INTE RNATIONAL
Germany's Big Three Do It Again Bayer, Hoechst, and BASF outpace German chemical industry with combined world-wide sales of $2.83 billion West Germany's big three chemical firms—Fiirbenfabriken Bayer, Farbwerke Hoechst, and Badische Anilin& Soda-Fabrik—grew bigger than ever last year. Bayer, still the undisputed leader, pushed total world-wide sales to about $1.1 billion, 10.4% above the value of its 1962 sales. Hoechst did well, too, with total world sales of 8935 million, 8.1 % over the previous year. BASF, for the second year in a row, outstripped its sister firms in growth with a thrust of 11.39c, pushing world sales to $795 million. Excluding operations abroad, the big three performed this way in 1963. Bayer and its wholly owned domestic subsidiaries chalked up sales of $904 million, 10.49c above the previous year. Hoechst, together with domestic subsidiaries in which its interest exceeds 509c, sold $825 million worth of products, a gain of 7.29c over 1962 sales. C&EX estimates that sales of BASF's domestic interests totaled $747 million last year. (Since 1961, BASF has included sales of foreign in-
terests in which its holding is at least 509c in its published sales figure. According to the firm's annual report for 1962, however, such foreign-based sales represented about 6% of the total in 1962 and 4 % in 1961. C&EN's estimate of BASF's sales for 1963 is based on 6%.) In a large part, 1963 was a carbon copy of 1962, when Bayer's worldwide sales increased almost 1 1 % , Hoechst's 8%, and BASF's 10%. The big three sales line-up remains the same as it has been since 1959, when Hoechst moved ahead of BASF to regain second place. Exports. Exports were larger than ever for the three German chemical companies last year. Bayer sold $439 million worth of its products abroad, 16% more than in 1962. That was 48.69c of its inland production, compared to 46.29c in 1962. Hoechst's exports charged ahead just under 17% to $278 million, 33.7% of domestic production vs. 3 1 % a year earlier. BASF exported about $284 million
Combined Sales of Bayer, Hoechst, and BASF, Including GermanBased interests, Reached $2.5 Billion Last Year SALES OF FOREIGN INTERESTS NOT INCLUDED Year
Bayer
Hoechst
BASF
(millions of dollars)
1963 1962 1961 1960 1959 1958 1957 1956 1955 1954 1953
$904
$825
$747
818 762 670 585 478 441 380 342 288 244
770 718 642 528 449 419 352 302 268 225
674 625 616 540 459 428 356 300 250 211
Notes: Bayer's sales include sales of the parent firm and its wholly owned domestic subsidiaries. Hoechst's sales include sales of the parent firm and domestic subsidiaries in which its interest exceeds 50%. Sales of BASF and its German interests for 1961-63 are C&EN estimates based on the company's world-wide sales. Conversion is 4.2 Deutsche mark per $1.00 for 1953-60 and 4.0 Deutsche mark per $1.00 thereafter.
62
C&EN
F E B . 17, 196 4
worth of goods, about 13% more than in the previous year. As a share of inland production, BASF's exports edged from 37.3% in 1962 to 38.1% last year. In few other countries is so much chemical weight wielded by only three firms. In an unbroken trend over the past 11 years (since 1952), the three largest I. G. Farben successor firms have captured an increasingly greater share of West Germany's total chemical sales. Combined sales of domestic interests of the trio—$2.48 billionno w represent almost 3 7 % of total West German chemical sales, which probably reached $6.75 billion last year. In 1953, the big-three slice was about 26%. Combined exports of the three, at about $1 billion, were 53.5% of the national total of chemical exports, which were about $1.87 billion last year. Combined investment at $292 million, was almost 4 7 % of the German chemical industry's total of $625 million in 1963. And at year's end, 163,365 people, about one in three of the total chemical work force, were employed by the three big firms. With competition from within the European Economic Community, the U.S., the United Kingdom, and elsewhere building, there's no reason to believe that this trend toward concentration won't continue. Whether it's a healthy trend is hard to say. Such concentration would seem to strengthen the industry as a whole against foreign competition, but, at the same time, it tends to squeeze out smaller firms. There doesn't seem to be quite as much talk in German chemical circles these days about falling prices and shrinking profits. However, Bayer says that its production in tonnage rose 15% last year while the dollar volume of its sales increased only 10.4% because of a 4 % tumble in prices. Hoechst's tonnage output rose 10% vs. a 7.2% rise in sales value. Labor costs continued their upward
EVEN
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Zone
State C&Ε Ν
63
perhaps this MILESAMINE A Μ 11
-CH2-NH2 Ι I
BENZYLAMINE one of our many aralkyl arrtîriêS
Description — Colorless to light yellow liquid. Assay 9 8 % minimum. Specific gravity 0.970 at 25°C. Refractive index 1.5405-1.5420 at 25°C. Distilling range — 9 5 % distills — 182 to 185°C at 760mm Hg. Residue on evaporation 0.2% maximum.
