THE CHEMICAL WORLD THIS WEEK C & E N REPORTS: Chemical M a r k e t Research Association
Canadian Chemical Markets of Secondary Interest to Industry Low-cost r a w materials and power often the base for chemical plants M O N T TREMBLANT, Q U E B E C . - C a nadian chemical industry has, in common with many other Canadian industries, of ten been based on the availability of lowcost raw materials and power rather than on a definite market for the product in Canada, according to E. J. Penrose of Dominion Tar & Chemical Co., Ltd. Speaking at a recent meeting of the Chemical Market Research Association here, Mr. Penrose said that Canada's growth and exports have provided the market for many chemical and allied proc ess industries. Market, he said, has usu ally been a secondary consideration in the development of Canada's chemical indus try. Citing some current and historical ex amples, Mr. Penrose said this trend is con tinuing. For this reason, exports are very important to Canada and are in fact an in tegral part of its chemical production. In many cases, he noted, Canadian chemical producers can manufacture at prices com petitive with those in the U. S. but they are barred from their largest potential mar ket. This situation was termed "grossly unfair" by the speaker, since Canada in turn receives little protection against fin ished U. S. chemical products. A realistic lowering of U. S. tariffs, he said, would provide a tremendous stimulus to expan sion of Canadian chemical industry. The market for chemicals in Canada is carefully watched by manufacturers and often plans have been drawn up in ad vance to move into a new field as soon as conditions justify a plant of economical size. Recently, in the case of formalde hyde, three manufacturers decided simul taneously to build plants, each of which was designed to supply the total present Canadian market of slightly over 30 mil lion pounds a year. This market, he feels, will increase considerably but it seems doubtful that it can increase to this extent in the near future. However, Mr. Penrose remarked, the expansion does indicate a faith in the development of Canada and emphasizes that the Canadian chemical in dustry is building for the future. Nonfonics in Canada. Total sales of nonionic surface active agents in Canada during 1951 were 800,000 pounds, accord ing to Ε. Η. Wolfe of Chemical Develop ments of Canada. Consumption of nonionics in the U. S. during the same year amounted to about 45 million pounds. A study of potential markets in Canada for these products developed some interesting facts about Canadian markets. The food industry in Canada is prevented from us
VOLUME
3 0, "NO.
42»
ing fatty acid polyglycol esters in bread by law, a very large use for these chemi cals in the U. S. Household liquid deter gents are still not widely offered in Canada, said Mr. Wolfe, although test marketing on some brands is just begin ning. Compounded detergents based on nonionics have not become popular with powdered household cleaner compounders because of mixing problems encountered in blending liquid surfactants with dry builders. Local health and welfare regu lations in major markets of Ontario and Quebec discourage detergent-sanitizers in most applications, insisting on quaternary ammonium compounds or sodium hypo chlorite alone in the last rinse bath after washing for restaurant and hotel work. Among the larger users of nonionics in Canada are synthetic rubber-latex and resin-base water paints. Pulp, paper, and rayon constitute only a moderate portion of the uses, but textile. applications have been a major consumer of nonionics in Canada, where their outstanding proper ties of hard water detergency and econ omy are very important.
INDUSTRY Grace Chemical C o . Formed; Ground Broken f o r Plant Grace Chemical Co., has been formed as a wholly-owned subsidiary of W. R. Grace & Co., international industrial and trading concern. A 277-acre site in the Woodstock area, approximately six miles from Memphis, Tenn., has been selected for an ammonia-urea plant, first manufac turing unit of the new company. The plant, to cost approximately $18 million, will produce nitrogen in the form of ammonia and urea for both agricultural and industrial uses. An arrangement has been made with the Davison Chemical Corp., of Baltimore,* to act as advisor on engineering and other matters during t h e construction period. A ground-breaking ceremony for the plant was held Oct. 14. Woodstock is a rapidly expanding in dustrial area. Plants owned by Montana Ferroalloys and Du Pont .already are in operation on sites adjoining that of t h e Grace enterprise. The plant will he on stream in the summer of 1954. After the plant site has been cleared, estimated to be in about three months, construction will get under way. Approximately 750 workers will be employed in that phase while a permanent
.OCTOBER
2 0,
1952
staff of about 300 eventually will be em ployed. Company officials have declared that the ammonia-urea plant "is only the be ginning" of Grace activities in the petro chemical field. Plans already are under way for the integration of other petro chemical manufacturing operations into the new plant. Grace and Davison are considering en tering an agreement whereby Davison would operate the plant for not less than two years with compensation based on profit, and would be given an option to buy it. On Sept. 1, Grace held 18% of Davison's outstanding stock.
Pittsburgh Plate Class Opens Atlanta Paint Plant The largest paint manufacturing plant in the Atlanta area and one of the larg est in the southeastern U. S. has been opened by the Pittsburgh Plate Glass Co. Situated on a 14-acre tract in the Empire Industrial Area of East Point, Ga., the 130,000 square foot plant fronts on Oakleigh Drive, approximately six miles south west of Atlanta. The plant will produce house paints, varnishes, enamels, resins, industrial, and specialty finishes. A radical departure from the multiplestory construction which has been con sidered essential for paint manufacturing, because of gravity flow requirements, the Pittsburgh unit is essentially a single story structure located on different levels. A mezzanine floor is incorporated for grind ing and straining. Ball and pebble mills are suspended on structural steel frames beneath the upper decking with easy ac cess from above for charging raw materials. Originally rated lo produce 1.5 million gallons annually, the plant is so designed as to allow for future expansion of pro duction without structural changes. Space for additional mills and filling equipment has been provided. Natural gas is used for heating but a fuel oil reserve tank is incorporated so that the system may he switched almost instantaneously in case of natural fuel failure.
Allied to Construct Fertilizer Plant Construction of a $5 million plant at South Point, Ohio, to produce a high analysis complete fertilizer by a new process is planned by Nitrogen Division, Allied Chemical & Dye Corp. The plant will be the first of its kind in the U. S. Containing all three essential fertilizer elements, trie product will have S67t plant food, made up of 12% nitro gen, 12% availablo phosphoric acid, and 12% potash. This 12-12-12 analysis will be in line with the i-1-1 plant food ratio advocated by leading agronomists and will be especially suited for midwest soils and farming techniques. Contract to construct the plant has been let to John J. Iiarte Co. of Atlanta, Ga., which plans to start construction this fall.
4383
