48,960 3, 0 3.7 34. 2 47. 1 3, 792 59 48,252 2, 275 95.6 95. 1 3. 0 3. 0 57. 5 57. 5 -__ 94. 0 94. 0 84. 1 82. 0 .. -- November Actual Budget 4, 009 44,573 4, 080 44,880 3. 5 3. 8 50. 9 48. 3 3, 640 161 44,460 2, 216 94. 6 95. 1 3. 0 3. 0 57. 5 57. 5 __ 94. 0 94. 0 82. 4 82. 0 -- AP00046117 G. B. H. Speed -3- January 5, 1969 STATISTICS (Cont'd) Reactor Downtime, % of Available Hours Mixing Solutions in Reactors Cleaning Washing Reactors Scheduling Charges Changing Types Copolymer Production Slow Recovery Low Drying Rates and Dryer Line Cleanout Hydraulic Motor Reparis Misc. Reactor Maintenance Dryer Maintenance Electrical & Instr. Maintenance Miscellaneous Total Mix, M lbs. Prime Resin Group I Group II Group III Group IV Group V Group VI Group VII Total December Actual 0. 1 8. 8 3. 2 1. 3 0. 0 0, 3 0. 8 0. 1 0. 3 0. 0 0. 5 0. 5 15.9 December Actual Budget 1, 794 816 725 0 944 0 0 4, 279 2, 154 1,010 603 23 262 32 0 4, 064 November Actual 0. 4 9. 2 1. 7 0. 4 0. 1 0. 4 3. 1 0. 1 0. 4 0. 6 0. 1 1. 1 17. 6 November Actual Budget 2, 337 1, 175 423 0 74 0 0 4, 009 2, 154 1, 010 603 23 262 32 0 4, 084 AP00046118 G.B.H. Speed -4- January 5, 1969 STATISTICS (Cont'dj Off-Grade and Tailings Off-Grade Type 6180 Quantity, M lbs, 34 Tailings 97 Floor Sweeps 0 Total 131 Reason Off-Grade High Sed. No. % of Total Production 0.77 2. 2 0. 0 3. 0 PRODUCTION 1000 eries Types Produced: 1200,1217,1225,1230,1250. Production runs were normal. Elm Coated Fabrics rejected 11, 080 lbs. of PVC 1200 because of inadequate storage space and Phillips Film Company rejected and returned 39 400 lbs. of bulk PVC 1250 due to contamination and marginal fisheyes. 2000 Series Types Produced: 2200,2225, and 2250. Production runs were normal. Ohio Sealer & Chemical Corporation rejected 30 M. lbs. , and returned 28 M lbs. , of PVC 2250 to the New Jersey warehouse because it would not work in dry blends. Also, Cabrera Vulcan Shoe Corporation rejected 34. 65 M lbs. of PVC 2225, lot numbers 3368 and 3374, which was sold to another customer. The material would not dry blend. AP00046119 G. B.H. Speed -5- January 5, 1969 PRODUCTION (Cont'd) 3000 and 4000 Series Types Produced: 3185 and 4185-SP December's PVC 3185 production run yielded 60 M lbs. of 3185 type and 416 M lbs. of good 4185-SP to meet Texon demands. Tailings amounted to 26 M lbs. Prior to the run, Production and R&D personnel met and decided that an old recipe utilizing monobasic calcium phos phate instead of anhydrous calcium chloride to produce the suspending media should be tried along with old operating procedures. It was agreed, further, that all charging operations should be constantly monitored to provide reproducibility in precedures and eliminate variables. The run wa9 very successful with only four batches out of a total of 7 1 exhibiting excessive fines. These four batches were isolated in a blend tank reserved for such a purpose and dried separately, thus negating possibility of downgrading many good batches. This new procedure for 4185-SP production will be retained as long as no difficulties occur. A report will be issued describing the December 3185 run. 6000 Series Type produced: 6180, Two runs were made. The first run early in the month was good, but the second run saw much difficulty in controlling particle size and bulk density. Although only 16 M lbs. of tailings and 34 M lbs. of off-grade were produced, many of the 944 M lbs. of prime 6180 produced were of low bulk density. Recipe changes toward the end of the second run brought about much improvement, but the next run will be studied closely. Research and Development will issue a report summarizing the second run. 8000 Series Types produced: 8217 and 8200 Both production runs were normal. It is noted that although higher centrifuge speed has yielded lower 8217 and 8200 wet cake moisture content, it has not brought about higher slurry feed rates to the finishing building for these types. Apparently, with present heat input, the rotary dryer is limited by some factor other than free moisture in the cakes of these resin types. AP00046120 G. B.H. Speed -6- January 5, 1969 PRODUCTION {Cont*1 d2)3 4 5 6 7 8 9 Ground Resin No resins were ground other than tailings. MAINTENANCE Major maintenance items initiated or completed during the month of December included the following: 1. A leak has developed in the underground hydraulic system of the reactor building elevator. The elevator will be out of service until January 11 or thereabouts. 2. Re-installed wet cake effluent gutter in the south centrifuge prior to runs of fine particle size resins. Removed it once again when contamination occurred. 3. Excessive vibration and sheared pins in south centrifuge forced shutdown to remove buildup on interior of screw. 4. Will schedule painters to paint the inside of #4 silo when possible. Interior of silo is rusty. 