VoL 4S, No. 3
INDUSTRIAL A N D ENGINEERING CHEMISTRY rating8 became efieotive May 30, 1952, in the new uniform ckasification, which provides that chemicals in leSa thsn Carload quantities fm subject to class 70 if the r e l e a d value in 50 cents par pound. If a shipper does not wiah to r e h the value to 50 cents per pound, the normal higher clmilication rating will apply. Them ue chemicals rated lower than c h 70 and they would be shippad at their normal ratwithout releees of
It is felt that this relaeed value section of the c l d c a t i o n , deali as it do- with chemicals only, more or less of an experimerit by the railm& to determine how far they cBn go in ca-ditim with a wide -ge of values on a El-d value b&, reducing their cl.&,,, liability. T~the chemicalindustry thia released value rating ofisre, in mbstaoce, no reduction of rates, because the exceptions ratings that were canceled when the new classification became e5ective were clans 70. The bad feature of the system 80 far in the singling out of chemicals for this treatmezlt, wherean many other high-Prid commodities, rated an class 70 or less, do not require a released value in order to obtain hver ratings. In that sense, the treatment given to chemioals is discriminatory and may iustissbly attacked 88 such before the Interstate cornmeroe C o d o n . Objections wwe made to the commission before the new c l d c a t i o n became &wtive, but the commknion refused to suspend the M, indicating that formal complaint could be filed. Thin matter in &g given comiderable study by all BoncBllled and a fonnal complaint may he filed.
PORT FACILITIES triabte arm hsa aoeptional port facilities. New York the nerve center of the country, with ita concentration of ban&l, port, stor*, forwsrdi, and tranapOrtgtion facilities. It is the only east coast port with a free-trade zone where imported goods can he proowed and then exported without payment of Cuatome duties and e x c k taxen. T m E C &Ugh the Port of New York shown annual incressea, which is a & sign that New York still main& supremacy. In connection with bulk chemicals, oils, and other liquids, facilities are available in the Port of New York, 88 well 88 other Ports, for Storing and r d P P i n g in cam and t*k trucke throughout eaatern territary. Facilities are ala0 available for drumming liquids at *rage With the construction of the huge steel-making plant on the Delaware and the improvementa projected for the Delaware River above impetus arill be given to new plant oonstruation on deep w s ~ . only labor etnation aflecting the cost of aSndling merchandise of the importsnt tristate porte leaves It is to be hoped that the port labor situsr be d-4. tion aril1 i m p m e and that csraful bandling of the expo& and hp0& will again be the foremost conof our stevedores. d e d e briogs ita prohiema of transpohtion to our everexpanding industry and, as we have applied ourselves to solving tho= of the past, we can, with our wealth of experience, look forward to the future with confidence. R m o n r n for nsisr 8aptembar 15. 1962
b o c r m December 11. 1968
Production of Chemicals BORDEN R. PUTNAM, JR., -cIANAMlD
AND RICHARD F. WARREN HIW 10% N. I.
CO., SO-PWLUL.
Tho Mid-Ahtic area produ- about a thLd of o w oountry's industrial chemic&. In 1949, h u t of th. U n i t d &atam chorded f.=ciIitiu was located in thu thru &tam. Thin area i s the birthplaceof the modU. 8. ahmJcrl p-g industries and L o w most co-hted chemical producing and consuming ragion. Mom than half of the nation's drug and medicinal plant.
a
and about a thtd of OUT industrirl explodvea plant. am l~todinthesethraestatw. T h e t r i s t a t e ~ ~ i n c l u d a major chemical prOaucing cantms such as tho New York Metropolitan area, Philadelphia, Pittsburgh. R0Chrt.r. BufMo, N q r a Falb, and northern Now J.my. Pnxluct. include adds, altd*.. dyatufh. pigments. chemical intonndiata, pharmaceutiul., adhesives. metallic salt.. petmehuniulcpractidly the wholo gamut of commerd chemical products. F'roducing facilitiu rmg. from multimillion dollar el.ctrochemid works to one-man .p.dalty shop.
T
HE boundaries of the Middle Atlantic region encompass the heaviest concentration of the chemical induntry in the United States (Figure 1). This t d t e region bas alwaya ranked highest in total production of chemicals in thie nation, and now accounts for around 28% of the country's total output. Within the three states, chemical production ranka fourth in a widely diversified and well integrated industrial economy. Wearing apparel, primary metals (mhetly iron and steel), and food pmcesaing are the major induntries which bulk larger in the region's economy than chemical m a n u f a c t u r i (Figure 2). WHAT CHEM1CAI.S. AND HOW IMPORTANT?
