Fertilizer Plants Completed on Aruba Ammonia, nitric acid, urea, and complex fertilizer now made on Caribbean island A new $20 million chemical complex was dedicated last week on Aruba, one of the islands of the Netherlands Antilles. The four-plant complex will produce fertilizer and fertilizer raw materials for export to countries in Latin America and eventually to Europe. Center of the complex is a 360 tonper-day ammonia plant operated by Antilles Chemical Co., a subsidiary of Standard Oil of New Jersey. The other three plants—a 225 ton-per-day urea plant, a 150 ton-per-day nitric acid plant, and a 400 ton-per-day complex fertilizer plant—are owned and operated by Aruba Chemical Industries. (Aruba Chemical Industries is owned jointly by Standard Oil of New Jersey and International Development and Investment Co. International Development and Investment Co. is owned jointly by C&I-Girdler International, Ltd., and Phoenix Overseas Operations, Ltd. The latter company is headquartered in Vancouver, B.C., and is affiliated with Germany's Phoenix-Rheinrohr.) Hydrogen source for the ammonia plant is petroleum gases piped from the refinery of Lago Oil and Transport Co., also a subsidiary of Standard Oil of New Jersey. (The refinery uses, crude oil from near-by Venezuela.) About two thirds of the ammonia output will go to the nitric acid and urea plants. The remainder will be shipped by tankers to other countries in Latin America. Most of the output of the Girdlerdesigned urea plant will be exported to Central and South America. The entire output of the nitric acid plant, which was designed by Chemical & Industrial Corp., will be used in the complex fertilizer plant, also designed by C&I. The phosphate source for the complex fertilizer will be either phosphate rock or semirefined phosphates imported from southern United States. Aruba has large quantities of phosphate ore but they are as yet undeveloped. The complex fertilizer is also to be exported to Latin American countries. Eventually, however, when the Netherlands Antilles (which is part of 30
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the Kingdom of the Netherlands) becomes an associate member of the European Economic Community, some of the products may be exported to E E C member countries. After its admission, expected soon, products of Aruba will be admitted to the E E C countries on the same basis as those of the Netherlands itself. The new chemical complex is located about halfway between Aruba's two major cities, Oranjestad and San Nicolas, on a 99-acre site in the Barcadera Industrial Park. The Aruban government has spent about $20 million to create a new deepwater harbor for the industrial park, to expand its sea-water distillation and electric generating plants, and provide other facilities for new industries. To attract new industry, Aruba grants tax exemptions for a period of 10 to 11 years to new enterprises locating on the island. It has also set up a free trade zone.
Manufacturers Look for Higher Profits in 1964 Pretax earnings and new orders should rise in the first half of 1964 U.S. manufacturers expect to turn in higher pretax profits during the first half of 1964 than they did during this year's first six months, the National Industrial Conference Board says. Manufacturers also look for an increase in new orders and billings but they foresee no significant advance in raw material prices. Inventory investment in 1964's first half is likely to be higher or about the same as in 1963. NICB's predictions are based on a survey of 185 manufacturing firms, 19 of which are chemical companies. Twelve of the chemical companies are producers of organic chemicals, seven are inorganic chemical manufacturers. Seventy per cent of all the companies surveyed say that their pretax profits in the first half of 1964 are likely to exceed the amount realized in 1963's first half. About 17% of the firms expect lower pretax returns; about 12% figure that their earnings before taxes will decline. Thirteen of the 19 chemical companies predict higher pretax profits. About 5 5 % of the 185 companies indicated the amount of gain expected in first-half 1964 pretax earnings. Of
those that did, about half expect pretax profits to exceed 1963's first half by 10.0 to 19.9%. The other half believe the gain will be less than 10%. New Orders. Roughly 7 0 % of the companies participating in NICB's survey predict that new orders will rise during the next six months, compared to the same period in 1963. About 2 1 % look for no change in the number of new orders they will receive, and 7% anticipate a decline. Increased orders are almost unanimously expected in the appliance, electrical industrial equipment, apparel, inorganic chemical, food, furniture, paper, and textile-mill products industries. The outlook for the billings in the first half of 1964 is practically the same as that for new orders. Some of the chemical firms say they expect an average increase of 5% in new orders and an average increase of 6% in new billings compared to 1963's first six months. Inventory Value. Slightly more than half of the manufacturing companies report that their inventory value is higher this year than in 1962. Generally, the increased inventory investment was less than 10%. About 2 5 % of the companies reduced their inventories this year and another 2 5 % say their current inventory total is about the same now as a year ago. Among the inorganic chemical companies included in the NICB survey, three report higher inventory investment compared to a year ago, three say it is lower, and one company says its inventory investment is unchanged. Among organic producers, 10 have higher inventories and two have lower inventories now than they had a year ago. By mid-1964, 37% of the 185 companies expect to increase their inventory investment beyond current levels. Another 37% anticipate no change in inventories between now and the end of June 1964. About 2 5 % foresee a decline in inventories. Chemical companies generally expect their inventories to increase, particularly the organic chemical companies. Employment is higher now than it was in January 1963 for about 50% of the companies surveyed. About half of the companies plan no change now in the size of their 1964 work force, 37% are planning to increase their work force, and 13% anticipate a decline. No declines in the size of their work force are expected by the chemical companies.
