INTERNATIONAL
OEEC NATIONS PLAY MAJOR ROLE IN WEST GERMAN TRADE Imports of Chemical Products from:
Exports of Chemical Products to:
Sources: Verband der chemischen Industrie, Organization for European Economic (OEEC), and Die Aussenhandel der Bundesrepublik Deutschland
Cooperation
West German Chemical Trade Still Rising Mark revaluation won't cut into exports, but will probably up the flow of chemicals into Germany U.S. companies exporting to West Germany shared a good year in 1960 with other suppliers. All in all, Germany bought some $475 million worth of chemical products last year, up 37% from 1959's already high level. And with the revaluation of the West German mark—increased in value by 5% to equal 25 cents—the outlook is for continued active selling there. Despite the rapidly growing productive capacity of West Germany's chemical companies, the country leans heavily on foreign trade, both to sell its products and to obtain vital raw materials and intermediates for its industries. German foreign trade in chemicals in 1960 was up with almost every country. Over-all, in addition to the 37% rise in imports, exports rose 11% 86
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to some $1.3 billion. The U.S. is the largest single supplier of chemicals to Germany; the nations of the European Common Market and the European Free Trade Association are also of primary importance. EFTA, ECxM, and the U.S. are all about equally important suppliers to Germany, but the increasing effectiveness of the two European blocs is noticeable now. Last year, for example, almost half of the country's increase in imports came from ECM, at the expense of EFTA's share, which has stayed about constant. On the export side, the U.S. is relatively less important to Germany. Biggest customers are Common Market countries, every one of which (except for Luxembourg) buys about as much from Germany as the U.S. does. Great Britain, Austria, the United
Kingdom, and Sweden all also buy from Germany at about the same level as the U.S. Exports Vital. In contrast to the United States, which exports only about 5% of its chemical production, Germany sends some 25%? of its chemicals to other countries. The revaluation of the mark thus hits them where it hurts. German goods will be o'.'f more expensive than they were before. What will this do to Germany's foreign trade position? German chemical executives shrug their shoulders at the question. "We'll modify our prices," they say, "to keep them competitive on the export market." They add that their whole industrial position is based on the cost structure of a large capacity operating at full blast, and for that they must have exports.
On the whole, though, the mark re valuation has been quickly accepted by German chemical management. They recognize the pressures to which the Bonn government has been sub jected, and, that their industrial posi tion is strong and growing stronger. They sum up the move as "an aspirin now to prevent major surgery later." Imports Affected. German chemi cal imports have been rising faster than exports for several years, although the industry still has a very favorable trade balance. The reason for grow ing imports is that domestic demand is rising faster than capacity. This is particularly true in organic chemicals and plastics. The country has very little oil and gas of its own in relation to its needs, and the coal in dustry cannot produce basic chemicals such as benzene and naphthalene in
the quantities needed. Import discus sions almost always get around to mentioning the critical shortage of these two building blocks and Ger many's dependence on foreign sources for them. And at the moment, most of its imported benzene and naphtha lene comes from the United States. This state of affairs would have con tinued for at least several years, even without the currency revaluation. Al though Germany is starting now to build its first synthetic-benzene-frompetroleum plant (Gelsenberg Benzin AG, at Getsenkirchen-Horst in the Ruhr), it could not possibly build such plants fast enough to free itself of this dependence in less than several years. Now, with imports 5% cheaper, many of the rumored aromatic-from-petroleum projects will probably be de layed, and a few may be canceled.
