Document xjMk8DvxLe14V7xoMbwLVRwJg
Texas City, Texas August 5> 1965 Sales of Ethylene and VCM to Organic Division
W. R. Nlsbet
B. J. Darby VJ. R. J ohnson J. Roughton/J . Sehroeder
G. T. Ryan
The Organic Division will shortly be operating a pilot plant to study manufacture of an ethylene-VCK co-polymer.
Texas City will supply for this operation approximately:
VCM
- 110,000 lbs./month (in 10,000 gal. cars)
Ethylene- 30,000 lbs./month (in 5,000 lb cylinder trailer loads)
Since these quantities are obviously too small to be given consideration of a ''buy in'1 basis, the sale price will then fall into an inter-divisional price negotiation area.
As a basis for your discussions on price negotiation, we are suggesting the following:
VCM - invoice out at $6.06/100 lbs. FOB Texas City.
Basis:
We buy VCM at $6.20/100 Ft. equalized which resolves itself back to a $5-90 bulk cost. Loading charges here will be $0.06/l00 (our
standard carloading charge).
Ethylene - invoice out at $4.33/100
Basis:
Sales price (pipeline) is $4.00. Loading charge $0.33/100
Loading charges based on use of maintenance costs for connecting and disconnecting cylinder trailers at $15/truek x 6/month * $90.
CBY 1114744 RSV0032447