Document zzywqeoQ9aZbboLEbzm99ngz6

FILE NAME Corning OC DATE 1968 Mar 15 DOC OC036 DOCUMENT DESCRIPTION Report - Feasibility Study - Alternate Processes for Manufacture of High Temperature Insulation FIBERGLAS os - - eee POP Pechi SATO ATTTIETI ETH Ch NIE ITION PATTI CORNING FIBERGLAS FIBERGL FIBERGA LAS S FIBERGLAS FIBERGLAS FIBERGLAS COMPANY CORRESPONDENCE Mr. B. E. Boyd T led R. F. Shannon Granville Subject FEASIBILITY STUDY - ALTERNATE PROCESSES FOR MANUFACTURE OF HIGH TEMPERATURE INSULATION / Date te March 15 1968 Mr. E. Gay Toled Mr. R. S. Grant T led 198 Mr. M. Hardwick Berlin . Mr. R. J. McEvoy Granville Mr. C. G. Staelin Toledo Mr. R. P. Witschen Toledo Central Files Last January you asked me to take a good hard look at the various processes under consideration for the new Southwest Kaylo facility Attached is a copy of my report which summarizes our study of every known process As you will note I reduced the list to just three processes which merit further consideration for installatiaotn the new facility They ; ' - include pan pouring filter pressing bonded aggregate @ . The most important question which must be resolved before any final selection of process is made relates to the use of asbestos Silihoff Because of this problem I also included an evaluation of Multi in my report After all it is the only asbestos free product available Unfortunately I had to compare the various processes strictly on a technical basis I am not in the position at the moment to make a recommendation as to the process or combination of processes we should select for the new facility because of the lack of cost data As soon as cost projections are completed by Gay and Brooks on all of the processes still under considera- ate, tion we will be able to at least make a recommendation as to which process hee Be we feel offers OCF the best product and gross margins in the years to come I am sure you are already aware of the advantages and disadvantages of Berlin's pan pouring process Filter pressing has a lot of merit It produces a stronger better looking product the product is precision molded and the process itself is highly automated Bonded aggregate products as they now exist on the market have serious shortcomings They break easily in transit and when handled Why then would we still want to consider this process The reason is if Philip Carey ever solves their breakage er rey problem they will have the best product on the market It is precision po molded lends itself to automation is water repellent higher temperature resistant and is a autoclaved product Last but not least is the fact it has the best chance of being made asbestos free The only reasons for considering Multi are the facility is already available the product is free of asbestos fibers and it could relieve some of the current overload . at Berlin especially in the block market It is my hope this report and disadvantages of each a much better position of best for the new facility gives you a better insight process Once we get cost making a recommendation as and for the 1970+ market as to the advantages data we will be in to which 01 PLAINTIF'S PLAINTIFF'S EXHIBIT OCF INTRODUCTION INTRODUCTION The expanding market for Kayl pipe and block has made it not only to expand the Berlin necessary for OCF building a new facility in operation again the in 1968 but also to consider today is defining the type of Southwest The problem facing Management Should it be Berlin's process to be installed at the new facility pan pouring process one of the more automated developed by our competitors or a combination of processes considered by Management is whether processes Also to be ture market of the future Multi has a place in the high tempera- 5 To help Management decide which suitable for installation at process or combination of processes is most the new Southwest facility Kaylo R & D carried out an intensive evaluation of all known temperature insulation products A lack processes for the manufacture of high made it necessary for us to limit of cost data on competitive processes rather than a more this study to strictly a technical comparison preferred technical evaluation SUMMARY Strole ote The Kaylo R & D study confirmed the fact no other Kayl block made by the pan pouring product can compete with It market Block made by the filter process is by far the best on the aggregate block crumbles It press process tends to delaminate bonded should also be noted that neither the filter press process nor the bonded aggregate process can be used to 17 type core for the fire UL fire rated door market produce structural To maintain our position in the block and produce such products by the core markets we must continue to whether block and pan pouring process Management must decide If the is core products are to be produced at the new Southwest facility answer yes a pan pouring flatware line will then have to be installed The second decision Management must make relates to the combination of processes to be installed at the type of process of production of pipe insulation If Southwest facility for the other than the decision is made to go to a process pan pouring technology will have to be purchased sufficient time to develop from scratch an alternate There is not the timing for construction of the Southwest facilityprocess and st, ill meet Management has a number of of pipe insulation at the process options to chose from for the production press or