5. Instrument mechanics adjusted or repaired many reactor temperature controllers. 6. Changed out #8 reactor agitator motor, Thereafter, it was necessary to replace draw bar and "O" rings in the new #8 reactor agitator motor. 7. Cleaned rotary valve under south dryer product collector and installed new blades on the valve. 8. Ground off bad glass on #7 reactor manway to get a better gasket seal and stop VC1 leaks. 9. Fabricated and installed a new discharge line on the south recovery compressor. AP00046121 G. B. H. Speed -7- January 5, 1969 GENERAL To date, use of the wet cake effluent gutter in the south PVC centrifuge has proven unsuccessful, since contamination, of the resin results with each trial. Improper clearances within the machine at point of application of the gutter may cause milling of resin and thus contamination. Bird Machinery Company has been contacted and services of one Bird engineer have been purchased to supervise installation of the effluent gutter in January. Much data has been gathered in an attempt to confirm improvements in south centrifuge performance since increasing RPM'e. The data, .as reported in Memorandum, D. V. Lowe to File, "Results of South Centrifuge Speed-Up", dated December 26, 1968, shows that wet-cake moisture content of each type studied has indeed been reduced. However, no increase in slurry feedrate capability seems to result from the wet-cake reduction. No conclusions have as yet been formed. During December, PVC 3185 amounting to 68. 4 M lbs. was rescreened over 140 mesh for fines removal and upgraded to 4185-SP. In the past month, our plant received returned 4185-2S, -3S, -SF, and 4225-3S totaling 32. 65 M lbs. from the Central Port Warehouse in bags. Some of the bags were damaged and others were old lots. A total of 5. 9 M lbs. of the returned material was downgraded to floor sweeps. Necessary materials have been received and plans have been formed to carry out two experimental revisions of equipment in the south PVC drying line. Prior to drying January's PVC 8200 run, a new reducer drive sprocket will be installed in the south rotary dryer drive train. Effects of slower rotation upon drying rates will be studied. Also, an attempt will be made to screen the same 8200 run through a 304 stainless steel screen on the primary rotex. Hoped for improvement here is elimination of static "blinding" and better screening rates. Dow-Corning silicone grease number 44 is now being applied to the interior of several reactor rupture discs to ascertain whether buildup of heavy polymer on these items can be reduced during normal operations. Reduced usage of replacement discs and elimination of a potential safety hazard are the goals. A work request has been issued to the electrical department for replacement of the existing 20 HP motor on the north bulk system vacuum blower with a 25 HP motor. It is felt such a change may improve the vacuum attainable in transfer lines under storage silos and upgrade transfer rates. Concurrently, a single large dacron collector bag will be in stalled on railroad bulk cars to allow exhausting conveyor air to bypass the existing railroad dust collectors. One dacron bag is now on order. An order has been placed with Chemineer, Inc. , for delivery of two new stainless steel agitator impellors suitable for installation on our PVC blend AP00046122 G.B.H. Speed -8- January 5, 1969 GENERAL (Cont'd) tank agitation units. The impellers are of four blades each, 44" overall diameter, with pitched-blade design. They have been specified to improve efficiency of PVC slurry agitation in blend tanks prior to drying. These first two impellor assemblies will be installed in #3 blend tank as soon as feasible. The production department is now working with plant engineering on a firm cost estimate for PVC rotary dryer improvements. The original proposal for dryer inprovement as submitted by this writer has been modified to include both dryers versus one only. Likewise, the firm estimate will detail costs including replacement of primary rotex sexeeners on both lines. Replacement of these items is believed necessary to handle increased dryer yields. A Rigidbilt Company representative has visited this plant and confirmed prices and expected performance of the subject 600-PSIG steam coils for heating process air. JANUARY PROJECTIONS Production, Ivl lbs. Projection 4, 000 Budget 3, 660 Production Cost Variance $2,000 Favorable VARIANCE ANALYSIS December production variance is summarized below: Bulk Production (7421) FAVORABLE VCl Efficiency VC1 Price Variance By-product Credit Volume Variance $ 2,089 18,492 4, 034 13,376 Process Costs Salaries Maintenance Depreciation Taxes Sc Ins. Miscellaneous 1, 844 6, 202 22,388 4, 214 9,785 $82,424 UNFAVORABLE XA Monomer Process Supplies and Chemicals Royalties $ 1,688 1, 444 2, 001 Process Costs Utilities Laboratory 2, 884 5, 307 Other 11,375 $24,699 AP00046123 G.B.H. Speed -9- January 5, 1969 VARIANCE ANALYSIS (Cont'd) NET BULK VARIANCE $57, 725 Favorable Packaging (7424) FAVORABLE UNFAVORABLE Volume Variance $4,581 Bags $ 812 Process Costs Miscellaneous 942 Process Costs Salaries Maintenance Mat. &s Supplies 1,807 66 2, 155 $5,523 Other 3, 768 $8,608 NET PACKAGING VARIANCE $3, 085 Unfavorable TOTAL PRODUCTION VARIANCE $54, 640 Favorable D, V. Lowe AP00046124 To: Prom: Re: ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM C. L,. Wallace Dote: D. J. Mann Copies: Monthly Summary PVC Research & Development December, 1968 January 5,1969 OPERATIONS 1. A report compiling and analyzing the data from the 3185 production run made in November was prepared and distributed. (Reference 1) 2. A highly successful 3185 production run. was carried out during December yielding completely satisfactory material in all but four batches out of 71. This represented approximately 416, 000 lbs. of 4185-SP and several thousand pounds of 4185-3S (not ground). One of the older 3185 production recipes (T14), which had given some success in the past, was tried again. It is very similar to more recent recipes except that it uses monobasic calcium phosphate in place of calcium chloride. Two alight modifications were made to T14, as shown below: T14 T 14- 1 T14-1(A) Well Water VC1 Sulframin 85 MB CP LauroylPeroxide Geon 450 X 3 TCE 230 100 0. 09 0. 28 0. 16 1. 3 0. 8 230 100 0. 09 0, 28 0. 16 1. 1 0. 8 230 100 0. 09 0. 26 0. 16 1. 1 0. 8 Recipe T-14 was used for the first four batches, two of which were too fine and therefore out of specification. Recipes TL4-1 and T14-1(A) were used for the remainder of the run with no problems. Recipe T14-1(A), which has a slightly lower salt level, was used to lower the bulk density. It would seem logical to continue with recipe T14-1(A) for the next 4185-SP run. AP00046125 C.L. Wallace -2- January 5, 1969 OPERATIONS (Cont'd) It was hoped that the Geon latex level could have been increased to 1. 4 and an attempt made to prepare micropearls at the end of this run. Time and the need for other more pressing products did not permit this. Every effort will be made during the next 3185 run to program a portion for 4185-M material. 3. A 6180 run (74 batches) was closely monitored during December. The product had a lower bulk density than desired 25 lbs. /cu.ft. vs. 28-32 lbs. /cu.ft. ), and the batch-to-batch reproducibility was not good. The agitation was again a source of trouble, completely stopping in 17 batches and slowing down in almost all the others. Efforts to change the recipe and make a higher bulk density, more reproducible product were not successful. Recipe Y7 was the first recipe tried since it had given a very satisfactory product the previous month. Many recipe modifications were made and a detailed report is being written on the results. 4. Messrs. F. G. Mendrey, V.J. Grande, and the undersigned visited the Armstrong Cork Company in Lancaster, Pa. , on December 19 to witness additional plant trials of 2185 resin. During the visit, production trials of seven different lots of 2185, five of which had been scalped on a 40 mesh screen, were conducted. One lot which had previously been considered borderline, was accepted and two others, which had previously been rejected, were still rated unacceptable, though marginally so. From the results obtained, there appeared to be little correlation between lot acceptability and bulk density or particle size distribution, leading to the tentative conclusion that other factors such as crosscontamination and machine characteristics might be significant determinants of bottle quality. Recommendations on how best to meet Armstrong's requirements in future production runs were made in a trip report prepared by the undersigned. (Reference 2) 5. A visit was made to Robbins Floor Products, Tuscumbia, Alabama, on December 16 and 17, by Mr. P. R. Browne to evaluate a complaint of excessive fines in a bulk shipment of 1200 series resin. Screen analyses run on-site showed the resin to be somewhat finer than normal, but not so fine as to warrant rejection of the shipment. The Robbins personnel concurred with these findings and agreed to accept the shipment without qualification. Recommenda tions were made regarding future shipments of 1200 series resin to Robbins. (Reference 3) AP00046126 C. L. Wallace -3- January 5, 1969 OPERATIONS (ContM) 6. A literature search of all Escambia saran technology was made and compiled into a detailed report. It covers the work done between 1957-1968 and includes all technical data on record. This report will be published and distributed by January 15. 