Plastics Still Gain in Produce Packaging Polyethylene film dominates, but shrinkable, oriented films are poised to surge ahead Plastic films continue to gain ground in produce packaging. Polyethylene still dominates the field, but visitors to the Produce Packaging Exposition in New York City saw clear evidence that shrinkable films made from oriented polyvinyl chloride, oriented polystyrene, and oriented polypropylene are poised for a surge of use in the produce field. At the exposition, Dow, Borden, Goodyear, and Reynolds Metals demonstrated their shrinkable polyvinyl chloride wrapping films. Shrinkable polypropylene films manufactured by W. R. Grace and Hercules Powder, as well as shrinkable polystyrene films made by Dow, Monsanto, and Union Carbide, were also among the wrapping materials displayed. Equipment for wrapping and heat-shrinking the films over fruits and vegetables was shown by a variety of machinery suppliers. Today, about half the fruits and vegetables sold are packaged before they reach supermarket display tables. Film producers agree that a much higher percentage is possible. Some expect that it will reach 7 5 % within five years. This bodes well for plastic film materials. For example, one polyethylene film manufacturer expects produce packaging to consume 165 million
pounds in 1967, compared to 125 million pounds this year. This includes both shrinkable and nonshrinkable polyethylene film. However, polyethylene is used mostly in bags for such items as potatoes and carrots. With the trend toward wrapping trays of produce with clear films of polystyrene, polyvinyl chloride, and polypropylene, it is likely that use of these films will grow at a faster rate than polyethylene use. Shrinkable films are usually applied to produce as sleeve wraps, or as overwraps for fruits _and vegetables placed on paper pulp or plastic trays and baskets. Large items such as heads of lettuce are wrapped individually. The films shrink to form a tight package as the wrapped item passes through a heat tunnel. PVC Tough. Toughness is important in films used to pack produce that travels a long way from grower or terminal to the grocery. Polyvinyl chloride films are relatively tough, and for this reason may be favored over other transparent films where longdistance shipping is involved. A polyvinyl chloride film producer expects the total 1964 market for PVC films in produce packaging to total about 15 million pounds. This includes nonoriented (but stretchable) film as well as heat-shrinkable, oriented film.
LETTUCE WRAPPING. Harold G. Heaton of W. R. Grace's Cryovac division demonstrates produce wrapping machine that dispenses polypropylene and gathers the film around the product. A hot knife cuts the film and seals the package
36
C&EN
OCT.
2 6, 196 4
An important property of wrapping materials is the ability to let the produce breathe—that is, to let carbon dioxide and oxygen pass through the wrap—and thus help to prevent spoilage. Oriented polystyrene film allows breathing to a relatively high degree. Monsanto, a producer of oriented polystyrene, says the 1964 market for the film in produce wrapping will be about 3 million pounds, and expects it to grow to 10 million pounds per year by M67. Oriented polypropylene film, perforated to improve its breathing properties, may offer polystyrene film some competition in the produce packaging field in the future. The market for cellophane in produce packaging declined during the 1950's, largely because of price competition from polyethylene. Since 1960, cellophane's use in this field has been almost static, with consumption at about 10 million pounds per year. Because of the variety of lower-cost transparent films now available, one cellophane producer does not expect cellophane use in produce packaging to grow by more than 2% a year through 1970. Mesh Bags. Another use of plastics in food display packages is the polyethylene mesh bag for onions, potatoes, citrus fruits, apples, and other items. Du Pont started producing polyethylene in mesh form about five years ago. (It is also used in many other products such as hair curlers, filter cores, protective sleeves for auto parts, and decorations.) Bemis Bro. Bag Co. and Sherman Paper Products Co. (division of St. Regis Paper Co.) have been converting the Du Pont material into produce bags for about two years. Rexall Drug & Chemical Co. started producing polyethylene mesh two months ago and sells it to bag makers. Union Carbide, which also produces polyethylene mesh, is now looking closely at the produce bag market. Polyethylene mesh bags compete with polyethylene film bags and twisted paper mesh bags for produce display. In the size for three pounds of onions, open mesh paper bags sell for $45 to $50 per thousand, and polyethylene film bags for $8.00 to $9.00 per thousand. The same size bags of Du Pont polyethylene mesh sell for $25 to $30 per thousand. Current market for Du Pont's polyethylene mesh in produce bags, as well as in produce carton windows, is about 3 million pounds per year.
