Document vVX4DbkRkmpkaoGEwG5X13x38

JOURNAL OF COMMERCE, Tuesday, January 14,1975 5 Sales, Earnings Plastics LDPE Market May Soften New Records Reported By Diamond Shamrock Corner In First Half of 1974 And Tighten in Second The U. a, supply of louden, vice new markets and support ure to observe due process Journal of Commerce Specie] CLEVELAND, 0!i:o _ mond Shamrock Corp. Mondy reportwi record sales and Mmiaes for both the fourth quarter and the U months en ded Dec. 31, 1974, For the fuH year, consoll<fct*d sales were J965.2 mil lion. per cent above 3651 l millioo reported (or 1973. Net eome from continuing oper ations increased 97 per cent to WJ million, or J5.78 per ir. compared with VS mil- Oil-to-Protein Project Set In Venezuela Journal of Commerce staff LONDON -- British Petro leum OP), the Venezuelan Government, and private Ve nezuelan interests are to form o now protein company. Bio Pro** nas de Venezuela (Venprotemas). Depending on the successful outcome of special studies currently under way, Venprotemas intends to build a 100 000 ton-a-year protein plant at Puerto La Cruz in Eastern produce animal, teed protein from hydrocar. usin^ BP technology. prot*in Plant would be the first to be built la a major oil Producing country anu oitfuWtslide Europe* __ r *****' The company wilt use BP's process to grow a high-protein natural yeast on pure n-paramns. which will be supplied t>y Venproteinas from an adjacent plant sIsq using a Bp patented process. It is expected that the proj. ect will start in mid-1975, with commission planned for 19777S. Behind the Venezuelan Goverorneirt's move into proteins the desire to increase agri cultural production and add value to the country's biggest natural resource, petrole um. Extensive toxicological and nutritional evaluation trials, carried out over a 10-year pe riod by independent institutes and research laboratories, nave demonstrated the safety and high nutritional value of BPs yeast, toprina. The use of toprina in animal feed is pennitted throughout the EEC, 16 Spain and in South Africa. Shareholder* in Venpro. teinas are: BP 20 per cent* the Venezuelan Government 60 per cent: and Venezuelan private capital _ including animal feed compounders _ 30 per cent. Deliveries Up lion, or $2.67 per share. Total net inoorrv* for 1973. including discontinued operations, was $30.$ million, or $234 per share. The 1974 results, according to C. A. Cash, president and chief executive officer, are in line with the company's fore cast of October 1974, with es timated earnings for the year at $5.75 per share. Discontinued operations in clude Pickards Mather & Co. and a polypropylene film plant which were sold in 1973. For the final quarter, con solidated sales increased 40 per cent to $263.5 million, compared with $178.7 million a year earlier. Net income in creased 105 per cent to $25.1 million, o- $1.54 per share, compared with $12.3 million, or $.69 per share. strong- Demand Mr. Cash stated that there was strong demand through out the year ta practically ail of Diamond Shamrock's major businesses, but added that there was some slackening in certain areas of chemical op erations in December. ' Even so," he said, "all major segment? of the company achieved record sales and op erating profits for the year. "We anticipate some soft ness in- certain segments of our chemical business in 1975, but our oil and gas business will continue strong through--<,.,,ir " \fr r,?>h said, w. rx.rw't 1975 earn ings to be aoove .me ivi* record levc1.'' He bashed his outlook on- (1) anticipated new oil and gas production resulting from the company's active exploration program, (2) new chlorine, caustic soda, and polyvinyl chloride production capacity, and (3) continuing strong agri cultural chemicals demand. Petrochemical Conference Set Journal of Commerce Staff LONDON -- The current standing and future prospects of the world petrochemical in dustry -- which has been no ticeably affected by the recent sudden inrtease in the world prices of etude oil -- will' be evaluated at an international conference at the Royal Lan caster Hotel, London, oo Feb. 5 and 6. Leading personalities in the industry from many countries, and from institutions which in vest in the industry, will be contributing papers on topics of current importance to bank ers and investors. The chairman of the confer ence, whicn is being organized by the London Financial