NPA Sets High Goal for Capital Spending - C&EN Global Enterprise

Nov 6, 2010 - Annual spending for private plant and equipment in the U.S. must be tripled by 1975 to meet standards set by national objectives. But th...
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conventional method uses both hor­ mones throughout treatment. Lilly claims that the sequential method more closely resembles the normal hormonal sequence in the menstrual cycle. The company be­ lieves that this is at least partly re­ sponsible for the lower incidence of undesirable side effects encountered during testing. These side effects include abnormal bleeding and gains in weight. Lilly and Syntex use 17aethynylestradiol-3-methyl ether as es­ trogen and 6-chloiO-6-dehydiO-17aacetoxyprogesterone as progestin. Squibb's injectable contraceptive needs be taken only once a month. More than 3000 women will partici­ pate for two years in clinical tests of the new technique. Like the oral drugs, the injectable contraceptive contains an estrogen and a progestin. Squibb uses an un­ patented estrogen, estradiol enanthate, and a Squibb progestin, 16α, 17αdihydroxypiOgesterone acetophenide. The hormones are injected into a muscle and gradually absorbed by the system. The injectable contraceptive should cost no more than the oral.

Pfizer Wins Citric Acid Antitrust Case A federal court has ruled in favor of Pfizer in a civil antitrust suit brought by the Justice Department in 1958. The suit claimed Pfizer monopolized the manufacture and sale of citric acid. Judge Jacob Mishler of the U.S. Dis­ trict Court in Brooklyn, N.Y., who ruled on the case, said that Justice "failed to sustain the burden of prov­ ing and establishing the bounds of the trade and commerce it claims were monopolized in violation of Section 2 of the Sherman Act." In 1958, Pfizer accounted for 90.8% of U.S. citric acid production and 97% of citric acid sales. Justice had charged that Pfizer en­ gaged in specific business practices which had the effect of substantially lessening competition. However, Judge Mishler held that Justice failed to prove its charge. Commenting on the decision, Pfizer's new president, John J. Powers, Jr., said: "We are, of course, pleased that the court has found that the complaint should be dismissed, after a trial on the merits at which 26 witnesses testi­ fied and a large volume of documen­ tary evidence was presented." 28

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NPA Sets High Goal for Capital Spending Projected GNP for 1975 will not cover full cost of attaining national goals Annual spending for private plant and equipment in the U.S. must be tripled by 1975 to meet standards set by na­ tional objectives. But the nation will not be able completely to fulfill all of its goals. That's what the National Planning Association says in its cost analysis of 16 national goals. In its report, "The Dollar Cost of Our National Goals," NPA examines both the 15 goals listed by President Eisenhower's Commission on National Goals (1960), and the space program added by President Kennedy in 1961. The projected level of spending for plant and equipment in 1975 puts that category second to consumer spending and saving ($659 billion). Although consumer spending and saving will re­ main the highest level of all goals (60% ), spending on plant and equip­ ment will be $151 billion, 14% of the net cost of all 16 goals. Source. Each goal was studied to determine how much it would cost. NPA used such things as laws, expert studies, and the recommendations of public bodies (for example, recom­ mendations of the Federal Council for Science and Technology for natural

resources and energy research) to ascertain what is meant by these na­ tional goals. Research and develop­ ment spending, which is expected to double by 1975 to $39 billion, should be in increasingly broadened areas, NPA says, rather than remain con­ centrated on work essential to the na­ tional interest. Substantially higher spending is expected for "frontier" research such as high-energy physics, molecular biology, water desalination, and peaceful uses of atomic energy. R&D objectives would also include ex­ panded facilities for information stor­ age and retrieval systems. NPA's estimate for spending on priv­ ate plant and equipment includes money for production anticipated in the 1970's, as well as for the specific goals of urban development ($50 billion) and transportation. Equip­ ment is expected to continue to get a larger share of capital spending than plants. Spending on natural resources and space should also increase greatly by 1975. Changes in spending should reflect the changing needs (pure water, building materials, highways) of the growing population in urban

