I n the Midwest a n u m b e r of chemical complexes h a v e grown u p since the war, among them Calvert City, Ky., Tuscola, 111., a n d Montague, Mich. At M o n t a g u e , Hooker ElectrochemicaFs chlorine-caustic plant has attracted D u Pont and Carbide
Corn Belt Becoming Chemical Belt Agriculture and food processing provide many r a w materials for Midwest's chemical industry
A C&EN STAFF SURVEY
V v r r m x THE 13 STATES that make u p industries which either depended t h e Midwest, industry a n d agriculture u p o n agriculture for r a w materials or occupy almost identical positions in im- for markets were the ones to build in portance. Incîustrially, the Midwest the Midwest. So Spencer Chemical got represents a greater diversification than its start chiefly through its production any other geographical area of the na- of agricultural nitrogen. tion. In addition t o the major chemiPotential increases in fertilizer sales cal manufacturing centers, the Midwest in the Midwest are enormous—perhaps also contains a myriad of industries t h a t greatest in the U. S.—and now nitrogen radically affect t h e chemical world. fixation plants have sprung u p all over Automobile manufacture, food process- the area. This year the agricultural ing, p a p e r production, a n d other indus- nitrogen business has been fiercely comtries tie in closely with chemical manu- petitive in many areas, but producers facture. are optimistic for the long term. T h e M i d w e s t is the h o m e of the faT h e Midwest is also one of the big mous Corn Belt, produces considerable users of insecticidal materials—a numw h e a t (in Kansas and t h e Dakotas, for ber of basic producers and formulators example), ancj has extensive forests, of pesticides are located in t h e area. most importantly in Minnesota a n d To n a m e some of t h e m : Diamond Alnorthern Michigan. Soybean is grown kali, D o w , Frontier Chemical, Michiextensively in the Corn Belt a n d other gan Chemical, Monsanto, and Velsicol. parts of trie Midwest. Flax, t h e source Chemagro is putting u p a n e w plant at of linseed oil, is grown in considerable Kansas City. quantity in t h e northern midwestern Agricultural raw materials feed a states. good sized segment of the chemical inWhen K e n n e t h Spencer, n o w presi- dustry in t h e Midwest. An indication dent of S p e n c e r Chemical, a n d his fa- of this is t h e extent that companies ther, Charles IF. Spencer, w e r e survey- which h a v e traditionally been grain ing t h e industrial potential of the Mid- processors of one sort or another have west just before W o r l d W a r II, t h e y gone into t h e chemical business. c a m e to t h e conclusion t h a t it was fool- Archer-Daniels-Midland, for example, ish t o ignore agriculture in t h e "bread- has operated feed a n d flour mills, and basket" of t h e nation. T h e y felt t h a t p r o d u c e d drying oils from flaxseed, soy5112
C&EN
OCT.
2 2,
1956
beans, and other sources for many years. In the last 1 5 years its sales of chemicals h a v e grown from $7.5 million to $39.5 million per year (out of a total company sales of $210 million). Chemical products include plasticizers, thermosetting resins, and a n e w series of unsaturated hydrocarbons—now in production at Ashtabula, Ohio. General Mills is a substantial p r o ducer of polyamide resins and other chemicals. Quaker Oats produces furfural a n d is considering other chemical products. Corn, processors are also important producers of chemicals. The meat packing industry is another source of chemicals. Sales of tallow to t h e soap industry have, of course, b e e n h u r t considerably b y the growing use of detergents. Packers look to animal feed for the big outlet to help them out of this difficulty, bu*- plasticizers a n d other chemicals are important fat consumers too.
