visions should be ineligible for favored tax treatment. A somewhat different approach to vesting is under study by the ACS Committee on Professional Relations and Status. As stated in its report to the Council last fall, "The committee is beginning to feel that the professional status of chemists and their employment mobility might be enhanced through an independently operated retirement system for chemical scientists similar to the Teachers Insurance and Annuity Association Plan" (C&EN, Oct. 26, 1964, page 114). As an aid to its consideration of this approach, the committee has asked the 165 local sections to forward data on the vesting provisions of plans currently in use by employers of chemists. A full report is planned for next fall at the Atlantic City meeting. The present tax law does not assure adequate funding so that some pension plans may turn out to be "empty or only partially fulfilled promises," the committee says. It recommends several changes to strengthen the present minimum standards for funding. . The committee also recommends a cut in overgenerous retirement plans for some corporation executives. The committee would set a ceiling on executive benefits to prevent abuse. "The committee does not believe that the public interest is served by extending tax benefits to private plans which provide extremely large benefits for favored executives." Special tax treatment of private pension plans costs the Government between $1.2 and $3.4 billion a year in decreased revenues. Because of the social purposes served by these plans, the committee concludes that it is in the public interest to continue to provide incentives to spur the growth of private plans.
France Gets Its First Chloroprene-Rubber Plant Four companies will jointly build France's first chloroprene-rubber plant. The companies are France's Plastugil, Rhone-Alpes, and Regie Autonome des Pétroles, and Britain's Distillers Co., Ltd. The 45 million pound-per-year plant will be located at Champagnier, near Grenoble. It will use an entirely new technology for making chloroprene developed by Distillers' chemicals and
plastics group. It will use a C 4 hydrocarbon feedstock (preferably butène or butadiene) rather than acetylene. The feedstock will come from a giant naphtha cracker that RhoneAlpes is building at Feyzin, near Lyons (C&EN, Aug. 3, 1964, page 121). Until the plant is built, Distillers will supply limited quantities of chloroprene rubber from its U.K.-based pilot plant. It is located at Tonbridge, Kent, England. The two current producers of chloroprene rubber in western Europe are Du Pont (which has a 67 million pound-per-year plant at Maydown, Northern Ireland) and Farbenfabriken Bayer (with a 50 million pound-peryear plant at Leverkusen, West Germany). Both companies make their own chloroprene from acetylene.
Intalco May Double Aluminum Capacity at Bellingham Intalco Aluminum may double the capacity of its aluminum-reduction plant now under construction on an 800-acre site near Bellingham, Wash. (C&EN, July 20, 1964, page 2 7 ) . The plant is designed now to accommodate three potlines and is scheduled to begin production with one line early next year. This will give it a capacity of 76,000 tons annually. Cost of the expansion will be $60 million. According to Intalco president David Mayers, the company is now giving "very serious consideration" to adding a second potline to boost capacity to 152,000 tons annually. Mr. Mayers says that Intalco is now proceeding with preliminary design and cost-estimate work for the second potline, but would make no decision on the project until its next regular board of directors meeting in April. Adding the second potline would probably cost about $45 million, Mr. Mayers says. Speaking in Bellingham at the end of last month, Raoul de Vitry, chairman of the board of France's Pechiney (a part owner of Intalco), said, "We are convinced that the productivity and the economy of operation at the Bellingham plant will match that to be found anywhere in the world. That is why our partners and ourselves wish to be able to double the capacity in the near future." Bechtel Corp. is building the Intalco plant, which will produce pri-
mary aluminum by the conventional electrolytic reduction process. Alumina for the plant will be imported through the Port of Bellingham; initially, about 150,000 tons will be imported annually. This will represent a 25% increase in the annual imports through the port, according to Intalco. Intalco is a joint venture of three companies: American Metal Climax owns 50%; Pechiney Enterprises and Howe Sound, Inc., each own 25%. Pechiney Enterprises, Inc., an American subsidiary of Pechiney, S.A. (France), now owns 47% of Howe Sound.
Cid Air Builds Warehouse Cid Air Structures Co. is building a warehouse near St. Paul, Minn., to store potash from Canadian mines. The first customer will be International Minerals & Chemical, which has a potash mine at Esterhazy, Sask. The building will cost the Chicago company about $250,000. It is located in Maplewood, Minn., a suburb of St. Paul. The site was leased from the Chicago and North Western Railway Co. by Cid Air Structures. Construction of the first unit began last December. About 260 feet in diameter and 90 feet high, it will hold 50,000 tons of potash. Completion of the structure is slated for early summer. "Eventually we hope to build two additional units, as other potash producers contract for our services," says Robert Hozak, president of Cid Air Structures. Currently IMC transports potash by rail directly to Midwest markets from its Canadian facility. Use of the St. Paul terminal, however, will enable the fertilizer manufacturer to better service markets in Minnesota and surrounding states. Also, warehousing will help permit IMC to maintain production levels all year round.