can give you unexpected help
spiral, too. For Bayer, the 1963 labor bill jumped about 10.7% above 1962. In 1962, it had climbed 1 1 % . On the other hand, all three firms are increasing per capita sales. BASF now boasts per capita sales of about $16,300 vs. $15,000 a year ago, Hoechst $15,200 vs. $14,500, and Bayer $14,500 vs. $13,300. By comparison, Bayer's per capita sales in 1952 were about $6210, Hoechst's $6910. Overseas. Germany's three big chemical companies seem to be throwing more effort into overseas ventures. Hoechst, for example, put out about $8 million last year for investments abroad, bringing its total overseas investment to almost $51 million. In France, Hoechst recently picked up a substantial interest in Société Normande de Matières Plastiques, which makes polypropylene. In the United Kingdom, Hoechst started to operate a polyvinyl acetate plant with the English firm Revertex. The company also started up a new PVA plant in Colombia, and is about to increase PVA production at its Canadian plant. In Australia, the firm bought a part interest in Industrial Chemical Products. The company, now called ICPHoechst, Pty., Ltd., will make PVA and organic dyes. Meanwhile, BASF formed an Australian affiliate called BASF Australia (Mfg.), Pty., Ltd., to make expandable polystyrene among other prod-
ucts. And, just at the end of the year, BASF's wholly owned subsidiary, BASF Overzee, N.V., took over United Cork Companies, South Kearny, N.J., which had had a BASF license to make expandable polystyrene. Investments. The three companies have continued substantial investment programs. Last year, Bayer socked about $112 million into plant investment, a little less than 1962's $122 million, but about 12.4% of sales of its domestic interests. For Hoechst, the investment tab came to about $98 million, a bit more than in 1962 and representing about 12% of sales of its German-based interests. BASF invested about $81 million in its Ludwigshaven plant last year compared to about $69 million the year before. That was about 1 1 % of the sales of its German-based interests. This year, Bayer and Hoechst both plan to invest about the same amount in new plant and equipment as they did last year. BASF, however, says it will probably spend more than a $100 million at its huge Ludwigshaven works, and still more in 1965. Research spending by the three companies was at about the same level last year as in 1962. Hoechst shelled out $34 million for research. BASF spent about $32 million for research and Bayer's research spending was $40 million.
Other uses — Intermediate in the synthesis of quaternary ammonium compounds and various other types of organic syntheses. As an oil-soluble rust inhibitor. S-10-3
MILES
CHEMICAL COMPANY D I V I S I O N OF MILES LABORATORIES. INC. · ELKHART. I N D I A N A General Sales Offices: Elkhart. Ind.. COngress 4 - 3 1 1 1 ; Clifton, N.J., 772-4800; New York, N.Y., MUrray Hill 2-7970,
64
C&EN
FEB.
17,
1964
Methane Plant Rises on Mediterranean Coast At Arzew, Algeria, on the Mediterranean Coast, construction of CAMEL's methane liquefaction plant progresses on schedule. The plant will liquefy 150 million cubic feet a day of natural gas piped from the Hassi R'Mel fields in the Sahara Desert (C&EN, Sept. 16, 1963, page 130). The first unit, to process 50 million cubic feet a day of natural gas, should be completed this spring. Special tankers will take the methane to England and France. CAMEL is a 5 0 / 5 0 joint venture of a French consortium and Britain's Conch International Methane, Ltd.
