INDUSTRY
& BUSINESS
Methanol Expansions Won't End Shortage Price holds firm, some users turning to high-tariff imported methanol; formaldehyde biggest outlet The short-supply situation in synthetic methanol in the U.S. isn't likely to ease in the near future. Producers last year operated their plants at 98% of capacity, and current production is as close to capacity as they can bring it. Output this year probably will reach 510 million gallons, up about 25% from 1965. Expansions are in the works, and U.S. capacity should reach 607 million gallons per year by midsummer. But in a reversal from the recent past, some producers will import methanol this year despite the high tariff—15.3 cents per gallon. The domestic price of methanol is holding firm at 27 cents per gallon, tank cars, delivered. The largest single outlet for methanol is formaldehyde, which takes 40 to 4 5 % of the output. Formaldehyde also is in short supply (C&EN, Jan. 10, page 28). Other products that use methanol as a raw material are dimethyl terephthalate, methyl methacrylate, various amines, and solvents (among which dye solvents are important). No Substitutions. Generally, substitutions for methanol can't be made. Where it is used, it's the only satisfactory material. As a dye solvent, for instance, nothing else works as well. Thus methanol is used even if it must be imported at a relatively high price. One product made from formaldehyde, hexamethylenetetramine ( H M T ) , is critical to the war effort in Vietnam. Resumption of the bombing there after the 37-day pause means continued high demand for HMT, which, among other things, is used to make explosives (cyclonite). Every 4 pounds of HMT produced takes about 1 gallon of methanol. Production of HMT in 1964 was about 43 million pounds, and the Government expects its HMT needs this year for explosives to exceed 1964's output. U.S. capacity for HMT now is about 80 million pounds per year. It should reach about 100 million pounds by
year's end. Borden Chemical, for one, is raising its HMT capacity from 6 to 18 million pounds. This expansion will come on stream in April, and further expansion by the company may be in the works. Borden Chemical has just completed an expansion of its methanol plant at Geismar, La., to about 80 million gallons per year. Borden plans to more than double capacity at Geismar, its only producing point, but has yet to name the date. The company has
awarded a design study to Chemico for a plant that would turn out about 80 million gallons per year. It would use centrifugal compressors as do the big ammonia plants now in vogue. Celanese also is bringing in new methanol capacity. The company had said that it would add 40 million gallons per year at Bishop, Tex., raising capacity there to 65 million gallons by midyear. Now, however, it appears the expansion may be 60 million gallons for a total of 85 million.
EXPANDED. Borden Chemical has increased the capacity of its methanol plant at Geismar, La., from 30 to 80 million gallons per year FEB.
7, 1966
C&EN
35
Methanol Supply Tight Throughout 1966
A PRPVEN WINNER. FOR.
PREMiX MOLDERS
Capacity*1 (Millions of gallons) 30 Allied 80 Borden 85 Celanese 45 Commercial Solvents 180 Du Pont 30 Escambia 9 Gulf 16 Hercules 30 Monsanto/Tenneco 22 Rohm & Haas 26 Tenneco 54 Union Carbide Total Predicted capacity by 1970
607 750
u
As of summer 1966. Source: C&EN estimate
Why does t-Butyl Perbenzoate come out ahead of benzoyl peroxide as a premix catalyst? The answer: THERMAL STABILITY . . . TBP won't give out early in the game like our rabbit friend above. This thermal stability offers users several advantages over BPO: • WIDER RESIN SELECTION: You can "hot-mix" ingredients up to 125°F without pregellation and its attendant costly material loss or downtime, thus perm i t t i n g t h e use of more viscous a n d / o r reactive resins. This increased mixing temperature leeway minimizes glass degradation too. • LONGER CATALYZED SHELF-LIFE: TBP-catalyzed resins can be kept not for days or weeks — but months. Batches can be geared to existing equipment capacity and not the immediate production run without fear of gellation on storage. • BETTER MOLD FILL-OUT: Regardless of mold depth or design complexity, TBP-catalyzed premix fills every crevice completely at existing or even higher t e m p e r a t u r e s , d r a s t i c a l l y reducing costly rejects. So don't get caught napping in today's competitive race. Try TBP, the winning catalyst for progressive molders.
t-BUTYL PERBENZOATE Write for Data
Sheet
WALLACE &TIERNAN INC, LUCIDOL DIVISION |
1741 Military Road Buffalo, New York 14240
IN CANADA: H A R C H E M LIMITED
36
C&EN
F E B . 7, 1 9 6 6
Other plants due on stream this year include Tenneco's 26 million gallon plant on the Houston Ship Channel. By 1967, Commercial Solvents will have increased its capacity a t Sterlington, La., by 15 million gallons to 60 million gallons per year. Formaldehyde. Related increases in formaldehyde capacity include Hercules, from 225 to 275 million pounds by the end of this year; Gulfs 40 million pound-per-year plant due on stream in April at Vicksburg, Miss., bringing the company's total to 120 million pounds; and Reichhold's current expansion from 240 to 255 million pounds per year. All told, U.S. formaldehyde capacity will climb to nearly 4.1 billion pounds per year (37% basis) by the end of this year. Since some components of an ammonia plant are common to a methanol plant, there is occasionally talk of switching ammonia plants to methanol production at times of methanol shortages (methanol purification units would have to be added ). With the new large ammonia plants coming in, some of the small older ammonia plants would, in theory, be candidates for conversion. But conversion is not easy unless the plant was originally designed for the switch, and few U.S. plants were so designed. Also, it's unlikely that anyone would be willing to give up ammonia capacity.