Swift Nearly Doubles Capital Spending Swift & Co.'s capital expenditures will total $100 million in fiscal 1965 and 1966. This nearly doubles its outlay for the past two fiscal years, Swift's chairman Porter M. Jarvis told shareholders at the firm's annual meeting. In fiscal 1963 and fiscal 1964, ending last Oct. 31, Swift's capital spending amounted to $50.9 million. FEB.
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The firm says about half of the $100 million outlay will be channeled into its food business. The other half will be used to further enhance its position in both agricultural- and industrial-chemicals markets. The Chicago company's plans in these two areas include : • A phosphate-nitrogen plant in South Korea, via a joint venture with Texas Gulf Sulphur Co., Skelly Oil Co., and the Korean government. • A potash mine and processing plant in Saskatchewan, via a joint venture with U.S. Borax and Homestake Mining Co. (C&EN, June 1, 1964, page 19). • Joint ventures in industrial chemicals in several foreign countries. Negotiations for the phosphate-nitrogen plant, which will be built at Ulsan, South Korea, have almost been completed. Cost of the facility will be more than $40 million. Financing will include a substantial loan from the U.S. Agency for International Development plus comprehensive guarantees from Swift, Texas Gulf Sulphur, and Skelly Oil. The new plant, to be operated by Swift, will use phosphate rock, potash, sulfur, and naphtha as its raw materials. Products will include sulfuric acid, phosphoric acid, ammonia, urea, and high-analysis mixed fertilizers. Swift Canadian Co., Ltd., a subsidiary of Swift, has reached agreement in principle to join Homestake Mining and U.S. Borax in mining and processing potash in Canada. Construction of U.S. Borax's $66 million plant has started at Allan, near Saskatoon, Sask. Capacity of the plant will be about 1.5 million tons of potash annually, rather than the 1 million tons originally planned (C&EN, Feb. 1, page 11). Completion is slated for 1969. This venture would make Swift basic in all three primary plant food nutrients—phosphate, nitrogen, and potash. Swift is also looking at overseas joint ventures in industrial chemicals. Swift, however, isn't talking about the what-and-where of its overseas investigations. The company has been exporting chemicals to Europe for some time. In 1963, it set up Swift's Chemicals (U.K.), Ltd., in Liverpool, England, in a joint venture with Liverpool Central Oil Co., Ltd., to make and market its specialty chemicals (C&EN, July 15, 1963, page 3 4 ) . 28
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West Germany Will Spend More for R&D "West Germany must put more money into research and development if it wants to stay abreast of other industrial nations," according to Hans Lenz, minister for scientific research. Mr. Lenz says that expenditures of federal, state, and private industry on research and development must reach a total of $3.75 billion by 1970. This will amount to about 3 % of West Germany's gross national product. Mr. Lenz would like to see private industry in West Germany spend $2 billion on R&D by 1970 and federal and state outlay amount to $1.75 billion. He further proposes much closer cooperation between federal and state spenders in the construction of new universities, and the publication of statistics on the status of West Germany's research. West Germany doesn't fare well when its spending on research and development is compared with outlays of other industrial nations. In 1962, West Germany spent relatively more on R&D than Belgium or Italy, but relatively less than Great Britain, France, Sweden, or Switzerland. The U.S. also spends more on R&D than West Germany does. In 1965, federal spending alone will reach $14.2 billion or 2.2% of the U.S. GNP. By Mr. Lenz's timetable, the federal government of West Germany will spend about $2.64 billion on scientific research and development between 1966 and 1968. University grants, new construction, and the support of self-administered research organizations will take $850 million in those years. Mr. Lenz expects that, by 1970, nuclear power stations that are competitive with conventional fuels can be built. Pointing out that the development of efficient reactors is important for exports, he proposes that West Germany spend $500 million on nuclear research and technical development between 1966 and 1968. In space research, West Germany is building the third stage of the E L D O rocket (European Organization for Development and Construction of Space Vehicles ). Space research will take about $3290 million from 1966 to 1968. To meet NATO commitments, West Germany plans to spend $600 million on defense research within the 1966-68 period. The budget that Mr. Lenz proposes
lists for the first time the total expenditures for R&D by the German government and private industry. In 1962, R&D expenditures, including all academic teaching expenses at universities and university hospitals, reached $1.47 billion or 1.6% of West Germany's GNP. By 1964, this had risen to 1.9% and the new goal is $3.75 billion or 3 % of West Germany's GNP by 1970.
