CHEMICAL & ENGINEERING
NEWS VOLUME
39,
NUMBER
49
The Chemical W o r l d This W e e k
DECEMBER
4, 1961
Monosodium Glutamate Attracts New Makers Pfizer follows Commercial Solvents into production of monosodium glutamate via the fermentation route Two new companies have entered the monosodium glutamate picture. They replace two others that have dropped from the scene. Most recent to start producing MSG is Chas. Pfizer & Co., which is making the product in bulk quantities by a fermentation process at Groton, Conn. (C&EN, Nov. 27, page 19). Last October, Commercial Solvents said that it, too, would travel the fermentation route to MSG. Commercial Solvents will make MSG at Terre Haute, Ind. (C&EN, Oct. 9, page 25). These two newcomers rebuild the ranks of MSG producers to six. Several years ago, General Mills gave up on MSG, and last year A. E. Staley Mfg. Co. erased it from its product line. But more important, Pfizer and CSC are adding capacity where capacity is already ample. Their safaris into the marketplace will further intensify competition which has already been described as "mighty rough." Pfizer, though, says that the product is a natural for it because of its fermentation background and ties with the food industry. CSC is in a similar position. Fermentation Favored. The Pfizer and CSC moves also point to fermentation as the popular route to MSG. It is believed to be more economical than the conventional extraction processes, in which glutamic acid is extracted from waste beet liquor or wheat gluten, then converted to the sodium salt. CSC's process uses a bacterial organism which was recently discovered in Japan, but the process itself was developed in CSC labs. Pfizer hasn't indicated whether it developed its own culture or process, or whether it has
MSG Output Should Hit 30 Million Pounds in 1965 Millions of Pounds
30 2b 20 15 10 5 0 1954
1956
1958
1962
1960
1964
Source U.S. Tariff Commission and C&EN estimates
obtained a license from another company. Until 1958, fermentation processes were not used to make MSG in the U.S. International Minerals & Chemical, Great Western Sugar, A. E. Staley, and Huron Milling, a division of Hercules Powder, all used extraction processes. Then Merck moved into MSG with a 5 million pound-per-year fermentation plant at Danville, Pa. Merck makes its material under license from Kyowa Fermentation Industries of Japan. Last September, Merck completed a $2 million expansion project which doubled its MSG capacity to 10 million pounds annually. Late last year IMC acquired Bioferm Corp., specialists in fermenta-
tion, and now has a fermentation process in the pilot plant. Test liquors produced at Bioferm's Wasco, Calif., laboratory have already been run through IMC's plant at San Jose, Calif. Although neither Pfizer nor CSC has revealed capacities, most experts believe that they will push MSG capacity in the U.S. from its present level of about 30 to 34 million pounds to well over the 40 million pound mark. In addition to Merck's 10 million pounds, IMC, the largest producer, can turn out an estimated 12 to 14 million pounds. Huron Milling can produce as much as 4 to 5 million pounds, but best guesses are that it is now operating at about a 600,000 pound-per-year rate. Huron Milling makes MSG as a co-product of its DEC.
4, 1961 C & E N
29
Six Producers Vie for Monosodium Glutamate Market Company
Location
Capacity
Process
millions of pounds per year
INTERNATIONAL MINERALS San Jose, 12 to 14 & CHEMICAL* Calif. HURON MILLING DIVISION, Harbor Beach, 4 to 5 HERCULES POWDER Mich. GREAT WESTERN SUGAR Near Denver, 4 to 5 Colo. MERCK Danville, Pa. 10 COMMERCIAL SOLVENTS Terre Haute, Ind. PFIZER Groton, Conn.
