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4 Funds of---------------------------- ----------------------------------- ---------------------------------------------------------------- $78,324 are requested to install a used Werner & Pfleiderer extruder at the Chicago Plant for the purpose of manufacturing extruded lead based heat stabilizers. 2- - PP-5741 9/13/82 Page 2 of 30 PROPOSED WORK AND COST Capital in the amount of $78,324 cash is requested for the transferring from Bound Brook and installation at Chicago of an idle Werner & Pfleiderer twin-screw extruder to provide for the production of waxed-lead heat stabilizers. The gross amount requested for approval also includes an additional $118,555 of transferred equipment which will be written down to its fair market value of $14,000. PRESENT SITUATION AND REASON FOR REQUEST Cyanamid's current line of lead stabilizers consists of lead salts which are sold as thermal stabilizers primarily for PVC wire and cable applications. They are supplied in the form of a fine white powder, packed in 50 lb paper or plastic bags, or 2,000 lb semi-bulk containers. With the advent of the OSHA lead standard in March 1979, all producers and users of lead or lead compounds were obligated to improve their programs for protecting their employees from ingesting or breathing lead dust by administrative and/or engineering controls. The industry has responded by accelerating the development of various de-dusted products.and improved stabilizer packaging and handling equipment. All have deficiencies: a. Oiled (plasticized) lead salts are not sufficiently dust-free to allow user compliance of OSHA lead-in-air standards (50yL(g/m^). b. TEFLON polytetrafluoroethylene treated stabilizers are superior to oiled types but are more costly, not totally dust-free, and contribute to dispersion problems in processing. c. Air pallet semi-bulk containers, which allow the unloading and transfer of conventional lead stabilizers through a totally closed system, can be an effective method of meeting OSHA standards if properly installed. However, capital equipment requirements for stabilizer customers are substantial (k$50-300),, In order to fulfill this unsatisfied need, Monson Chemical, Inc. under license by Hondorf Chemical, Netherlands began manufacturing encapulated waxed lead stabilizers in 1980. They have been successful in obtaining 500-700 k lb volume from Cerro Wire and Cable, previously supplied by Cyanamid, plus an additional 200-300 k lbs volume at other accounts formerly supplied by Associated Lead. Cerro reported lead-in-air improvement from 60-100 mg/ra^ to 5-10/Vkg/m^. In response, Cyanamid has undergone its own waxed lead stabilizer development program. Approximately 20 k lb of sulfate, carbonate and phthalate wax mix extrudates have been prepared in the Bound Brook pilot plant- They were prepared' under the supervision of the Plastic Additives Technical Service Group, utilizing an existing Werner & Pfleiderer extruder, formerly used to produce polyurethanes. The resultant lead stabilizer extrudates have performed well in in-house testing and iri plant trials at Cerro. Pending final Cerro approval expected in late August, we can expect to re-establish Cyandmid at s 50% supply position. N14630 01 CYWZ 25-0007287 PP-5741 9/13/82 Page 3 of 31 -3- In order to 1) regain a major share of Cerro's lead stabilizer volume, 2) offer the industry an alternative to capital intensive semi bulk handling to control lead in air and 3) prevent further erosion of Cyanamid share to Monson, it is recommended that Cyanamid introduce its own waxed lead stabilizers. Recognizing the uncertain condition of Cyanamid's lead stabilizer business, this investment is nevertheless recommended because in the event of a sale of the business to a non-lead stabilizer producer, the ability to manufacture the extrudate would further enhance the value of the business. This could be true from the point-of-view of both an increased PP&E base as well as a stronger commercial position. Also, any downside due to loss of this investment is minimized by the relatively short 2.4 year payout of the project. DETAILS OF PROPOSAL Lead carbonate, lead phthalate, and lead sulfate powdered stabilizers would continue to be manufactured at Chicago in the standard two-step process: 1. Pig lead is milled and oxidized into litharge. 