Document pmpB6RjzapyZL0KEmNZq80gpa

cc; 3, H. Baird CH-Z t. H. Papineau 3. E. Kramer R. F. Mahlberg E. I. d u Po n t DE Ne mo u r s & Co mpa n y imc c r p o r a t k o Wil min g t o n , De l a w ar e 198S8 R. N, Selby R. P. Rogers R. U. Tobar W. H. Miller S. F. West CHEMICALS, DYES AND PIGMENTS DEPARTMENT R. Buckland - Ducan, Toronto K. L. Neynaber - DISA, Geneva (4) R. H. Akins -Newark (3) R. Z. Fortney - Newport (3) E. E. 3affe - Chambers Works (3) E. W. Stewart - Chestnut Run (3) FOR Oil PONT USE ONLY t November 8,* 1979 DISTRICT MANAGERS ASSISTANT DISTRICT MANAGERS SALES REPRESENTATIVES Colored Pigment Products Newsletter Attached is your copy of the November Colored Pigment Products Newsletter. Our objective for this letter is to improve communication from the product group to field sales and support people. This informa tion is confidential and should be treated accordingly. PI ease drop me a line or Call and indicate items you would like to hear more about. This newsletter will only be as good as we col lectively make it. 3ST:cab 3. S, THACKRAH FOR DU PONT USE ONLY COLORED PIGMENT PRODUCTS DIVISION NOVEMBER MONTHLY NEWSLETTER Sales and Earnings Due to a combination of reduced auto industry demand and a lack of control over order entry, inventories and billings, September revenues were 348 below forecast. Nine months' revenue is 2.18 under forecast and 5.98 above 1978. Pretax earnings are 308 over forecast and 1208 over last year, October sales are expected to be 20-258 above September. Service Oyershadowing the fine improvement in year-to-date financial per formance, our timely supply of product and information to customers has deteriorated to an unacceptable level for these reasons: 1. After 3uly shutdown, Newark quality fell off and inventories quickly depleted. 2. Edison Warehouse startup fell short of expectations. 3. Sales Order Center equipment/computer systems did not function as expected. 4. SOC personnel were not adequately prepared to meet the demands placed on them because of problems 1, 2 & 3. Our number one business priority is to correct this situation. A special management task force has been operating to modify proce dures and systems used for controlling production, inventory and orders. Progress is evident, but we are not out of the woods and may not be until December. Inventory levels have increased on many products, but Customer service has yet to significantly improve. We are certain that many shipments have been made, but not billed. In the interim, relations with customers can best be served by acknowledgment of the service crunch. It is important that we all realize the problems of the past few weeks are basically growing pains. The Sales Order Center and the Edison Managed Distribution System will be valuable assets to improved service to customers and therefore the long-term health of our business. Colored Pigment Products Reorganization The marketing group in the Colored Pigment Products Division previously was organized on a product line rather than industry (market) basis. Under the new organization, market orientation will replace the product line structure. Immediate goals include gaining a sound knowledge and understanding of the market segments we serve, including: (1) product needs, (2) growth prospects and (3) new opportunities relative to Du Pont strengths. DUP050070975 N42131.01 2 Additionally, we will place emphasis on value-in-use, products and pricing; programs to support the high growth automotive and plastics market segments; and a further shift in product mix toward unique and/or proprietary products with large profit potential. New group members include John Thackrah, Marketing Manager; Dick Repetto, Product Manager (Paint); and John Kane, Product Technologist (Ink). Although Dick came to us from the New Business Development Group in CR&D, he has spent most of his career in F&F in various Sales and Product Management rolls, which include the Trade and Industrial paint businesses. John Kane transferred from A&BA, where he gained solid experience working on Dye business problems; and John Thackrah, formerly Dye's Sales Manager, brings an excellent background in Market Orientation. Doug Cassel and Don Hoppenjans have the priority growth markets of automotive and plastics, respectively. We are confident that this new level of specialization will lead to increased perspective of the markets we can best serve, improved business planning and direction, and an establishment of priorities that will provide a sound basis for a high-return business. p We all look forward to working with you. Just give us a call and let us know how we can be of service. Competitive Rumors Customers, aided by our competitors and poor service, are wonder ing if we will stay in the