bonded new Southwest facility They include 1 a filter aggregate process to produce all sizes of pipe up to and including 30 inch OD 2 a pan pouring process to produce the smaller sizes and a filter press or bonded pipe large size sectional pipe and 3 aggregate a process for the production of pipe sizes and pan pouring process to produce the smaller large size a Multi facility located anywhere for the production of sectional pipe With our current level of process should not be considered for technology the pan pouring new facility pouring large size sectional pipe at the 01 023 0980 -2- SUNDARY Cont) The Kaylo R & D study indicates that from a technical standpoint no one process has a distinct advantage over other known processes for the manufacture of high temperature pipe insulation Each has its advantages each also has a number of disadvantages Only after a comprehensive cost analysis is made on each process will we be able to decide which process or combination of processes is most suitable for the new Southwest facility Our intensive technical evaluation of all known processes for the manufacture of high temperature insulation products indicates there are only three processes worthy of further consideration for possible installation at the Southwest facility They include the Berlin pan pouring process Manville's filter press process and Philip Carey's bonded aggregate process All of the other processes considered during this study with the possible exception of MultiTarp were rejected because 1 the process would not yield a product suitable for OCF's needs or 2 the process was not sufficiently developed to meet the time schedule for installation in the new Southwest facility The Crosfield filter press autoclaved process failed on both accounts Multi should only be considered for the production of large size sectional pipe and possibly as an additional facility for the production of high temperature _- block when Berlin becomes overloaded Before a final decision is made by Management as to the process they will adopt for installation at the Southwest facility and the product they will market in the 1970's and 1980's they must consider a number of basic questions relating to rising labor costs need for automation need for a product of a higher quality level and the asbestos fiber health threat This report will attempt to outline the questions which must be considered and acted on before the final decision as to process is reached This report will also provide for Management's consideration a list of the advantages and disadvantages for each of the processes still under consideration for the new Southwest facility RESENTATIONS RESENTATIONS RESENTATIONS RESENTATIONS RESENTATIONS RESENTATIONS RESENTATIONS RESENTATIONS A visit to Manville's Research Center has already been made to appraise the filter press process This visit must be followed by an OCF prepared cost projection and a plant visit A visit should also be made t Philip Carey to appraise their bonded aggregate process It too should be followedup by a cost projection and if possible a plant visit Cost projections must be made or updated on the filter press bonded aggregate pan pouring and Multi processes To achieve a fair comparison cost projections for the pan pouring process should be made on a more automated process than now exists at Berlin The latter is a reasonable request since a major R & plant program is currently underway to reduce labor and batch costs and to achieve a higher degree of automation of the pan pouring process Cost projections on the filter press and bonded aggregate processes must be prepared at two levels of activity One cost projection should be based on the assumption the filter press or bonded aggregate process will be used to produce the entire line of pipe up to and including 24 x " The second cost 01 023 0981 RESONMENTATIONS Cont) projection should be based on the assumption the filter process will be limited to the production of large size Under these conditions it must be tied in with the cost press or bonded aggregate sectional pipe only projection covering pan pouring of the smaller sizes of pipe The Multi cost projection should be limited to large size sectional pipe only It too must be tied in with the cost projection covering the pan pouring of the smaller sizes of pipe To get a good economic picture of the various options available to us cost projections should be prepared on the following process combinations Oction Block Pipe 1 Pan poured Filter pressed 2 Par poured Bonded aggregate 3 Par poured Small sizes pan poured large sizes filter pressed 4 Par poured Small sizes pan poured large sizes bonded aggregate 5 Pan poured Small sizes pan poured large sizes Multi It is possible the new Southwest facility will be limited to the production of pipe Kayl block would all be produced at Berlin and stockpiled at various distribution centers in the Southwest and West Since thiiss a possible Management option cost projections should also be made on the five pipe process combinations listed above minus the pan pouring facility for block In deciding the type of process to be installed in the new Southwest facility Management will have to give serious consideration to the asbestos health threat What effect if any will it have on the future growth of the overall high temperature insulation market and our share of the market in particular It could be the most important decision we face in