CHEMICAL & ENGINEERING
NEWS VOLUME 39, NUMBER 50
The Chemical World This Week
DECEMBER 11, 1961
Chemical Industry Lags in Western U.S. Chemical industry isn't keeping pace with population growth in the Far West, but its outlook is promising Chemical manufacturing in the western U.S. has not kept pace with population growth in that area. This is the essence of studies reported by four speakers at the Chemical Market Research Association meeting in San Francisco. Each speaker analyzed a different region of the West and each concluded that chemical manufacturing is lower than the area's share of the U.S. population. But each speaker also emphasized the potential for growth of the industry in the West. In discussing southern California, Hugo Riemer, president of U.S. Borax, points out that in 1958 the area had 5.6% of the U.S. population and 5.6% of the manufacturing (expressed as value added by manufacture), but only 3.0% of chemical and allied products manufacturing. In accounting for this disparity, Mr. Riemer cites the relative isolation of the area, which imposes severe freight penalties on manufacturers trying to reach eastern markets. High fuel and electric power costs and inadequate water supply are also discouraging factors. Southern California. A detailed analysis shows many healthy aspects of southern California's chemical industry, and its soaring population holds great promise for future growth. In 1960 the population of California's 13 southernmost counties was 9.5 million, with an increase of 2 million expected every five years between now and 1975. Southern California has more than its proportionate share of several important segments of chemical manufacturing, including industrial gases (largely because of the missile activity), synthetic rubber, soaps and detergents, surface coatings, and pesti-
cides. The inorganic pigments industry is insignificant, 0.3% of the U.S. total, but a major gain will show here with the completion of the titanium dioxide plant now being built by American Potash in the Mojave Desert. Despite the fact that California is a leading state in farm products, the agricultural chemicals industry shows some surprising weaknesses. Production of pesticides stands at a healthy 7.3% of the U.S. total, but fertilizer production is less than 2%. This situation, Mr. Riemer says, stems from the uneven pattern of fertilizer consumption in the state. California as a whole
consumes more ammonia than any other state (10% of the U.S. total), but only 3.7% of the nation's phosphorus and 1.5% of the potash. Bay Area. Northern California has a poor share of the nation's chemical manufacturing, according to Leland A. Doan, general manager of Dow's western division. With 3.7% of the national population, the area has only 1.6% of the chemical production. The reason for this, Mr. Doan says, lies in the history of the area. Until about 20 years ago the West—particularly the San Francisco Bay area—had a colonial economy. Raw materials were ex-
Chemicals Made in Southern California Account For a Small Part of Total U.S. Value Product
Value* (thousands of dollars)
Per Cent of Total U.S.
Industrial Inorganic and Organic Alkalies and chlorine Industrial gases Cyclic crudes Dyes, intermediates, and organic pigments Inorganic pigments
$90,500 5,100 11,100 1,000
Plastic Materials Synthetic resins Synthetic rubber
60,100 40,800 19,300
0.8 0.3 3.2 4.8 9.8
Agricultural Chemicals Fertilizers Fertilizers, mixing only Other ag chemicals and pesticides
13,200 3,100 2,000 8,100
3.2 1.6 1.9 7.3
Total Chemical and Allied Products
382,300
3.0
3,000
800
2.1%
1.7 6.4 3.3
Note: Southern California is defined as Los Angeles, Orange, and San Diego counties. *Value added by manufacture, 1958. Source: Department of Commerce, 1958 Census of Manufacturers, and U.S. Borax.
DEC. 11, 1961 C & E N
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ported and most consumer goods were imported; there was virtually no manu facturing activity. As for agricultural chemicals, Mr. Doan notes the enormous amount of corporate agriculture in northern Cali fornia. The sizable land holdings and large borrowing capacity in this area have made possible the mechanization of agriculture and the large-scale, effi cient use of fertilizer. The changing complexion of the northern California chemical industry is shown by the geographical move ment of the paper and plywood indus tries. Many years ago, both of these were centered in Washington's Puget Sound area. Starting in the latter 1930's they moved southward into Oregon. And since about 1955, the plywood industry has been expanding into northern California. This brought plywood resin plants into the area and these, in turn, are supplied by locally produced phenol. Rocky Mountain. Industrial chemi cal consumption in the eight Rocky Mountain states is growing steadily, but not spectacularly, according to Edward Lentz, vice president and gen eral manager of Western Phosphates, Salt Lake City, Utah. Except for sulfuric acid, total volume of chemicals consumed is relatively minor. The three major chemical consum ing industries in the Rocky Mountain
area are concerned with processing ores, producing uranium oxide, and producing fertilizer. Some 907c of the chemicals consumed are used in these industries. Sulfuric acid is the key chemical in all of them. The fertilizer industry uses 342,000 tons per year of sulfuric acid. Another 350,000 tons per year goes into min eral processing. Uranium processing uses 394,000 tons annually. Industrial chemicals used in the region are mainly inorganic; consumption of or ganic chemicals, including flotation reagents, is relatively unimportant. Northwest. A major factor in the future of the chemical industry in the Pacific Northwest is extensive govern ment ownership of the land, says Fred C. Shanaman, former president of Pennsalt's Pennsalt of Washington division in Tacoma. In contrast to the 27c of government-owned land in New Jersey, New York, Texas, Illinois, Pennsylvania, and Ohio (the six states with the greatest concentration of chemical industry), government-owned land in the Pacific Northwest ranges from 30 7r in Montana to 99.8% in Alaska. For the region as a whole it averages about 80%. Mr. Shanaman says this area (de fined as Oregon, Washington, Idaho, Montana, Alaska, British Columbia, and Alberta) has 4 5 7 of the total land area of the U.S., but only 5%
of the population and 3% of the chem ical industry. The chemical industry of the Pacific Northwest is oriented toward two major markets, forest products and agriculture. The region accounts for 40% of the U.S. production of lumber and wood products and 257? of pulp. These will continue to be major factors in the area's industry, Mr. Shanaman believes. In agriculture, there is room for much growth in chemical markets. Although the region has almost 23 % of the U.S. cropland, it consumes less than 47? of the pesticides and about 37c of the fertilizer. This disparity is caused by soil, climate, and market conditions which have led to the grow ing of crops that so far do not require chemicals in the kind and amount needed in other areas. Two factors leading to optimism about the chemical industry in the Pacific Northwest are population growth and hydroelectric potential. Estimates place total U.S. population growth at 1.67c per year for the next decade; the Northwest is expected to grow by 2.27c per year. The region already has 14.4 million kw. of developed hydroelectric power, compared with a U.S. total of 31.9 million. But undeveloped capacity is almost 80.9 million kw., 857c of the U.S.'s undeveloped potential.
Rocky Mountain States Use More Chemicals Than They Produce INORGANIC CHEMICALS Tons peir Year Consumption Production
Chemical
1,359,000e 265,690'' 227,500 185,700'' 158,000 141,180 111,300 77,470 56,700
Sulfuric acid Calcium hydroxide Sulfur Gypsum Phosphoric acid (as P205) Anhydrous ammonia Ammonium nitrate Nitric acid (100%) Ammonium sulfate α
Includes shipments
b
1,359,000 adequate 122,500 adequate 155,300 122,600 80,500 84,000 24,000
Chemical
Sodium carbonate Sodium chloride Sodium sulfate Sodium chlorate Elemental phosphorus Hydrochloric acid (as 100% HCI) Ammonium perchlorate Potash (as K20)
Tons per Year Consumption Production
520,000 209,000
46,100 43,900e 27,000 20,800 18,000 14,300
adequate 155,000 adequate
9,000 6,030
12,000 2,071,000
0
Chemical use only