7. The following work was accomplished in Technical Service during December. Customer Complaints During this period, work was completed on three customer complaints as follows: a) Complaint #34 Ohio Sealer returned 12, 800 pounds of 4185-2S because the resin would not fluidize properly. Work done by Quality Control showed that fluidization with the returned material was comparable to other 4185-2S blends. Oil absorption was also run by Quality Control and found to be acceptable. The cause for the fluidization problem could have been due to the slightly lower bulk density of this lot and/or the fact that this lot was manufactured directly in the reactor without grinding. (Reference 4) b) Complaint #35 Wiman Manufacturing Company returned 11,400 pounds of 2225 due to plate-out and excessive gassing. A sample taken from the material returned was completely reanalyzed and found to be well within specifications. Being temporarily out of inventory and faced with the necessity of meeting a shipping date, this lot was re-shipped to Wiman along with new production 2225, as one compartment of'four. Wiman will be asked to use the material by compartments so that we can get a double-check on the processability of the returned resin. (Reference 5) AP00046127 C. L. Wallace -4- January 5, 1969 OPERATIONS (Gont'd) c) Complaint #37 Ohio Sealer reported that they were unahle to make a good dry blend with 2250, Lot 3753, due to the fact that the resin would not absorb the plasticizer as it normally does. Technical Service investigated the problem and found that the above lot would not free-flow, presumably due to a high static-charge. The static-charge was removed by 1) adding carbon black, 2) spraying with an anti-static spray, and 3) passing steam over the resin. Ohio Sealer was informed of this and will try the resin again after breaking the static-charge. Samples A total of 43 PVC samples (240 lbs. ) was sampled to 17 customers. FACILITIES 1. Research and Development Building Polymerization Laboratory -- explosion-proof motors will be delivered during the week of January 6, 1969. General and Constant Humidity Laboratories -- laboratory benches will be delivered during the week of January 13. 2. Pilot Plant Considerable progress was made towards the completion of the pilot plant. The facility is expected to be operable by mid-January using the 50 gallon reactor. The 10 gallon reactor should be delivered and operable by the end of January. Several applicants were interviewed for employment as pilot plant technicians, and one man has accepted a position here. AP00046128 C. L. Wallace -5- January 5, 1969 FUTURE PLANS 1. A report on the last 6180 production run will be issued. 2. A report on Escambia saran technology will be published and distributed. 3. Six lots of 2185 will be further screened through 45 mesh for additional plant trials at Armstrong Cork. 4. The next 2185 production run will be monitored closely by Research and Development in an effort to insure the manufacture of bottle-grade resin acceptable to Armstrong Cork, 5. Other select production runs (6180, 8200, etc. ) will be followed closely in an attempt to learn more about the variables affecting batch-to-batch reproducibility. 6. An activity plan for the Pilot Plant will be prepared. 7. Two more technicians will be hired -- one for the Pilot Plant, and one for the Technical Service Laboratory, 8. Recruitment activity directed towards hiring a Technical Service Supervisor will be continued at an accelerated level. dP. C>. D. Mann Reference 1 Reference 2 Reference 3 Reference 4 Memo to D. J. Mann from F. L. Riddle, titled "3185-LG Production, 11-19-68 to 11-23-68", dated December 5, 1968. Memo to C. L. Wallace from D. J. Mann, titled "Visit to Armstrong Cork Company, Lancaster, Pa. ", dated December 22, 1968. Memo to C. L. Wallace fromP.R. Browne, titled "Robbins Floor Products, Tuscumbia, Alabama", dated December 19, 1968. Memo to D. J. Mann from P.R. Browne, titled "Customer Complaint #34, Poor Fluidization at Ohio Sealer", dated December 11, 1968. AP00046I29 C.L. Wallace -6- January 5, 1969 Reference 5 Reference 6 Memo to D.J, Mann from P. R. Browne, titled "Wiman Manufacturing Company, Complaint #35, Bulk PVC 2225", dated December 19, 1968. Memo to D.J. Mann from P.R. Browne, titled "Ohio Sealer (Zapata) Complaint #37, dated December 5, 1968. AP00046130 AGRICULTURAL CHEMICALS DIVISION MONTHLY REPORT January, 1968 > ~* 'r- -i *t \ '-4 ?* " a, . .4*ei*.v/>r. 'iviu.-Pi * - ... y:- -l-rte: . . '--i fcv*,-. *. v * ' v t ta ,; * - v.;. . , i ...Ti> a -UM * `.v- '. * >.