Imports of Chlorinated HydroCarbons Set Records Imports of perchloroethylene and trichloroethylene are reaching records. During the first six months of the year, almost 38 million pounds of perchloroethylene and 38 million pounds of trichloroethylene entered the U.S., mainly from four European countries—Great Britain, France, Italy, and Belgium. At this rate, imports of these chemicals could come to 76 million pounds each at year's end. This would represent record imports for both chemicals. Last year's import figures are confusing. The Bureau of the Census gives two sets of figures. One set is based on monthly compilations, the other set on an annual compilation. Producers place more trust on the sum of the monthly figures: perchloroethylene, 56 million pounds; trichloroethylene, 71 million pounds (annual method: perchloroethylene, 38 million pounds; trichloroethylene, 48 million pounds). Pressure. Regardless of which set of import statistics is correct, this year's influx of foreign perchloroethylene and trichloroethylene is putting pressure on domestic salesmen. Domestic production just isn't maintaining the growth rate that imports are. About 370 million pounds of trichloroethylene will be produced in the U.S. this year, about the same as last year. U.S. production of perchloroethylene will likely be 360 million pounds, up 10% over last year. These figures will probably include about 40 million pounds of previously unreported captive production. So perchloroethylene output will actually remain at about last year's 325 million pound level. Thus, U.S. producers, who have learned to live with imports accounting for about 15 to 18% of the domestic market, will now have to face the reality of about 2 1 % of the domestic market going to imported material. Complicating matters for domestic salesmen is the prospect of additional domestic capacity. Perchloroethylene capacity now stands at a flexible 390 million pounds per year; trichloroethylene capacity is about 415 million pounds. Pittsburgh Plate Glass, however, should complete its new chlorinated hydrocarbon plant at Lake Charles, La., very soon, and Stauffer will finish a 20% expansion of its Louisville, Ky., chlorinated hydrocarbon plant next year.
In addition, both Hooker Chemical and Ethyl Corp. are building new chlorinated hydrocarbon plants; both plants will be completed next year. Prices. Thus, price is receiving a two-pronged attack. Record imports and high domestic capacity are exerting pressure on prices. Imported perchloroethylene and trichloroethylene, most of which comes into this country in drums, sell for about 1.5 cents below domestic offering price. As a rule, drum carloads of domestic perchloroethylene and trichloroethylene list at 14 and 11.25 cents per pound, respectively. The domestic product, however, may now be selling for as much as 2 cents under list price. The immediate future doesn't hold much hope for improvement. In fact, by 1969, perchloroethylene imports could hit 100 million pounds, with trichloroethylene not far behind.
