economics. And its presence in this report presages the importance economic considerations are likely to play in setting environmental regulations in the Reagan Administration. According to the report, the U.S. spent about 1.5% of the gross national product, or about $37 billion, in 1979 to comply with federal environmental protection rules. This expenditure, the report says, "had little impact on productivity," if current inconclusive studies are to be believed. At his final press conference as CEQ chairman, Gus Speth outlined the "primary environmental concerns of the 1980's." Simply stated, these are the global environment and concomitant resource problems, especially the loss of biological diversity; groundwater pollution by toxic chemicals; and desertification or land degradation, especially in the arid West. These three concerns are highlighted in the 11th annual report. But the problems of groundwater pollution and desertification were considered important enough to warrant separate studies, which were issued along with the annual report. "Desertification of the U.S." focuses on the problem in the western U.S., an area where long-term productivity and habitability are threatened. "Contamination of Groundwater by Toxic Organic
Ban on formaldehyde fo< In a highly controversial decision, the Consumer Product Safety Commission has proposed a ban on any future use of urea-formaldehyde foam insulation because it can release significant amounts of irritating and possibly cancer-causing formaldehyde fumes. This type of insulation has been installed in about 500,000 homes in the U.S. The commission's decision, based on a CPSC staff report last month recommending action, considered both chronic and acute effects of formaldehyde exposure. In addition to earlier reports linking formaldehyde with cancer, a recent preliminary report by the Chemical Industry Institute of Toxicology seems to indicate clearly some carcinogenicity of the compound at high concentrations. This was an important factor in the decision, but the acute ailments— respiratory problems, nausea, headaches, and eye irritation—experienced by some persons in contact with the insulation also were significant reasons for the proposed ban.
to show that mandatory product standards are not possible before proposing to ban a product. There are indications, however, that the ban may never take effect. The CPSC vote on the proposal was made along strict political lines. The three Democratic commissioners favor the ban, but the two Republican members urged that some kind of warning statement about possible health effects be used with the product instead. When Ronald Reagan assumes the Presidency, he will be able to appoint a new commissioner to replace retiring CPSC Chairman Susan B. King, and that person is likely to be a Republican. When the final vote is taken, which will be at least 10 months from now, the majority could conclude that the evidence at that time does not warrant a total ban. The industry association fears that the ban of formaldehyde-containing insulation may set a precedent for Speth: environmental concerns of 80's action against other products made with formaldehyde. The compound is Chemicals" amplifies the main theme used widely in making plywood and of last year's annual report (repeated particle board, and free formaldehyde again in this year's report). Council is even released from some man-made member Robert Harris says the an- fabrics. A CPSC spokesman says, nual report and the groundwater however, that the commission is not study clearly document "the emer- considering any other action on gence of a new threat to groundwater formaldehyde products now. CPSC estimates the ban would cost resource—widespread contamination by toxic organic chemicals." • the industry about $160 million, but its industry opponents say the move could wipe out the large number of firms involved in the foam insulation m insulation proposed business. The commissioners believe, The Formaldehyde Institute, a however, that the health issues more trade group formed two years ago to than outweigh any economic disgive scientific and technical aid to the placement to manufacturers. They industry, calls the CPSC decision apparently think that many of these "scientifically unjustified and in- companies are involved with other consistent with current health infor- aspects of home construction in admation." The association says that dition to installing insulation and that the commission should have waited they could switch to substitutes that for the results of new studies begun at also could be blown into walls, such the National Cancer Institute before as cellulose, rock wool, or glass making a decision. The group con- fiber. • tends that other epidemiological studies indicate that formaldehyde at levels normally encountered in the Activity swells at workplace and home is not a health risk. The industry had hoped CPSC gene-splicing firms would accept industry standards for the insulation's use. Considerable activity has taken place "Product standards can provide within the recombinant DNA, or the necessary protection for public gene-splicing, corporate community health," says James Ramey, chairman in the past week. Among these developments, Genof the executive committee of the Formaldehyde Institute. But a pro- entech, the South San Franciscoposed standard submitted by the based firm, received approval from trade group for urea-formaldehyde the Food & Drug Administration to foams was rejected by CPSC com- introduce human-type growth hormissioners as unreasonable and im- mone, made by gene-splicing, into possible to enforce. CPSC is required clinical trials. Limited testing to deJan. 19, 1981 C&EN
11