* *i*- /M AP00046f 31 P ersonnel t 1 I I I I I AP00046132 ESCAMBIA CHEMICAL CORPORATION Interoffice Memorandum To: Mr. T. L. C^rey From: E. M. Spurlock Date: February 5, 1968 Re: Monthly Report - Personnel Department - January, 1968 PERSONNEL Division Activity for the Month No. of Employees 12/31/67 Jan. Addit. Jan. Separa. No. of Employees 1/31/68 Jan. 1968 Budget General & Admin. Research Agri. Chemicals Ind. Chemicals Production 40 5 2 52 1 1 151 8 5 14 1 0 391 ___3 ___6 43 52 154 15 388 47 58 179 15 400 Total Escambia 648 18 14 652 699 Carroll Construction Co. Office Maintenance Insulators Mechanics Yardmen Trashmen Laborers Janitors Painters Welders Pipe Fitters Total Maintenance PVC Laborers Area B Laborers Truck Drivers (Traffic) Railroad Crew Total Carroll No. of Employees 12/31/67 2 3 4 2 2 5 6 8 0 _0 30 9 20 3 1 65 No of Employees 1/31/68 2 3 4 2 2 8 6 8 1 _1 35 9 18 3 1 68 AP00046133 Monthly Report PERSONNEL (Cont'd.) 2- No. of Employees 12/31/67 February 5, 1968 No. of Employees _____ 1/31/68 Grand Total 713 720 There were 70 walk-in applicants, 68 applications were issued and 5 were received by mail. Twenty-four applicants were interviewed and 22 were tested. SAFETY The Corporation worked approximately 120,000 man-hours during the month. The approximate man-hours and days worked to date without a lost time injury are as follows: Division Man-hours Days New York Office Research Sales Corporation 425,500 1,010,000 181,500 774,000 2,371 3,851 177 177 The P.V.C. Plant completed eleven years without a lost time inj ury. Medical Section The Medical Section treated 18 injuries for Escambia and 5 for Carroll, performed 3 pre-employment and 13 annual physicals and gave a total of 24 immunisation injections. EMPLOYEE RELATIONS Twenty-five (25) 5-year service awards were presented. One (1) 10-year service award was presented. TRAINING We gave the four tests as mentioned in our last report and these are now being graded preparatory to being sent to Mr. John Quay in New York. INSURANCE We paid a total of 85 claims under our Group Hospitalization program which amounted to a total of $ 15,414.51 during the month of January. j AP00046134 Monthly Report INSURANCE (Cont'd.) -3- February 5, 1968 In reference to the leaking tank cars, Shippers Line informed us that, as a result of their investigation, they felt that the spent acid loaded and unloaded at the Pensacola Plant was the primary reason for the deterioration of their tank cars. The representatives from Shippers were in the plant and they stated that their best estimate of the amount of damages would be approximately $ 40,000. We informed them as to the information we need for an insurance claim. We have advised our carrier of these facts. Workmen's Compensation First Retrospective Adjustment for years 1964 - 1967 resulted in a return premium of $ 19,717. Our Workmen's Compensation Insurance is written under a retrospective rating plan in which we are credited with good experience and penalized for poor experience. This is a credit to all of our employees in establishing a good accident prevention program. We settled the fallowing claims during the month of January: Five Auto Physical Damage claims in the amount of $ 842,45. One Comprehensive Commercial Bond claim in the amount of $ 50.19. EMS: kc E. M, Spurlock AP00046135 AGRICULTURAL CHEMICALS DIVISION MONTHLY REPORT January, 1969 - :4* .V ***>'? - - 4' : -- 'i- %&v *< a'-* '^*' 'y4 .* V"t * r^ir-c-n... >.'/i..Vtr>?-_^.. ^ Tfd a-' i ,' ' ._*.... *: f. y \ I- _ 41 v-v W - --V-*'< v -: v '.-"'Syis'r- .. . ........-- : :V-.ZZi*'2-~ :--f"'-\ -,' '- c ' > 5J AP00046136 'a a2 2 AP00046137 ESCAMBIA CHEMICAL CORPORATION Interoffice Memorandum To: Mr. T. L. Carey Date: February 6, 1969 From: E. M. Spurlock Re: Monthly Report - Personnel Department - January, 1969 PERSONNEL Activity for the Month Division No. of Employees 12/31/68 Jan. Addit . Jan. Separa. No. of Employeesi 1/31/69 Jan. 1969 Budget Executive Office Accounting & Credit Plant Laboratories Plant Admin. & Process Plant Engr. & Maint. Personnel & Safety Purchasing & Traffic Sales - Ag. Chemicals Sales -Ind. Chem. & PVC 4 44 40 207 125 12 31 158 14 0 5 1 3 0 1 2 6 ___1 0 1 1 3 0 0 0 5 __ 0 4 48 40 207 125 13 33 159 15 4 56 50 219 139 13 34 178 IS Total Escambia 635 19 10 644 711 Carroll Construction Company Office Maintenance Insulators Mechanics Yardmen Trashmen Laborers Janitors Painters Total Maintenance No. of Employees 12/31/68 2 No. of Employees 1/31/69 2 3 8 2 2 8 7 ___7 37 3 3 2 2 5 6 ___8 34 AP00046138 Monthly Report February 6, 1969 PERSONNEL (Cont'd.) Carroll Construction Co. No. of Employees 12/31/68 No. of Employees 1/31/69 PVC Laborers Area B Laborers Railroad Crew Total Carroll Construction 8 30 ___1 78 635 8 31 ___1 76 644 Grand Total 713 7 20 We had a total of 115 walk-in applicants, 101 applications were issued and 17 were received by mail. Sixty-two applicants were interviewed and 51 were tested. SAFETY The Corporation worked approximately 105,000 man-hours during the month. The approximate man-hours and the days worked to date without a lost time injury are as follows: Division Man-hours Days New York Office Sales Pensacola Plant Corporation 444,000 87,500 15,000 21,000 2,737 102 6 6 Two disabling injuries were experienced in the Pensacola Plant, one in Maintenance and one in the PVC Plant. Mr. J. Spotts, Florida Industrial Safety Representative, toured the plant. No recommendations were made at this time. Medical