deciding which process to install in the Southwest facility The only asbestos free product on the market during the past 5-10 years was Multi All three processes pan pouring filter press and bonded aggregate now under consideration for the new facility contain asbestos The probability of removing asbestos from the autoclaved bonded aggregate product is far greater than it is from products made by either the Manville filter press or OCF's pan pouring process both of which require autoclaving and are based on highly alkaline batch compositions In the event Management decides to install the Berlin pan pouring process for both pipe and block at the new Southwest facility Kaylo R & D still recommends that an alternate process either the filter press or bonded aggregate also be installed on a limited basis either at Berlin or at the new facility This shoul be further supported by an R & D program on the chosen alternate process at Granville These recommendations are being made because it is our opinion the company should not have to again face the process dilemma we are now facing If future market conditions demand a product made by a process other than pan pouring we will have the technology knowhow and experience to convert our manufacturing facilities over to the new process without delay Regardles Regardless of the decision as to the process to be installed at the new South- west west facility the major & plant program currently underway to automate thethe pan pouring process at Berlin proceed full speed ahead especially for for the processing of Kaylo block 01 023 0982 REISIINITATIO Cont ) During this planning period many have suggested two processes be installed in the new Southwest facility the pan pouring process for block and smatter sizes of pipe and filter press for the manufacture of larger sizes of settlers pipe The first question which must be resolved is will our customers and the I and C Marketing Division accept two types of pipe products If the answer is yes the second question is would market also accept Milti if it were limited to the larger sizes of sectional pipe If the only reason for purchasing a filter press or bonded aggregate process from one of our competitors is for the manufacture of large size sectional pipe ... sizes in the 13 to 24 inch ID range then we must ask whether it would be better to direct a major effort toward producing large size sectional pipe by the pan pouring process acceptable gross margin levels rather than direct such a major effort expense toward a new process and technology toward for such a small portion ofthe overall market Actually there has been little if any technical effort directed toward learning how to pan pour large size margins sectional pipe with adequate gross To achieve such a result changes in mold design as well as new techniques of pouring prehardening and handling must be developed If Milti pipe is acceptable to the market and gross Kargins are projected as being adequate when limited to large size sectionals only then OCF already has a product a process and a facility available to service the large size sectional pipe market se oe DISCUSSION DISCUSSION Asbestos Asbestos - The first question which must be resolved is the use of asbestos as the rein- f^reingfiter Today all high temperature insulations contain astestos reinforcement In fact during the past 10 years the only known asbest~ s . free high temperature insulation on the market was Multi a product s l^f^ra brief period of time by OCF To emphasize how important is the problem of asbestos as a fiber reinforcement I would like to call to your attention D. W. Lace's letter calea closer 9 1987 to vi K. Berndconcera- ing asbestos and Kayio expansion Cesting from 15. Lace's maz I there is no other consideration which is of paramount importance to subject As you are well aware the government will probably 51 w relative to the use of asbestos in the not too distant future azi Cox this whole 20 the wal3 20 baf r we embark upon a substantial expansion program at Berlin and consider putting new facility in the Southwest we had better be damn sure that we have in answer to the asbestos threat Work has been done on this in the past and to date there has been no successful answer The probability of replacing asbestos fibers in calcium is rated at bost at 50/50 No solution to this problem OCF Manville told us recently they too have had silicata products has been found by no success in getting glass fibers to survive the autoclave process If the decision is to install the Berlin pan powing process or the Manville filter press process at the Southwest facility we are accepting the fact the reinforcement used will arobably be tne imiess a breasthmanah & " UL TOR 8 " the ae If Management decides the asbestos threat is still with us then careful consideration should be given to the bonded aggregate process It does not involve the highly alkaline calcium silicate batch which attacks glass oe and does not require as part of the process the use of expensive autoclaves which dissolve glass Although Careytemp Philip Carey's bonded aggregate high high high temperature insulation contains some asbestos the probability of develop- ing ing ing ing a bonded aggregate product reinforced with 100 percent glass fibers remains ing quite quite quite quite quite quite high high high high Manville told us during our recent meeting in Manville New Jersey they were surprised we never followed on