Four European Countries Account for the Bulk of the Perchloroethylene and Trichloroethylene Imported into the U.S. Imports, First Six Months of 1964 (1000 pounds) Country
Perchloroethylene
France Italy Belgium Great Britain Japan West Germany Netherlands Canada Total Source:
Trichloroethylene
11,563 7,738 7,455 4,814 2,701 2,635 931 37,837
5,658 5,719 2,078 20,970 280 2,887 225 37,817
Bureau of Census
Talks on Nontariff Problems May Not Start Until Spring The intractable problems of nontariff barriers to international trade may not get a complete hearing at GATT's Kennedy round until next spring's thaw comes to Geneva. But they will be casting shadows right from the start, when negotiators gather at Geneva to exchange exceptions lists. Horace J. De Podwin, a widely recognized expert on tariffs and trade, expects that the European Economic Community ( E E C ) and the U.S., the two largest trading blocs represented at the GATT (General Agreement on Tariffs and Trade) conference, will
have their exceptions lists ready by the Nov. 16 target date. These lists will detail the products which countries want excluded from the proposed 50% across-the-board tariff cuts, the "working hypothesis" of the Kennedy round. Mr. De Podwin served as a government consultant on previous GATT negotiations and now heads his own consulting firm in New York City. But, says Mr. De Podwin, E E C bargainers will have a reserve, or "second "'string" exceptions list ready in case they don't receive concessions from the U.S. on alleged nontariff barriers. Some chemicals are on this secondary list, he told a monthly meeting of the Synthetic Organic Chemical Manufacturers Association in New York City. American Selling Price. Europeans particularly object to the U.S. "buy American" policy, U.S. antidumping practices, and the American selling price (ASP) system of valueing imports of benzenoid chemicals. U.S. exporters, in turn, are irked by a host of foreign nontariff barriers which hamper their overseas business. Among them are excessive packaging and labeling regulations, border and turnover taxes, and government procurement policies. Mr. De Podwin says that, apparently, elimination of ASP is EEC's price for cutting tariffs on U.S. chemical exports. He told a sympathetic audience that ASP is the whipping boy which EEC uses to undermine confidence in U.S. sincerity and to justify its own peculiar ways of evaluating U.S. exports to EEC countries. SOCMA, of course, is a leader in the fight to keep ASP immune from Kennedy round bargaining. He feels that ASP is on sound legal ground and says that, unless our negotiators have been given some secret power to repeal U.S. laws, ASP should remain out of the Geneva talks. Although ASP—and other nontariff barriers—will get into the first act at Geneva, they will remain off center stage. After a GATT subcommittee on nontariff barriers spent a fruitless summer studying the nontariff aspects of the Kennedy round, Wyndham White, GATT's executive secretary, suggested that nontariff barriers take a back seat to the equally complex problems of agricultural trade and of tariff bargaining itself. The negotiators will take until spring of next year, at least, to thresh out these problems. OCT. 26, 1964 C & E N
37
Salt Companies Sued Again
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C&EN
OCT. 2 6, 1964
The State of Illinois has filed a civil suit against three salt companies, charging them with violation of the Sherman Antitrust Act. The state seeks to recover more than $10 million in alleged damages. Filed in a Federal District Court in Chicago, the suit accuses Diamond Crystal Salt Co., International Salt Co., and Morton Salt Co. of conspiring to fix prices of rock salt. Named as co-conspirators are American Salt Co.; Barton Salt Co.; Carey Salt Co.; Cargill, Inc.; Cutler-Magner Co.; and Hardy Salt Co. Assigned to the case is Judge Bernard M. Decker. The Illinois suit is the latest in a series of actions against producers of rock salt. Last August a Federal District Court in Minneapolis, Minn., held in a civil case that Diamond Crystal and Morton had violated the Sherman Antitrust Act (C&EN, Aug. 17, page 3 4 ) . This action was brought by the Government after a federal jury in June 1962 acquitted the companies of a similar charge in a criminal case. Final judgment in the Minneapolis civil case has not been entered by the court as yet. Once the terms of the final judgment have been determined, both Diamond Crystal and Morton plan to appeal. In the Illinois suit, attorney general William G. Clark alleges that the Illinois Highway Commission was overcharged $3.4 million for rock salt used on the state's highways from Jan. 1, 1953, to date. The suit says that the companies joined together and conspired to fix the prices of rock salt and that their representatives "met in conference . . . several times during the conspiracy, conducted telephone conferences, and in other respects sought to effectuate the aforesaid combination and illegal price-fixing conspiracy." Mr. Clark has asked for payment to the state of at least $10.2 million in triple damages. In commenting on the Illinois suit, Morton president Daniel Peterkin, Jr., says that Morton is at a loss to understand the latest charges, just as it is at a loss to understand the decision in the Minneapolis civil suit. Charles F. Moore, president of Diamond Crystal, states that "as before, we deny that we are guilty of price-fixing and, as previously announced, will appeal. . ." International Salt entered into a stipulation with the Government which led to a consent decree in the Minne-
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apolis civil suit last fall because "we felt w e should not have to prove our innocence twice," says International Salt president Edward L. Fuller. He adds that the Illinois case is "the same old lawsuit" and "we are going to fight it all the way." More Suits Possible. Other Illinois agencies may bring action against the salt companies. The city of Chicago, Cook County, and the Chicago Transit Authority are all looking into the possibility of suing the companies for triple damages. Still waiting trial is a civil antitrust suit filed by the city of Philadelphia against producers Cayuga Rock Salt Co., Diamond Crystal, International Salt, and Morton, and distributors Pioneer Salt Co. and Salt Service, Inc. This suit was filed in the Federal District Court in Philadelphia in July 1963.
