l^PiP^^iillpiSif'y*f : : ; S ; Chemical prices U.S. chemical prices Index, 1982 100d dropped again in March. 130 According to the latest figures from the Labor Department, the March 128 producer price index for chemicals a n d allied 126 products fell 1.8% from the previous month to an index of 126.0 (1982 124 = 100). In February, prices were down just 0.4% from the previous 122 month. On an annual basis, March prices were 120 M A M J J A S O N D J FM up 3.2% from the same ' 1990 ' 1991 month in 1990. This increase, however, is considerably less than the 5.1% year-to-year gain in February. For the subcategory of industrial chemicals, prices in March suffered even more than did the overall category, falling 3.2% from February to an index of 113.4. In February, prices were down 1.4% from the previous month. March industrial chemical prices, however, were still 2.4% ahead of those a year earlier, following a 3.7% annual increase in February.
Explosion at IMC Fertilizer facility On the afternoon of May 1, an explosion and fire occurred at an IMC Fertilizer facility in Sterlington, La. Despite conflicting reports, at press time the company only confirmed one death, seven people still missing, and 30 to 40 injuries. The explosion occurred in a plant owned by another company, Angus Chemical, and used to manufacture nitroparaffin. The plant is operated by IMC Fertilizer personnel. The explosion did not damage two large, adjacent ammonia fertilizer plants; however, both plants will be shut down for inspection. Although the exact cause of the explosion is not yet known, workers were reported to be preparing to check a faulty compressor. The explosion and resulting fire is said to have heavily damaged the 15acre plant site and caused the evacuation of about 500 residents in the nearby town. The company says no evidence has been found to support earlier rumors that the accident had produced toxic emissions.
Vista merger with RWE-DEA still pending Germany-based RWE-DEA has not given up on Vista Chemical yet. The German chemicals, petroleum, and energy giant says it is discussing with both the Federal Trade Commission, which is holding up the merger, and an unnamed third party the establishment of an independent entity to market alumina. The new entity would compete against an RWE-DEA operation, Condea Chemie, the only other company besides Vista that also obtains alumina as a by-product of alcohols manufacture. Condea operates an alumina operation in Tuc-
BUSINESS CONCENTRATES son, Ariz., called Ceralox Corp. RWE-DEA is also extending the expiration date of its offer to acquire Vista to May 21. Although other extensions may be necessary, the merger agreement can be terminated by either party anytime after June 11. RWE-DEA first said it would acquire Vista last Dec. 13 for $590 million.
Pfizer increases R&D spending Pfizer will increase its R&D spending 17% to reach $750 million in 1991. Increased spending is resulting in the "strongest new product rollout in Pfizer's history/' according to Edmund T. Pratt Jr., chairman of the board for Pfizer. The company reports new products accounted for 30% of its worldwide pharmaceutical sales in 1990—which with hospital products amounted to 68% of Pfizer's total $6.4 billion in sales. Pratt was succeeded as chief executive officer by Pfizer president William C. Steere Jr. on May 1.
Three firms break ground for MTBE units To capitalize on growing demand for methyl tert-butyl ether (MTBE), Global Octanes Corp., Coastal Chem Inc., and Tenneco Natural Gas Liquids have separately broken ground on new facilities for the specialty chemical. MTBE is used as an octane enhancer and as an oxygenate for motor gasolines: It allows more complete combustion of gasoline in car engines, thereby reducing emissions to levels required by federal clean air rules. By sometime in 1992, M. W. Kellogg Co. will engineer, procure, and construct Tenneco's 12,500-barrels-perday unit at LaPorte, Tex., and a unit of the same capacity for Global Octanes at Deer Park, Tex. Tenneco says a major portion of its MTBE will be sold under longterm contracts to refiners. Virtually all product from Global Octane's $200 million plant, which is adjacent to the Intercontinental Terminals facility, will be sold on the Gulf Coast. Meanwhile, Davy McKee Corp. will build Coastal's 4000-bbl-per-day unit, which it calls the "first fully integrated MTBE complex in the world/ 7 The unit, which is scheduled for completion in spring 1992, will be built adjacent to Coastal Chem's existing plant in Cheyenne, Wyo. The plant will also produce about 26 million gal per year of methanol that will be used to produce MTBE, which could also be marketed as an alternative motor fuel, says Coastal.
Du Pont, Dow to reduce emissions Dow and Du Pont say they will meet EPA Administrator William K. Reilly's recent request that U.S. companies reduce their emissions of 17 high-priority chemicals by 1992. The EPA administrator asked that they reduce emissions 50% by 1995 using 1988 as a baseline year. Dow's president and chief executive officer, Frank Popoff, says Dow will go further and cut in half emissions of all chemicals required to be reported annually under Title III of the Superfund Amendments & Reauthorization Act. Popoff says Dow's reduction will add an additional 100 chemicals beyond those suggested by EPA. Du Pont's vice chairMay 6, 1991 C&EN
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BUSINESS CONCENTRATES man, Elwood P. Blanchard, says Du Pont will also go beyond the EPA administrator's call and reduce all of the company's air emissions 60% by 1993 using 1987 as the base year, reduce carcinogenic air emissions 90% by the year 2000, and reduce total hazardous waste 35% by 2000 using 1990 as the base year.
