Gas-based chemicals face year of decline - Chemical & Engineering

Jan 22, 1979 - Chem. Eng. News , 1979, 57 (4), pp 10–15 ... First Page Image. It may just depend on one's point of view. For farmers, home builders,...
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Gas-based chemicals face year of decline Methanol and urea still have some strength left for 1979, but ammonia, formaldehyde brace for falling business in fertilizer, construction It may just depend on one's point of view. For farmers, home builders, and non-U.S. chemical producers, 1979 looks very favorable for the four leading petrochemicals made from natural gas—ammonia, urea, methanol, and formaldehyde. As the top consumers, farmers and home builders will get bargains in these materials. As exporters to the U.S., foreign producers face sharply increased sales. But for U.S. petrochemical producers, the 1979 outlook is fair at best and depressing at worst. U.S. demand for these four chemicals probably will grow less than in 1978, and fast-rising imports will eat up the little market growth remaining. Thus, overall U.S. production for these chemicals in 1979 likely will drop about 2% from 1978 to 53 billion lb. Sales value for these petrochemicals in 1979 will do well to match the estimated $1.3 billion in 1978. This figure assumes merchant shipment of a little more than half of total production. Production was worth about $2.5 billion last year and may drop to $2.4 billion in 1979. This will leave the average market value for this group at a very low 4.5 cents per lb this year. By contrast, market values for the leading olefins and aromatics based on oil, such as ethylene and benzene, currently range from 9 to 21 cents per lb. Adding to the gas-based group's problems from slow market growth and imports is low use of plant capacity. Capacity utilization for all operable plants for making these four chemicals probably will remain in the low 70% range as it has in the past two years. Chat's for all operable plants. At present, the situation in ammonia, urea, and methanol is bad enough to warrant the closing of a number of plants. This is especially true for ammonia, for which about a fourth of industry capacity is not running. If shutdown plants are excluded from capacity totals for the four chemicals, capacity use rises to a bit more than 80%. The big jump is in ammonia, from 71% to more than 90%. Companies prefer capacity use in the mid-to-upper 80%. This level of capacity use and general business is scarcely desirable for any 10

C&ENJan. 22, 1979

For methanol, foreign trade is not so important as with ammonia and urea. However, relative movement is just as fast and in the wrong direction for U.S. producers. Imports are up sharply, especially from Canada. Exports have plummeted. The net negative balance currently for U.S. producers amounts to about 4% of U.S. production. The situation could continue to change fast as new low-cost capacity springs up in gas-rich areas such as Mexico and the Middle East. A basic consideration for the gas-based chemical group in the U.S. in 1979 is, of course, natural gas itself. The raw materials outlook for chemical producers is somewhat different from the general outlook for natural gas customers in the U.S. At present, natural gas is in general surplus, and market prices are falling. That is why the Department of Energy is switching its former policy against wider industrial use of gas. But for chemicals, natural gas costs still are rising for many plants. This happens because old, long-term gas contracts at Celanese methanol unit at Bishop, Tex.,very low prices are being steadily rewritten. Industry sources believe that there helps keep industry capacity ample still are some old contracts in force for gas chemical at the crest of a business ex- at 30 to 50 cents per 1000 cu ft. Contract pansion such as the one in the U.S. now prices for new intrastate gas are about approaching the four-year mark. For the $1.90 on the Gulf Coast. Gas contract prices have a lot to do with gas-based group, as for many other key U.S. chemicals, the basic problem has chemical plants' staying open or shut now, been overbuilt capacity at a time of less especially for ammonia. In some cases, old than anticipated demand growth, and plants with old gas contracts are still open, while some big new plants are closed— rising costs in raw materials and energy. But for the gas-based group, two other this despite the increased efficiency of the factors give its business cycle a special new plants in using gas. Instead, chemical roller-coaster character. The first is plant operators with high-cost gas are market dependence on two areas with selling the gas in place of the chemical especially big swings from good times to product for best economics. bad—agriculture and home construction. Such price considerations are much Farming lately has been quixotic, good to more important to chemical plants than urea but not so good to ammonia. Housing is availability of gas. This winter, even has been excellent for methanol and more than in past winters when gas supformaldehyde but could go through one of ply was generally tighter, chemical plants its periodic turndowns this year. expect no problems from gas curtailThe other factor is large-volume, fast- ments. U.S. producers may wish, vainly, that changing foreign trade for two of these chemicals, ammonia and urea, and sub- gas were more scarce in several other stantial trade for a third, methanol. For countries now stepping up output of gasammonia, a long-dreaded threat to U.S. based chemicals there. producers from a sea of new ammonia . This cost differential is behind the capacity around the world is materializing biggest emerging issue for U.S. producers with a vengeance. Imports relative to U.S. in 1979, imports. Look for much more ammonia production could rise from 5% action like companies' petitions to the in 1977 to 20% in 1981. U.S. government in 1978 on alleged For urea, the foreign trade picture is methanol dumping from Brazil and just the opposite. Strong imports equiv- Canada. Ammonia could be next. For more specifics on these gas-based alent to about one third of U.S. production are now about balanced with mush- chemicals' 12-months outlook, see the rooming exports. Urea exports have been following pages. one of the main bright spots in the none Bruce F. Greek, C&EN Houston, and too heartening U.S. fertilizer scene. William F. Fallwell, C&EN New York