West German Exports, Imports Climb for Organics and Inorganics Inorganic Chemicals
(millions of dollars) Expc>rts
Imports Year
1952 1953 1954 1955 1956 1957 1958 1959 1960
OEEC Nations
Dollar Area
$11.2
$2.9
8.6
1.7 4.4 7.8 9.2 6.8 8.0
18.6 25.4 21.7 17.8 16.4 24.8
10.0
—
—
Total
$15.7 12.1 26.6 38.4 36.5 29.0 30.3 42.1 65.2
% Dollar Area Imports*
OEEC Nations
6% 4 9 12 13 10 13 15
$45.2 47.8 60.8 69.3 76.5 86.4 79.5 89.8 —
Dollar Area
$4.1
9.5 8.6 11.0 13.6 12.9 10.9 — —
% Dollar Area Total Exports**
$62.9 72.9 92.9
104 116 132 121 134 154
15% 19 27 31 30 34 34 — —
Organic Chemicals
(millions of dollars) Exports
Imports Year
OEEC Nations
Dollar Area
$7.0 12.5 12.1 14.3 19.0 26.0 32.5 40.7
$3.3
—
—
1952 1953 1954 1955 1956 1957 1958 1959 1960 Sources:
2.3 9.8 12.7 11.4 21.2 36.7 35.6
% Dollar Area Total Imports*
$11.4 16.1 24.8 31.3 35.6 54.0 77.0 91.3
141
OEEC Nations
Dollar Area
8% 8 19 19 16 22 31 34
$63.3 75.1 92.1 94.0 98.8
$6.7 14.1 12.2 14.4 16.4 21.4 25.4
—
—
108 122 142
— —
% Dollar Area Total Exports**
$88.8
117 146 151 163 187 209 237 295
29% 45 43 46 44 48 48
Sometimes it's better to let Eastman m a k e it Got a production problem? Does it involve the manu facture of a compound that's not generally avail able in the quantity or pu rity you require? Then con sider this. We are equipped for and experienced in synthesis on a custom basis for quantities in the largerthan-laboratory-but-lessthan-tankcar range. For in formation about this serv ice, or a quotation, write Distillation Products Indus tries, Eastman Organic Chemicals Department, Rochester 3, Ν. Υ.
— —
Organization for European Economic Cooperation (OEEC) and Die Aussenhandel der Bundesrepublik Deutschland * West Germany bought this percentage of $ area exports to Europe ** West Germany provided this percentage of $ area imports from Europe
DISTILLATION PRODUCTS INDUSTRIES is a division of EASTMAN KODAK COMPANY
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British Plastics Output Up THE Ft AME AND THE FLASK Symbol of Quality
Hallco
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While plastics production rose by 19% in 1960, prices dropped and sales curve flattened Production up, prices down, sales slow —this is the picture of Britain's plastics industry in 1960. Production, 19% higher than in 1959, was ahead of sales, which increased only 12% over 1959. In 1959, however, sales had jumped more than 20% from 1958. Yet Britain's plastics sales are showing a healthy rate of growth. In the six years since 1954 they have doubled. The reason for last year's slower pace was trouble in the auto and consumer durables industries. The year started well, with sales zooming 30% above 1959. But by the fourth quarter of 1960, the brakes were on, and sales for that quarter were jogging along at only 2 % more than in the fourth quarter of 1959. The consumer durables industry sustained its toughest setbacks in the last quarter of 1960. British exports of automobiles to the U.S. started dropping; tighter government control on consumer credit hit makers of refrigerators, television sets, washing machines, and domestic purchases of autos. A mounting backlog of stocks forced the manufacturers to competitive price cutting, but with little effect. These troubles did not affect plastics production capacity; Monsanto, Imperial Chemical Industries, Shell, and Union Carbide all went ahead with plans for increased production. Nor did they affect Britain's plastics imports. In fact, the nation increased its plastics imports from all major suppliers. The U.S. supplied Britain with about $40 million worth in 1960 against 1959's $25 million. West Germany's 1960 plastics exports to Britain hit $18 million, up from $15 million in 1959. Prices Fall. Toward year's end, plastics prices began to fall, and this trend has continued into 1961. ICI introduced polypropylene in May 1960 at 53 cents a pound. This later dropped to 48 cents and then to 42 cents a pound Jan. 1. Shell also knocked down prices. Its high-density polyethylene fell from 38 cents a pound to 35 or 36 cents a pound depending on grade. Shell's polypropylene slumped from 48 cents a pound to 43 cents. Low-density polyethylene, in less than a year, has fallen
