INDUSTRY
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BUSINESS
Phosphorus Producers Expand for 1970 Big uncertainty in the outlook is role of furnace acid in fertilizer manufacture Elemental phosphorus producers, looking ahead to 1970 markets, are expanding. Monsanto will soon have a new 70,000-kw. electric furnace for elemental phosphorus operating at its 40,000 ton-per-year plant at Soda Springs, Idaho. In the next county, at Pocatello, FMC Coip. is preparing to expand its electric furnace capacity by early next year. And across the country, at Niagara Falls, N.Y., Hooker is planning to beef up its 6000 ton-per-year furnace, an operation that the company had intended to shut down. Monsanto says the new furnace at Soda Springs will more than double its capacity there. Neither FMC nor Hooker will say just how much their expansions will mean in new capacity, but neither of them is building new furnaces. At Columbia, Tenn., Monsanto is also expanding capacity but not building a new furnace and refuses to discuss capacity figures. Engineering adjustments to existing furnaces (possibly by increasing the voltage to the furnaces) will provide the added capacity. All seven of the nation's phosphorus producers agree that supplies began tightening during 1965. According to preliminary figures from the Bureau of Census, slightly more than 550,000 tons were produced during the year, 9% more than in 1964. Several producers think the Census Bureau's figure is too high and that output last year was more like 525,000 tons. They may be correct, for total electric furnace capacity operating last year was just barely 550,000 tons. For example, the 21,000 ton-per-year furnace at Georgetown, Idaho, which belongs to El Paso Natural Gas, has not operated since El Paso bought it from Central Farmers Fertilizer Co. in 1964.
In addition, many phosphorus furnaces were beset with operating difficulties last year and were out of production for extended periods. The 24,000 ton-per-year unit of American Agricultural Chemical Co. (now part of Continental Oil) at Pierce, Fla., was one. The 20,000 ton-per-year unit of Socony Mobil (the old Virginia-Carolina operation) at Mount Pleasant, Tenn., lost two months of production while transformer problems were being corrected. Most producers attribute tight supplies to the combined effect of last year's lost production and the booming consumer economy. Elemental phosphorus as such is not a big article of commerce—out of some 504,000 tons produced in 1964, only about 33,000 tons were shipped commercially. But as one chemical compound or another, phosphorus is used in a big variety of consumer products.
Producers use most phosphorus captively to make phosphoric acid or one of the phosphorus chlorides or sulfides. A large portion of the phosphoric acid (more than 1 million tons was produced from the element last year) eventually winds up in the sodium and potassium phosphates that are used in detergents ( sodium tripolyphosphate in the solid detergents, for instance, and potassium pyrophosphate in the heavy-duty liquids). Some of the phosphorus goes into salts for use in food products, feeds, metal processing, and water treatment. Part of the acid (about 190,000 tons last year) goes into diammonium phosphate and other fertilizers. The phosphorus chlorides and sulfides are used to make medicinals, pesticides, lubricating oil and gasoline additives, and plasticizers. According to Monsanto, the largest producer of the element, detergents
This new plant of Goodpasture Grain & Milling Co. at Brownfield, Tex., is producing an 11-37-0 liquid fertilizer using superphosphoric acid (80% Po0 5 , equivalent to 110% phosphoric acid). The superphosphoric acid is made at the plant from elemental phosphorus by a TVA-developed process. The acid plant is built of stainless steel and replaces a former plant of graphite and carbon masonry construction. Almost unpreventable leaks between the block joints in the old plant caused excessive acid loss. In addition, cooling water leaked into the system and prevented proper control over acid concentration. The fertilizer solution is made by ammoniating the superphosphoric acid. The product is a clear, nearly neutral solution. It can be used to produce mixed liquid fertilizers by cold blending or in formulations with wet process acid to produce sequestered liquid fertilizers.
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account for about 56% of the phosphorus produced each year; food and feed for 1 8 % ; metal processing for 9%; agricultural uses for 7 % ; pyrotechnics (mostly for the Government) for 4 % ; plasticizers and miscellaneous 3%. Monsanto doesn't expect any material change in the end-use pattern during the next four or five years. But several other producers think fertilizer will be taking an increasing share of their output. In their view, detergent use will increase, but the in-
fertilizer, even without sulfur price increases. Among the advantages of furnace acid in making fertilizer, in TVA's view: • Freight cost can be shaved. • Low-grade rock can be used. (Low-grade rock must be handled in any event to reach the high-grade rock.) • Furnace acid can be used to make any phosphorus compound. • High-purity, concentrated acids (superphosphoric acid, for one) can
Phosphorus Capacity Concentrated in South and West Company and Location
Annual Capacity for Elemental Phosphorus (thousands of tons)
Continental Oil Co. Pierce, Fla. El Paso Natural Gas Georgetown, Idaho FMC Corp. Pocatello, Idaho Hooker Columbia, Tenn. Niagara Falls, N.Y. Monsanto Columbia, Tenn. Soda Springs, Idaho Socony-Mobil Charleston, S.C. Mount Pleasant, Tenn. Nichols, Fla. Stauffer Mount Pleasant, Tenn. Silver Bow, Mont. Victor, Fla. Tennessee Valley Authority Wilson Dam, Ala.