News of the Week termine the synthetic hormone's safety in humans has begun at Stanford University medical school. Efficacy trials are expected to follow shortly, and a comparable study is to begin next month in London. Another clinical trial, this one dealing with interferon's safety in use with cancer patients, is starting up at M. D. Anderson Hospital and Tumor Institute in Houston. Safety and potential efficacy trials are expected to take place soon there and elsewhere. The interferon used in this trial is being furnished by Hoffmann-La Roche, the pharmaceutical company based in Nutley, N.J. The material is produced by means of recombinant DNA technology, as part of a joint venture between Genentech and Hoffmann-La Roche. It also was announced that Fluor Corp. has purchased an undisclosed number of shares of Genentech "positioning itself for long-term in-
volvement" in the gene-splicing firm's activities. The two companies announced plans to collaborate late last year. In a separate development, Cetus, a genetic engineering and biotechnology firm that's headquartered in Berkeley, Calif., introduced its preliminary prospectus describing the company's public stock offering next month. More than 5 million common shares will be offered initially, at an expected price of $22.50 to $26.50 per share. Heretofore, Cetus has been held by employees and private investors, as well as by Standard Oil (Ind.), Standard Oil of California, and National Distillers & Chemical. The public sale will release about one fourth of all shares from this control. In addition, Biogen, which has based most of its operations in Geneva, Switzerland, is forming a U.S. subsidiary to be headed by Robert
Monsanto quitting on polyester filament Monsanto announced last week that I it is getting out of the polyester fila- t Monsanto textiles ment business. The decision came as no surprise to some in the industry; Sales, 1979: $1.07 billion; nine-months Monsanto has had huge losses in its 1980, $757.8 million fiber operations, much of them from polyester. j Operating loss: 1979, $168.7 million; The company says that the deci- | nine-months 1980, $114.5 million; assion will reduce its 1980 earnings up |j sets 1979, $1.02 billion to $1.90 per share, or about $70 million. Combined with another loss ! Polyester filament capacity: 280 million provision of up to $1.50 per share for | lb per year on a 150-denier basis abandoning its partnership in troubled Aiscondel, a Spanish chemical Other textile products: Nylon staple and and plastics producer (C&EN, Jan. 5, yarn, acrylic staple, polyester staple page 8), Monsanto's 1980 earnings will be reduced as much as $125 million. rights. The amount of these payments In all, three plants are involved in will depend on the volume of in-line the polyester decision, affecting 1600 texturing products sold. The Guntersville plant was comemployees. Monsanto will close a 140 million lb-per-year plant in Gun- pleted by Monsanto in 1972. The two tersville, Ala., and one in Fayetteville, Fayetteville plants, with a combined N.C. Another plant in Fayetteville annual capacity of 140 million lb of with an annual capacity of 70 million polyester filament, were acquired lb is being sold to Fiber Industries, from Rohm & Haas in 1978 for about the combined venture of Celanese $55 million. Thus, in effect, Monsanto and Imperial Chemical Industries of paid at least $25 million—the differthe U.K., subject to approval by the ence between what it paid Rohm & boards of Monsanto and Fiber In- Haas and what it receives for the plant from Fiber Industries—for the dustries. Fiber Industries will pay Monsanto dubious privilege of closing the Rohm $30 million for the assets of the plant & Haas operations. Some of the covered by the agreement. In addi- Fayetteville polyester capacity, the tion, it will pay up to $8 million to exact amount undisclosed, was shut ensure the continuation for one year down in May 1980 (C&EN, May 26, of Monsanto's research to develop 1980, page 7). Robert E. Burke, who is managing new in-line texturing technology. The agreement also provides for future director of Monsanto Textiles, says, payments for technology and patent I "The decision to close our polyester 12 C&EN Jan. 19, 1981
Fildes, who for the past three years has been vice president of worldwide operations for Bristol-Myers, a pharmaceutical company. Biogen, one of whose founders is Harvard professor Walter Gilbert (who shared last year's Nobel Prize in Chemistry), plans to establish its R&D center somewhere in New England, probably in the Boston area. Corporate investors in Biogen include Monsanto, Inco, and Schering-Plough. In yet another development, Enzo Biochem, a genetic engineering firm based in New York City, says that it has succeeded in the first stage of a project, involving recombinant DNA techniques, that could lead to a vaccine against a certain form of hepatitis. So far, the gene that makes the surface antigen of the hepatitis B virus has been moved into a bacterium. The project is a collaborative effort with the New York Blood Center. •
filament operations was made only after an exhaustive year-long examination of all alternatives. Continuing heavy losses associated with polyester filament could only impede the health of our strong, continuing fiber operations. Furthermore, both human and financial resources were being diverted toward polyester filament rather than opportunities in nylon, acrylics, and polyester staple." Along with the closing of the polyester filament business, Monsanto will stop supplying its engineering fabric, Bidim, which is made of polyester filament. And in Canada, two other companies announced fiber plant closings last week. Celanese Canada will close its polyester texture yarn plant at Cambridge, Ont., affecting about 270 workers. The phasedown of that plant will take place between now and the first of May. A spokesman for the company says that some of the operations at the plant, such as dyeing of textured yarns, will be transferred to other plants.. Also Du Pont plans to close its Maitland, Ont., acrylic fiber plant in March. The company says that the decision was made because the facility could not compete with low-priced imports from world-scale plants. The Maitland plant has been operating at a loss since 1974, according to Du Pont. Last year Du Pont shut down acrylic fiber operations at its Maydown facility in Northern Ireland, where it had lost money for 12 years (C&EN, Sept. 15,1980, page 8). •