2. Litharge is slurried in water and reacted with carbon dioxide, phthalic anhydride, or sulfuric acid to produce lead salts that are dried, milled and blended. The stabilizers will then be dry mixed with 10-17Z of ester wAx, stearic .acid, and lead stearate in the existing Chicago plant blending system. The wax-stabilizer mix will then be processed through the Werner & Pfleiderer extruder. The Werner Pfleiderer twin-screw extruder model ZSK53 located in the pilot plant building at the Bound Brook plant will be transferred to the Chicago plant and installed in an existing open area in Bldg. 24, adjacent to the blending unit. Sufficient additional open area would remain should sales eventually warrant another extrusion unit. Existing power, water, and ventilation systems located close to the extruder site, will allow for relatively easy hookup. PRODUCTION FACTORS Feed rates of 530 lb/hr for CYASTAB* SW (sulfate) and 450 lb/hr for CYASTAB CW (carbonate) have been demonstrated; indicating a three-shift capacity of 3.0 M lb/yr. Current sales projections suggest this to be more than adequate through 1987. CONTINGENT FUTURE COMMITMENTS This proposal will not require additional funds to complete. CYWI 25-0007288 -4- PP-5741 9/13/82 Page 4 of 30 COMMERCIAL FACTORS While Monson Chemical is the first domestic supplier to offer waxed lead stabilizers, they are not basic in the powdered lead stabilizers which they must import from Hondorf or source from domestic producers such as Cyanamid, Hammond, Associated Lead. Monson has experienced some initial product deficiencies related to heat stability and melt temperature. Cerro appears to be the only major account that they have successfully penetrated, although Monson is supplying 2-3 smaller customers and aggressively pursuing larger users. Cerro is paying approximately 20% premium over conventional lead stabilizers. Elimination of material losses through dusting and performance equivalency to conventional stabilizers at lower concentration levels can offset all or part of this differential. Cyanamid's development work indicates that CYASTAB waxed lead stabilizer products generally display superior thermal stability and equivalent or improved physical and electrical properties relative to Monson Chemical1s products. (See Appendix VI.) Associated Lead, Hammond Lead and Syh-Pro (Dart) are thought to be conducting similar development work. It is believed that Cyanamid is closer to commercialization than any competitor, save Monson. Appendix IV gives domestic waxed lead stabilizer sales forecast for two scenarios. The Base Case reflects Cyanamid's ability to regain 50% of Cerro's business (see supporting letter, Appendix IV). The Upside Potential case assumes Cyanamid is successful in (1) obtaining 70-75% of Cerro's business, (2) gaining 50% of Hoechst 200 k lb requirement for use in PVC credit cards, and (3) gaining market share against powdered stabilizer suppliers for rigid PVC and wire and cable applications, Hoechstis concerned with lead-in-air levels and is evaluating air pallet systems and encapulated waxed lead stabilizers. Their tests to date show the oven stability of CYASTAB CW to be superior to both their current formulation and Hondorf Chemicals' waxed product. In addition to Hoechst, Cyanamid samples have been submitted to Ethyl Corp., Abcom, and Carlon idio have a combined potential of 1.5-2.0 M lbs. Although preliminary testing is encouraging, it is too early to project firm sales to these accounts. FINANCIAL RETURN The net cash required is $78,324 of which $59,515 is capitalized and $18,809 is expensed. The gross amount requested for approval also includes an additional $118,555 of transferred equipment which will be written down to its fair market value of $14,000 (see attachment VIII). Start-up costs are estimated to be $20,000. Installation of the extruder in Chicago by September, 1982 will enable cash returns to begin by October, 1982. Assuming that sales are restricted to 50% share of Cerro's volume (Base Case condition), the constant dollar payout on new fixed capital is 2.4 years and the ten year IRR is 56%. The ten year average return on investment is 33%. Variable cost estimates assume $.30/lb lead cost (current price is $0.26-0.27/lb). Manufacturing costs were considered on a differential basis while expenses were based on full 1982 budgeted lead stabilizer expense ratios. As it is not anticipated that additional sales or technical staffing will be needed, this assumption is conservative. Realizations of the Upside Case would result in a 2.0 year payout, an 83% IRR, and a'48% return on investment. CYWI 25-0007289 PP-5741 9/13/82 Page 5 of 30 -5- ALTERNATIVES CONSIDERED Batch Process - Premix stabilizer and wax in a Ross mixer and feed to a Sterling single-screw extruder. Tests at Ross and Sterling showed this could be done, but with very limited production and higher labor costs. In-house plant trials proved that the Chicago plant's blending system could mix the stabilizer and powdered wax, thus the Ross equipment was not needed. The W & P extruder did a better job than did the Sterling, with higher output. Book value of in-house extruder is much lower than the cost of a new Sterling. RISKS 1. Cerro Wire And Cable Does Not Buy Historically, Cyanamid has had an excellent sales relationship with Cerro. Until Monson Chemical provided the answer to their dusting concerns, Cyanamid had enjoyed 75-90% of their 600 k lb business. Cerro has run plant trials successfully with 2 k lb each of CYASTAB CW and SW. CYASTAB has a lower melt temperature relative to Hondostab's which enhances its processibility. Cerro is currently running another 5 k lb each of CW and SW and full approval is expected by the end of August. We have received prior verbal commitments from Cerro to establish Cyanamid at 50% supply position for the second half of 1982, pending final product approval. (See Attachment IVb.) 2. Hondostab Reduces Price To Retain Business The base case economic returns assume that Gyanamid would obtain Cerro volume at 5-6% below Monson Chemicals' current price. This is considered reasonable as Cyanamid would be selling at 48% marginal income, approximately at the same level of its very mature powdered lead stabilizer business. Furthermore, Monson Chemical must import the powdered stabilizer and would still be at a disadvantage should they begin buying it domestically. If the market price were to erode an additional 13%, the marginal income ratio would be 40%, the payout on new fixed capital would be 3.3 years, and the IRR 32%. SUMMARY Capital in the amount of $78,324 cash is requested for the tranferring Bound Brook and installation at Chicago of an idle Werner & Pfleiderer twin-screw extruder to provide for the production of waxed-lead heat stabilizers. from ST/1869-0/010-0 CYWI 25-0007290 ATTACHMENTS PP-5741 9/13/82 Page 6 of 30 I. Fixed Capital Estimates - Details II. Waxed Stabilizer Costs III. Competitive Pricing IV. Sales Forecast a. Volume Estimates b. Supporting Letter - Cerro V. Financial Analysis a. Estimated Operating Results -Base Case b. Differential Cash Flows - Base Case c. Estimated Operating Results - Upside Potential d. Differential Cash Flow - Upside Potential e. Effect of Variations in Volume, Fixed Capital and Selling Price VI. Pilot Plant Production VII. Technical Bulletin VIII. Transfer Value CYWI 25-0007291 aor- oi7 r e v . DETAIL SHEET SHEET NO. T/** JOB ORDER NO. COMPANY American Cyanamid Company ITEM OR \COOE DESCRIPTION Attachment I July 2, LOCATION Chicago Plant PP-5741 9/13/82 Page 7 of 30 1982 EQUIPMENT OR MATERIALS ENG. MECH. SVC. 9DO / Reassemble conveyor ./ Pipe installation i Manifold repair y