24 21* 100** 70 6** 110 40f 9 20 5 80 30 13
Total
36 564
* Not operating. * * Expanding. t New furnace being added to more than double capacity. Source: C&EN estimates
crease will parallel population growth and isn't likely to take a bigger share than it does now. It is fertilizer use of furnace-derived acid that provides the big uncertainty in the outlook for elemental phosphorus. Of the 2.8 million tons of phosphoric acid (PL»05 basis) used to make fertilizer last year, wet-process acid (made from sulfuric acid and phosphate rock) accounted for the great bulk. But if sulfur prices and, in turn, the price of sulfuric acid climb too high, fertilizer makers could turn to furnace acid as an alternative. The Tennessee Valley Authority and some of the other phosphorus producers believe furnace acid is already competitive with and has several advantages over wet-process acid in making 26
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be made from furnace acid but not from wet-process acid. • The price of electricity (a big item in the cost of producing elemental phosphorus ) is dropping as a result of nuclear power, hydroelectric power, and the national grids. Some phosphorus producers believe that their product will make further inroads in the fertilizer market in the next few years. They think that 700,000 tons of elemental phosphorus capacity will be necessary by 1970 to meet the demand. With Monsanto's new 40,000 to 45,000 ton-per-year furnace, and with engineering changes that could boost present furnace capacity by possibly 15%, the industry would seem to face little trouble meeting the 1970 projection.
Chemical Prices Show Strong Upward Trend Chemical prices, which in the past year have gone through intermittent increases and decreases, seem now to be firmly on the way up. Dow Chemical has marked a higher price on styrène—a chemical that is not only made in large quantities but which, as polystyrene, gets to the consumer fairly directly in all kinds of plastic ware. Dow's price for styrene will be 1 cent a pound higher, effective April 1, making it 10 cents a pound in tank-car and tank-truck quantities. Many other chemicals have had their prices increased. The effects of these price hikes will likely be felt, perhaps more indirectly than the price of styrene, by industry and the public in the weeks ahead. Dow has also increased prices for its perchloroethylene, trichloroethylene, and 1,1,1 -perchloroethylene ( Chlorothene) by 1 cent a pound, also effective April 1. Du Pont raised the price on the first two by the same margin. These are widely used solvents—perchloroethylene (now 11;V4 cents a pound) in dry cleaning; trichloroethylene
(now
IOVL»
cents
a
pound) in metal degreasing; and Chlorothene (now $1.42 a gallon) as a cold cleaning solvent. Stauffer Chemical is following Dow's price increase on perchloroethylene. Another organic chemical, maleic anhydride, will be priced a penny a pound more by both Monsanto and Koppers effective April 1. Maleic anhydride is used in making polyester and alkyd resins. Maleic anhydride's new price is 14 cents a pound in molten form and 15 cents a pound in solid form. Monsanto also set a firm price for fumaric acid at 17 cents a pound. The 1 to I V 2 cent-per-pound increase in the price of phthalic anhydride also goes into effect April 1. Koppers Co., Allied Chemical, Witco Chemical, and the Oronite division of Chevron Chemical have all raised phthalic anhydride's price l1/2 cents a pound in tank-car and truckload quantities to 10 cents a pound for molten and lOVo cents for flake. The Hatco Chemical division of W. R. Grace & Co. followed, lifting its price to 10 cents for molten and 1 0 V 2 cents for flake. Puerto Rico Chemical also raised its price for phthalic, but by 1 cent a pound to 9 V 2 cents for molten, and 10 cents for flake.
Prices on a variety of inorganic chemicals are going up also. For example, F M C Corp. increased the tag on phosphorus trichloride and phosphorus oxychloride by 1 / 2 cent a pound effective March 15. Phosphorus trichloride is used to make the oxychloride which, in turn, is used in gasoline additives and plasticizers. The increase brings tank-truck or tank-car price to 10V 2 cents a pound for phosphorus trichloride and to 11 cents for phosphorus oxychloride. Hooker followed boosting its price on the two chemicals 1 / 2 cent a pound. Two other inorganic chemicalsammonium bicarbonate and feedgrade dicalcium phosphate—are also feeling the upward push. Effective immediately, Allied's price on ammonium bicarbonate per 100 pounds goes to $7.35 from $7.15 in paper bags and to $7.90 from $7.50 in 300-pound fiber drums. The chemical is used as a neutralizing agent in tanning and as leavening in biscuits and crackers. Dicalcium phosphate ( 2 1 % grade) is used as a cattle feed supplement. Stauffer has lifted its price from $91 per ton to $99 per ton. And finally, for the first time since it started making polyisoprene three years ago, Goodyear Tire & Rubber Co. has lifted prices on this form of synthetic rubber. New prices on truckload lots of Natsyn 400 and Natsyn 200 will be 24 cents and 26 cents per pound, respectively.
