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CONCENTRATES
INDUSTRY Eight companies in the European Economic Community will form an export cartel to stabilize the prices of ethylene and propylene oxides and glycols in international markets. In concept, the organization will be modeled after Nitrex, the successful nitrogen fertilizer cartel formed by 10 western European firms in 1962 to hold the price line on fertilizers being sold to Red China. The new export cartel will be called Glycolex, A.G. Like Nitrex, it will be based in Zurich. There are no plans for setting up a joint sales organization, and the cartel is not valid for the EEC, Great Britain, Canada, and the U.S. Members of Glycolex are BASF, Bayer, Hoechst, and Huels, all of West Germany; Kuhlmann, Naphtachimie, and Progil of France; and Petrochim of Belgium. Toyo-Cyanamid began producing melamine last week in its new plant in Chiba, Japan. ToyoCyanamid, jointly owned by American Cyanamid (49%) and Japan's Toyo Koatsu Industries (51%), was formed in January 1965. The 6000 metric-ton-a-year melamine plant uses American Cyanamid's process for making melamine crystals from urea at low temperature and pressure (C&EN, July 18, page 19). The facility adjoins Toyo Koatsu's big urea plant at Mobara. Kerr-McGee will sell $50 million worth of uranium concentrates to Philadelphia Electric and three other utility companies for use in generating electric power. Delivery of the concentrates from Kerr-McGee's 5000 ton-per-day ore mill near Grants, N.M., will begin in 1968 and continue through 1973. Last month, Kerr-McGee contracted to sell uranium concentrates valued at between $15 and $20 million to Commonwealth Edison of Chicago for delivery from 1968 to 1970. Suspension of the 7% investment tax credit would not have much effect on capital investment through 1967, according to a National Industrial Conference Board survey of 522 of the nation's largest corporations. The President's proposal has already been passed by the House (see page 51). According to the NICB survey, enactment of the proposal would result in a slicing of projected investment programs by only about 1% in the latter quarter of this year, about 1.3% in the first half of 1967, and by some 2.8% in the second half of 1967. Two reasons companies offered for such a small effect on their capital spending: They have already curtailed capital programs in response to the President's request last spring to restrain investment; cash shortages and tight money have slowed their plant and equipment projects. Pan American Sulfur Co. (PASCO) will consider selling 6 6 % of its operations to the Mexican Government and private Mexican investors for $63 million. If the deal is approved by PASCO's board of directors and shareholders, the company's stock would be owned 43% by the Mexican government, 23% by private Mexican investors, and 34% by PASCO. Cities Service will go into uranium exploration after dropping plans to acquire United Nuclear Corp. Through its subsidiary, Ener-Chemco, Cities Service has acquired leases from Preston Oil Co. and Wolf Exploration Co., both of Denver, covering uranium and associated minerals on 270,000 acres of state lands in central Wyoming. Initial investment for the leases is about $500,000, and additional investment will depend on the success of exploration. OCT. 10, 1966 C&EN
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