Celanese, a n d Union Carbide Plastics have vinyl acetate plants. T h e squeeze could prompt the others to build minimum size plants, about 30 million pounds a year. Look for expansion in PVA, too, D&A points out. Capacity for the industry is adequate now but not among the major producers. All are running close to capacity and could use more facilities as t h e market continues its growth. A typical PVA plant runs around 15 million pounds capacity. T o add incremental capacity would cost 10 cents an annual pound; a grass roots plant costs about 16 cents. PVA and vinyl acetate expansions, plus the weak prices, will likely cause many of the smaller producers to quit the business, D&A figures. • Paper a Comer. A promising newoutlet for PVA is as a binder coating for paper in food w r a p applications. This is an 8 million pound-a-year outlet for acrylics now, b u t PVA has an important advantage—lower cost—and could become a 10 million pound annual outlet by 1962. says D&A. Meanwhile, other PVA outlets will continue to move. Production should total about 150 million pounds this REACTOR. Worker checks "copol" reactor for cleanliness before introducing an year, with adhesives taking 46'/< of the output (mostly for captive u s e ) . other batch. Owensboro reactors have doubled D&A's synthetic rubber capacity Water-based paints should pick u p 3 0 ' r , textile uses about 1 1 # ; t h e balance will go to miscellaneous outlets. T h e PVA market should have an average growth of I2',f a year for t h e next Opens Owensboro, Ky., plant, says PVA market moving few years, reaching a total production but still plagued by weak prices, too many competitors of 210 million pounds in 1963. T h e most significant change expected: Water-based paint demands will make • Competition Weakens Prices* JL HE POLYVINYL acetate business is the paint outlet t h e largest PVA market The nation's PVA capacity is roughly looking up these days, and it should in about 2 or 3 years. 144 million pounds a year, divided get brighter in the years ahead. Ad• SBR Paints Moving, Too· Waterhesives, water-based paints, a n d tex among 48 producers. However, nine based paints m a d e from styrene-butafirms—including D&A—take in 8 0 to tile finishing are the major outlets. diene laiexej» a i e a moving market, too. 85f/f of the business. These markets are picking up steam D&A will make SBR at Owensboro b u t now, and a new outlet is on the w a y In t h e past two years, some 25 to 30 will not concentrate on the paint paper coatings. Production should firms (mostly small operators) entered market. It will make high styrene about match capacity this year, too, but the business. These late entrants latexes ( 6 0 to 90r/e styrene) as well as the PVA business suffers from weak stirred up competition and put price SBR latexes. prices and narrow margins. T h e rea pressures on the market. PVA's price The market for high styrene types is son: too many producers. tumbled from 38 cents a pound (dry about 155 million pounds a year now basis) to the present 29 cents. CoAgainst this picture, Dewey & Almy, (solid basis), a n d should increase 45'> 1 a division of W . R. Grace, put its new polymer prices dropped to 32 /. J cents. by 1963. T h e paint a n d paper indusAt these levels, the major companies Owensboro, Ky., plant on stream are unhappy over margins, says D&A. tries account for over 80'< of t h e outlast week. It cost $4 million; capacity put. Hot a n d cold SBR latexes, on t h e There's little chance, in D&A's is 20 million pounds a year of vinyl other hand, are a 147 million pound opinion, that prices will rise this year. latex and styreiu butadiene latex. T h e market, with foams accounting for It's possible they will go even lower; plant increases D&A's PVA polymer about half of production. if so, the squeeze will be on the nonand copolymer capacity to 18 million The Owensboro plant was designed integrated producers—those without pounds, doubles the firm's styrenecaptive vinyl acetate plants. Of the with expansion in mind. Among fubutadiene rubber capacity to 20 million pounds a year. T h e plant will also major producers in the PVA field, only ture prospects: additions to present facilities, vinyl acetate, vinylidene make resin-imprégna ted fiber separators Du Pont. Col ton Chemicals (division • of Air Reduction), Shawinigan Resins, chloride, and styrene terpolymers. for the storage battery industry.
INDUSTRY & BUSINESS
D&A Adds α New Plant
JUNE
2 2,
1959 C & E N
21