Electric installation ,y Dust collector & unloading platform (' Extruder and belt installation 7 Crating and shipping ? Air pallet unloading system f Freight 1500 1322 417 12674 1500 12000 10812 1500 /& Taxes / < Escalation 5% /z W&P electrician-repair and set-up 1309 3563 400 46997 H 2000 2643 833 16176 3000 4575 1600 30827' 3500* 39651/ 1250 28850^ 4500 4575 12000V" ( VW*) --240812 1500 500 500 1309* 3563 2000* 500 78324 J Transfer value Fair market value (see Attachment VIII) Expensed Acquisa tion Date Value 1/75 118,555 14,000 104,555 CYWI 25-0007292 <7 CYANAMID To: G. Ruhf Location: Wayne From: h . C. Gaffney Location: Chicago Plant Extension: . Subject: vJaxed Stabilizer Costs Attachment Ila PP-5741 Memorandum 9/13/82 Page 8 of 30 Date: June 16, 1982 Reference: J. Copy to: r . J. B. Daly - BB Johnson - MG Stretanski - BB Witherspoon - CN t Supplementing my letter of June 4th, here is additional data for the estimated cost for manufacturing extruded stabilizer. Variable Cost * Period Cost Total Cost Lead Content cw .5731 .1057 .6788 63% - SW .5381 .1161 .6542 7 3% TW .6412 .1598 .8010 62% * based on $0.45/lb lead cost Job order economics based on $0.30/lb lead New variable costs: CW 0.479, SW 0.429, TW 0.548 ($/lb) HCG:ck H. C. Gaffney 4 r l A R-Jd r ,7 N14630.02 CYWX 25-0007293 <T CYANAMID Attachment lib PP-5741 Memorandum 9/13/82 Page 9 of 30 To G. Ruhf Location: Wayne From: H. C. Gaffney Location: Chicago Plant Extension: Subject: Waxed Stabilizers - Costs Date: June 4, 1982 Reference: 1 ,'~'~ KUi'ir Copy 10: j.. Daly - NA R. Johnson - MG J. Stretanski - BB B. Witherspoon - CN Cost for manufacturing the waxed stabilizers is: cw - .6788 sw - .6547 TW -- .8010 Assumptions A. 12,000 pounds/day thru-put. B. Container cost of .0350/lb. - 100 pounds net. C. $75,000 installation cost. D. 45C lead cost. ^ E. One nan/shift to operate the extrusion process. This has been reviewed with but not audited by Ben Witherspoon, our accountant. HCG:ck H. C. Gaffney Note: Job order economics based on current lead costs ($0.30/lb) NA 8^3 rij v' 7 77 7 77 N14630.03 CYWX 25-0007294 MOST CYANA MID X0 PP-5741 Attachment: 111 RCEiVkii3/82 Pfgf 10 of : APR 7 1982 :------------------ :---------- ---------------------- ----- --- -------------------------------------- --R:F. ANDERSON' -.... To: Location: From: Location: Subject: Reference: File Date: Bound Brook J. A. Zebrowski Copy to: Bound Brook MONSON CHEMICALS, INC. - ENVIROSTRAND LEOMINSTER, MASSACHUSETTS Pricing April 1, 1982 R. P. Halpin BB P. J. Kondla BB G. A. Menghi HO F. E. Rudolph AZ G. M. Ruhf NA M. L. Siano BB J. A. Stretanski BB RECEIVED APR 5 1982 G. M. RUHF The following updated truckload pricing schedule for EnviroStrand's waxed lead stabilizer extrudates was obtained from Cerro Wire and Cable: Product Price Per Pound EnviroStab 1092 (Tribasic Lead Sulfate) EnviroStab 1093 (Basic Lead Carbonate) $0.90 * 1.03 EnviroStab 1155 (Dibasic Lead Phthalate) 1.23 JAZ:dk h WA B'lo f?FV ? 7*? 7u N14630.04 CYWI 25-6007295 PP-5741 9/13/82 Page 11 of 30 WAXED LEAD STABILIZER SALES FORECAST a>[cM vo VO 00 XX CO on TO XX oo X ON ON Xx X 00 co o 00 CO co- X X X m oo XX vO CO on TO rH X in in X CO 00 XX X 00 CO CO o r-* co v> CO X X in r- XX m CO ON TO rH X o o X 00 00 XX X ON CM CO o X co co- ON CM X <r r^. XX <t 00 ON TO rH1 X n in X XX X X CM CO O in CO co* oo r^* CM XX co 00 On TO rH X o X m in XX X in r- CM o o CO </>| O ^ CO CO | X CM 00 o n TO rH X in in X CO CO 1 X o ^ y--s y--\ XX X rH '" Ofc " * in 00 00 ON </> <J*> w 3 u CO d w u X CQ CO H < < 4 CJ> |oo CM ON m X X X <r CM CM X CM 00 X 00 ON TO X X CM CO o o m X r>* r> CM CM Mf X in co CM ON X co-lx P*^ X X in X MT X ON X CM CM X X r^ X 00 ON TO X X in n o o o X X X CO o X CM CM X CM 00 X C0*|x XO <Ot CM o in -d- ON CM CM X X X in 00 ON OJ X J3 r-> oo o o m J in m CM in 00 CM CM X X CO-Jo CM *3* 00 X O CO ON ON CM CM CM X 00 ON TO X, X O O O o o Xmn X o X CM CM X X n*. X CO-10 ON m ON CO 00 o 00 <r . CM X CM in CO 00 ON TO X, X m m o o o X CM CM o in o CM CM X X X <o*loo co X|CM