NPA Estimates Costs for 16 National Goals 1962 Actual Expenditures

To Improve Standard

$356.8 48.9 64.2 37.8 32.3 30.4 35.1 51.4 29.4 18.3 5.9 5.1 3.3 7.2 0.1 0.4

$472.6 102.3 83.3 55.5 39.1 39.7 56.2 39.1 36.3 32.3 7.7 3.1 5.7 5.2 0.4 0.5

$659.6 151.6 129.7 92.4 85.4 82.1 75.4 67.6 62.0 38.9 16.7 13.2 9.4 9.2 2.9 Ο

$726.6

$979.0

$1497.1

T U « ι c ΛΝ Λι I ne l b boaIS

Consumer expenditures and savings Private plant and equipment Urban development Social welfare Health Education Transportation National defense Housing Research and development Natural resources International aid Space Agriculture Manpower retraining Area redevelopment Total gross cost Source:

National Planning Association

1975 Maintain Present Standard {billions of dollars) To

areas and the need to find new fuel sources. The space program would include a manned lunar landing and possibly a manned landing on another planet. The total cost of the national goals can be subdivided into the cost of maintaining the present standard of living for the growing population and the cost of making desirable improvements in the standard of living. Assuming a growth rate of 4% for gross national product (average for the past 10 years was 3.57^ ), GNP would reach $981 billion by 1975. This level would maintain the present standard of living ($722 billion), but would fall short of completely improving it ($1.1 trillion). The deficit would be $146 billion or 15% of the GNP. (The total gross cost of almost $1.5 trillion contains some overlap, which, when eliminated, gives a net cost of about $1.13 trillion.) Conclusion. The goals set by NPA cannot be attained at the present rate of growth. To produce enough to reach the hoped-for standard for all 16 goals would require a growth rate of 5.5% a year over the next decade— a doubtful possibility, according to NPA. Therefore, the economy would be faced with a choice, not of which objectives are most desirable within the framework of its limited resources, but how much of each, and how soon.

Airco to Build Latex Copolymer Plant Plans to build a plant for making its new latex binder were disclosed last week by Air Reduction Chemical and Carbide, a division of Air Reduction Co., Inc. The binder (Aircoflex 100), intended for paper coatings, is the first vinyl acetate-ethylene copolymer made in emulsion form and the first to contain more than 50% by weight of vinyl acetate, the company says. Aircoflex 100 combines the properties of polyethylene and polyvinyl acetate to produce coatings that are flexible, tough, and stable, Airco Chemical and Carbide says. The company plans to follow with other copolymer emulsions, containing different proportions of vinyl acetate, for the paint, adhesives, and textile industries. Announcement of the second product in the series may come before the end of the year. Construction will start soon at Calvert City, Ky., on a plant with a capacity for 25 million pounds per

BRIGHTNESS. Airco's Dr. C. E. Blades (left) and Harold L Jaffe compare the brightness of a pigmented film sample of Aircoflex 100 binder for paper coatings with that of a similar pigmented film sample of styrenebutadiene. The Aircoflex sample is laid over the styrene- butadiene sample. Another sample of Aircoflex, prepared for quality tests, curves out from under Dr. Blades' hand

year of the emulsions (containing about 50% solids). Completion is scheduled for next spring. In the meantime, the company can furnish semicommercial quantities of Aircoflex 100 from a plant at Bound Brook,

N.J. With the new binder, Airco Chemical and Carbide is going after the market held by three other synthetic latexes: acrylic-methacrylic copolymers (current market in paper is 8 million pounds per year, dry basis, Airco says ) ; butadiene-styrene copolymers (50 million pounds per year, dry basis); and polyvinyl acetate (12 million pounds per year, also on a dry basis). Airco's market figures differ from those generally accepted, the company admits. The company claims its product has distinct advantages over competing items. Its chief virtue, flexibility, results from the linear structure of the polymer. Paper and paperboard made with Aircoflex can be folded and scored easily without cracking the coating. By controlling the number of acetoxy groups in the chain, Airco also controls the polymer's hydrophilic nature. The polar groups also contribute to the binder's ability to adhere to the paper. Because the polymer chains are saturated, the material is stable to light and heat. Although Airco hasn't said what price it will ask for the binder once it is in full production, the company ex-

pects it to sell for less than the acrylic emulsions because of the lower costs of starting materials. Paper manufacturers now using butadiene-styrene binder with titanium dioxide as a brightener will also see a saving, Airco says, because they will be able to achieve the same degree of brightness with 5 to 10% less titanium dioxide by using the new binder.