Section The Medical Section treated 18 injuries for Escambia and 17 for Carroll, performed 10 pre-employment and 23 annual physicals and gave a total of 27 immunization injections. TRAINING We held one Trackmobile class in which two operators were licensed. AP00046139 Monthly Report -3- February 6, 1969 EMPLOYEE RELATIONS Six (6) 5-year service awards were presented. Two (2) 10-year service awards were presented. LABOR RELATIONS As far as we can determine, there is no union activity in American Cyanamid's plant or our plant but the ICWU is continuing to work at a low key on Monsanto. This has decreased at the Pensacola plant but the activities have picked up at their Decatur, Alabama plant and they have been petitioned and will probably have a hearing within the next 30 days. INSURANCE I met with Mr. Jack Stief, Insurance Manager for Air Products & Chemicals, Inc., Mr. Davenport with the Fire Insurance Association, Messrs. Kaye, Stewart and Knagbel with the Maryland Casualty Insurance Company relative to conversion of our policies in view of the merger. I met with Mr. Holt of the F & C Insurance Company relative to the 1966 loss due to two tank cars rolling onto the main line of the L 6s N Railroad. I met with Mr. James Lee, Insurance Adjuster for Travelers Insurance Company, relative to two Public Liability losses. Return premium on Workmen's Compensation, Automobile Liability and General Liability policies in the amount of $ 5,264.69 was received from The Travelers Insurance Company for the year 1967. We paid a total of 81 claims under our Group Hospitalization program which amounted to a total of $ 12,044.15 during the month of January. We settled the following claims during the month: One General Liability Insurance claim covering damage to leased tank cars by spent acid in the amount of $ 35,252.00. One Auto Physical Damage claim in amount of $ 4,810.64. kc E. M. Spurlock AP00046140 PLASTICS AND RESINS MONTHLY REPORT JANUARY 1969 AP00046141 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM To: T. L. Carey From: C. L. Wallace Re: PVC Monthly Summary January 1969 Dote: Copies: February 5, 1969 SUMMARY Although total shipments for the month, 4, 355 M lbs, , were below budget, substantial growth was experienced in specialty resin -- particularly copolymers. Specialties accounted for 1, 237 M lbs. , as compared to 982 M lbs. in December and 963 M lbs. in November 1968. Profits for the month were $19,000 -- $10, 000 under budget, but $7 3,000 above last year. Of major importance is the recently announced price increase by three major producers, B.F. Goodrich, Borden Chemical and Diamond Shamrock. All three increased the price of general purpose resin to 10. 5 and 11. 0^/lb. in bulk and bag respectively, and specialty resin by l/lb. There are. however, some preliminary indications that a few suppliers are hinting at "deals" in certain locations. The final assessment of our proposed increase could con ceivably indicate a temporary reduction in sales volume pending the final revised price structure for the industry. In the production area, operations were financially favorable, with production of 4,213 M lbs. Moderate success was obtained in producing PVC 6180 with which a bulk density problem exists, MARKETING Gross shipments for the month were 4, 544 M lbs. , of which 189 M lbs. were tailings and off-grade. Although shipments were below budget, substantial increase was experienced in the specialty resin area -- increasing from 982 M lbs. in December to 1, 237 M lbs. in January. Highlighting the specialty sales were copolymers, amounting to 864 M lbs. AP00046142 T.L. Carey -2- February 5, 19&9 MARKETING (Cont'd) Both fusion and extender resin sales showed slippage during the month. One of our major fusion accounts, Thermoclad, did not order and another, Texon, was below normal. Extenders accounted for only 54 M lbs. , with two new potential customers, Robbins and Lakeside Plastics not ordering. (Lakeside has come in for 36 M lbs. in February.) Additional effort will be put on Robbins during February to use our extender resin. Continued contact indicates a rather substantial inventory. Escambia's high price specialties, 9000 series, showed marked improvement with 50 M lbs. being sold, including 40 M lbs. of our new medical tubing resin PVC 9250. Volume outages for the month were Wiman for 150 M lbs. , O'Sullivan for 150 M lbs. and Robbins for 170 M lbs. The outage at Wiman is due to a "piate-out" problem they have had recently with our resin which our Technical Service group as yet has not been able to overcome. The outage at O'Sullivan was claimed to be due to the use of Allied's resin in their plant. Although the resin performed well, they were skeptical and took their time in using the material. Sales for February are estimated at 4, 300 M lbs. PRODUCTION Production for the month was 4, 213 M lbs. , exceeding budget by 553 M lbs. Tailings and off-grade amounted to 148 M lbs. , or 3. 