CO CM 00 ON tn X > in in co co ja 00 o X I ON X io oo /-s y--s y--\ XX X X X X**^ XX o CO in ao ON 00 00 ON X< H <'wo*' <o- TO- w<o- zca u C3O 3o 3 H o cu w Xa CO <uu CQ X X<< 3: H H 00 CO uuo < >* u < >4 o X 4TOJ < H CO X o CO X < H CO d >4 Xo X XdJ PH 0) o o o sc o H do aCO o U d uud0) udu od do o X xd rdH Xx Xo to </> o d w wd c<o dM d Xd o co wQ xTO CuuOaJ) mo oo TO d </> ud C<oO X CO m OrITO dh d Q) *uCHou xd o <Sj 4TJO xo T3 MX a. o H T3 E xod OU e o 6 c d *h d d d oTO Xd0) ud>>udx dd aSo so TO X4doOJu TTEdOO < C00M ON Sx ^CM*. b r- N14630.05 CYWI 25-0007296 c y An a mi d Attachment IVb RECEmW Page 1 of 3 g/13/82 JUL Eagg5|2 of ----------------------------F..---------------------------- To: F. B. May Date: July 27, 1982 Location: From: Bound Brook J. A. Zebrowski Copy to: Location: Subject: Bound Brook LEAD STABILIZER EXTRUDATE PRODUCTION TRANSFER OF EXTRUDER TO CHICAGO PLANT Reference: Attached Memos: M. L. Siano, 5/25/82 J. A. Zebrowski - 5/26/82 G. M. Ruhf has requested that I forward to your attention supporting data on Cerro Wire & Cable Company regarding the justification of transferring the extruder currently located at Bound Brook, NJ to our Chicago plant. The extruder will be utilized for the production of our waxed lead stabilizer extrudates. The attached memos are self-explanatory. The 5k-lb quantities of CYASTAB CW and CYASTAB SW have been produced at the Bound Brook pilot plant and subsequently shipped to Cerro. Cerro has since scheduled plant evaluations for early August. Successful plant tuns will establish oiir products as an approved supply source. * The lead stabilizer' extrudate volume projections at Cerro for the second half of 1982 will be significantly lower than initially projected due to their locating a sizeable quantity of regular grade material on inventory that was not previously listed. This material will be accordingly worked off by the year's end. JAZ:dk att. NA 839 REV 2-79 2-79 N14630.06 CYWX 25-0007297 Attachment IVb Page 2 of 3 PP-5741 9/13/82 Page 13 of ; To: G. M. Ruhf Date: May 26, 1982 Location: Wayne Copy to: From: J. A. Zebrowski Location: Bound Brook Subject' Lead Stabilizer Extrudate Production Chicago Plant Reference: Cerro Wire & Cable Maspeth, N.Y. See attached memo R. F. Anderson j. J. Cardone J. F. Daly H. C. Gaffney R. P. Halpin G. A. Menghi F. E. Rudolph M. L. Siano J. A. Stretanski R. B. Toothill As stated in the attached memo, the lead stabilizer extrudate evaluations continue to produce positive results at Cerro. Following our production, shipment and subsequent plant approval by Cerro of the 5klbs. ordersreceived for Cyastab CW and SW, we will be fully approved as a supply source of these raw materials. As stated, full approval is expected in June provided we can supply material. As per information received from J. F. Daly, the production of the 5klbs. quantities of CW and SW at our Bound Brook pilot facility will take approximately 3 weeks and wili incur a number of support costs. It is, therefore, recommetlded that we now make arrangements as soon as possible to transfer the extruder from Bound Brook to the Chicago plant prior to scheduling the production of the 5klbs. quantities of Cyastab CW and SW. The total lead stabilizer extrudate EAC at Cerro (Maspeth, NY; Hartselle, AL) in estimated at 500-700klbs. We have received prior verbal commitments from Cerro to establish AMCY at a 50% supply position for the second half of 1982 subsequent to our obtaining product approval. . DCbCU WU WUi -i-w standing en record with this account, I feel confident that we will achieve a 50% supply position for the second half of 1982 with an objective of a 70% minimum supply position in 1983. JAZ:dos attach. NA 839 RFV 2-79 2-79 N14630.07 CYWI 25-00072,9T I" * *u<f* C-KiJAMM/17 Attachment IVb Page 3 of 3 To: J. A. Zebrowski Date: May 25, 1982 Location: Bound Brook From: M. L. Siano Location: Bound Brook Subject: Cerro Wire & Cable (Marmon Group) Maspeth, NY Reference: Copy to: R. F. Anderson J. J. Cardone J. Daly