colored pigments business. The answer is an emphatic YES, and we plan to outpace our competitors in growth and profitability. We, unlike many competitors, have already made most of the major capital investment in pollution control. We expect to continue to update our plants, expand profitable business segments, and make a strong commitment to new product R&D. Now is the time tq stop the rumors. If you can provide us with specific information, like the name of a competitive salesman and a quote, we wi11 have our Legal people contact the competitor. This action helped stop rumors about the Dyes business. Shortly, our service situation will be corrected and support our future intentions with positive actions. We are in the colored pigment business for the long haul, and it is important that your customers receive that message. General Business Conditions Concern about the length and depth of the present recession continues in all businesses we serve. Recent information from Chuck Reeder and other economists indicates inventories are building in many areas. We all should be aware of changing business conditions and report trends. Hopefully a repeat of the 1974-1975 inventory problems can be prevented. The credit "crunch" is certainly going to affect all businesses and should be followed closely, particularly at smaller accounts. It is important that you let us know how your customers are facing the present economic climate, and we will do our best to co ordinate supply" and demand. Quinacridones Production rates have improved and order backlog is declining. We plan to continue increasing inventories until we are able to ship DUP050070976 *. y 98# of our orders within ons day of requested ship date. By early November #e should be in an improved supply position on RT-791-D, RT-792-D, YT-815-D and YT*823-D. We have had continuing manufacturing quality problems with RT-733-D. This product Is low In volume and high in cost. In our next newsletter we will detail our obsoletion plans. In the meantime, we have 5M lbs. of 10% weak material available at $15.O0/lb. CPC Blue It now appears there will be no need for CPC allocation* Although the Japanese crude used by our competitors to make finished CPC blue has been in short .supply* most manufacturers have found alternates or used inventory to cover requirements* We believe inventories overall in the country are still quite lqw. Due to our own production problems, particularly with flocculation-resistant 8T-425-D and BT-427-D, we have been unable to capitalize on new opportunities. We anticipate most problems are behind us and we expect to be in a satisfactory inventory position by January. CPC Gpeen Inventories are very high. GT-805-D had quality and process problems, but is now back on track. Inorganics - Regulatory Impact In its first action to protect worker fertility and health of the unborn, OSHA on October 10 cited American Cyanamid for violations of health standards at its Willow Island, WVA, plant (See New York Times article, Attachment 1). The ramifications of this case may-have far-reaching impact on many manufacturing operations in addition to lead chromates. We believe we are in a much better position than any of our competitors in the inorganic pigment business and plan to continue to invest major sums to increase market share if new govecnment regulations allow. It is in our beat interest that customers be well informed regarding existing and proposed legislation. To this end we previously prepared and distributed a compliance manual, and in selected cases, we have arranged customer visits to Newark and offered consultation at customer locations with engineers from Newark's Environmental Group. We have also conducted seminars in the Cleveland, Wynnewood and Charlotte Districts. On behalf of your customers, please take advantage of these services. We plan to update our compliance manual as information becomes available by subsequent mailings to those having copies and who have returned receipts. The distribution of manuals and receipts on record by districts are contained in attachment 2. Additional copies of the Manual are available from W. H. Miller (CD&P N-2496). supply Except for low-dust Krolor and moly orange codes YE-698-D and YE-421-D, all inorganics are now in an improved supply position. Krolor capacity and inventory standards are increasing. DUP050070977 4* Domestic Lead Chromate consumption (ex-Krolor ) through July was 53MM pounds, up 9% vs. t-YTD. Our sales were down slightly and our share dropped 3 points to 22%. However, our average realized price increased almost 20% and our business is probably more profitable than it has ever been. Formerly a large importer, Kikuchi are starting up lead chromate production Facilities in New Jersey. Their stated intention is to begin by making chrome yellow for traffic paint and to sell through Ravelli. Please let us know to whom they sell and at what price. Krolor lead chromates are also sensitive to OSHA regulations. Our best defense is more aggresive promotion qf our 900 series low-dust Krolor products. Your customers are now preparing their compliance programs and coming to grips with the costs involved. Switching to low-dust products is one of the lowest cost and most constructive steps they can take. A sales aid covering these products was distributed earlier this year. Additional copies are available from W. H. Miller. .