Times in association with Oil Daily, will be E. Hoogendijk, member of the board of man aging directors, AmsterdamRotterdam Bank. sity Polyethylene resins will probably soften slightly during oj-.i'h'pnrt of this vear. ac cording to Stuart J. MaoEalTM^'r-tor of marketing for polymers. Northern Pet* rochemical Co., Des Plaines, "However, unless there is a orastre downturn in the do mestic economy, resin wiU likely return toa tightened po sition In -the second hall. The duration and severity tA the coming winter couid divert petrochemical feedstocks to neatmg frets and cause Gurtber restrictions on resinavailability," he added. Mr. MacEachen provided The Journal of Commerce with an overview of his com pany's activities in low-den* sity polyethylene from the time it began marketing prod uct made at its $50 * million Pound - per - year plant in Moms, BL in 1972. (Before that, NPC trained1 some of its personnel by selling "Nor* chero" iow-deasity polyethy lene made ifor it at the oid Monsanto plan* in Texas City, Tex. Northern Petrochemical Co. is one of the "Big Five" LDPE producers. It makes about 9 per cent of the total U. 5. production. "When we went on stream in 1972, we entered the mar ketplace with production from one of *he largest LDPE plants ever built. This was not * p^E'iod of shortages. Our to tal output was absorbed, juic ing stabilized and no major dislocations occurred. `In early 1973, when the supply ofresins became short. neither our product mix nor our customer base were fully developed. At that time we de cided that constant commu nication with customers re garding the ever-changing sit. uation was our best asset We supplied them with regular technical tips on how to get the most out of their resins and distributed resins to the best of our ability with an em* pit a s is oa the customer's needs, "Our stable of LDPE prod ucts has now matured. In order to accomplish- this, some resins offered prior to the shortage were withdrawn, but only when a product witfc equal or superior properties was available. At -the same time, e were always preparing for a less tight market situation. "In early 1974, resin- short, ages, spiraling inflation, and gloomy economic forecasts did little to alleviate the un certainties that permeated our industry. The major contribu tor to this condition was, obvi ously, resin availability," Mr. MacEachen said. He said that NPC ended 1974 by supplying about the same tonnage that U did in 1973. As for 1975, his views were reported in the -lead of this article. the past growth rate of exist ing markets. Our momentum has 'been temporarily idling, and this u> not a *uumi pv*,Lun. for any industry. Inflation and the bigli cost of capital, coupled with the uncertainty of feedstocks, will probably restrict investment in new plants and equipment, adding to our present dilemma." MOCA Chronology 1973-74 Outlined The court decision in the case of MOCA -- 4.4' meth ylene bis - 2 chloroaniline -- has been described as a dem onstration that the American system works. Here is its chronology, as supplied by the Polyurethane Manufacturers Association, based in Chicago: Litigation started in June 1973 when several organiza tions sought a stay of emer gency standards issued for handling this complex chem ical. The stay of enforcement was denied and PMA then sought, as an association, a variance from the published standards which covered 14 different hazardous chemicals and alleged carcinogens. A portion of the requested vari ance was granted, but not enough to prevent PMA mem bers from being requirodi to spend what they considered unreasonable sums of money to comply with regulations which me association and its members firmly believed to be both unwarranted and un reasonable. The Department of Labor and the Occupational Safety and Health Administration (OSHA) persisted in their ef forts to con trol use ot MOCA. The standards affected many industries and many industrial products, which in turn affect ed many other industries deal ing directly with consumer products such as business ma chines. snowmobile and other small engine components, wheels for industrial and other vehicles, and even, the new Polaroid Land camera. An OSHA Advisory Com mittee was appointed in June and its report was made in August to the secretary of la bor who published it in eanly September. The Occupational Safety and Health Act provides for public