Petrochemicals and Coal The petrochemical facilities of the Midwest can hardly hope to match those of the Gulf Coast region, b u t by a n y other standard they are sizable. N a t u r a l gas-based plants get their r a w material chiefly from the Southwest. It
is possible that eventually Canadian f s will be brought into areas such as Minneapolis and St. Paul. Across the border, gas from fields in western Canada will probably be used in the Sarina, Ont. area, where an extensive petroeheiXiiesl industry lias Been built upon petroleum. "Rubbertown" outside of Louisville, Ky., was originally placed there during World War II to take advantage of Louisville's extensive distilleries, "which were converted to industrial alcohol production. This alcobol served as the : s of production of butadiene, which was in turn converted into synthetic rubber. When the war ended and production reverted to an economic basis, petrochemical raw materials were shipped in to supply the plants. Coal shows more and more signs of becoming more competitive with petroleum and natural gas as a chemical raw material. This comeback may be along several paths, rtot merely the traditional by-product coke-oven route. One ammonia producer says the time may not be too far off when rising natural gas prices will make it economical to convert one of b i s plants to coal —on which it originally- operated during World War II. Coal used for fuel for one of the electric power plants for the aluminum industry i n the Midwest will be processed to obtain by-product chemicals. Carbide's coal hydrogénation venture and other schemes are being watched with interest. Lignite, abundant in the upper Midwest, may become significant to tine chemical industry some day.
duction of aluminum. Alcoa will boost its national primary aluminum production by 20% when its 150,0OO-ton-peryear unit is completed jar Evansville, Ohio. Olin Revere Metals Corp. (a joint venture b y Olin Mathieson Chemical and uevere Copjper & Brass) has announced plans for constructing a 180,000-ton-per-yeax aluminum facility at Clarington, Oriio, Of importance, although not on the same production scale a s aluminum, is an increase in tantalum and niobium production. Fansteel, t h e world's largest, and until recently the only U . S.
manufacturer of the two elements, is located in the Chicago area. The past year has seen an expansion of existing facilities, and now a n announcement of additional production by Fansteel m Muskogee, Okla., has been made. Another metal critical in defense considerations i s beryllium. The two major beryllium producers are both located in Ohio. Both have received contracts from the Atomic Energy Commission to produce the metal (C&EN, Sept. 24, page 4606) - Each contract has a value estimated at over $23 million for its five-year duration.
gets the same good
impression
Expansion U n p a r a l l e l e d Of the almost $1.5 billion earmarked for capital investment i o new chemical facilities in the U. S., SLS distinct from money for improvement of existing units, the Midwest will see a large portion spent within its borders. The Chicago metropolitan area., hub of midwestern industry, led t h e nation in both number and value of contract awards for new manufacturing facilities i n the past five years. Primary metal production facilities top the list, with chemicals second. Metal production in the area is experiencing an unparalleled growth. Every major steel producer in the Midwest is undergoing a n expansion of production facilities. Among the primary metals, the most significant development i n the Midwest is the enormous expenditure for pro-
• Magazines with circulations running in the millions are faced with -a serfous problem. When the type or half-tone dots wear down to the shoulder of the etch, the result is a poor reproduction. To save press cfown-time in replacing worn plates, and io be sure of the same fine impression on the last part of the run, p/ates must have surfaces that are reststauit to abrasion. That's why printers use chromium-placedletterpress ρ fates, eiectrotypes and gravure rolls. Then they are certain of getting clear impressions or* every sheet from the first to the iast. Chromium placing is but one of the many ways in which Mutual Chromium Chemicals contribute to better results and greater economies in the publishing industry.
MUTUAL
CHEMICAL
Sodium Bichromate Chromic Acid Potassium Bichromate Ammonium Bichromate
DIVISION
•ALLIED C H E M I C A L & DYE C O R P O R A T I O N
I P A R K A V E N U E · N E W Y O R K 16, Ν . Υ . OCT.
2 2,
I956
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Production of titanium sponge—7500 tons per year—will begin soon at Ashtabula, Ohio, by Carbide.