Key Chemicals NH3

Ammonia 1978 was a bad year for U.S. ammonia producers, but 1979 will be even worse. Production in the U.S. is forecast to de­ • Plants shut down cline substantially this year to about 15 million tons from 15.7 million tons in • Pricing weak 1978. Prices of ammonia are expected to remain too low to be profitable even in the unlikely event that cost increases PRODUCTION/CAPACITY can be passed on as natural gas costs rise. Demand for ammonia, however, is expected to rise a small amount, prob­ ably less than 5%. And this increased demand will be filled by rising imports, perhaps the biggest concern of ammo­ nia producers. Imports and rising gas costs are largely behind the decline in U.S. am­ monia production in 1978 and the further decline forecast for 1979. Meanwhile, imports in 1978 may have topped 1 million tons. In 1979, imports could hit 1.75 million tons. In the early 1980's, imports may exceed 3 million tons un­ less the U.S. government imposes trade restraints. Imports haven't made up all t)f the a First quarter, b 4 million to 5 million lb of capaci­ ammonia production decline in the U.S. ty is presently shut down, but is considered oper­ able if economic factors are favorable. Some has come from declining inven­ tories over the past year. The rock-bottom prices for imported ammonia led to lower prices of U.S. HOW MADE ammonia as plants scrambled to keep business. Price cutting took hold first on Catalytic reaction of nitrogen from air the Gulf Coast and then substantially and hydrogen stripped from natural covered the agricultural market area by gas year's end. The outlook now depends largely on MAJOR DERIVATIVES farmers, by far the largest users of am­ monia. As the year began, fertilizer ex­ Nitric acid 25 % ; urea 15 % ; perts expressed diverse opinions on ammonium phosphates 15% future planting. Farm debt remains very high, grain prices are relatively low, and livestock prices are up moderately rel­ MAJOR END USES ative to costs. Fertilizers 80 % ; plastics, resins, and Two months from now, a better guess fibers 10%; explosives 5 % will be available for U.S. fertilizer con­ sumption in the crop year ending June 30. For now, the Department of Agri­ FOREIGN TRADE culture predicts that use of nitrogen fertilizer will rise 6% in the current crop Imports rising rapidly to 1.75 million year. tons in 1979; exports negligible Even with a good year for fertilizer consumption, much of the current 25% PRICES or so of idle ammonia capacity probably will remain idle. This past fall, when $80 a ton at plants; import and spot many ammonia plants were taken off the prices lower line, ammonia customers had no prob­ lems getting material. Imports easily took up the slack. COMMERCIAL VALUE In fact, ammonia plants now operat­ $ 1.25 billion for total production, 1978 ing still have surplus capacity. Many