New York Town Likes Its Nuclear Power Unit But survey shows cities with conventional power wary of nuclear plants Chairman Glenn T. Seaborg of the Atomic Energy Commission has said that he would not fear having his family live near a nuclear power plant, but some of the rank-and-file U.S. public have doubts about setting up residence in such a neighborhood. A poll conducted by Bab cock & Wilcox Co. generally suggests that Nobel laureate Seaborg might have a scarcity of neighbors if he chose to live near a nuclear power reactor. The Babcock & Wilcox survey checked residents of Buchanan, N.Y., Philadelphia, Pa., and Atlanta, Ga. Most of Buchanan's residents thought nuclear-electric power plants make good neighbors. Those surveyed in Philadelphia were more wary. People in Atlanta were even more skeptical about nuclear power plants than those in Philadelphia. The survey may discredit an old adage. In Buchanan, which has had an operating nuclear power plant for the past three years, familiarity has apparently bred confidence rather than contempt. The more wary Philadelphians are considering building a nuclear power plant. Atlanta, where skepticism was even more prevalent, neither has nor contemplates getting one. The survey included 509 interviews. Responses ranged from puzzled "no comments" to adamant positions for
McKesson Goes to Court To Fight Take-Over Bid
or against nuclear-electric power plants. When asked how "clean" nuclear plants are, nearly 50% of all those surveyed had no answer. Perhaps more significantly, 7% of the Buchanan respondents expressed unfavorable attitudes about the cleanliness of nuclear plants, compared to only 1.5% in both Philadelphia and Atlanta. This somewhat contradictory response may be explained by the fact that before Buchanan's nuclear power plant was installed, the town did not have even a conventional electric power plant. To some, the plant represents "industry," and a number of Buchanan residents expressed resentment toward anything that disrupted the natural surroundings of their community. In response to another question, 3 % of the Buchanan respondents considered their community's safety at least somewhat impaired by the presence of a nuclear plant. In Philadelphia and Atlanta, five times as many respondents expressed concern about community safety. Buchanan residents were the only ones who were asked whether they prefer a nuclear plant to a conventional plant. More than 7 5 % of the residents of the New York community said they preferred the nuclear plant. If nothing else, the survey shows a need for public education on the subject of nuclear-electric power. While Buchanan's experience shows that, in general, the public will accept such a plant, nearly 47% of the town's respondents had no opinion when asked: "How safe are nuclear plants to work in?"
Hearing set for this week in suit against Foremost Dairies Feb. 8 has been set for a hearing on McKesson & Robbins' suit to block an alleged attempt by Foremost Dairies to acquire control of the company. The suit was filed Jan. 26 in U.S. District Court in New York City. McKesson asks the court to order Foremost to divest itself of the McKesson shares it now holds and block it from acquiring more. On the day McKesson & Robbins filed its suit, Foremost offered to buy 1 million shares, or more, of McKesson stock at $51 a share. Shares tendered would have to be deposited by the close of business Feb. 7. The court rejected McKesson's request to temporarily block Foremost's offer. McKesson also asks the court to keep Foremost from voting the stock it holds, soliciting proxies, or obtaining representation on McKesson's board. The complaint charges that further stock acquisition by Foremost would eliminate competition in violation of the antitrust laws. McKesson also wants treble damages. In its suit, McKesson describes Foremost as a maker of dairy products and by-products; a wholesale distributor of proprietary drugs, toiletries, and household and personal products in central and northern California and western Nevada; and a manufacturer of ethical and proprietary drugs and pharmaceuticals. McKesson is a
1965 Sales, Earn ings Top 1964's by Big Margins Net Sales 1965 1964 {millions of dollars)
J 1 1 1 1 1 1 1
Air Products* Atlantic Refining Co. Beaunit Corp.6 Freeport Sulphur General Tire & Rubber Monsanto Nopco Chemical Olin Mathieson Procter & Gamble** Sterling Drug Texaco Vanadium Corp.
$ 32.2 826.9 131.6 106.8 949.7 1471.3 65.7 876.0 1089.7 303.3 n.a. 67.5
$ 27.4 769.1 116.4 78.8 1027.2 1358.7 62.5 816.0 1009.9 274.7 n.a. 56.7
Per Cent Change
+17.5% + 7.5 +13 +35.5 -7.5 + 8.2 + 5.1 + 7.3 + 7.9 +10.4 +19.0
b N i n e m o n t h s e n d e d Dec. 3 1 , 1965. N i n e m o n t h * ; e n d e d Dec. 3 1 , 1965. 3 1 , 1965. e Reflects i s s u a n c e of 5 % s t o c k d i v i d e n d in D e c e m b e r 1964. a
Net Income 1965 1964 (millions of dollars)
$ 2.2 66.2 5.8 21.7 42.6 123.0 3.6 50.4 76.4 33.6 636.7 3.9
$
1.8 47.1 4.7 15.3 36.9 114.9 2.1. 41.3 71.0 29.8 577.4 0.7
Per Cent Change
+22.2 +40.5 -31.8 +41.8 +15.4 + 7.0 +71.4 +22.0 + 7.6 +12.7 +10.2 +457.1
" Y e a r ended Nov. 3 0 , 1965.
d
FEB.
Earnings per Share 1965 1964
$ 1.05 5.64 2.97 2.81 2.48 3.89 2.68 3.83 1.77 1.41 4.71 2.85
$0.83 3.98 2.27 2.01 2.15 3.72 1.54 3.16 1.63 1.24 4.27e .35
Six months ended Dec.
7, 1 9 6 6
C&EN
1
37