F i i 1. G-phy
of th.Chanicd Industry
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The Middle Atlantic states have been in the chemical business a long *longer than any other part of the counixy-ao it is not weg to hnd that they are a mmbIy represenbtivs
INDUSTRIAL AND ENGINEERING CHEMISTRY
Mamh 1953
VALUf
INDUIIRV
(millions)
..".
amw
plants, 7 nitric acid plants, 5 phosphoric wid plants, 9 sodium sulfate plants, and 35 sulfuric wid plants (one Eftb of the country's sulfuric acid ia pmd u d in this threwbte area, the New York Metropolitan area alone producing almost 10%). Major organic chemiasla produced in the area include formaldehyde (made in nine plants, including the two largest units in the country), acetic acid, ethyl alcohol, tetraethyllead, acrylonitrile, phenol, phthalic anhydride, and a great host of organic intermediates. Many of them industrial chemicals are derived from local resources, such an Pemaylvania's coal fieldn, New York's salt deposits and hydroelectric power, and New Jroaey's sin0 mines. However, most of the area's chemical production ia hasad .on raw materials and intermediates imported from other parte of the country or from abroad+ur, petroleum, and petrochemicals from the Gulf Coast, phosphates from the Boutb and the West, and naphthalene and coal-tar products from Europe. One explanation for the heavy concentration of industrial chemical production in thin area,baaed on raw m~teridnnot of local origin, lies in the old truism: "The chemical Induntry is
-
Figum 2.
V d w M d d by Manufactum in 1990 in Middle Atlantia Statm (4
sample of the nation's chemical industry. The contribution of this area in nome individual prod& group ia shown by Figure 3. (1947 & the latest year for which these detailed Sgures 818 available. Pmbably the only major change in -thepaat 6 years would be a decreass in the psrcentsge of industrial organic chemiasla produced in thls area, PII a d t of greatly expanded pmdudion of o r d c s from natural gaa and petroleum In the Far WE&and Sou&eat.)
INDUSTRY
Tabla 1. Production of Chemic& and wi.d R.odwt. in
ISSO
Well over half the country's toilet preparations and p M c a maaterials are produced in these three s t a h . The area m o u n t s for a little lens than half of all drngn and medicinw. Paints, map, synthetic detergents, chemical intermediates, industrial
INDUSIRIAL ORQANICS DRUQS k MfDICINES PAINIS k AUIfD RODUCIS SOAP k RELAlCD ?RODUCIS MISCfLLANEOUS lOllE1 REPARAIIONS ?LASlICS INDUSIRIAL INOIQANICS MQEIAOLf k ANIMAL OILS fER11L1ZERS QUM k WOOD CHIMICALS
FiWm 3.
value
-%
VALUE ADDEb
-
MILLIONS
27
aa 29
ai
w ss 2a
I8 7 6
Manufactum in lQ4?
(a
chemicals, miscellaneous chemicals, and Bpecialty products produced in the Middle Atlantic states range from one quarter to one third of United States tot&.
INDUSTRIAL C H E M I W The backbone of the Middle Atlantic area's chemical industry
is the manufactureof industrial c h e m i c b t h o s e chemicals that chemical industry itself and used in the further production of other chemicals, chemical products, and cansumw goods. The approximately 370 industrid chemical plants in the area (Figure 4) sbipped a total of almost $7, billion worth of ohemiasla I& year, just a little leas than one third of total United States production of these important materials. The number of individual industrial chemiasla produced, and their diversity, BIB impreasive. Literally, the Gdustrial chemicals manufactured here range over the whole chemical alphahet from A for ammonia and argonto Z for zinc and Sireonium dts. Just to plck a few a t random: In theas ltatts there 818 18 carhon dioxide plants, 40 oxygen plants, 17 hydrochlorio acid BIB sold within the
%=4.
