Document p2Ebze2nMx427gN5z6bwqaoGE

ttoiisatito ... .. . _________ J. R. Savage - St. Louis - B2SL DATl turret July 21, 1975 PCB CONTINGENCY PLAN MCI IPfNCl ' cc` A. J. Koenig R. M. Kountz - G2WD T. L. Gossage^^^ W. R. Richard - T3A TO : H. S. Bergen Summary . We can supply TXS blends In significant volumes on relatively short notice. Costs would be high for a 2-year period while permanent facilities are built or adapted. Petal is A. Tplyl xylyl sulfone (TXS) We have been unable to locate Interim facilities, within or outside the company, adaptable to the TSA route to TXS because of the requirement for a Hastelloy B reactor of large volume (2-3M gal.). Therefore, in an urgent situation it would be necessary to continue the higher-cost TSC1 route, probably until permanent facilities are built. Since the TSC1 route uses con ventional hardware, we have found two companies with the capability . and interest to do the job: Mil liken Chemical and Anderson Develop ment. A tentative timetable would be: Completion of secrecy agreement Transmittal of technology Agreement on cost and terms Set-up Start-up and Initial production 15 days 15 days 30 days 60-90 days 30 days This adds up to 5-6 months which might be too long. We have begun on the first three steps which could reduce lead time. If TXS were needed sooner, the limited (80M lb/mo.) capacity at Queeny could be started up on about two week's notice. Cost of TXS via the TSC1 route and toll manufacture Is roughly estimated at $1.00-$ 1.50/pound, compared to il5t/pound In the proposed permanent facility via TSA. We should have more precise cost estimates by September 1. B. MIPB and/or Santosol 100 Dixie Chemlcaj, who presently make MIPB for us, have a capacity of up to 10 M poumis/year. Our present contract gives us a cost of 37</pound at 3 M pounds/year. Since the "dielectric grade" version of MIPB requires an additional flash distillation, small EX P-3127 0243 310 . Page 1 of 2 PCB-ARCH0750216 Page 2 quantities of MIPB for that purpose would be 3"5t/pound higher. However, at the 10 M pound level, Dixie has agreed to absorb the cost of flashing, leaving us at the 37t/pound level. In permanent facilities, cost will become about 23t. If we allocate 2_M pounds/year of Dixie's capacity to Mead, the remaining 8 M pounds of MIPB would make 10.it M pounds of MCS 1238 which would not maintain our present supply position to the industry but would probably supply the surviving require ment In the event of the sudden demise of Aroclor. If more production were needed, we could supply part of the market with MCS 1588 (Santosol 100/TXS) short term but, of course, the current forecasts show the Delaware River unit to be essentially sold out with current products even though the plant is currently suffering significant Inventory downtime. I feel we could find available capacity for substantially more MIPB If needed. If only MCS 1588 is accepted by our customers, life gets much more complicated and less profitable. Benzyl chloride supply would be a problem for the next two years until the WGK unit starts up. In addition, we have an occupancy conflict with Plasticizers for production time and the probability that Santosol 100 Itself will be changed, resulting in needs for additional storage for raw material and finished goods (or re-quallflcation using the new Santosol). C. Finished Blend MCS 1238/1588 ftueeny Is preparing a project (about $25M) for blending and electrical treatment. This facility is intended to supply the quantities required by a gradual phase-out but could handle our full requirement. The present timetable would be Inadequate for a sudden PCB withdrawal but could be stepped up to avoid any problem. This facility would probably become obsolete If we move to full-scale production of components in permanent faci 11 ties since It would probably be cheaper to blend in the new production facilities. Production cost of MCS 1238 would be 55-65C/pound during the two- _ year Interim period while a plant was built, provided that a 5-10 M pound demand materializes. Longer range cost at high volumes Is more attractive, in the 32c/pound range, as Indicated In our PIR studies. /tl EX p-31273311 Page 2 of 2 PCB-ARCH0750217