Imports rising

units are producing at half capacity. Even this low level is more economical than shutting down and restarting later, especially if these units have old natural gas contracts at relatively low prices. These units plus imports are expected to handle 1979 demand without trou­ ble. Ammonia capacity now shut down in the U.S. may exceed 5 million tons out of a total 21 million tons. Industry leaders don't agree on how much of this ca­ pacity may never start up again. Age of the plants now seems to be an advan­ tage. Producers with old plants and low capital charges also are likely to have old gas contracts with low prices. Even with relatively inefficient plants requiring as much as 40,000 cu ft of gas per ton of ammonia, in contrast Ίο less than 35,000 cu ft for a new plant, a producer paying $1.00 per 1000 cu ft for gas could compete at $80 a ton. This is in contrast to an operator of a new plant who may have to buy gas at $2.00 per cu ft and who incurs high capital costs. Operators of new plants are forced to take a look at the economics of opera­ tion even if they produce their own gas. Sometimes the combination of not run­ ning the plant, selling the gas for high prices in the intrastate market, and ac­ cepting the capital costs of the nonoperation produces more profit than making and selling ammonia. Even op­ erators of old ammonia plants might opt to sell their gas, since they would have relatively low capital charges to absorb from the shutdown plants. As might be expected, imported am­ monia is also moving into nonfertilizer uses. These uses, largely for polymer products such as fibers, elastomers, and fabricated plastic items, are several chemical steps removed from ammonia. As a result, the cost of ammonia ac­ counts for a minor share of the final product cost. Relatively low-cost am­ monia, therefore, will have little effect, if any, on use of downstream products such as nylon and polyurethane. Nonfertilizer outlets of ammonia may grow at a rate 50 to 100% higher than that of the U.S. gross national product. Even so, average growth of 4 to 5% during 1979 for these uses will have no impact on decisions to restart shutdown ammonia plants. Such action, like the ammonia business as a whole, will de­ pend in 1979 on fertilizer demand and imports.

Jan. 22, 1979C&EN 11

Key Chemicals

Urea In contrast to ammonia producers, urea producers are doing fairly well. They are expected to continue to do so during • Capacity level much of 1979 unless fertilizer demand drops substantially, an unlikely event. • Prices holding But urea producers are not without problems. A sizable amount, as much as 1 million tons, of total capacity of 7.5 PRODUCTION/CAPACITY million tons is now shut down, mostly for economic reasons. Imports are forecast Millions of tons to rise to even more than their current margin of about 100,000 tons above exports. A few years ago, exports ex­ ceeded imports. Urea prices as a result are going nowhere, even though U.S. demand has improved and production cost pressure is rising. Shutdown urea capacity is partly in­ fluenced by production of raw materi­ als—ammonia and, especially, carbon dioxide. At many urea plant sites, am­ monia is also produced at other units with carbon dioxide as a coproduct. If ammonia production is shut down, as a sizable block now is, substitute ammo­ nia can be brought in by rail or truck, stored, and used at a not undue added a First quarter, b 0.5 million to 1.0 million tons of capacity is presently shut down, but is considered expense over the cost of captive am­ operable if economic factors are favorable. monia. An outside supply of carbon dioxide costs relatively more for the same HOW MADE shipping distance. However, outside sources of carbon dioxide can be ar­ Reaction of ammonia and carbon ranged, as is the case for a number of dioxide under pressure urea units. As a result, urea units are kept running even at reduced rates if MAJOR DERIVATIVES ammonia units are shut down. Even with some urea capacity shut Urea-formaldehyde resins 10%; down, production rose about 10% dur­ melamine resins 5% ing 1978 to 4.6 million tons. Growth in 1979 could be considerably less, per­ haps 4% to 4.8 million tons. MAJOR END USES Most of the demand growth in 1978 Fertilizers 75%; animal feeds 10%; came from fertilizer, the dominant use. adhesives and plastics 10% Fertilizer urea is doing well at the ex­ pense of ammonium nitrate, in particu­ lar, and anhydrous ammonia. Part of this FOREIGN TRADE growth for urea results from greater Exports jumping to about 1.5 million acceptance by farmers of solution forms tons in 1978; imports up a bit to aboutof fertilizers. Urea-ammonium nitrate (UAN) solutions are conveniently pro­ 1.5 million tons duced either for direct application to soil or for subsequent conversion to solid PRICES mixed fertilizers. Besides affording process cost-sav­ $ 120 a ton at plants for fertilizer ings in making UAN solutions, which can grade, up to $160 a ton for feed be passed on to financially pressed grades; spot price $20 to $40 less farmers, urea has other advantages that spur its growth over other nitrogen sources. An example is urea's relatively COMMERCIAL VALUE low cost of nitrogen per ton. Another is $500 million for total production, 1978the relatively simple equipment needed