I d w ~ C h e d P h W d l e A b t i e statm
526
INDUSTRIAL AND ENGINEERING CHEMISTRY
best customer.” From ita early start here, the chemical industry has grown by accretion. Every new chemical plant creates both a new supply of and a new demand for other chemicals. Chemical plants breed other chemical plants, and this process has been going on in the Middle Atlantic region for a long time. (This is also true for other industries in this highly industrial area. A4recent survey by the National Industrial Conference Board points this up; 46% of the area’s new plants in 1946-51 were located here to be near existing plants or warehouses.) .;\nother reason is that freight rates are generally lower on raw materials than on finished products. A s the needs for industrial chemicals developed, the industry, in many cases, found it more economical to construct production facilities close to the markets than to produce the chemicals a t the raw material source. For exaniple, sulfuric acid needed for New Jersey’s petroleuin refineries is manufactured close to the refineries from sulfur brought G O O miles from the Gulf Coast. In recent years, however, this situation has been reversed for n1ati.i’ of the newer organic materials derived from petroleum and natural gas. Thus, the area is a heavy importer of formaldehyde, methanol, ethylene oxide, ethyl alcohol, and other petrochemicals from the Southwest for further processing. Most of the major chemical companies are represented here: Arnerican Cyanamid has 9 producing units in these three states; Du Pont operates 24 plants; General Chemical, 7 plants; Union Carbide and Carbon, 6 plants; Heyden Chemical, 3 plants; Heicules Powder, 3 plants; Koppers, 5 plants; Diamond Alkuli, 4 plants; Interchemical, 2 plants; and Mathieson Chemical, 2 plants. The locations of these plants, in general, follow the lines of good transportation facilities. The plants are grouped along the llohawk Valley between Buffalo and Alhanv, along the main line of the New York Central Railroad, along the Hudson River, and along the Delaware River. ita o w n
ALKALIES AND CHLORINE important segment of the Middle Atlantic area’s heavy chemical industry is the production of electrolytic caustic soda and chlorine. A cluster of these plants is built around the hvdroelectric power available in the Siagara Falls area (Figure 5 ) . JIajor electrolytic plants here are operated b~ Oldbury Electrochemical, h’iagara Alkali, Mathieson, Hooker Electrochemical, and Stauffer. Chlorine is particularly important to the synthetic organic chemical industry, and a large production of chlorinated aromatics, solvents and cleaning fluid?, Iefrigerarits, and similar compounds has developed in this area.
figure 5. Alkali and Chlorine Plants in Middle Atlantic States
Vol. 45, No. 3
At ita Syracuse plant, the Solvay Division of Allied Chemical and Dye operates both an electrolytic unit and the Middle Atlantic states’ only soda ash plant, using the ammonia-soda process. Largest single use for this important industrial chemical is in the manufacture of glass, but it is also very widely used in making other chemicals, including Solvay’s own use for the manufacture of caustic soda by the lime-soda process. This plant, first opened in 1884, pioneered the lime-soda process in this country. Following a current trend in the chlorine-alkali industry, several paper companies in the Middle Atlantic area produce their own requirements of chlorine and caustic in small-capacity electrolytic units. Another type of electrochemical operation is D u Pont’s production of metallic sodium a t Niagara Falls. Based on the sodamide process, this plant supplies cyanides for metal-treating industries, and for one of the processes by which Du Pont makes nylon. DYESTUFFS The Middle Atlantic states produce by far the majority of the country’s synthetic organic dyestuffs. The biggest producers are located here-National Aniline at Buffalo, Calco a t Bound Brook, Du Pont a t Deepwater and Carney’s Point, General Aniline at Linden and Rensselaer, Ciba at Toms River, and Interchemical a t Fairlam-and a very large number of smaller firms. Altogether, it is estimated that this industry produces 75% or more of the nation’s dyes. One reason for the very heavy concentration of the industry in this area is the large local and neighboring market. Just a little less than half of the nation’s textile dyeing, printing, and finishing is done in this area. The New England region and the southeast Atlantic states are also large markets for this industry. This is a large market for other industrial and textile finishing chemicals as well as for dyw, lakes, and toners. A second reason for the concentration of this industry here lies in the nature of the manufacturing operations in the industry. The economics of dye manufacturing dictate large, integrated, and centralized production facilities. Therefore, the industry has grown by expanding and diversifying existing facilities rather than by locating new plants in different parts of the country.