our high temperature glass fiber insulation product line Multi By the tone of the conversation they seemed to be concerned about this product If it were to be placed back on the market it would be the only asbestos free product available If the asbestos threat is real and is a serious threat to OCF's participation in the high temperature insulation market of the future then should consider directing a major . R & D effort toward product and process modifications to raise gross margins to adequate levels Alternate Process Licensing If a decision is made to install a process other than pan pouring at the new Southwest facility technology will have to be purchased There is not sufficient time to develop from scratch an alternate process and still meet the timing ~- for construction of the new facility Since the purchase of technology will probably mean taking out a license from a competitor the cost of the license and its adverse effect on gross margins and competitive position in the market must all be carefully considered OCF already has 20 years or more of technology on pan pouring and several years plus a patent position on Multi Major strides have been made in recent months in mechanizing the pan pouring process at Berlin No costs for licensing will be involved if the pan pouring process is chosen for producing both pipe and block at the new facility The same is true if large size sectional pipe are produced by the Multi process Competitive Processes Before tabulating the major advantages and disadvantages for each of the processes still under consideration for installation in the new facility for Multi I would like to compare briefly each process against the three and others The major problems with products made by the pan pouring process include 1 they are not as strong as products made by the filter press process 2 they have a visual appearance inferior to both filter press and bonded aggregate products 3 not being precision molded dimensional and nesting problems result in customer complaints and 4 products made by pan pouring involve considerable hand labor to produce Labor costs for the production of pan poured pipe constitutes nearly 40 percent of the total manufacturing cost With labor costs rising rapidly pipe made by the pan pouring process could be -~ + nas -~ ~~ es Die ce T Lam, Competitive Competitive Competitive Competitive Processes ( Cont) placed at a competitive disadvantage in the future with pipe made by one of the more automated processes such as filter press or bonded aggregate It is quite unfortunate OCF did n t place the same emphasis to 10 years on automating our pan pouring process as our theirs If we had it is quite possible we would not be during the past 5 competitors have on today in the position of having to take a license from one of our competitors density Kaylo made by the pan pouring process does have a number of advantages over all other products on the market today They include 1 the ability to produce by one process both light density heat insulation and heavy density structural core material 2 the tremendous flexibility of the daily mix of goods coupled with the ability to expedite desired various sizes and thick- nesses of both pipe and block 3 the best service shipping cycle in the industry 4 the versatility of batch composition to achieve lower costs of batch on a cubic foot basis 5 production of the best block products on the Market and 6 production of light heat insulation and structural the core with maximum temperature resistance of 1800 F. press the filter developed by Manville - As to competitive processes has drawn the most interest from OCF personnel There is no doubt it has a number of advantages over both the pan pouring and bonded aggregate processes Products made by this process have considerably higher flexural compressive and impact strengths It has a better visual appearance than Kaylo and like the bonded aggregate process produces pipe and block products which are precision molded The filter press process also lends itself to the production of large size sectional pipe up to and including 30 inches OD Field breakage of filter filter pressed products is extremely low Finally the process as now developed by bonded Manville is highly automated When compared to products made by the aggregate process filter pressed products have two distinct advantages higher physical strengths and lower breakage characteristics has a number of disadvantages when compared directly The filter press process include 1 shipping delivery cycles are with the pan pouring process They 2 flexibility in the daily mix of goods is poor 3 considerably longer the fabrication of fittings batch costs are higher 4 does not lend itself to when moisture 5 product densities are higher 6 has a tendency to delaminate is absorbed 7 will not produce structural core 8 produces block products less acceptable to the market and 9 operating efficiencies due to a 5 to hour period for mold change over are still very low compared to operating efficiencies for the pan pouring process 8 water repellency repellency The bonded aggregate process as developed by Philip Carey has many advantages over both the pan pouring and filter press processes If and when Philip solves their handleability and breakage problems they will have by far Carey the market Some of the major advantages of the bonded the best product on aggregate process include 1 a very low manufacturing cost 2 a very low fiber investment cost 3 a autoclaved product 4 ability to use glass as reinforcement 5 ability to produce a precision molded product 6 a investment costs which lends itself to high production rates at low process 7 1500 to 1600 F temperature resistant product and . Fd ) Competitive Processes Processes Cont Cont EY . . p . 