• Demand up

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C&ENJan. 22, 1979

ο II H 2 N-C-NH 2 for shipping and applying urea in con­ trast to more complex equipment for anhydrous ammonia. A third is urea's relative safety. Ammonia has lately re­ ceived much unfavorable publicity as a result of railroad and truck accidents. Anhydrous ammonia in certain nitro­ gen fertilizer solutions has higher nitro­ gen content than does urea. But urea has the highest nitrogen content of the three most important forms of solid nitrogen fertilizers—urea at 46% N, ammonium nitrate at 34% N, and ammonium sulfate at 2 1 % N. As a rule, production cost of the three forms of nitrogen fertilizer is about 1 to 0.9 to 0.67, respectively. However, since ammonium nitrate has 26% less nitrogen per ton, its cost in terms of ni­ trogen is higher than urea's even if its production cost is about 10% lower. The cost advantage of urea over am­ monium sulfate is also significant be­ cause ammonium sulfate has 54% less nitrogen on a unit weight basis. Demand in 1979 for urea fertilizer will depend in large part on use for corn and cotton. The corn belt and the Mississippi Delta plus other parts of the southern plains have had much larger increases in urea consumption during the 1970's than have other parts of the U.S. Pre­ sumably, urea will continue to get its recent share and possibly a bit more this year as fertilizer for these major re­ gions. Other uses of urea affect total de­ mand to a much smaller degree than does fertilizer use. Animal feed use is sometimes considered as volatile be­ cause of cyclical changes in cattle population and because of changes in cost of competing "natural proteins" for soybean and cottonseed meals. On balance, feed uses of urea are expected to have a lackluster year with possibly no growth. Resin uses of urea fall into three categories—copolymers with formal­ dehyde, used in housing construction materials; other urea-formaldehyde resins for paper, textile, and other coatings and treating materials; and melamines for plastics. By far the larg­ est use, construction adhesives, will decline in 1979 if economic forecasts prove accurate. A decline in housing also will hurt demand for melamines used in laminates and molded items. As a result, the resin uses of urea also likely will curb total urea demand growth for the year.

Key Chemicals CH3OH

Methanol • Demand growth low • Capacity flat • Prices holding PRODUCTION/CAPACITY Billions of gal

a First quarter.

HOW MADE Methane from natural gas partially oxidized to carbon monoxide and hydrogen, followed by catalytic conversion to methanol

MAJOR DERIVATIVES Formaldehyde 45 %

MAJOR END USES Polymers used as adhesives, engineering plastics, etc. 60%

FOREIGN TRADE Exports down to 40 million gal in 1978; imports rising to about 80 million gal