COAL CHEMICALS The state of Pennsylvania is the country’s second largest producer of bituminous coal (topped by West Virginia), and is by far the leader in production of iron and steel. As might then
Figure 6. By-product Coke Oven Plants
INDUSTRIAL A N D ENGINEERING CHEMISTRY
March 1953
be expected, Pennsylvania and the Middle Atlantic area are also the country's most important producers of chemicals from the modern by-product coke oven (Figure 6 ) . Products of the industry include inorgani&6% of the nation's by-product ammonium sulfate is produced h e r e a n d the familiar organic coal chemicals which go into dyes, coating resins, pharmaceuticals, insecticides, and many smaller usea. The Operations of thecompanieswhichrecover thesechemicalvaluea from the oven by-product streams fall into three broad groups: 1. Some plants operate entirely an purchased raw materials, crude hr and l i t oil purchased from steel companies and other coke-oven operators who do not have their own chemic81 recovery equipment. (A considerable volume of these raw materials comes from other states, as indicated by the fact that the Middle Atlantic area produces 42 to 43% of the country's benzene, toluene, and other light oil products, but only 35 to 37% of the crude light oil.) The Calco C h e m i d Division of American Cyanamid, q n e of the Barrett units, and Crowley Tar Products are typical of companies in this category. A number of these are located in the eastern part of the area, close to the markets for these products. 2. Steel plants operating coke ovens treat their own by-prodnct streams to recover coal chemicals for sale. Companies in this category include the United States Steel Corp., operating the largest steel plant in the muntry at Clairton, Pa. 3. Still other companies operate their own coke ovens, collect and process the by-products of these ovens, and then further produce chemical products from them for sale or for captive nse. Such companies include Allied Chemical & Dye Corp., Koppers Co., and Pittsburgh Coke and Chemical, all of which produce naphthalene, both for sale and for w e in kheir own phthalic anhydride plants.
.
EXPLOSIVFLI Industrial explosives are an important tool in coal mining operations, and, 88 F i e 7 shows, explosive plants are scattered all through the coal fields of this region. The 23 explosive plants located in the Middle Atlantic states produce half of all the industrial explosives made in this country, and most of this production is consumed within the area. Major explosive manufacturers here are Du P o n t 4 of its 13 explosive plants are located here, including a black powder mill near Soranton-American Cyanamid, Atlas Powder, and Hercules Powder. Some of the dots on the map in the eastern part of the region are 6reworka and ammunition plants.
.-!-.-----
Figure Z. Explosives Plank in Middle Atlantic &tea
527
PHOTOGRAPHIC SUPPLIm AND EQUIPMENT The Middle Atlantic E t S k S have a near-monopoly on the production of photographic sup Y D dies and eauimnent. 'Some of ihe products' oi.the industry are strictly chemical in nature, such aa photosensitized film, paper, and plates, and prepared developers, h e r s , and toners. Othernonchemicalproducts such as cameras, projection apparatus, developing tanks and machines, film holders and film reels require a considerable volume of chemical products in their manufacture Plastica materials and coatings, in particular, h d a market in this industry. The area accounts for approximately three quarters of the nation's snnusl output of these materials. Shipments of photographic and x-ray film and sensitized paper in 1951 were well above $2oo,ooO,ooO. There are four huge plants in the area: Eastman Kodak at Rocheater, N. Y., General Aniline and Film at Kinghamton and Renaselaer, N. Y., and Du Pant a$ Parlin, N. J.
PLASTICS MATERIALS The Middle Atlantic area may be called the heart of the United State8 plastica industry. Almost half of all the plastics materials (liquids, powder, granules, sheets, rods, and tubes for uee in further manufacture) produced in the United States are made in these three states. In fact, the state of New Jersey alone 80counts for shout one quarter of the total (Figure 8). Total ahip menta by plastics materials manufacturers in the Middle A& lantic area in 1951 were probably c l w to s5oo,ooO,OOO. Products include phenolics, ureas, melamines, alkyds, polyester^, polystyrene, resin emulsiom, cellophane, acrylates, and silicones -all of the present larpe-volume commercial pleatics except vinyls and polyethylene. Most of the plastics materials produced by these manufactum are consumed by the almost 800 plaatica fabricators and p r w -1s within the area, aa indicated by the fact that these latter establishments do between 30 and 40% of the countrv's total busrness in fabricated plastics.