Olin to exit industrial phosphates . . . Olin has reached an agreement to transfer its industrial and detergent phosphate business to Texasgulf and Albright & Wilson Americas. Financial details have not been disclosed, either on the transfer or on Olin's plan to close its Joliet, 111., industrial phosphates operation, which employs 140 people. Olin is a partner of the two in a purified wet-process phosphoric acid unit in Lee Creek, N.C., which has supplied Olin with sodium phosphate (C&EN, July 17, 1989, page 13). Completion of the deal is pending the approval of the three companies' boards. Olin's plan to exit industrial phosphates follows its earlier announcement that it would reorganize chemical operations and sell underperforming and nonstrategic businesses including industrial phosphates (C&EN, April 29, page 6).
. . . and Oxy to sell phosphorus to FMC Occidental Chemical (OxyChem) has agreed to sell its industrial phosphorus operations to FMC and will close phosphorus manufacturing operations at Dallas and at Jeffersonville, Ind., and will substantially reduce operations at Columbia, Tenn. Financial terms have not been disclosed. The businesses OxyChem is selling have annual sales of $80 million. Oxychem's moves will affect about 400 employees. The company will continue to operate a sodium hypophosphite plant in Niagara Falls, N.Y. According to J. Roger Hirl, president and chief executive officer of OxyChem, the decision to close plants is consistent with the company's objective of supporting businesses in which it is a lowcost producer with the number one or number two market share, or where such a position can be achieved. According to Lewis G. Furman, phosphorus chemicals division director, "We've increased product inventories at all FMC phosphorus-producing facilities and distribution locations."
American Petrofina is now Fina Inc. Dallas-based American Petrofina has changed its name to Fina Inc., to "eliminate the confusion that existed between the relationship of American Petrofina and its main operating subsidiary, Fina Oil & Chemical Co." Fina is also the brand name the company uses in the marketplace, says Ron W. Haddock, Fina's president and chief executive officer. Among Fina's businesses are chemicals manufacturing and marketing; crude oil and natural gas exploration and production; natural gas marketing; and petroleum products refining, supply, transportation, and marketing. Organized in 1956, it is part of an international group of companies affiliated with Petrofina S.A. of Belgium. 22
May 6, 1991 C&EN
Oil-field chemicals business changes hands Houston-based Baker Performance Chemicals, a unit of Baker Hughes, has acquired the Oil Field, Refinery, Industrial Chemical business (OFRIC) oil-field chemicals business of BP Chemicals. The newly purchased business will sit under the umbrella of Baker Oil Treating, Middlesbrough, England, Baker Performance Chemical's international retail operation. With this latest acquisition, Baker Oil Treating becomes the largest supplier of oil-field chemicals in the European market. Terms of the deal have not been disclosed.
International Chemicals boost Norsk Hydro Although its first-quarter net profits fell 25% over firstquarter 1990, Norwegian energy and chemicals company Norsk Hydro saw an improvement in operating profits from its chemicals operations, primarily because of strong performance in fertilizers. Operating profits of fertilizers and petrochemicals totaled $122 million, up 9% from the same period in 1990. Sales of the two segments totaled $1.40 billion, up just slightly less than 2%. Petrochemicals suffered, the company reported, from production stoppage at its Rafnes complex, as well as from a drop in prices for vinyl chloride and polyvinyl chloride. Fertilizers, which included accounts for acquisitions early this year in Rostock, Germany, and Trinidad and Tobago, were up because of higher fertilizer prices.
Hoechst, Teijin to cooperate on aramids German chemicals giant Hoechst and Japanese fibers producer Teijin have entered a product- and processdevelopment agreement on high-performance aramid fibers. The agreement includes cross-licensing of Teijin's spinning technology, which will be used in the $11.5 million pilot plant Hoechst is building. The two companies will also share R&D results on process and product improvements in aramids, one of the major types of high-performance fibers. These fibers last year reached a volume of about 88 million lb, with an annual growth rate of 10%, Hoechst says.
DSM-Korean caprolactam joint venture Hanhwa Lactam Co. is a new joint venture established by Dutch chemicals company DSM and two South Korean companies, Kolon Industries and Namhae Chemical Corp., for making caprolactam, a nylon precursor, in Korea. Capacity of production facilities the venture eventually plans to build will be 309 million lb per year, with the first stage of half the capacity starting up in 1994. Total investment will be $200 million. Korea, a major producer of nylon 6 fiber, is a heavy user of caprolactam, with demand of more than 529 million lb last year. Only a third of that is produced domestically, with the rest imported mainly from Japan and Europe.