H. C. Gaffney G. A. Menghi J. A. Stretanski R. B. Toothill PP-5741 9/13/82 Page 14 of Mr. Bob Betancourt, Technical Director, advises that the 2k lbs. each of Cyastab CW and SW shipped 5/11/82 have been partially run in Maspeth production. Plant trials to date are satisfactory. The Maspeth plant is shut down this week due to lack of customer orders. When the plant resumes operations June 1, Cyastab CW and SW plant trials will continue until material is used up (estimated completion date June 12). Today Cerro placed another order for 5k lbs. each Cyastab CW and SW for immediate delivery to continue plant trials. Upon their completion, if everything has run satisfactorily, we will have final approval on Cyastab CW (EAC = 200k lbs.) andCyastab SW (EAC = 250k lbs.). The 100 lbs. Cyastab TW shipped 4/6/82 has not yet "been run (EAC = 50k lbs.). HLSrdos Tfl- M. L. Siano NA 839 REV 2-79 Vr** 2-79 N14630.08 CYWI 25-0007299 1 WITHOUT NEW INVESTMENT w it h n e w in v e s t m e n t d( ^ if f e r e n t ia l A ttachm ent Va RASE CASE C erro O nly ESTIMATED OPERATING RESULTS C onstant? E n ca p su la te d Waxe le a d S t a b iliz e r -8- 1S 317 1 165 170 1 145 i 347 AVERAGE TEN YEARS i-- C* IA vo in fH OS I hO 0) 00 Os CM a c* CM CM in O ro CM r- m o 00 CM 1--4 A VO v> o 0^ X oh> e*> in c rH a nT r^ :iD: :!in: 00 ov :jCO| !;r-( p-H Ch O r N! y> w :y>:' av CO X Hto W+ m cr o VC nr c" toi : r*-| in V; os H va SfO OS! r~f rri v> v* jiirt CO r--! OC i; ib'i Ul in d iod CO at IT co rr : n CO ro rH( Or-^s LD r--| X H 0>, v <*ji to z CO o o ,QC 00 Hj ro CO . XI nr O 00 in H; o H in CO a? vd; rrj f-H X < cc (0 Ut 0- V* *>j v> o VO O CTi J7 ID in rH1! 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Z UJli >ji Z Z O z -J| X 3Hi dH' UJ ffP ro 5 X UJ. 0 < X UJ > < X <: Ul > x;: to- CYWX 25-0007302 - 10- ref S" >- " iw "C 0 >- 1 iK o > >- * 5 5* iii Q O* iisi * S' rl in ro CO VO 00 ro vo ro rH 00 vo i--! 00 ^ ron in vo rH L QJ CO N H g 1--1 O sH _i u. sol > i<Ts I* s' o \| vl -(K * H ifl rsl ro iH in rH ro VO ro CM VO ro rH ro vo rH vo oo rH LO ro rH 00 in i--i <3 co con VO 1-1 00 ro srn in in H +J CO i--l rO ni H sa -P X CO O o o o <J> o O' < UJ >- .s j1 *S : ro in cr CM oo c t \ cr> CM rH CTi rH av rH a UHJ* < iiSk oo in ro in rH 5 * S CM o in in c m CM pH uo *ra CM rH rH 00 ro r--1 /> UJ | .in i *o l o in ro co cri CNI rH >H O c\ ro O rH CM CM S^s ; m Nh rH rH o CO: i-H * rH OO OO'tf ro rH< ov oo >; . ro rH! CC a. S 1 c m in ro ^ r* > f i O rH *Mc0 >- I` CM rH ro CT rH O rH rH ro H vi ' CO rH rH rH n, 00 ro in ro uo r- r s M vo rH h in rH 2 > J oo ro C-* rH rH CT\ VO VO C CM uo in n 00 - r* jP& I. o-\ m o\ psj vo o ^ i--1 CM CO rH rH O av CM VC in VO rH n* PP-5741 9/13/82 Page 18 of ucS3. ro vo rH <S\ in rH ro in rH OV rH vo i ro rH tfp in rooo CM rH 2 cc D OV LJ Oi CC rH LL o UJ CM < Ov a: ON 1 VD r- .1 Pi c <. ! ?n 5 c 4 CYWX 25-0007303 10 \vera 60% 50 40 30 20 10 0 + EFFECT OF VARIATIONS IN VOLUME, PRICE, AND FIXED CAPITAL Attachment Ve PP-52-41 9/13/82 Page 19 of % Dpviatinn CYWX 25-0007304 CYANAMID To J. A. Stretanski Location: bb From: j. f . Daly Location: bb Subject: pilot Plant Production Of CYASTAB SW and CW Reference: Attachment VI PP-574-1 9/13/82 RLCLIV lale 20 Dale: July 6, 1982 p B. TOQTHILL Copy io: s. A, Brown H. C. Gaffney B. Terzic R. B. Toothill Job Folder - 1549 Product File During the week of 6/21/82 CYASTAB SW and CW were produced in the Bound Brook Pilot Plant. A nominal 5000 poundseach were produced. Both runs on the whole went smoothly, with good rates and excellent product quality. CYASTAB SW ran at about 530 lb/hr and.CYASTAB CW at 450 lb/hr. Conditions are listed in the attached Table, along with test results. During the run of CYASTAB CW, the extruder die plugged three times. This was found to have been caused by pieces of metal lodged in the die. At the end of the run a steel bolt was found in the metering hopper. It had been partially sheared away. The sour'ce of the bolt has not yet been determined. * The third plugging resulted in a complete extruder