PRICES Contracts at plant in bulk 44 cents a gal; spot prices at small discount

COMMERCIAL VALUE $400 million for total production, 1978

Methanol producers are expecting a lackluster year in 1979. Demand growth, if there is any, will be moderate. The reason is that housing, the end use of about half of U.S. methanol production, probably will decline substantially. Production, because of increasing costs, likely will be maintained close to demand, with a minimum of inventory building. As a result, methanol production in 1979 probably will grow less than 5% over 1978 production of about 1.05 billion gal. Pessimistic forecasters think 1979 methanol output will be about 1 billion gal. Besides conversion to formaldehyde, which accounts for just under half of U.S. consumption, methanol goes into a host of small uses ranging from solvents to chlorine derivatives. None of these uses now represent big growth possibilities. Solvents use, for instance, may come up to the average methanol demand growth or slightly above. High-purity methanol's easy availability in large quantities, relatively low cost, and good solvency make it the first consideration in choosing an industrial solvent. Another big potential application for methanol is making methyl terf-butyl ether (MTBE), an octane improver for gosoline. This hinges on government approval of MTBE for this use. Capacity use at methanol plants is at relatively high levels now, mainly because some capacity has been placed on standby. Du Pont's unit at Orange, Tex., is not operating, although the company claims it can be restarted on short notice if necessary. This 110 million gal of methanol capacity is being counted industrywide in capacity totals as of the beginning of 1979. Whether this plant will stay on standby remains to be seen. Du Pont is building a new methanol unit at Deer Park, Tex., scheduled to be on stream late this year with 200 million gal of capacity. When this unit comes on stream, it undoubtedly will take a careful look at the economics of operating its older plant. If 1979 methanol production reaches 1.1 billion gal, the average operating rate for U.S. plants with a total capacity of 1.25 million gal (excluding Du Pont's unit) will be 88%. This operating level should mean reasonable profitability for producers, although profits could suffer if costs of raw material natural gas increase inordinately under pressure of

unsettled world oil prices. Such profitability also assumes that methanol selling prices hold at current levels. One minor threat to current U.S. prices is imports from such countries as Mexico and Korea. As exporters from developing countries, producers in Mexico and Korea do not have to pay the standard 7.6 cent-a-gal import duty on methanol. Hence, methanol from these countries has an advantage in cost even before consideration is given to hydrocarbon feedstock costs. So far, the methanol volumes imported without duty have been small and have not significantly affected the total U.S. market. However, duty-paid imports from Canada apparently do significantly affect the U.S. market. In December, the U.S. Treasury Department tentatively concluded that Canadian sales of methanol were being made at less than fair market value following a complaint by Du Pont. Treasury has issued a "withholding of appraisement" document that could be followed by a final decision. If the decision is that methanol was sold below fair market prices, additional duty on methanol from Canada could be assessed. This import situation for methanol is an example of what relative costs of feedstock and energy can do to international trade in chemicals. The U.S., once a net exporter of methanol, has become a net importer. Admittedly, imports are still small compared to total U.S. sales. However, the potential for the imports' share to rise remains large, as cost advantages grow abroad. If, for example, gas consumption per gallon of methanol produced averages 130 to 150 cu ft, and if a U.S. producer must pay $2.00 per million Btu of gas, the natural gas cost alone for a gallon of methanol could top 26 cents. (This would be an extreme case, since natural gas costs much less for many plants.) On the other hand, in a country where natural gas might cost 50 cents per million Btu or less, methanol would have a feedstock and energy cost component of about 5 cents per gal. This kind of threat keeps U.S. methanol producers scrambling to stay in business. Lackluster U.S. volume growth in 1979 with level prices still could mean a satisfactory year under these conditions. If anything should cut into volume, such as a sharp recession, then the year could wind up dismally.

Jan. 22, 1979 C&EN 13

Key Chemicals 0

Formaldehyde • Demand to fall off • Capacity up slightly • Prices holding PRODUCTION/CAPACITY Billions of l b a

a As a 37% solution.

HOW MADE Oxidation of methanol

MAJOR DERIVATIVES Urea-formaldehyde resins 25 % ; phenol-formaldehyde resins 25%; butanediol 5 % ; acetal resins 5 %

MAJOR END USES Adhesives 60 % ; plastics 10 %

FOREIGN TRADE Exports and imports very small

PRICES Bulk contracts, 37% basis, 5.4 to 6.0 cents a lb; many variations due to location, solvent concentration, and additives