27". - I oo, [ : 7 [ When compared directly with filter two major disadvantages It pressing the bonded aggregate produces a product with lover process has strengths that is susceptible to breakage when and one has a number of advantages over roughly filter handled On the other hand it lower batch costs are pressed products Overall process higher higher lower for substantially temperature applications 1500 the product can be marketedcost fittings can be fabricated from the vs 1200 F it is water repellent no autoclaves and it product probably can be investment costs are much lower use glass fibers as reinforcement in made free of asbestos The ability to tremendous glass fiber knowhow this product when combined with the our Kangement give carefulcareful available to consideration OCF personnel makes it mandatory rejecting it in favor of a process to the bonded aggregate process befor favor Liber . which requires the ' asbestos . . : reinforcing . the - asbestos it only Where does the Malti product ; The product as we currently know and process fit in the overall picture " it does not yield adequate gross pcroomdpuetcetsacrHoosswetvheer board with pan poused filter pressed or bondedmargins to is a natural for one OCF to must remember is a glass fiber product aggregate plants it were tomabreket and one that could be produced at one that of free product on the placed back on the market any it would be the our market today . J wet | - ] a { 1 . ' : t | we ahead and Southwest - Should go install the facility rather than the filter pan pouring process at the new a decision which Management press or bonded aggregate process This is must rake process is chosen to produce If the filter press or bonded then there is no need to the complete range of products at the aggregate reconsider Multi this time new facility the asbestos threat reaches the at asbestos danger point would If and orly if free product such as we then want to reconsider Karket Multi for the high temperature insulatio Multi If for some the pan pourirnegason such as high cost of licensing Management of deciding process how to in the new facility we will decides to again be install produce large size sectional facing the proble could be the answer Even if pipe Under such circumstances powing process for all license production Management decides to go with the pan the filter press or bonded except large size sectional and choses to | we must raise the question whether aggregate it process to produce these products license another process from is worth all the problems and of the market one of our costs to , . competitors for such a small . percentage . , L We must market large size not to license another sectional pipe to remain competitive If large size process we would have three we chose sectional pipe as we do choices 1 fabricate to learn how to now at Berlin 2 start sectional pa pouring pour process large size sectional pipe at adequate up a crash program or 3 we could rarket a line of gross margins by the Temp pipe sectional Only under those conditions where large sectional Mil- pipe is to be made by the all production except large size facility would I recommend pan pouring process at the new of large size sectional we reconsider Multi Temp..Lited Temp..Lited to Southwest and to pipe block when the production o Berlio block oakum Pon194 Pon194 Pan Pouring Pan Pouring Kaylo Cont Advantages Cont) 13 Drying costs are currently lower for products produced by any other pan poured products than for be lost since the SID process This advantage will soon cylinder patent expired in January 1962 Densities of par poured products are lower than pressed products densities of filter " In general thermal conductivities of than for competitive products pan poured products are lower 16 Pan pouring operating efficiencies are considerably higher than they are for filter pressing when 17. Fittings can be cut and fabricated from press products delaminate pan poured products Filter into fittings attempts are made to fabricate them 18 No license would be involved if the decision is to install a pan pouring process at the new Southwest facility Disadvantages 1. Physical strengths of pan poured products are lower obtained from filter than those pressed products i 2. Visual appearance of surface is inferior to both aggregate products filter press and bonde 3. Pan pouring is not a precision process Problems of dimensional fsitaeblidlity and nesting of ware show up from time to time in the 4 With current level of be poured with technology large size sectional pipe cannot adequate gross margins by the pan pouring process 5. Like filter pressed products pan poured products with asbestos fibers With are reinforced cannot be used in either proccuersrsent level of technology glass fibers 6. Pan pouring requires the use of Dowtherm units expensive autoclaves SID's and 7 Pan poured 10 products have a maximum of 1200 F vs 1500 to 15000 F for bondedteamgpgreergaattuereparpopdluicctastion 8. Pan poured products have higher breakage losses while in transit and when handled at the job site than filter pressed products Ne 01 023 0988