notice, discussion and submis sion of comments within 30 days of the publication of the recommendations of such a committee and further, that if there are objections to the committee report, a healing must be held within 30 days of the final date for receiving comments. The Department of Labor, however, proceeded to telescope these provisions of fhe law and attempted to car ry them forward within a three-week period -- Sept. 7 to Sept. ?8. and with acting la *a arbi trary and capricious manner irv publishing standards that were vague, not feasible and unwarranted. PMA empha sized that current safety tech nology, if used, was adequate to provide needed worker pro tection. Further, both employ ers and employes will be pro tected by permitting use of chemicals that are not harm ful but vital to the coatinuation ot the manufacture of polyurethane products so that plants that employ hundred* of workers can remain in busi ness. Briefs and counterbriefs were prepared and submitted during the summer and attor neys for PMA and for the gov ernment made their personal appearances before the court in late October. After another round of briefs, -he court handed down its judgment on Dec. 17. 1974 stating ". . . that the regu lation? applicable to 4,4' snethylene bis (Z-chloroar.iline) i commonly known as MOCA) be, and the same are hereby vaci*ed. and the cause be, ar.d the same is hereby re manded for the publication of a preposed standard, to be fol lowed by the required proce dures for the ailcwar.ee of comments and hearings... Rex Plastics Earnings Rise Rex Plastics. ThwnasviUe. N.C., reports sales Ivr ._ a a** year ended Nov. 30. 1974 amounted to $24,052,324 com pared to 513,196.417 :r. the pre ceding 12 months. Set income rose to $3,520,518 from $659,316. James W. Johnson, presi dent. repotted that Hex had made "two minor, bu: poten tially significant acqu;s.uons to 5'jppiemetU the operations of the Molded Products Divi sion." One was Vaco In dustries, Inc., of Charlotte, X.C. an electropLater of plas tics for the electronics, appli ance, automobile, furr.iture, and plumbing industries. The other was United Plastics, Inc., of Lexington. X.C., man ufacturer of injection molded plastic pans. Both are being operated as divisions of Rex. Rathmann Appointed Klaus J- Raihmar.r. has beerv appointed mananr.z di rector ot loterpolyrr.er GmbH. Wiesbaden. Germany, a subsiciary of Interpel.vmer AG of Basle. Switzerland. Han kins Appointed Dr. M. C. Hawkins has been appointed director, polypropy lene, for Beaunit Corp.'s Fi bers Division. He will be in volved in all facets of Beaunit's polypropylene business .including re.ponsibil::>' for the Speaker.-? will include C. M. According to Mr. MacEa Again PMA objected strong- Fibers Division's commitment il was 7.62 gallons of turpentine, Doricher. vice president of chen, some foreign polyethy ly. and apparently in to TU'A Marketing, Ire., the e 0 and 297.8 pounds of rosin. Gum grading was: zero, marketing and purchasing, Dow Chemical Europe: Pro lene is now finding a market in (he IT. but he feels that effectually, since the depart ment published standards and company's joint venture with Hercules Inc. Dr. Hawkins 8 WW less than >/ of 1 per cent fessor u. Colombo, director, because of their costs of pro made them effective, without was previously director of fi e WG, 7 N, W M, 29 K and be corporate research and strate duction and the import duties having followed the due pro ber development for Beaunit ts low. gic planning. Montedison; Dr. they have to pay. they cannot cess required by Congress in and will continue to re>;de in A. \V. Taylor, chairman, jwt- compete on a value-pricing the act itself. Raicigh, N C. SAVANNAH HJPtl UJPOAV - OveraJ! .<4)A of ro*it\ wpi-t M* drum pochcmicaK division. Id: basis with domestic suppliers. The Polyurethane Manufac- | f|ulvt#o*v ortmpHrfd IV ihe wppll bffoiv VPR.r r Nr WWS41 w<. VS) ruc. WW $41. /<*r ^xfrf>'t 7.1- fwf*. IB prompt ilnim **+ . WG '*fl T. (ivyrni -ilf* >< lurKo'iM <! 19.- Ja-gjrvan flam, minister of ag riculture and irri^.ition, India; Dr. Ludwig 'Pouluin. chairman, Wcstdeuischc l^nd- esbank Ciro/.entrale: and F. "The major dnmbacK to the lures Association thro brought ; resin shortage," he added, "is suit chaigina the Department ' Dip industry'.-* tn.ib.l.iy io ser of L'bor and OSHA with fail 11 WANTID: PHOSPHOROUS PENTOXIDE I'REA tmimiKr TETRA POTASSIUM PHOSPHATE lT