COMMERCIAL VALUE $325 million for total production,

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C&ENJan. 22, 1979

1978

U.S. production of formaldehyde will decline in 1979 to about 6 billion lb from about 6.5 billion lb in 1978, according to a consensus of producers and other industry experts. They expect a general decline in housing construction, the most important end market. A few producers, however, predict a slight increase in formaldehyde production, but nothing close to the 7 % gain in 1978 over 1977. Forecasts on 1979 output vary depending on the forecaster's views of the extent of a housing decline and the severity of a possible U.S. recession. At the low end of these forecasts is a decline of 1 billion lb of 3 7 % solution. At the high end is a small growth of perhaps 100 million lb. Housing, and much commercial construction, greatly affects formaldehyde because more than half of production ends up in construction products. By far the largest share is in adhesives for various kinds of plywood and particle board. Housing market optimists argue that 1979 production of formaldehyde might actually increase even if housing starts decline. If fewer new houses are built at costs outrunning general inflation, the result could be more modernization and expansion of existing homes. In general, modernization and expansion of existing houses takes a higher proportion of plywood and particle board than does new construction. Therefore, the decline in demand for formaldehyde for adhesives for new housing may be offset by increased use for modernizing. Another factor in formaldehyde is its use in mobile homes, recreational vehicles, and other semipermanent living quarters not counted in housing starts. These uses might show moderately strong demand for plywood and particle board if demand in a recession shifts toward these lower-cost living quarters. The pessimists argue that new houses use larger quantities of plywood and particle board compared to use in modernization and expansion or in mobile homes and the like. Should housing starts tumble by a large percentage, alternative demand for adhesive products will not offset the decline. A really bad year in housing could lead to the pessimistic outcome of a 15% decline in formaldehyde demand. The production pattern for formalde-

H-C-H hyde in 1979 may be more spotty than in the recent past. Pockets of strong demand for plywood and particle board in various parts of the country probably will still exist during all or part of 1979. Formaldehyde in any case is a highly regional business with a great many local plants. Formaldehyde also is used in resins, largely with phenol, as a binder for construction insulation made of glass fibers, mineral wool, and the like. The size of this insulation market is hard to estimate. But formaldehyde use in insulation probably will grow—possibly at a high rate. This growth obviously would be partially or fully offset by a decline in new housing. A still unresolved factor in demand for formaldehyde resins in home construction is the odor and a possibly related toxicity. Studies under way aren't yet turning up significant health problems. However, the potential problem has led manufacturers of plywood and particularly of particle board to search for substitute resins. But a substitute for extremely cheap, effective formaldehyde isn't easy to find. It's unlikely that developments will have any substantial effect on formaldehyde use in 1979. For numerous other uses of formaldehyde varying fortunes are forecast in 1979. Specialty polymers are still expected to show relatively high growth for their many applications. For example, butanediol likely will retain good growth with its fast-increasing use in engineering thermoplastic polyesters. And direct formaldehyde use in polyacetal engineering thermoplastic also looks strong. Declining demand for other specialty uses may partially offset this demand growth. For example, melamine-formaldehyde resins, which go into decorative laminates and the like, have had erratic production records because of end-use changes. Similarly, consumption of pentaerythritol, a condensation product of formaldehyde and acetaldehyde, has been erratic as the result of a shift away from alkyd resins in coatings. At the same time, it has been buoyed by uses in making various esters with rosin, tall oil, and other fatty acids. Hence, the smaller uses of formaldehyde are expected to have little net effect on overall demand during the year. Formaldehyde in 1979, in other words, still hinges on housing. And that may not turn out to be good.

CHECKOFF NEW PLANTS • Alumina—Aluminum Co. of America will spend $60 million to modernize and expand alumina and other chemical facilities at Mobile, Ala. Among projects in four-year program is increase in capacity for alumina hydrate 150 million lb annually. • Calcium bromide—Dow Chemical will expand facilities to make calcium bromide solutions for use in drilling fluids. Project will bring Dow's capacity in stages to 120 million lb annually at Midland, Mich., by spring 1979. Great Lakes Chemical is expanding companywide capacity for this salt, used as solution in drilling fluids, to 100 million lb annually. Company also adding unspecified amount of capacity to make solid form. Related storage and distribution facilities being built both in U.S. and Western Europe. m Carbon black—Ashland Chemical is expanding Belpre, Ohio, plant more than 50% to 160 million lb annually. New total will consist of 75 million lb of tire carcass-grade carbon black and 85 million lb of tread-grade carbon black. Completion of twophase program scheduled for late 1979. m Formaldehyde—GAF will build $5.7 million unit of unspecified capacity at Texas City, Tex. Product is for use in butanediol plant there. C-E Lummus will supply technology, including proprietary catalyst. Unit will be on stream in late 1979. m Methyiamines—Air Products & Chemicals will expand capacity at Pace, Fla. (near Pensacola), for these chemical intermediates from 100 million to 175 million lb annually. Part of expansion will come on stream in June 1980; final portion to be completed by mid-1982.