Heavy Chemicals A significant increase in production of industrial gases will be binder way with completion of facilities in the Chicago, St. Louis, and Calvert City areas. The Midwest is experiencing a rapidly increasing demand* for indvistrial gases of all kinds; chlorine, carbon dioxide, oxygen, nitrogen, and acetylene particularly. Increasing manufacture in the S t
Louis area has prompted construction of a sulfuric acid plant in East St. Louis, 111., by Allied Chemical. The new facility will raise sulfuric acid production in the Mississippi River region by 357c. Along with the actual sulfuric acid production unit, Allied is also installing a new sulfuric anhydride (stabilized sulfur trioxide) plant at Calumet, 111. The material is being used in the manufacture of dyes, ion exchange resins, organic chemicals, petroleum sulfonates, pharmaceuticals, and plastics—all on the rise throughout the region. Chemicals for plastics and resins will
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1956
also flow in a greater volume within the next year or two. Borden is building a plant in Illinois for resin emulsions totaling 50,000 gallons capacity. A Wisconsin plant will produce liquid urea, phenol, and resorcinol-formaldehyde resins to the tune or i million pounds a month. D o w is constructing a plastic foam plant at Riverside, Mo. Urethanes are on the upswing. Use of plastics in building construction, an area beint* ryioneered bv Monsanto, will raise the production level even higher. High pressure acetylene derivatives will be produced in General Aniline's new $6 million plant in Calvert City. Until now, acetylene derivatives have never been produced on a commercial scale in this country. Products forth coming from GAF's plant are polyvinyl pyrrolidone, butyrolactone, propargyl alcohol, and butanediol. U. S. Industrial Chemicals is expand ing its Tuscola operations to include wet-process phosphoric acid and isosebacic acids. Annual production in the phosphoric acid plant will amount to 60,000 tons of 75% acid per year. This production will be in addition to the USI's existing production of sul furic acid, ammonia, nitrogen solu tions, and petrochemicals. In spite of a drop in rubber produc tion due to the lag in automobile sales, rubber companies—most of which are centered in Ohio—show no signs of fear. This may be due chiefly to the development of the synthetic "natural" rubbers. These have been proved satis factory in tire construction, and output should show a steady rise for some time to come. Planned construction and expansion among members of this in dustry and their chemical operations are significant. Goodrich is in an $8 million expansion program at its Avon Lake, Ohio, plant for various types of Geon resins and plastic compounds. Goodyear is completing a $3.5 million unit for increasing its Chemigum capac ity, used primarily for paper, paint, textile, and rubber industries. Fire stone is building a 75,000-ton-capacity styrene plant, although this will b e in the South. However, it is worth noting that Firestone now manufactures its own styrene as well as butadiene, mak ing it the first rubber company to pro duce all of its own materials for syn thetics. Additional increases soon forthcom ing from the midwestern area include chlorine, fluorine, caustics, chlorinated hydrocarbons, formaldehyde, and furfural.
At Wyandotte Chemical, Michigan's second largest chemical producer, significant events are taking place. With public ownership and expansion into different geographical areas, Wyandotte will show a new vigor in efforts to claim a larger share of the caustic, detergent, and antifreeze markets, as well as sales of by-products to industries in its area.
Agricultural Chemicals A continuing trend, perhaps slightly on the increase, is manufacture of diammonium phosphate by coal chemicals operators. Ammonium sulfate's market situation has prompted full scale production of DAP by Colorado Fuel & Iron. However, several other companies have experimented with converting their facilities from sulfates to phosphate manufacture. In the Midwest, Ford converted completely to phosphate. The most important continuing trend in the Midwest is the leveling off of anhydrous ammonia sales, with some states seeing an actual drop. Solutions, liquid fertilizers, and high analysis fertilizers are holding their own in general. Urea is competing, but on a small scale because of price and relatively low production capacities. The soil bank program is currently an important topic in the area. Consensus is that fertilizer sales will not be affected very much by withdrawing some soil from crop production. Education of farmers seems to have progressed to the desirable point where a farmer will use more fertilizer than previously in the hope of maintaining a high level of crop productions on existing acreage so that withdrawing some land from production will not make serious inroads into his total volume. On the other hand, insecticide use may fall off once the program is in full swing.