BRIEFS Neptune Meter Co. has formed a subsidiary, Neptune Systems, Inc. Neptune Systems, Elk Grove Village, 111., will design and supply to industry automated measurement and control systems.
Nease Chemical Co. will make hexachloroethane for the U.S. Army. This will be the first time this chemical has been made in the U.S. in recent years; Nease says that since World War II the chemical has been imported. Nease will make it at its Salem, Ohio, plant. Hexachloroethane is used in smoke canisters to produce thick, white smoke.
William F. Clapp Laboratories is now associated with Battelle Memorial Institute. Clapp Laboratories studies biological attack by marine organisms on materials and structures. The agreement between the two institutions calls for Battelle to assume management and operation of Clapp Laboratories, Duxbury, Mass.
NEW FACILITIES Continental Oil Co. will build its $20 million anhydrous ammonia plant at Blytheville, Ark. (C&EN, Aug. 31, page 11). Final location of the plant in Blytheville, however, is subject to approval of municipal bond financing
by the voters of the city. Capacity of the plant, to be completed late next year, will be 1000 tons a day. Most of the ammonia will be used by Conoco subsidiaries—American Agricultural Chemical Co. and Mid-South Chemical Co.-to make fertilizer.
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Escambia Chemical Corp. will market monoethylamine and monisopropylamine when its alkylamines plant is completed in December. The plant is being built on the firm's present site at Escambia Bay, Fla. Escambia has made methylamines at Escambia Bay since 1962.
Chemetron Corp.'s National Cylinder Gas division has completed a 400 tonper-day expansion of its air separation plant in South Chicago, 111. The plant supplies Wisconsin Steel Works of International Harvester Co. with oxygen under a 20-year contract.
Tennessee Eastman has completed an expansion of its dimethyl terephthalate plant at Kingsport, Tenn. The addition will more than double the company's DMT capacity, bringing it to about 70 million pounds per year. Eastman uses DMT captively to produce its polyester fiber, Kodel, its polyester packaging film, Kodar, and its polyester photographic film base, Estar.
Air Liquide has completed the fourth 40 ton-per-day liquid oxygen-nitrogenargon plant for Big Three Welding Equipment Co. at Orange, Tex. Big Three Welding, headquartered in Houston, Tex., supplies the three gases to users in the Gulf Coast area. The firm has a 50 ton-per-day air separation plant at Baton Rouge, La., and two 40 ton-per-day air separation plants in the final stages of erection at Lake Charles, La.
Union Carbide Corp. is expanding its liquid oxygen-nitrogen plant at Fontana, Calif. Output will be boosted from 800 to 1200 tons of liquid per day. The additional facilities are scheduled to go on stream during the latter part of next year. A major portion of the increased capacity will be used to supply rocket engine development centers on the West Coast.
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