Extraction Extraction Extraction Fermentation Fermentation Fermentation
* A fermentation process is in pilot plant stage.
hydrolyzed vegetable proteins. Great Western Sugar's capacity is also about 4 to 5 million pounds annually. MSG production last year was only 21.6 million pounds, substantially under the industry's 30 to 34 million pound capacity. Nevertheless, last year's output is a big gain from the piddling 3 million pounds produced in 1943. Output should continue to increase, will probably reach 23.5 million pounds this year. In 1962, MSG production should exceed 25 million pounds, and, by 1965, it will probably spill over the 30 million pound mark. This, however, is still far short of the industry's total capacity. Where Does MSG Go? MSG is used to enhance the flavor of foods. It is often used with soups, meats, poultry, fish, and vegetables but is taboo in fruits, eggs, butter, cereal, and coffee. Frozen and prepared foods, which are rapidly growing in popularity, are prime targets for MSG sales. IMC is the only MSG producer to sell its product on the retail level. It commands a staggering 98% of the retail market with its Ac'cent. The company says sales of Ac'cent were up 38% for the year ended June 30, 1961, compared with the previous year. MSG is also sold to institutions such as hospitals, hotels, and restaurants. Retail and institutional sales probably account for less than 5 million pounds per year of MSG. The remainder is sold in bulk quantities to food processing companies. Besides domestic production, about 1 million pounds of MSG move into the U.S. from foreign producers. The giant is Ajinomoto Co., a Japanese firm 30
C&EN
DEC. 4, 1961
whose MSG output is believed to be greater than total U.S. production. The overriding factor in the MSG business is price, and this has been steadily declining. List price now runs about $1.02 to $1.07 per pound, but carlots are selling below 90 cents. Less-than-1000-pound lots range from 92 to 95 cents. As one producer points out, suppliers can't ride on quality and service, because these are on a par among all companies. The one vulnerable spot is price, and it's very possible that, with two new producers on the scene, price will be under still more pressure.
Du Pont May Build Synthetic Leather Plant Du Pont is studying plans to build a large-scale plant at Old Hickory, Tenn., to make synthetic leather. The studies are preliminary; the decision to build the plant probably won't be made until early next year. About all that Du Pont is saying about its new synthetic leather is that it's a polymeric material. The product has been under development for about 10 years. It is being made now in pilot plant quantities at the company's Newburgh, N.Y., laboratory. The biggest initial market for Du Pont's new material is shoes. More than 20 shoe companies have been testing the product for shoe uppers. Shoe makers now buy about $400 million worth of leather a year for shoe uppers. If Du Pont does build a commercial plant next year, initial output will be
a high-quality product designed to compete with the more expensive leathers for shoe uppers. Du Pont's synthetic leather is formed in long sheets and will be sold in uniform rolls. It does not require special shoe making equipment, the company adds. Aside from shoe uppers, the material can also be used to make handbags, gloves, belts, and any other article now made of leather. According to Du Pont, its plastic leather breathes as well as leather, is more durable than leather, and is competitive in price. It can be made to simulate grained, smooth, and suede leather. Du Pont hopes to obtain a trademark for its synthetic leather sometime next year. Patent applications for the material are still pending.
Chemical Firms Most Active Abroad The chemical industry has been more active overseas recently than any other U.S. industry. So says Booz, Allen & Hamilton, basing its opinion on a survey it made of 690 U.S. companies involved in nearly 1200 new overseas ventures, expansions, or licensing agreements during the 12 months ended last June. Of 1195 separate foreign activities examined by the Chicago firm of management consultants, chemical companies accounted for about 15% of the total. The nonelectrical machinery industry, with 13%, was next most active. More than half the foreign activities during the 12-month period consisted of new establishments, about 70% of which were for manufacturing operations. Such facilities as sales, administrative, and liaison offices made up the rest. The chemical industry accounted for 19% of these new operations, 21% of the new manufacturing operations alone. Expansions of existing operations made up 18% of the total, with the chemical industry accounting for 16% of these expansions. Licensing agreements with foreign firms made up 27% of total activities, with U.S. chemical producers involved in 8%>. The Booz, Allen & Hamilton survey indicates that West Europe received the most attention from U.S. firms. A little more than half of the new foreign activities were there with the United Kingdom attracting more interest than any other country.
CPI and Suppliers Stage 28th Chem Show New York's Coliseum was the meeting ground last week, as the CPI and its suppliers turned out for the 28th Exposition of Chemical Industries. Visitors to the latest edition of the Chem Show had their biennial chance to view the latest in equipment, instrumentation, and materials (bottom left
and center). The previous week had been far from quiet, as workers heaved and shoved equipment into place to set the stage (top and bottom right). By the close of the show, an estimated 30,000 to 35,000 visitors had trooped through the Coliseum, with its more than 500 displays.