Dow Moves to Improve Raw Materials Position The liquid hydrocarbon extraction plant that Dow Chemical will build at Bay City, Tex., is the company's first move toward ensuring for itself a basic hydrocarbon raw materials position on the Gulf Coast. Ground has already been broken for the plant, which will be owned jointly by Brazos Oil and Gas (a division of Dow) and Coastal States Gas Producing. The $7.5 million plant is scheduled to go on stream in mid-October. It will be built by Olsen Engineering. Initially, Dow will get about 8500 barrels per day of ethane and propane from the plant under a 15-year contract. It will also take the dry natural gas (methane) from the 150 million cubic feet per day of wet gas supplied to the plant by Brazos. The materials will be used in Dow's complex at Freeport, Tex., as raw materials and fuel to make chemicals. MAY

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Coastal States will sell the butanes and natural gasoline (C 5 and heavier hydrocarbons) produced in the plant. It also will sell, in the Houston-Texas City area, the net dry gas from an initial feed of 260 million cubic feet per day of wet gas which it will send to the plant. From its feed, Coastal will supply 35 million cubic feet of gas a day to fuel the plant and to make up for shrinkage. Coastal States will operate the Bay City plant. Ultimately, the plant will have a capacity of 500 million cubic feet of gas per day. The joint venture will permit Dow to control some of its liquid hydrocarbon raw materials, just as it controls a supply of salt through ownership of mineral rights and land on a salt dome near Freeport. Dow now buys all of its liquid hydrocarbon requirements under contract, says Richard A. Beutel, Brazos v.p. In contrast with this move, Dow has also contracted to buy dry gas from an extraction plant that Shell Oil will build at Freeport to process wet gas produced off the Texas coast (C&EN, April 19, page 23). Shell will own all the facilities—wells, pipelines, plant—and unprocessed hydrocarbons.

BRIEFS Central Hadley Corp., Pomona, Calif., has changed its name to U.S. Filter Corp. Last August, U.S. Filter, of Whittier, Calif., merged with (and became a division of) Central Hadley. U.S. Filter Corp. serves the oil, chemical, food, beverage, mining, water, marine, and transportation industries.

Smith, Kline, & French Laboratories has acquired Sea & Ski Corp., Reno, Nev., from Botany Industries, Inc. (C&EN, April 26, page 21). Sea & Ski will continue to sell suntan lotions and sunglasses.

Hooker Chemical Corp. has acquired Rubber Corp. of America, Hicksville, L.I., N.Y. (C&EN, April 19, page 93). Rubber Corp. makes polyvinyl chloride resins, film, sheeting, plasticizers, and vinyl compounds.

Georgia Pacific Corp. and Bestwall Gypsum Co. have received stockholders' approval to merge. Georgia Pa30

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cific is a Portland, Ore., paper, wood, and chemical company. Bestwall makes gypsum wallboard, lath, and plasters. Its headquarters are at Paoli, Pa.

Chas. Pfizer & Co. has acquired the assets and business of Baker Laboratories, Inc., of East Troy, Wis. Baker Laboratories, maker of infant formula products, was a subsidiary of U.S. Vitamin & Pharmaceutical Corp., New York, N.Y.

Albemarle Paper Manufacturing Co. has purchased Consumer Bag & Packaging Corp., Richmond, Va. Albemarle Paper is a subsidiary of Ethyl Corp.

NEW FACILITIES Atlantic Refining Co. will build a multimillion dollar petroleum research center at Piano, Tex. Construction will begin this fall and be completed in early 1967.

Union Carbide will more than double the capacity of its 25 million pounda-year toluene diisocyanate plant at Institute, W.Va. The expansion is scheduled for late 1966. Toluene diisocyanate is used in urethane foams.

Gulf Design & Engineering Corp., Lakeland, Fla., will engineer a phosphoric acid plant expansion for V-C Chemical Co. in Nichols, Fla. The expansion is part of a surge of phosphate growth in Polk County, Fla. (C&EN, March 15, page 24).