4% of production. Production variance for January was $32, 067 favorable, primarily due to volume. Reactor downtime was 15. 2%, an improvement partially due to the long uninterrupted run of copolymer resin. Monomer efficiency was 96. 2%, exceeding the budgeted 94. 5%. Moderate success was attained with the production of PVC 6180 this month . Extreme variation in bulk density has plagued production in previous runs. The reason for the improved performance has not been completely established, although some recipe changes were made which can account for part of the success. AP00046143 T. D. Carey -3- February 5, 1969 PRODUCTION (Cont'd) The status of process improvement projects is as follows: 1. Blend Tank The new agitator blades for trial in one blend tank to improve slurry mixing have arrived. Installation is scheduled for late February or early March. 2. Centrifuge and Drver Chances Since speeding up the centrifuge and slowing down the dryer, sufficient data has been collected to show an average increase in drying capacity of 10%. The new changes will be made to the north line. Cost is estimated at $300. 3. Reactor Rupture Discs Frequent replacement of reactor rupture discs due to polymer buildup has been expensive. We are currently coating the discs with a silicone grea.sc, ir.d a.re successful in dra.stica.lly reducing the buildup. 4. Bulk Transfer System At month-end one of the new, inexpensive vent bags was installed in the bulk car transfer system. Operations with the new bag are satisfactory, but it is too early to determine if transfer rates are affected. 5. Anti-foam Agents Anti-foam agents are being studied for use in stripping copolymers and pearl resins. Reducing the foam generation should reduce stripping time and increase production. 6. Safety A review of the reactor ventilation system was made to insure adequate ventilation in case of monomer spillage. As a result of the survey, the current inoperative heating system will be converted to a ventilation system. AP00046144 T. L. Carey -4- February 5, 1969 PRODUCTION (Cont'd) Production for February is estimated at 3, 700 M lbs. , and variance at $16, 000 favorable. RESEARCH AND TECHNICAL SERVICE Major effort during the month was concentrated in the area of PVC 2185 for bottles. From previous visits to Armstrong Cork Company a plan was developed to supply the account with further sample material with varying degrees of coarseness, to determine what resin properties are required. This plan has been carried out and specifications obtained for plant production. Additional metals evaluations of PVC 9250 were made in following through on Escambia's medical tubing resin program. The PVC pilot plant is nearing completion. All major equipment has been received, and operation is expected to commence by month end. C. L. Wallace AP00046145 ESCAMBIA CHEMICAL CORPORATION INTEROFFICE MEMORANDUM To: From; Re; C. L. Wallace G. B.H. Speed Date: Copies: PVC Production Report Summary January 1969 February 5, 1969 SUMMARY Production of prime resin was 4, 2)3 M lbs. f exceeding budget by 533 M lbs. Tailings and off-grade totaled 148 M lbs. , or 3. 4% of total production and less than budget. Fourteen different resin types were produced in 16 separate runs. This month saw the fewest number of changes in production schedule since 1967. VC1 monomer efficiency was 96,2%, exceeding the budget of 94.5%. Reactor downtime was 15.2%, and reflects the less frequent changing of resin types during the month. Bagged production was 70. 4% of total prime, compared with 56. 2% budgeted. The large demand for copolymers is the primary reason for the high percentage of bagged material. Of major importance was the fairly successful production run of PVC 6180. As reported in December, extreme difficulty was encountered in meeting the bulk density specification. During January 33 lots out of 42 total met the specification. A number of recipe changes were made with varying degrees of success. Although no recipe change was found to completely eliminate the bulk density variations, one recipe using different chemicals was found to be as good as the present recipe and can be used should problems be again encountered with the present recipe. From first analysis of the production data, the amount of recovered monomer used seems to have a direct effect on the resulting bulk density. AP00046146 C. L.. Wallace -2- February 5, 1969 SUMMARY (Cont'd) A request for expenditures; RFE-914, to install an additional VC1 recovery compressor was submitted for approval. The project is projected to increase production by 2, 170 M lbs. /year and has a payout of 3. 