Chemists Seek Descriptive Information From Recruitment Advertisements Many technical people feel offended by ads offering only generalizations Chemists and chemical engineers show "a very decided preference" for recruitment advertising that provides them with substantial information. This is the key finding in a study by Deutsch & Shea, Inc., of reactions to recruitment advertising of technical people in the chemical industry. The study had three objectives. One was to determine what type of recruitment advertising is most effective among professional people in the chemical industry. The second purpose of the study was to learn what differences, if any, exist between chemists and chemical engineers insofar as their reactions to recruiting advertising are involved. Third, the study was intended to produce insights into the reactions of technical people to recruitment advertising in general. Questionnaires were mailed to a group of 1600 professional people, selected by a random sampling method, from the roster of members of the American Chemical Society. A total of 362 technical people responded. They were almost equally divided between chemists (173) and chemical engineers (168); 21 respondents were not in either category. Respondents selected which of six advertisements, contained in the questionnaire, they would be most likely to answer. They also expressed their general attitudes concerning recruitment advertising and sent in, with their replies, samples of recruitment ads they considered good. Little basic difference existed between chemists and chemical engineers in their reactions to recruitment advertising. The importance these two groups of technical people place on detailed information about the openings and the companies was demonstrated by the way they ranked the six advertisements. Description. Both groups ranked two of the ads high, two particularly low. The most successful of the six ads were the two which carried detailed job descriptions. Chemists showed a somewhat greater preference for an ad consisting almost entirely of job description. Their second choice
was one which also included information on the company's achievements and professional climate. Chemical engineers reversed this ranking. The two low-ranked ads used large illustrations and short, general copy. One stressed the recreational possibilities of the company's location, the other, general job advantages. One advertisement did not list job openings, but provided information on the technical activities of the company and areas of research interest. Chemical engineers ranked it third; chemists ranked it fourth. Another ad provided a very detailed story on two specific company projects, plus information on advancement policies. Chemists ranked it third; chemical engineers, fourth. The importance of detailed information is further substantiated by the comments of participants. Commenting on their reasons for making a first or second choice, participants mentioned job descriptions with a high degree of frequency. Even when ads other than the top two were selected, the choice was often qualified by the comment that the ad would have been even better if more job description had been included. Many technical people felt offended by ads which offered only generalizations. Major complaints were lack of information, use of cliches, generalities, and vague or misleading statements. Visual Appearance. Analysis of candid opinions on individual advertisements revealed another important point: the major role played by visual appearance in recruitment advertising. Clean design, easy readability, and dignified appearance drew favorable remarks. A cluttered look, hard-toread type, poor illustrations, and the use of art elements only vaguely related to the content of the ad caused considerable unfavorable comments among the chemists and engineers. Both the spread of scores in the study and the analysis of the ads returned with the questionnaires as examples of good recruitment advertising suggest that an ad that carries job descriptions, information about the com-
pany, and good design will draw the attention and the approval of the majority of chemists and chemical engineers and stimulate their response. Although no type of ad will satisfy everyone, there was substantial agreement among technical people in varied fields, disciplines, and functions as to what constitutes good recruitment advertising.
Chemical Business Tempts American Metal Climax American Metal Climax is giving serious consideration to venturing more deeply into the chemical business, according to its executive vice president, Elmer N. Funkhouser. Speaking before the New York Society of Security Analysts in New York City earlier this month, Mr. Funkhouser described basic inorganic chemicals as "tempting." Such chemicals as chlorine, nitrogen tetroxide, and nitric acid could be produced as by-products at the plant of its Southwest Potash division at Vicksburg, Miss. The Vicksburg plant recently began commercial production of potassium nitrate (C&EN, Nov. 4, page 32). It uses a new process involving the reaction between potassium chloride and nitric acid. Sales of American Metal Climax will exceed $700 million this year, Mr. Funkhouser says. However, sales will drop by about $350 million next year as a result of the company's sale of its business as sales agent for copper, lead, and zinc. Rhodesian Selection Trust, Lusaka, Northern Rhodesia, bought the business in return for stock. When the sale is complete, Amax will own 4 6 . 1 % of Rhodesian Selection Trust. Amax believes that sale of this business will free some of its working capital, increase shareholders' equity, and reduce metal inventory. However, the effect on fixed assets will be negligible. In 1962, working capital of Amax was about $130.2 million, stockholders' equity was about $269.2 million, and fixed assets were nearly $105.6 million. Earnings for 1963 should be about $2.50 per share, substantially higher than the $1.84 per share in 1962 and nominally better than 1961's $2.47. Amax has scheduled capital expenditures of about $300 million over the next five years. It has borrowed $60 million of this and will finance the remainder out of reserves. DEC.