stoppage; and when the head was removed the tip of one of the screws was found -to be loose. The threads were stripped. This will have to be repaired by Werner & Pfleiderer before the extruder can be used again. JFD/hg Attach NA 839 REV 2-79V.' 2-79 J. F. Daly N14630.1 CYWI 25-0007305 TABLE I PP-5741 9/13/82 Page 21 of Extruder Conditions; Zone 1, F Zone 2, F Zone 3, F Zone 4, F Zone 5, F Die, F Feeder, Set Screw, rpm Belt, rpm Pressure, psi Output, lb/hr Torque, % Brabender Stability, Minutes Extrudate Powder '- CYASTAB SW 140 170 130 110 100 210 4.3 235 Max. 35 530 42 49.5 38.5 CYASTAB CW 140 170 130 no 100 210 4.1 260 Max 35 450 41 57.5 44.0 JFD/hg N14630.ll CYWI 25-0007306 Attachment VII ENCAPSULATED CYASTAB HEAT STABILIZERS FOR POLYVINYL CHLORIDE CYAIWAM/iy N14630.12 % AMFRI^AN rVAMAM'D rnMPANY CYWX 25-0007307 PP-5741 9/13/82 . Page 23 of IMPORTANT NOTICE The information and statements herein are believed to be reliable but are not to be construed as a warranty or representation for which we assume legal responsibility. Users should undertake sufficient verification and testing to determine the suit ability for their own particular purpose of any information or products referred to herein. NO WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE ISMADE. Nothing herein is to be taken as permission, inducement or recommendation to.practice any patented invention without a license. Printed in U..S. A. CYWI 25-000730S PP-5741 9/13/82 Page 24 of INTRODUCTION American Cyanamid has developed encapsulated grades of basic lead carbonate (CYASTAB CW), tribasic lead sulfate (CYASTAB SW) , and dibasic lead phthalate (CYASTAB TW) to provide a more effective solution to the airborne lead dust problem. CYASTAB CW, SW, and TW are CYASTAB Powder Heat Stabilizers dispersed and encapsulated in a proprietary wax binder system, which are supplied in short strands or pellets. These encapsulated products are easily dispersed into PVC compounds in all types of blending equipment because of the low melting point (60C, 140F) of the binder system. These encapsulated products not only solve the lead dust problem, but offer better cost performance through lower specific gravity, lower lubricant requirements, and lower concentration levels to achieve equivalent or superior thermal stabilization of the PVC compound. CYWI 25-0007309 LO O NAME: TYPE: GHIMICAL n\ COMPOSITION: -3- PP-5741 9/13/82 Page 25 ENCAPSULATED PRODUCT LINE CYASTAB CW CARBONATE \ CYASTAB 40 85% CYASTAB SW SULFATE CYASTAB 800 90% CYASTAB TO PHTHALATE CYASTAB 908 PROPERTIES: APPEARANCE: White to Off-White Strand, Approximately ' 2-3 mm In Diameter Binder Melting Point: 60"C (140F) Specific Gravity: 3,5+0,25 .3,7+0,25 2,8+0,25 % PbO : 74.4+2,5 80,1+2,5 66,4+2,5 CYANAMID SERVING THE PVC INDUSTRY CYWI 25-000731O RECOMMENDATIONS: 1. ~ Lubricant levels should be reduced to provide the desired processing properties. 2. Encapsulated CYASTAB Heat Stabilizer levels can frequently be reduced 10-20% without significant effect in thermal stabilizing activity. pfP-5741 '9/13/82 Page 26 APPLICATIONS: CYASTAB'CW, SW, AND TW products were incorporated into 60C, 75C, and 90C PVC Wire Insulation Compounds, as described on Tables I, II and III. The encapsulated products were compared to their powder heat stabilizer counter parts and to a competitive encapsulated product of the same type. The heat stabilizers were evaluated for; I) Thermal Stabilising Activity, II) Retention of Physical Properties During Oven Aging, and III) Effect on Electrial Propert ies . Performance properties in 60C PVC Wire Insulation Compound (Table I) show that encapsulated CYASTAB CW provides nearly the same performance as the powdered CYASTAB 40 product at a 20% reduction in concentration level. Also, CYASTAB CW was found to be superior to the competitive encapsulated carbonate product at equivalent concentration levels of 3 and 4 phr. Performance properties in the 75C Compound (Table II) show only minor differ ences between the encapsulated CYASTAB SW product, the