INDUSTRIAL AND ENGINEERING CHEMISTRY
528
TOILET PREPARATIONS Products of this industry are perfumes, cosmetics, washes and lotions, hair dyes and dressings, personal deodorants, bath salts, and tooth paste and powder. Between 300 and 400 individual establishments in this area account for 60% of total United States production of these materials, shipping something near $350,000,000 worth of products each year. The companies engaged in this manufacture range in size from the largest, like Colgate-Palmolive-Peet, Shulton, and Yardley, down to small several-man companies engaged in blending and compounding perfume bases. Main reasons for the heavy concentration of this industry in this area are: its dependence on imported perfume and flavoring materials and essential oils and a huge and concentrated consumer market. Over 80% of the country’s supply of essential oils is refined here, primarily in the New York Metropolitan area, and about the same percentage of the country’s perfumes, toilet waters, and colognes is made here. ’
SPECIALTIES AND MISCELLANEOUS
A distinguishing and important characteristic of the chemical industry in the Middle Atlantic states is the very large number of small manufacturers. There are well over 1000 chemical plants employing less than 20 people in the New York-Northeastern New Jersey metropolitan area-including the sovereign state of Brooklyn. The products of these manufacturers range from washing and cleaning compounds, floor waxes, automobile specialties, and insecticides to paints and finishes, patent medicines, dyestuffs, printing inks, laundry products, and adhesives and cements. The size of these establishments extends all the way down to the single man operating a pot and paddle unit in his garage. Although the individual units are small, added together these specialty manufacturers constitute an important market for chemicals in this area. THE FUTURE What of the future of the chemical industry in the Middle Atlantic area? Ever since the birth of this industry in the United States, this area has been the nation’s major chemical producer, and it has grown tremendously. In terms of value added by manufacture, the output of this area’s chemical industry has increased almost fourfold in the past 13 years. Fast as this grox4h has been, the nation’s chemical industry has expanded a t an even faster rate. The share accounted for by the Middle Atlantic states has steadily decreased, percentagewise, until it is now something less than 30%, but still larger than that of any other area. An accurate continuous series shoving the development of this trend is not readily available because of inconsistency between recent and past data. However, the data for several years selected for Figure 9, starting with 1909, amply denionstrate the trend. At the beginning of this century, 60% or more of the country’s chemical industry was concentrated in the Middle Atlantic region. The startlingly rapid growth of the chemical industry in the Southwest, based on cheaper raw materials derived from petroleum and natural gas, the steady expansion of the industry in the midwest states, and the more recent growth in the Southeast and on the West Coast have all combined to cut in half the share of the chemical industry contained in the Middle Atlantic region despite the impressive growth of the industry within these three states. Thus, the diminishing percentage indicates not the decline of the industry in the Middle Atlantic area, but rather the extremely healthy growth of the industry in the country as a whole.
m+
Vol. 45, No. 3
I
Total U.S.
z
P4 d m
6
60
2 n
4
40
2
2
H
50
a
30 20
a
>
10 0
0 1909
Figure 9.
1921
1929
1939
474950
Mid-Atlantic States’ S h a r e of U. S. Chemical Production
There is every indication that this region vr-ill continue to be one of the leading chemical production centers of the United St.ates. The heavy investments in plant and dist,ribution facilities, and the long-established interdependence of the chemical and other industries in the area dictate continued growth, probably following much the same pattern that now exists in the area. However, some current developments would seem to suggest that this area may be due for important growth in a new direction. Rising costs of natural gas and its ultimate scarcity will increase the importance of coal reserves as a fundamental chemical raw niat,erial source. This possibility is recognized by the chemical industry and has led to such developments as the coal hydrogenation process recently announced by Union Carbide. Other developments could include a great expansion of the ammonia and nitrogen chemicals industry in the area, based on the direct gasification of coal, or even underground gasification of coal. Coal gasification can also be a starting point for the Fischer-Tropsch or similar processes for producing synthetic fuels and chemicals. An even more long-range possibility is the production of pipeline gas for industrial and domestic consumption. Pipelines n o v bringing natural gas from the Southvxst pass through the coal fields on their way to the East Coast. These may some day be filled with gas from a great synthetic fuels industry in the eastern part of the Middle Atlantic arm, and in Virginia, West Virginia, Ohio, and Kentucky. It would be premature to attempt a prediction of the impact of these long-range developments on this area. Looking a t the overall view, however, it is entirely safe to say that the chemical industry in the hliddle Atlantic area will continue its strong and healthy growth. ACKNOWLEDGMENT The authors wish t o thank Gerald J. Bayern of American Cyanamid’s New Product Development, Department for his very good help in the preparation of this paper. REFERENCES (1) Annual reports, prospectuses, etc., from various companies. (2) Che7n. E ~ Q 57, . , 135 (April 1950). (3) hlational Industrial Conference Boaid, “Trends in Industrial
Location,” 1952. Dept. Commerce, Bureau of Census, “Annual Survey of Manufactures,” 1949 and 1950. ( 5 ) Ibid., “Census of Manufactures,” 1947. (6) U. S. Dept. Commerce, Bureau of Foreign and Domestic Commerce, “Regional Trends in the United States Economy,” 1951. ( 7 ) U. 8. Dept. Commerce, Office of Domestic Commerce, “Economic Development Atlas,” 1950. (8) U. S. Dept. Interior, Bureau of Mines, “Minerals Yearbook.” (9) Ibid., “Survey of Current Business.’’
(4) U. S.
RECEIVED for review November 29, 1952.
ACCEPTEDDecember 17,1952,