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Fairmount Chemical has completed an expansion of its hydrazine plant at Newark, N J . The expansion increases the plant's capacity from about 250,000 pounds to 750,000 pounds a year and converts the plant from the urea to the basic ammonia process (C&EN, Feb. 25, page 30).
American Enka has increased its quarterly dividend from 30 to 35 cents a share and has declared a year-end extra of 25 cents a share. Both dividends are payable Dec. 27 to holders of record Dec. 13. This year, dividends on American Enka's common stock will total $1.50 a share compared with $1,275 a share in 1962.
Continental Oil Co. is expanding its petrochemical plant at Baltimore, Md., to make polydodecyl benzene. Completion is set for the spring of 1964. Output will be used by Bryton Chemical Co. to make oil-soluble sulfonates at its Trainer, Pa., plant. The sulfonates are used as dispersants and rust preventives in diesel fuels and lubricating oils. Bryton is a subsidiary of Continental Oil.
Witco Chemical plans to split its common stock 3 for 2. Stockholders of record March 31 would receive the new shares. The company plans to place the new shares on a quarterly dividend basis of 20 cents a share, equivalent to 30 cents a share on presently existing stock. Witco now pays a quarterly dividend of 25 cents a share on its common stock.
Shell Chemical's butyl alcohol plant at Houston, Tex., is operating at full production, considerably ahead of schedule (C&EN, June 10, page 2 3 ) . Shell started to build the plant last March, originally planned to start production next year. The plant's main product is n-butyl alcohol. It also produces isobutyl alcohol. Estimated capacity is 25 million pounds a year. Shell now makes all four isomeric alcohols.
Abbott Laboratories plans to split its common stock 3 for 1. It also wants to increase the number of its authorized common shares from 5 million at a par value of $5.00 a share to 20 million shares with no par value. Stockholders will vote on the proposed split in April. The company also increased its common stock dividend from 55 cents to 60 cents a share, payable Feb. 15 to holders of record Jan. 22.
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NEW FACILITIES
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Soft Detergent Plant Under Construction in Germany Chemlsche Werke Huels' soft synthetic detergent plant is now under construction at Marl, West Germany. The plant will have a capacity of 50,000 to 60,000 metric tons per year of straight-chain dodecylbenzene sulfonate to meet German government specifications on biodegradability. In Germany, there is legislation that detergent makers must switch over to products which are at least 8 0 % biodegradable by Oct. 1, 1964 (C&EN, March 18, page 102). Huels' new plant is expected to be on stream in July 1964.
Pennsalt Chemicals has declared a year-end extra on its common stock of 20 cents a share, payable Dec. 28 to holders of record Dec. 13. The extra dividend brings total 1963 payments on the company's common stock to 90 cents a share vs. 80 cents a share in 1962.
INTERNATIONAL Shell Chemical Co., Ltd., is expanding its styrene monomer plant and its polystyrene plant at Carrington, England. Capacity of the styrene monomer plant will be increased by 10,000 tons to 35,000 tons a year. Polystyrene capacity will be increased from 24,000 tons to 35,000 tons a year. The project should be completed late in 1964. Output will include a special grade of polystyrene to make expandable polystyrene paper by conventional filmblowing techniques.
Ten Greek explosives makers have formed a combine to strengthen their operations now that Greece is associated with the European Economic Community. The combine will concentrate on the domestic market now, but eventually it plans to export. The Greek Productivity Center (Elkepa) is working on similar plans for merging other industrial groups.
Bad'rsche Anilin- & Soda-Fabrik and Farbwerke Hoechst have formed new ventures in Australia. Badische has set up a new company, BASF Australia (Mfg.), Pty., Ltd., which will build a $1.75 million plant to make expandable polystyrene and other plastic dispersions. The other German company, Hoechst, is acquiring a majority interest in Industrial Chemical Products, Pty., Ltd., which will be renamed ICP-Hoechst. ICP-Hoechst will make polyvinyl acetate and organic dyes.
Badger Co. has received the contract to design, engineer, and build S. A. Marles-Kuhlmann-Wyandotte's propylene oxide-polyethers complex at Rieme-Zelzaete, Belgium. M-K-W is jointly owned by Marles-Kuhlmann, Paris, and Wyandotte Chemicals, Wyandotte, Mich. The new plant, to be completed early in 1965, will use Wyandotte processes to make the oxide and the poly ethers.
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