Document reoqGbMyaK289EvED8898Epbq

D. A. Olson - St. Louis December 11, 1969 POLYCHLORINATED BIPHENYLS H. S. Bergen P. 0. Benlgnus J. R. Pallon N. T. Johnson Our eotlon plan for discontinuing sale of Aroclors 125* and 1260 Is ss follows: 1. Kent Transfer Only product concerned Is Thermlnol PR-3. Hare 37 customers but West Bend accounts for 125,000 of 135,000 total pounds to date In 1969. Following Issuance of the general customer letter, we will work with Vest Bend to convert them to Thermlnol 66. Other customers can be notified of discontinuance of the produot and should be able to convert to PR-1. All can be accomplished and product discontinued by June. 2. Dielectric Major problem Is transformer fluids. The only known alter nates for the customers are to go to 12*2 or to quit making Askarel transformers. The key Is general Electric. Before the end of the year, we will meet with 0E and lay out the whole situation. The tint ing and dir eotlon of our next move will be dependent on (IE's reaction. They are truly concerned about the air-formed gases with 12*2 and may elect to stay with 1260 regardless of pollution. We will then have to determine whether to stay In buslneaa or let someone else have It. Assuming 0E chooses the 12*2 route, our timing will be deter mined by their needs. Ve do not want to evolve any arbitrary time table, but would tell them we arc aiming for mid-year. Other U.S. customers should not be n major obstacle once OL haa decided on a formula. Ve are already working with AlllsChalmers and ITE to convert to 12*2. HONS 096768 H. S. Bergen - 2 December 11, 1969 Sales outside of the U.S. pose a different situation. We now sell 7 million pounds of blends containing 1254 and 1260 (4.6 million from U.S., 2.5 million from U.K.). Decision on these custoners will be dependent on reactions of our competitors. If Prodelao keep offering the products, we may desire to con sent lnue manufacture at least at one location to support export sales. Our approach will be tot a) determine competitive reaction, b) switch any worldwide customers where no major technical problem arises, and o) reach decision on whsther to support the remaining busi ness. _ 3. Industrial A number of Pydraul products contain 1254 and 1260. taking two baalc approaches: a) Reformulate with terphenyls. b) Develop a straight phosphate ester. We art - A. Reformulation Products Replacement Pydrauls without Arocloro 1254 and 1260 have been formulated and pump tested. Replacement for Pydraul AC la now running In a Oueeny Plant compressor. Performance will be checked on December 15. If this produot Is successful, we will produce replacement pro ducts for Pydraul AC, AC Winter Orade, 625 and 5^0. The replacement products. If successful, will be produced early In January. Customers will be advised of replacement products and requestsd to switch to the new products. July 1, customers will be told by letter that the old products will be discontinued and no longer produced. B. Phosphate Eaters Trial quantities of new phosphate eater to be produced by January 19, 1970. Will be field tested In customer equipment for 60-day period. Offer commercially April 1, 1970, If successful. The new eater can also replace Pydrsul AC, AC Winter Oracle and 625. Pydraul 540 can only be replaced with a reformu lated product. D. A. Olson MQNS 096769 /kl