Britain's Plastics Sales Double Since 1954
from 36 cents a pound to 26 cents, a reduction made by both Shell and ICI. While there might be reason for pessimism among British plastics producers, they are certainly not showing it. New capacity is coming into operation or is planned on a large scale. Union Carbide is increasing its polyethylene capacity from 11,500 tons to 25,000 tons a year. ICI's polyethylene capacity will rocket to 105,000 tons after planned expansions. Shell will have a 15,000 ton-a-year polyethylene plant and an additional 15,000 ton-a-year polyethylene and polypropylene plant this year. Monsanto's 17,000 ton-per-year high pressure process polyethylene plant at Fawley will be upped to 26,000 tons by 1962. Forth Chemicals, operating a 30,000 ton-per-year styrene monomer plant, will push it to 50,000 tons a year, and a new styrene monomer unit, to make 50,000 tons a year, will come on stream sometime in 1963. Within four months of opening its new 11,000 ton-a-year polypropylene plant at Wilton, ICI has decided to build extensions to double that output. ICI is also building a 45,000 ton-ayear polyvinyl chloride plant and expanding an existing 70,000 ton-a-year plant to 80,000 tons. These expansions will raise the company's total PVC capacity to 125,000 tons a year.
BRIEFS Italian production of artificial and synthetic fibers rose to 443 million pounds in 1960, an increase of 1 1 % over 1959. The average world increase in 1960 was about 8%. Rayon and rayon staple production came back strongly, reaching a total of 369 million pounds, up 7c/c over 1959. Synthetics rose over-all to 75 million pounds, up 34% over the previous year. Despite the over-all growth in 1960, the last half of the year showed a slight decline.
South African Titan Products will put on stream a 10,000 ton-a-year titanium dioxide plant, Umbogintwini in South Africa. The $9 million plant will be a joint venture of African Explosives and Chemical Industries and British Titan Products. Major .raw materials will be ilmenite from nearby Umgababa and sulfuric acid made by African Explosives at Umbogintwini. Christiaan 1629-1695
General Electric Japan, Ltd., will build a 12,500-kw. nuclear power plant at Tokai Mura, 50 miles northeast of Tokyo. GE's atomic power equipment department will design the plant's boiling water reactor and will fabricate the enriched uranium dioxide fuel at its San Jose, Calif., facilities. The plant, scheduled for completion early in 1963, will be used for nuclear research and development and power production. GE is building the plant for Japan Atomic Energy Research Institute.
The Dutchman who could
WALK THROUGH WALLS For Christiaan Huygens the barrier between "pure" and "applied" research was as insubstantial as a rainbow. He made an intensive study of the theory of probabilities. He invented the pendulum clock. He perfected the telescopic lens. He made monumental contributions to geometrical optics and to "pure" light-wave theory.
Bikkihappo Ja Superfosfaattitehtaat OY, Helsinki, Finland, will build a plant to produce 70,000 tons per year of sodium sulfate. Project engineering and design Will be handled by Zahn & Co., G.m.b.H., of Hameln (Weser), West Germany. Rumianca, an Italian firm, and the Dutch company Noury & Van Der Landa N.V. Deventer will form a joint company, Noury Rumianca, to produce 3300 tons per year of citric acid at Rumianca's plant in Turin. In 1959, Italy imported 4000 tons of citric acid, 90% of it from Belgium. Rumianca's output, plus that of the planned Biacor plant-3300 tons of acid and its calcium salt—should more than satisfy the nation's annual requirement.
Huygens
The freely ranging imagination of an orderly mind in a stimulating intellectual climate has a way of dissolving artificial barriers. I t happens every day in Los Alamos.
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