Waterways Get Plants Waterways seem to be claiming the lion's share of new plant locations. The Ohio River and the Great Lakes are the two big factors here. The St. Lawrence Seaway should bring even more industries to the shores of the Great Lakes. Integrated chemical centers such as Calvert City and Ashtabula continue At Calvert City Pittsburgh Metallurgical, National Carbide, B. F. Goodrich, and General Aniline are neighbors
t o grow. A mdôre recent d e v e l o p m e n t is an area approximately 50 m i l e s southwest of Chicago along the Illinois waterway. I n this region, roads a n d railroads spurs Have fcccn built to a c commodate t h e growing concentration of industry. Already in existence i s Stepan's facility for detergent m a n u facture, and shortly to g o into c o n struction is E t h y l Corp/s nmiltimiiiion dollar unit for producing all of t h e company's products. A several h u n dred acre plot adjoining the existing construction is being held by a g r o u p of businessmen for sale to c h e m i c a l companies. Because additional l a r g e scale construction is almost impossible in Chicago a n d immediate surrounding areas, as well as in additional industrial centers such as Joliet and St. Louis, t h e
locations o n the waterway seem to be suitable a n d desirable. Being on the waterway ensures t h e lower transportation costs that will come w i t h completion of the St. Lawrence Seaway. T h e d r u g industry, a good part of w h i c h is centered in the Midwest, is responsible for some extremely significant developments in health and disease prevention. Every pharmaceutic a l lifjuse in the area is in a state of expansion—full fine companies as well a s specialty houses. Entrance of pharmaceutical houses into trie veterinary field is progressing. Lilly i s entering t h e area on a full scale. !Ne\v construction of research and prod u c t i o n facilities geared solely to the veterinary field indicates t h a t progress i s being m a d e by their research department into other agents besides the one
with wîiich Lilly now" dominates the cattle fattening field. Because o f t h e concentration of t h e food processing and packaging industry in Chicago, many of t h e major developments for handling foods are c e n t e r e d in this area. Probably the most n o t e w o r t h y research being done in food is still tied u p in food irradiation. Currently in t h e planning stage is a pilot p l a n t to b e constructed by the Quartearmaster Corps at Natidk, Mass., for irradiating foods. D e v e l o p m e n t s in the meat field which -will h a v e a b e a r i n g on packaging materials a r e now i n the market stage i n some areas. Prepackaged, precut, frozen meat is meeting with some success, high prices b e i n g the limiting factor.
Expansions Pick Up in the Southeast Plant sites in the M i d - S o u t h a n d e a s t of the Missis sippi m o r e p o p u l a r ; c o m m u n i t i e s l u r e industry
A C &Ε Ν STAFF SURVEY
JL EXAS
STILL
LEADS
the
South
in
chemical plant expansions, with Lemisiana running second, and Florida third. Between Mississippi, Alabama, Georgia, and Tennessee, it's a tossup who's next. Many southeastern states are a d d i n g new plants a t t h e r a t e of more than $ 5 0 million a year. Louisiana regularly goes over t h e $100 million mark, a n d Texas twice this amount. This y e a r it was Baton Rouge and New Orleans that g r a b b e d t h e lion's share of MidSouth expansions. For the first time, capital investment in chemical plants along the Texas Gulf
Coast outstripped oil refinery invest ments by more t h a n $60 million w h e n it r e a c h e d $1.19 billion. Louisiana Gulf chemical installations a r e now esti mated to be w o r t h $328 million—65% of trie value of refineries in that area. Continued activity a t a h i g h level has awakened many states to their indus trial potential. Communities, too, are getting into the act in a big way. Small communities are especially active, setting u p industrial foundations and financial aid plans at the d r o p of a hatSouthern states are also beginning to feel favorable effects from the govern
ment's
program
for
plant
dispersal.
W a t e r Transportation Aids In m a n y areas of the South, water transportation has reached a n all-time high; m o r e and more plants a r e migrat ing t o deep water sites. Jefferson Chemical a t Port Neches, Tex-, is build ing p e r m a n e n t docking facilities; at mid-year c o m p a n y officials announced their first coastwise water shipment to Paulslboro, N. J. During February, ocean tanker shipments of glycerol fi nally "broke the ice w h e n Shell Chemi-
Texas is catching u p with Pacific North-west in p r o d u c t i o n of aluminum w i t h p l a n t s l i k e Alcoa's smelter a t Point Comfort * i
5116
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2 2.
1956