PLANTS COMPLETED • Antimony oxide—ASARCO Inc. has begun production in $2.2 million facility at Omaha. Capacity is 450,000 lb per month. Product used in flame retardants, paints, and ceramics. m Dicalcium phosphates—Stauffer Chemical has completed 25% expansion to 43,000 tons per year at Chicago Heights, 111. Plant makes all

grades of dicalcium phosphate dihydrate, used in pharmaceuticals; dentrifices, and food. Engineering plans are under way for further expansion to 75,000 tons per year. • Ethylene—Phillips Petroleum has started up 1 billion lb-per-year plant at Sweeny, Tex., to bring company's total capacity to 2.2 billion lb annually. Startup of this plant was coordinated with completion of remote ethane feedstock supply units, Texaco has begun operation of olefins unit at Port Arthur, Tex. Products include 1.1 billion lb per year of ethylene, other light olefins, and aromatics. Aromatics stream can be separated into benzene and toluene or can be put into gasoline. • Food chemicals—Stauffer Chemical has tripled unspecified capacity to make broad range of milk-derived protein solids, stabilizers, and emulsifiers at Clawson, Mich. Production, research, technical support, and marketing functions have been fully integrated at site. m Oxo alcohols—Exxon Chemical has started up expanded facilities at Baton Rouge. Capacity to make alcohols such as isohexyl or tridecyl is increased 50%; these go into plasticizers, lubricating oil additives, and specialty chemicals.

ORGANIC INTERMEDIATES FROM SWITZERLAND for dyestuffs pharmaceuticals ' - . agrochemicals perfumes / photochemicals v

Cyclohexanepropionic acid

1,3-Cyclohexanedione Dihydroresorcinol

2,4-Xylidine and all other isomers

4-Nitro-sec. butylbenzene 4-Amino-sec. butylbenzene

• Surfactants—Emery Industries* unit of National Distillers, has completed $1.5 million expansion of plant in Mauldin, S.C., to make surfactants and chemical specialties for textile and other industries.

cis-2,6-Dimethylpiperidine

m Terephthalic acid—Amoco Chemicals has dedicated 1 billion lb-per-year purified terephthalic acid plant on Cooper River, 16 miles upstream from Charleston, S.C.; brings Amoco's U.S. capacity to 3 billion lb annually.

4-Nitro-m-toluic acid and other isomers

• Uranium oxide—Freeport Minerals has completed startup of first phase of $35 million plant at Uncle Sam, La., to recover uranium from phosphoric acid. Plans call for 1979 production of about 600,000 lb of uranium oxide operating at more than 85% of rated capacity.

PLANT CLOSED • Ethyl chloride—Shell Chemical has closed 80 million lb-per-year unit at Deer Park, Tex. Built in 1948, plant made product for use in manufacture of tetraethyllead. Shutdown marks Shell ChemicaPs withdrawal from the ethyl chloride business.

3,4-Methylenedioxyaniline For catalog,samples.technical data pleasecontact: US-Agents: Riches-Nelson, Inc., 254 Mill Street, Greenwich, Conn. 06830 Phone: 203-869-3088 Samples for commercial trade only Agents in other countries : Please inquire

SSF DOTTIKON Swiss Explosives Works Ltd. CH-5605 Dottikon/Switzerland Phone 057/4 05 55 Telex 52 694 fasex ch

Jan. 22, 1979 C&EN

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