12,500 * · 6,666
TWO NEW LOW-COST SPECTROPHOTOMETERS USE VARIABLE SLIT PROGRAMMING TO PROVIDE A WIDE RANGE OF RESOLUTION AND ENERGY SCHEDULES
FREQUENCY IN CM »
Perkin-EImer's n e w l o w - c o s t i n f r a r e d spectrophotometers, the Models 237B and 337, share outstanding new capabilities: • three-minute scan option for reliable fast surveys; • variable slit programming, to optimize spectral slit widths under varying require ments of sample, speed a n d resolution; • external recorder attachment provisions, for abscissa expansion or compression, as required; • dual-grating monochromator, for reso lution better than that of many instruments costing twice as much. The Model 237B covers the range from
. 3,333
1,670
830
400 crrf '
4000 to 625 cm*1, with a version a v a i l able in linear wavelength. It is ideal if you normally operate in this fundamental region. The Model 337, also available in either linear frequency, or linear wave length, scans from 4 0 0 0 to 400 c m 1 . Both instruments cover their individual ranges in two serial scans, on convenient 8Vfc" χ Π " charts. N o matter what your choice, either the Model 237B or the Model 337 will pro vide all the performance you want at the lowest price available. For more informa tion, write Instrument Marketing Division, Perkin-Elmer C o r p o r a t i o n , 7 8 0 M a i n Avenue, Norwalk, Conn.
.FREQUENCY IN CM «
Typical dual scan of indene, run in six minutes in the three-minute scan mode of the Model 337, demonstrates excellent definition possible even at this recording rate. Slit program was 6. Shaded area shows range added by the Model 337 to that of the Model 237B. In this region you gain access to carbon-bromine, carbon-iodine and carbonchlorine vibrations, out-of-plane aromatic carbonhydrogen bonds, and data on inorganic and metaloxygen or metal-nitrogen bonds in complexes. Recent work also points to characteristic vibra tions of ketones, aldehydes, acids and esters occurring in the 500 cm -1 region. 4 Ammonia scan from 1200 to 800 cm - ' points out one wavenumber resolving power of Model 337, with abscissa expanded on auxiliary recorder.
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PERKIN-ELMER
BRIEFS 0.2 fig./ml. P6. 250 fig./ml Cu present in acetate buffer compensations. pH U-5 with electrical S 1/6. Polarogram from the Davis-Southern A-1670.
Engelhard Industries, Inc., Newark, N.J., and Sumitomo Metal Mining Co., Ltd., Tokyo, Japan, have agreed to establish a jointly owned company, Nippon Engelhard, Ltd., in Japan. The new company will make precious metal products for the chemical, pharmaceutical, electrical, and other industries in the Far East. Engelhard Industries, manufacturer of precious metal and chemical products, has 15 divisions in the U.S. and subsidiary companies in 12 foreign countries. Sumitomo Metal Mining is part* of theSumitomo industrial group, one of the three principal industrial complexes in Japan.
Newest development in Polarography— over 100 times more sensitive than conventional instruments...for quick, easy, economical operation in routine analytical work, as well as research analysis
THE ALL-NEW A-1670 DAVIS-SOUTHERN CATHODE RAY
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UABORATQRY A P P A R A T U S * REAGENTS A N p CHEIVIICALS 66
C&EN
FEB. 17, 1964
Air Liquide will design and build a plant at Sydney, Nova Scotia, to produce 85 tons per day of high-purity oxygen for its sales organization, Canadian Liquid Air, Ltd., Montreal. The plant will cost more than $1 million and is scheduled to go on stream late this year.
Electric Reduction Co. of Canada, Ltd., is building a granular triple superphosphate plant at Port Maitland, Ont. ERCO is a subsidiary of Albright & Wilson, Ltd., London, England. The company expects the plant to be completed in mid-1964.
Acquila Societa per Azioni TecnicoIndustriale has added a 2000 barrelper-day Udex unit to its refinery at Trieste, Italy. The unit, designed and licensed by Universal Oil Products Co., Des Plaines, 111., separates aromatic chemicals from catalytically reformed gasoline stocks.
IGE Export division of General Electric
will supply two gas turbine package power plants worth more than $2 million to the Trinidad and Tobago Electricity Commission (T&TEC), Trinidad, West Indies. The two gas turbine powermakers, each capable of generating 12,450 kw. of electricity, will be installed on T&TEC's power system at Point Lisas for T&TEC's increased power demands in the surrounding area. The turbines will also supply electricity for a new extension to the chemical plant owned by Federation Chemicals, Ltd.