International Minerals & Chemical Corp., Skokie, 111., has completed a $5 million expansion of its phosphate chemicals plant at Bonnie, Fla. Production capacity has been increased from 900,000 tons a year to 1.2 million tons. The complex makes eight concentrated phosphate products for fertilizers.

Shell Chemical Co. has begun making synthetic polyisoprene latex at Marietta, Ohio. The new facilities have a capacity of 20 million pounds a year. Shell is the only commercial supplier of synthetic polyisoprene latex.

El Paso Natural Gas Products Co. will place a 300 ton-a-day ammonia plant on stream in August. The facility is being built at Odessa, Tex., where El Paso has a petrochemical complex.

Southwestern Engineering Co. has opened a new facility in Los Angeles, Calif., which combines its corporate headquarters and West Coast manufacturing operations. The concern makes finishing mills, grinding mills, separators, and heat transfer equipment.

Electron Associates, Inc., has formed an instrument division to design, manufacture, and market plotters, digital voltmeters, digital acquisition systems, scanners, and new instrumentation developments. The division will be in North Long Branch, N.J.

W. R. Grace's Dewey & Almy division, Cambridge, Mass., will build a plant to make sealing compounds in Atlanta, Ga. The plant will be completed in late 1965. The compounds are used for gasketing metal cans, pails, and drums.

Charmin Paper Products Co., a Cincinnati, Ohio, subsidiary of Procter & Gamble, will build a facial and toilet tissue plant in Wyoming County, Pa. Construction will start late this summer. Production is scheduled to begin in early 1967.

Numec Instruments & Controls Corp. has moved from Apollo, Pa., to expanded headquarters in Monroeville, Pa. The firm makes instruments which measure surface area, pore volume, and porosity and density of powdered and porous materials.

FMC Corp. will expand its soda ash production facilities to 900,000 tons a year by early 1966. The expansion site is Green River, Wyo.

Union Carbide Corp. will double its capacity for making and storing tantalum capacitors at Greenville, S.C., by early 1966. Tantalum capacitors are used in computers, auto ignition sys-

terns, communication satellites, tran­ sistor radios, and undersea telephone cable repeaters.

Union Carbide will enlarge its poly­ ethylene facilities at Whiting, Ind. The addition will be ready for pro­ duction by mid-1966. This marks the beginning of a two-year plan at Whit­ ing to double capacity, now about 100 million pounds of low-density poly­ ethylene a year.

DECREASE V I S C O S I T Y WHILE MAINTAINING THE SAME SOLIDS CONTENTS . . OR INCREASE SOLIDS-IN-SUSPENSION WITHOUT INCREASING VISCOSITY

S. C. Johnson & Son, Inc., the Racine, Wis., maker of wax emulsion products, will add to its shipping and pressure packaging facilities near Racine. The new building will be in full use next spring.

A DROP OF MAGIC!

V-C Chemical Co. will add to its phos­ phate facilities at Polk County, Fla. (C&EN, March 15, page 2 4 ) . The Socony Mobil division plans to open a new phosphate mine and build asso­ ciated facilities which will double its capacity by early 1967.

Sherwin-Williams Co., Cleveland, Ohio, will invest $3 million in modern­ izing and expanding its Newark, N.J., plant. The plant makes paints, var­ nishes, and resins.

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Sunray DX Oil Co., Tulsa, Okla., will build a new propane-propylene frac­ tionating unit at its refinery in Corpus Christi, Tex. Parsons Construction Co., Los Angeles, Calif., will engineer and build the facility. It will have a capacity of 1200 barrels of propylene a day. Completion date is early 1966.

Gulf & Western Industries, Inc., Grand Rapids, Mich., will begin chrome-plat­ ing of plastic parts at a new facility in Middleville, Mich., sometime in July. A plating line 200 feet long will have an initial capacity of 154,000 pieces per eight-hour shift.

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Reevon division of Alamo Polymer Corp., Charlotte, N.C., will expand its olefin fiber production facility at Spartanburg, S.C. Alamo Polymer is owned equally by National Distillers & Chemical Corp. and Phillips Petro­ leum Co.

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