the newsmagazine of the chemical world VOLUME 3 7 , NUMBER 4
Capitol Spending Revives X HE
CHEMICAL
IXDl'STHY
IS
ill
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spending mood again. A C&EN survey of industry plans points to somewhat higher capital outlays in 1959 than in 1958, when totals hit close to $1.34 billion. Helping to rekindle t h e spend ing fire: a lot more attention to mod ernization of existing facilities—but new plant construction plans won't gather much du^t. Other results of the survey indicate little chance the upswing will turn into a boom in 1959. But 1 9 6 0 - 6 1 could see enough spending to rate at least boomlet status. Reflecting the chemical industry's confident tone was the National Con structors Association at its annual meet ing this month, where talk of a pickup in "serious'' interest was heard. Echo ing this are such firms as Girdler Con struction, Ralph M. Parsons, and L u m m us. M. W . Kellogg doesn't expect higher capital investment this year, but feels 1959 may see a pickup in contracts. Blaw-Knox feels it will be 1961-62 before contracts get moving again. • Modernization Gains. Substantial chunks of capital apparently are ticketed for modernization in 1959. W. R. Grace expects to spend slightly more than the $42 million it spent in 1958, much of it for modernization, with proj ects already started also getting a big share. Among new projects for Grace: a couple of plants in South America. Al lied Chemical, on the other hand, plans "substantially lower" spending this year (1958 total hit $58 million), but prac tically all of this year's dollars will go for modernization and maintenance. Moderately more spending this year is the w o r d from Hooker, where 1958 outlays hit more than $S million. Hooker, too, expects to spend more on
improvements a n d modernization than for new plants during 1959. Procter e* Gamble, winding up a big expansion program, plans no great c h a n g e in level of spending this year, with a spokesman indicating that mod ernization will get a big share of the outlay. Capital outlays at Crown Zellerbach this year probably won't differ much from the $ 3 5 million spent in 1958, but the cash will be funneled into modern ization, with a little going toward com pletion of past projects. Archer-Daniels-Midland plans "some w h a t higher" spending this year than last, with major plans calling for up dating of existing operations. Modernization is the word for Atlas Powder, too, with production facilities getting attention. • Lots of N e w Plants, Too. T h e out look for n e w construction shows a firmer tone. Monsanto plans a spate of ex pansions, along with perhaps 8f/r more spending than 1958's nearly $ 4 5 mil lion. Plans call for expansions in phenol at Monsanto, 111., poultry feed supple ment at Nitro, W. Va., dry chlorine bleaches at Everett, Mass., and more capacity at Lion Oil's refinery at El Dorado, Ark., with more expansions to be announced later this year. Record spending is in the cards for Air Reduction, which plans a 30% boost over 1958's $34 million. Airco feels the need for more capacity in
JANUARY 26, 1 9 5 9
T r e n d is to modernization
but lots of new plants are planned
Chemical m a Trend is t o w a r d MODERNIZ AT!ON - But lots of N E W PLANTS are planned
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polyvinyl alcohol a n d chloride; t h r e e n e w liquid gas plants will also go up in 1959. Michigan Chemical, too, is h e a d e d for record spending, with $ 5 million e a r m a r k e d for 1959 against $900,000 in 1958. Reason: a n e w $ 4 . 5 million m a g n e s i u m oxide plant a t Port St. Joe, Fla. A 2 5 ' ' boost in spending over 195S levels is planned at Koppers ( b u t 1958 is p e g g e d as abnormally low ). An n o u n c e m e n t s of specific plans may be forthcoming a little later this year. S p e n d i n g will increase at General Aniline a n d Film, too—$10 million this year against $6 million in 195S. O n e reason: some 1958 projects w e r e d e ferred until 1959. Both Rohm & Haas a n d Texas Culf Sulphur say 1959 spending will be little c h a n g e d from 1 9 5 8 . R o h m & H a a s will a d d more acrylic molding p o w d e r capacity; T G S is involved in a sulfur recovery unit at Okotots, B . C. Also in t h e "little c h a n g e d " category is S t a n d a r d Oil of California, with $350 million to b e spent in 1959, a n d Cnion C a r b i d e with $ 1 5 0 million. • S o m e Minus Signs. Spending at D u Pont will d i p 10' < in 1959 following a record $ 2 3 2 million in 1958. N e w capacity looms big, including h y d r o g e n peroxide a t M e m p h i s , Tenn., titanium dioxide at N e w Johnson ville, T e n n . , and various resin a n d fiber facilities. At D o w , a 50'< c u t in spending to $ 6 0 million is p l a n n e d this year. New polyethylene a n d polystyrene capacity h e a d s expansion plans here. Kaiser Aluminum's spending will d r o p from $ 5 0 million in 195S to $30 million this year. Biggest outlays will b e for n e w plants at Ravenswood, YV. Va., a n d Gramercy, L a . In d r u g s , both Pfizer a n d Merck will s p e n d less this year; Pfizer plans $20 million against 8 3 0 million last year; t h e Merck figure is $17 million com p a r e d with $19 million in 1958. M o r e fermentation capacity is scheduled for Pfizer, with steroids getting m u c h at tention at Merck. A m o n g others cutting s p e n d i n g : W y a n d o t t e dips to $ 8 million from $18 million in 1958, with the Geismar. La., caustic-chlorine works getting m u c h of this; F r e e p o r t Sulphur slips to $11 mil lion, mostly for n e w plants, from $23 million in 1958; Jefferson Chemical
. . is vital * o grovw of Soviet cownterpc
Chemical Industry Says Nyet
in 1957 a n d will probably t o t a J S17o million for 195S. But this is a d r o p i n t h e bucket, b e i n g only 0.5r * o f total U. S. world t r a d e . About 11% of this trade is with Communist Poland. T h e G o v e r n m e n t controls t h e flow o f • More t r a d e with t h e Soviets is o p strategic goods to the U.S.S.R., China, posed b y 6(Kr of t h e c h e m i c a l in a n d t h e satellites. T h e r e is a c o m p l e t e dustry; 37Vt favor it; 39^ h a v e n o e m b a r g o against Red China, aoid exopinion. ports to t h e U.S.S.R., and t r a d e with • More b a d e with R e d C b i n a is o p t h e Soviet b l o c must g e t D e p a r t m e n t posed by 609r ; 23'