2 years. Production and variances for January and estimated for February are as follows: Production January $ 4, 213 February $ 3,700 Variance, Bulk Packaging Total 27,637 favorable 4,430 favorable $32,067 favorable 15,000 favorable 1, 000 favorable $16, 000 favorable The favorable variance of $27, 637 in bulk and $4, 430 in packaging was due primarily to a)'volume $16, 000, b) monomer efficiency $3, 500, c) Maintenance $5, 700, d)depreciation, taxes and insurance $4, 200 and e) process chemicals $6,900. Production and variance are expected to be down next month. In addition to the short month, centrifuge repairs and a reactor change out are scheduled for February. STATISTICS January Actual Budget ______December Actual Budget Prime Production, M lbs. Month Year to Date 4,213 4,213 3,660 3,660 4,279 48,852 4,080 48,960 Off-Grade Production % of Total Month Year to Date 3.4 3.4 4.0 4.0 3.0 3.7 3.0 3.0 AP00046147 C. L. Wallace -3- February 5, 1969 STATISTICS (Cont'd) January Actual Budget Bulk Production, % of Prime Month Year to Date 29. 6 29.6 43. 8 43. 8 Shipments, M lbs. Month - Prime Month - Off-Grade 4, 469 108 _- -- Year to Date - Prime Year to Date - Off-Grade 4,469 108 --- VC1 Efficiency, % Month Year to Date Reactor Availability, % of Available Hours Month Average Year to Date 96. 2 96. 2 84. 8 84. 8 94. 5 94. 5 -- January Actual Reactor Downtime, % of Available Hours Mixing Solutions in Reactors Cleaning & Washing Reactors Scheduling Charges Changing Types Copolymer Production 0 7.9 2.3 0. 6 0 December Actual Budget 34. 2 47. 1 3, 792 59 48,252 2, 275 95. 6 95. 1 57. 5 57. 5 -- ---- 94. 0 94. 0 84. 1 82. 0 December Actual --- 0. 1 8. 8 3. 2 1. 3 0. 0 AP00046148 C. L. Wallace -4- STATISTICS (Coat'd) Reactor Downtime, % of Available Hours Cont'd Slow Recovery Low Drying Rates and Dryer Line Cleanout Hydraulic Motor Repairs Misc. Reactor Maintenance Dryer Maintenance Electrical & Instr. Maintenance Miscellaneous Total January Actual 0. 6 0.7 0. 6 0.2 0, 5 0 1. 8 15.2 Product Mix, M lbs. Prime Resin Group I Group II Group III Group IV Group V Group VI Total January_________ Actual Budget 2, 062 186 296 359 1, 310 78 4, 213 1,489 635 278 409 727 122 3, 660 February 5, 1969 December Actual 0. 3 0. 8 0. 1 0. 3 0. 0 0. 5 0. 5 15.9 December Actual Budge 1,794 816 725 0 944 0 4, 279 2, 154 1,010 603 23 262 32 4, 084 AP00046149 C. L. Wallace -5- February 5, 1969 STATISTICS (Cont'd) Off-Grade and Tailings Off-Grade Type Quantity, M lbs. 6180 76 Tailings 62 Floor Sweeps 10 Total 148 Reason Off-Grade High Sed. No. % of Total Production 1. 7 1. 5 0. 2 3. 4 DISCUSSION 1000 Series Types Produced: 1200, 1225, 1230, 1250 Production runs were normal. 2000 Series Types Produced: 2200, 2225, 2250 Production runs were normal. 3000 Series Types Produced: 3225, 3250 Production runs were normal 4000 Series Types Produced: 4185-2S Grinding operations for the month were for the production of PVC 4185-2S. PVC 2185 was tried as feed material without success. An attempt was* made to rescreen some off-grade PVC 4185-2S to AP00046150 C. L. Wallace -6- February 5, 1969 DISCUSSION (Gont'd) 4000 Series (Cont'd) produce PVC 4185-3S without success. 6000 Series Types Produced: 6150, 6180 Production of PVC 6150 was routine. The production of PVC 6180 was highly successful as compared to December's production. Although some difficulties are still encountered in meeting the bulk density specification, variations in recipes have been successful in minimizing the bulk density variations. 8000 Series Types Produced: 8200 Production was normal. The use of a well grounded stainless steel screen in the primary rotex allowed production rates to be increased slightly. PROCESS IMPROVEMENT The attached progress report details the progress on process improvement projects. MAINTENANCE Major maintenance items incurred during the month are as follows: 1. Replaced reactor building elevator shaft. 2. Changed out reactor motors on 3, 4 and 8 reactors. 3. Replaced leaking steam coils in south dryer. 4. Cleaned south centrifuge and modified feed nozzle to keep PVC out of wash section. 5. Changed out all step bearings. 6. Replaced valves in air compressor and north VC1 recovery compressor. AP00046151 C. L. Walla.ce -7- February 5, 1969 MAINTENANCE (Cont'd) 7. Painted number 4 silo. 8. Cleaned recovered monomer evaporator. 9. Repaired faulty valve on first floor sprinkler system. VARIANCE ANALYSIS January production variance is summarized below: Bulk Production (7421) FAVORABLE UNFAVORABLE VCl Efficiency Volume Variance $ 3,500 16,637 XA Monomer $ 414 Process Costs: Process Chem. 6, 858 Maintenance Depreciation 5, 699 2, 833 Taxes & Ins. 1, 334 Miscellaneous 2, 226 $39,087 Process Costs: Utilities Laboratory Salaries Miscellaneous 1,877 Z, 842 5, 555 762 $11,450 NET BULK VARIANCE $27, 637 Favorable Packaging (7424) Volume Variance $ 3,615 Bags Process Costs: Labor (total) Maintenance Mat'l & Sup. 985 107 610 $ 5,317 Process Costs: Other NET PACKAGING VARIANCE $4,430 Favorable $ 714 173 $ 887 TOTAL PRODUCTION VARIANCE $32, 067 Favorable G.B.H? Speed AP00046152