Commercial Solvents Buys Gas Rights Commercial Solvents has taken another step toward a basic position in natural gas products by acquiring working interests and residual rights on 56,000 acres in the Monroe gas field in northern Louisiana. The rights were obtained for an undisclosed sum, subject to a reserved production payment, from Robin Oil Co., of Tulsa, Okla. In a separate transaction, Robin Oil acquired the rights from Cities Service Co. The properties, valued at more than $8.5 million, include about 350 producing gas wells, 280 miles of gasgathering pipeline, compressor stations, gas purchase and sales contracts, and miscellaneous equipment. The acquisition will operate as Navarro Gas Production Co., a new Commercial Solvents division. The division's activities will complement the gas exploration and drilling functions of the company's Louisiana Gas Production Co. Development expenditures of about $2.5 million planned for the Navarro division by 1968 include drilling 100 or more gas wells. The Navarro properties bring Commercial Solvents' total natural gas operations to more than 550 producing gas wells, 400 miles of gas-collecting pipeline, and gas rights on 64,000 acres in the Monroe field. In 1959, the company acquired its initial 8000acre gas properties in the Monroe field, and formed the Louisiana Gas Production division to handle exploration, drilling, and production. Most of the gas produced and purchased by the two divisions will be used in the company's Dixie plant and Thermatomic Carbon Co. division plant at Sterlington, La. The natural gas is used to make anhydrous ammonia, methanol, nitroparaffins, derivatives of these chemicals, thermal carbon blacks, methylamines, and agricultural products.
The expansion will be at the company's plant in Bakersfield, Calif. Production is scheduled to start soon. Continental's blacks are distributed throughout the world by Witco Chemical Co.
American Potash & Chemical Corp.
is expanding its capacity for electrolytic manganese metal by 50% at its plant in Hamilton, Miss. The plant had an original capacity for 10 million pounds of manganese per year, but provisions were made for expansion.
INTERNATIONAL Office National Industriel de l'Azote, Compagnie Française de Raffinage, and Pierrefitte will jointly build a 1000 ton-per-day ammonia and nitrogen fertilizer plant at Le Havre, France. The plant is due on stream in 1967.
Rheinische Olefinwerke, G.m.b.H., jointly owned by Badische Anilin- & Soda-Fabrik and Deutsche Shell, A.G.,
Dutch State Mines Expands Production of Caprolactam Raw Materials Dutch State Mines has just started up its 30,000 ton-a-year cyclohexane unit at Geleen, Limburg, the Netherlands. The entire output will be used to make caprolactam for nylon 6 production (C&EN, Oct. 12, 1964, page 65). DSM also makes caprolactam from phenol. DSM is expanding its 30,000 ton-a-year phenol plant at Rotterdam by 1 0 0 % . Completion is scheduled for the end of the year.
NEW FACILITIES Ethyl Corp. is expanding its capacity for vinyl chloride and ethylene dichloride. Ethyl's capacity for vinyl chloride will be 420 pounds a year when additions at Baton Rouge, La., and Houston, Tex., are completed. The ethylene dichloride expansion will be at the Baton Rouge plant. Completion of both expansions is set for 1966.
Pittsburgh Plate Glass Co. is expanding its silica pigments capacity at Barberton, Ohio. Scheduled for completion early next year, the $3 to $5 million project includes new packing and shipping facilities as well as production line additions. PPG's Barberton plant makes precipitated silica
pigments for natural and synthetic rubber compounds used in such products as tires and shoe heels. Paper, insecticides, and agricultural chemicals are also markets for these products.
Weyerhaeuser Co. plans to spend $5.2 million to expand production by 15% at its pulp mill in Grays Harbor, Wash. The largest part ($4 million) of the investment will be to expand capacity of the sulfite mill. Another $1 million will be spent to reduce air and water pollution. Construction is scheduled to start this year.
Continental Carbon Co. is increasing its production of tread-grade carbon blacks by 7 million pounds annually.
will make a larger increase in polyethylene capacity than it had previously planned. Polyethylene capacity at Wesseling, West Germany, will reach a total of 530 million pounds per year by 1966. This is about 110 million pounds per year more than the original forecast for 1966 capacity.
Philadelphia Quartz Co. has formed Silicatos y Derivados, S.A., in Mexico. The new subsidiary will sell liquid and dry sodium silicates.
Kellogg International Corp. will construct a 1000 ton-per-day ammonia plant at Pernis, the Netherlands. Ammoniak Unie, N.V., will own the plant. Ammoniak Unie is owned by Badische Anilin- & Soda-Fabrik and N. V. Maatschappij tot Exploitatie van Kooksovengassen. Completion is set for late 1966.
Armour
Hess Chemicals,
Ltd., has
awarded a contract to Badger, Ltd., for the construction of a 48 million pound-per-year continuous fat-splitting facility. The plant will be at Littleborough, Great Britain. It is scheduled to be completed by the second quarter of 1965. FEB.
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