also. Tennessee Corp., through its U.S. Phosphoric Products division, produces triple superphosphate (capacity about 850,000 tons per year), ammonia, and phosphoric acid (about 360,000 tons per year). Tennessee's other products include sulfuric acid, copper, copper chemicals, zinc concentrate, zinc salts, and some organic chemicals. Sales for 1962 hit a record $94.8 million, compared to $92.6 million for 1961. Share Exchange. Under plans for the acquisition, Tennessee stockholders will receive 0.9 share of a new voting convertible preference stock of Cities Service for each of the 4 million shares of Tennessee stock held. The preference stock will be convertible into 0.909 share of Cities Service common stock. Terms of the PCI-MidSouth arrangement were not disclosed. Terms of Tennessee Gas' offer amount to 1.11 common shares of Tennessee Gas for each common share of Heyden Newport. Offer Through Tenneco. Tennessee Gas' bid has been made through a subsidiary. Although the subsidiary is not named, the most likely one would be Tenneco Chemical Co. Tenneco completed in 1962 a petrochemical complex on the Houston Ship Channel to make acetylene and vinyl chloride monomer. Tenneco owns 50% of Petro-Tex Chemical, which makes butadiene, maleic anhydride, and fumaric acid. Tennessee Gas' other holdings include Tenneco Oil Co., Tennessee Life Insurance Co., Tennessee Gas Building Corp., and Ten Ten Travis Corp.— a real estate subsidiary. Tennessee Gas' operating revenues reached a new high of $630.9 million in 1962, a 5% increase above 1961. Net income hit $56.2 million ($1.18 per share) compared to $59.2 million ($1.27 per share) for 1961. Heyden Newport's sales for 1962 were $64.3 million, 6% above the 1961 figure. Earnings per share were $1.11 in 1962, compared to $1.01 in 1961. The company's Heyden Chemical division, whose products include benzoic acid, benzoates, formaldehyde, formic acid, fumaric acid, maleic anhydride, and methanol, accounts for about 40% of the company's sales. The Newport Industries division, making and marketing naval stores, accounts for another 40%. The balance of sales comes from Nuodex Products division and American Plastics Corp. 22
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J U N E 10, 196 3
Du Pont and Montecatini Reach Agreement on Polypropylene Firms agree to cross-licensing arrangement; other producers show little concern now Polypropylene producers are not alarmed over a cross-licensing agreement between Du Pont and Montecatini. The arrangement was concluded last week. Under its terms, each company obtains a nonexclusive license under the U.S. patent rights of the other company in the polypropylene field. The rights covered by the agreement relate to polypropylene manufacture and use, including applications in fibers and films. It also concerns rights which will come from any issuance of cases now under prosecution in the U.S. Patent Office. Du Pont and Montecatini are among the firms which have filed interference suits over polypropylene. The others are Phillips, Standard Oil Co. (Ind.), and Hercules. Other producers and intending producers not involved in interference cases are Avisun, Enjay, Dow, Texas Eastman, Alamo Polymer, Monsanto, Shell, and Rexall. The main subject of dispute lies in an anticipated composition-ofmatter patent. There is no indication as to when the U.S. Patent Office will grant this patent. But whoever is granted this patent will have an edge on other companies making polypropylene. Strong Chance. The Du PontMontecatini agreement leads to some speculation that these firms believe they have a strong possibility of being granted a composition patent. At press time, other producers feel they have an equally strong chance of being granted the composition patent. Further, the various companies in the polypropylene field have been striving to improve their positions with various patents and patent applications relative to processing and end uses. For example, both Du Pont and Hercules received polypropylene process patents pertaining to catalyst systems last year. Du Pont's system involves use of titanium trichloride reacted with various organometallic compounds (U.S. 3,050,471). Shortly afterward, Hercules received a patent which covered the use of hydrogen in polymerization of both ethylene and propylene using Ziegler-type catalyst systems (U.S. 3,051,690). Since then, Du Pont and
Hercules have negotiated a license. There are many other patents covering polymerization, refining, finishing, and treatment. No one is sure who will end up with the all-important composition-of-matter patent. But the many firms involved want to be ready to negotiate from a strong position. No Comment. Meanwhile, firms intimately involved have little to say about the Du Pont-Montecatini agreement. Hercules says that "the agreement does not alter in any respect our present patent position or plans to make polypropylene. We have been issued several important patents in connection with our polypropylene manufacturing process and expect others to be issued which are equally as important." Esso Research and Engineering explains "we have a Ziegler license and have filed patents on our own." Standard of Indiana will not comment on the situation. Phillips and Shell also have no comments as of press time. Avisun says "that we think it's an excellent thing that Du Pont and Montecatini have taken this step to clear up a complex future situation. Avisun adheres to this approach." Both Du Pont and Montecatini cite the patent problems by saying that as a result of an extremely complex situation, it was considered advisable to make such efforts as were practicable to remove, as soon as possible, uncertainties capable of jeopardizing further research, development, and production in the field by the two companies and their licensees. Montecatini's subsidiary, Novamont, has a plant at Neal, W.Va. It can produce up to 30 million pounds of polypropylene annually. Du Pont does not have a plant but maintains it is ready to build one, if conditions warrant. Planned capacity for polypropylene now totals 565 million pounds a year. Production of its resins reached 145 million pounds in 1962 and an increase to 205 million pounds is expected this year. Polypropylene producers are hopeful that the material will find markets in the molding and extrusion, film, and fiber fields.