powder CYASTAB 800 pro duct, and the competitive encapsulated sulfate product, Performance properties in the 90C Compound (Table III) show that the encapsulated CYASTAB TW product provides superior performance .to the powdered CYASTAB 908 pro duct at a 40% reduction in concentration level. Also, CYASTAB TW was found to be muchsuperior to the competitive encapsulated phthalate product. In summary, encapsulated CYASTAB CW, SW and TW products offer on effective solution to the lead dust problem and provide equivalent or superior performance properties to their powder and competitive encapsulated counterparts. CYWX 25-0007311 TABLE I CYASTAB CW PROPERTIES TN 60C PVC WIRE INSULATION COMPOUND1^' PP-5741 9/13/82 Page 27 o: 3; Heat Stabilizer phr CYASTAB 40 5 Thermal Stabilizing Activity 2) Brabender Stability (Minutes) 72 190C, Oven Aging Stability (Minutes) 30 Retention of Physical Properties Tensile Strength (psi) Initial 2531 Oven Aged 168 hrs At 100C 2449 % Retention 97 % Elongation Initial Oven Aged 168 hrs At 100C 268 189 % Retention 70 . Electrical Properties Volume Resistivity 12 RT - (OHM.-CM X 10 ) 50C - 9.0 0.19 CYASTAB CW 3 "4 COMPETITIVE ENCAP SULCARBONATE PRODUCT 34 52.5 30 . { 65.5 . 30 46.5 30 63 30 2544 2299 90 253 190 75 2571 2508 98 271 249 92 11.4 0.24 9.1 0.20 2513 2312 92 - 284 234 82 - 13 .1 0.23 2504 244C 97' 252 20 C . 79 13! Q PVC Resin - 100 phr, DOP-43 phr,, Calcium Carbonate - 40 phr, Stearic Ac id - 0.25 phr. <*At 2oc: ' . 1 P C r prr t V CYWI 25-0007312 TABLE II CYASTAB SVT PROPERTIES TN 75 0 C PVC WIRE INSULATION 1) COMPOUND ' PP-5741 9/13/82 Page 28 oi 3! Heat Stabilizer phr CYASTAB 800 '5 CYASTAB SW . 3 ; 4- COMPETITIVE ENCAPSULA". , * .-bULrAir, PRODUCT 34 Thermal Stabilizing Activity 2) Br abend er Stability (Minutes) 55.5 190C Oven Aging Stability (Minutes) 30 Retention of. Physical Properties Tensile Strength (psi) Initial 2578 Oven Aged 168 hrs At 121C -2589 7, Retention 100 7, Elongation Initial 239 Oven Aged 168 hrs At 121 C 237 % Retention 99 34.5 30 1 48.0 30 2550 2552 v 100 2531 2732' ` 108 275 207 244 203 89 98 l 34.5 30 . 45 30 2423 ' *2613 108 230 205 89 2419 2473 102 233 2 rl 90 Electrical Properties Volume F.esistivity '3 - 27.1 14 RT (OHM-CM X 10 ) 50' C - 4.1 19.3 3.1 15.8 1.7 10.6 1,0 10 0 G Resin - 100 phr, DTDP - 20 phr, DrDP - 30 phr, Clay - 15 phr, Calcium Carbonate - 10 phr basic Lead Stearate - 0,,25 phr. - 205C, 100 rpm, No. 5 Roller Blades. CYWX 25-0007313 TABLE HI PP-5741 9/13/82 Page 29 of 2 CYASTAB TW PROPERTIES IN 90 C PVC WIRE INSULATION COMPOUND1) Heat Stabilizer phr . CYASTAB 908 5 CYASTAB TW .3 -4 Thermal Stabilizing Activity 2) Brabender Stability (Minutes) 31.5 190C Oven Aging Stability (Minutes) 45 38.0 >60 49.0 - COMPETITIVE ENCAPSULA P11THALATE PRODUCT 34 34.5 45 45 ; 45 1/^ 0 AVO Retention of Physical Properties Tensile Strength (psi) Initial 2828 Oven Aged 168 hrs At 1210 C t 7. Retention 7, Elongation 2870 101 Initial 254 Oven Aged 168 hrs At 121 C 267 7, Intention 105 2833 2836 100 290 281 97 2894 2895 100 277 268 97 2903 3122 108 273 278 102 2794 2824 101 2 OM 289 108 Electrical Properties Volume Resistivity -i (OHM-CM X 1014') RT - 20.4 50C - 1.3 20.1 0.8 21.2 0.8 15.8 0.5 13 n on 30 - 100 phr, TOTM - 45 phr, Clay - 7 phr, Antimony Oxide - 1.5 phr, Stearic Acid - 0.2p 205C, 100 rprn, No. 5 Roller Blades.. 3m Temperature. ' CYWX 25-0007314 HEALTH CONSIDERATIONS: PP-5741 9/13/82 Page 30 of The encapsulated CYASTAB products provide a significant reduction in airborne lead dust levels. Nevertheless, it is recommended that direct-contact employees handle these products with the same ventilation, inhalation and hygiene practices that are employed with the powdered CYASTAB products. Use of these standard handling procedures along with encapsulated CYASTAB Heat Stabilizers will markedly improve the safely and healthfullness of the working environment. Recommended practices, are described more fully in the Cyanamid bulletin entitled "Safe Handling Practices for Lead: Heat 'SitablMzers1. ' CYWI 25-0007315