GAF Bids to Acquire Nopco, Burkart-Schier General Aniline & Film, now that it is free of government control, is making its move toward growth by acquisition and merger. The company is holding discussions with Burkart-Schier Chemical Co., Chattanooga, Tenn., to acquire that company. And at press time, Nopco Chemicars board of directors was getting set to discuss GAF's proposal to merge Nopco into its operations through an exchange of stock valued at $55 million. GAF feels that the Burkart-Schier acquisition would complement its activities. Burkart-Schier makes textile chemical auxiliaries and latex rug backing products for the carpet industry and other textile carpet applications. The proposed merger with Nopco is more in the line of an attempt by GAF to diversify. Nopco makes industrial
chemical specialties, urethane foams, vitamins, and other fine chemicals. Nopco's president, George G. Stier, says that GAF's offer took Nopco by surprise. No discussions had occurred between the officers of the two companies since last October when GAF made its first bid to merge Nopco into its operations. Dr. Jesse Werner, president and board chairman of GAF, says that the company is offering one share of a new convertible preferred stock for each of Nopco's common shares. The new issue would pay an annual dividend of $1.70 per share, and would be convertible into GAF common stock at the rate of 1.6 shares of common stock for each share of convertible preferred stock. The new GAF preferred would be noncallable for five years, after which it would be callable at $44 a share for the sixth year and at prices declining to $40 thereafter. GAF's offer has been approved by its board of directors. It expires March 18 unless approved by Nopco's board of directors. If Nopco's board approves the transaction, it is subject to approval by stockholders of both companies.
BRIEFS W. R. Grace has formed a new group, specialty products. The group comprises four Grace units which make and sell specialty products to industry, institutions, the transportation field, and the medical profession. They include DuBois Chemicals (chemical cleaning compounds), Dearborn Chemical (water treatment compounds and protective coatings), Vestal Laboratories (germicides and bactericides), and Veratex (disposable medical supply products).
Sherwin-Williams is trying to acquire Maumee Chemical Co., of Toledo, Ohio. The Cleveland, Ohio, paint company said last week that it was negotiating with Maumee, but details of the proposed transaction haven't been released. Maumee, with plants in Toledo and Cincinnati, makes specialty chemicals and organic intermediates for dyes, agricultural chemicals, and pharmaceuticals. Its 1965 sales were more than $4 million. Soap and synthetic detergent sales reached 5.1 billion pounds, worth $1.3
billion in 1965—up 2.0% in volume and 3.4% in value from the previous record, set in 1964. The figures are based on reports from 40 manufacturers taking part in a sales census conducted by the Soap and Detergent Association. The 40 producers represent about 8 5 % of the industry. Total sales of synthetic detergent sales were 4.1 billion pounds (worth $1.0 billion). Total sales of soap amounted to 1.0 billion pounds ($0.3 billion) .
NEW FACILITIES Enjay Chemical is expanding its pxylene capacity at Baytown, Tex. The expansion includes additions to the existing p-xylene unit and construction of a new p-xylene feed unit.
Neville Chemical, Pittsburgh, Pa., plans to build a 50 to 100 million pound-per-year polyvinyl chloride resin plant at Neville Island, Pa. Construction is to start this summer. Neville makes coumarone indene and petroleum hydrocarbon resins at Neville Island, Anaheim, Calif., and Uithoorn, the Netherlands. Its chlorinated products division makes chlorinated paraffins and chlorinated benzenes at Santa Fe Springs, Calif.
Thompson-Apex Chemical Co. will expand its Assonet, Mass., polyvinyl chloride plant by 50%. The expansion will be started in April and is scheduled for completion early in 1967.
Phillips Petroleum's 600 ton-per-day ammonia plant near Beatrice, Neb., is now on stream. The plant uses the Kellogg process. It will supply ammonia to farmers in Nebraska, Kansas, Iowa, and Missouri.
National Cylinder Gas Division of Chemetron Corp., Chicago, will build an air-separation plant at both Richmond and Waynesboro, Va. The plants will supply gaseous nitrogen to Du Pont. The Richmond plant, to go on stream in midsummer, will be an off-site combination plant with a capacity of 216 tons of air-separation product per day. It will supply gaseous nitrogen by pipeline to the Du MARCH
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