* Krolor products are the target of increasing competition. Please let us know if the following are promoted to your customers: Ciba Geigy - SKEPTRE Synergistic (Toho Ganryo) - Eternal yellow 1500 4 2500 "Watchunq" - Supply has marginally improved. Tight inventory positions exist with RT-761-D. By mid-November customer shipments will be made for RM-417-0, RW-635-P, RT-698-D, RT-710-D, and RT-841-D. All other products are in reasonable supply. Dalamar - Inventories for some key codes remain below require ments . Adequate stock is currently on hand for YT-717-D, YW-718-P, and YW-822-P. By mid-November we expect to make shipments of YW-731-P, YW-811-P, YT-820-D, and YT-858-D. We will continue in a tight supply position on YT-808-D into December. Dalamar YT-858-D is a color match for YT-717-D but with im proved crystal stability. By January 1, 1980, we pi an to formally announce the discontinuance of YT-717-D. Currently we have 30M lbs. inventory. Pursuit of new business should be with YT-858-D. in Price Increases Our October 15 price increase for products with post-October 31 shipping dates is in effect. We welcome any customer feedback. We have had very little so far. We would appreciate a copy of the recently announced Ciba-Geigy/ Hercules increase. In the next newsletter we will provide a competi tive pricing profile. R. A. REPETTO DUP050070978 CHEMICALS, DYES AND PIGMENTS DEPARTMENT R. P. Rogers R. U. Tobar *W. H. Miller f S. F. West R. Buckland K. L, Neynaber R. H. Akins R. Z. Fortney E. E, Oaffe E. W. Stewart DISTRICT MANAGERS ASSISTANT DISTRICT MANAGERS SALES REPRESENTATIVES November 9, 1979 COLORED PIGMENT PRODUCTS NEWSLETTER The enclosed two attachments were inadvertently omitted from copies of the November Newsletter dated November 8.- J. S. THACKRAH DUP050070979 N42131.02 ATTACHMENT 1. U.S., in a New Use ofLaw, Cites 10/11/79 By PHILIP SriABBCOFF SpecialHieNew YorkTine* WASHINGTON. Oct, 10-TI| Govern- en^i|BB> Ranged the .",w that marfft _____ At a fAmn ertttdititittS are MtnpwwM* WM,L must be sterilired to keep their Jobs Is said the violating thelaW. d"""T?iS`S?SS, lEgfCSS WStoteSEH that they i&d voluntarily rtorubed j*. *!* fertility* the agency found other to keep wOJr jobs to i!etmovri violations involving excessive exposure I wfflrsacsa,saS s j s s i-*---- * SbSMSSiSlSSSSffiffiSeS SS,.,S55,^oiiS3'iiSiSi'tiM esasssa^ss: gg&Sssssxsst j^sfssswS*g cssss$ssvs S&wsssss and safetystandards. putrtic-interest groups not only as a Extension of Law's Provisions health problem but also as a civil rights "What this citation is saying," Dr. Biinneghhaam said in a teeileeppnhoonnee imntewrvniewwi.1 and civil liberties issue arising from the ebxj ckluubsiiounii ov .f workers of child-bearing ' `BistU-h* iaa- -tt Wc..o.Um---l|-p-n---ManM*ieWms saMsrtet*ifrraeHqtunirmeda. let.o* make potential from certainjobs t,hi e workplace Msa#fae ffAorr mmAenh falnnHd wWofltmReGntl., . --Widesp_r_ea_jdkEx>ac1l<usions ' Part of making it safe is making it safe forreproductive capacity." ' Anthony Mamocchi, director of health and safety for the Oil, Chemical and Atomic Workers Union, hailed the action as "a landmark" that would have a major impact in plants across the coun Anumberof companies,particularly in the chemical and nuclear fields, have i made a practice of excluding women pi child-bearing age from certain jobs as a means ofprotectingfetuses. Earlier this year Dr. Bingham, noting the high incidence of deformed children tGrhabriayngao"c.aThvckeethkerditdnesovmbdiissycebtotntmvhnhtemcehtehflaaeiievrswsle.wos,t"caat'icinmsdudaapetiwahdbttaheiMotaanrtrta.htlCMhwehhehaoewizxAFalodzlelrrttuokhhedceneaawcrrnhnsuaisid*d,l j.i(usamrtiotnooaondnhnrm,e,sttiethawilnellebtbamilureltrothadorresexnniwicn.aebethsoxueupstocptsoheuuecrnetetsthrfyfoae,ntcsitarsteiidosp,frao".eTdsnuuhvbcie-- . ATTACHMENT 2 CHROMATE COMPLIANCE PROGRAM DISTRIBUTION District Charlotte Chicago Cleveland Houston New York San Francisco Wynnewood Wilmington Transfers Binders Sent 167 359 225 175 325 265 125 3 12 Customers 142 214 155 145 309 239 100 3 12 Cards Returned 99 202 209 120 173 50 76 3 12 9/24/79 WHM DUP050070981 N42131.04