INDUSTRY
Some of the 35?OO0 p e o p l e t h a t viewed displays of 235 exhibitors at the National Plastics Exposition in N e w York's Coliseum
Plastics Synonym — Growth Plastics should be a $ 2 billion business by end of the y e a r ; production should reach 4 billion pounds N E W YORK.—Long term planning highlights the future oF t h e plastics industry. Although m a n y segments are now feeling the pinch of the automobile production cutback, most observers feel this is only temporary, with an upturn due this fall a s 1957 models start coming off the assembly lines. Other segments say business is ;good—particularly with consumer i t e m s . Retail sales are around $200 million mow, with 1957 projections calling for around $240 million. Competition in plastics becomes keener year b y year m this young industry. Sales h a v e generally increased 1409k since 194&. T h e n dollar value of sales amounted t:o nearly $740 million. By 1955 i t was u p to $1.8 billion. Estimates for 1956, says Norman Anderson, president of the Society of the Plastics Industry, call for $2 billion in sales. Production should r u n around 4 billion pouznds. Anderson m a d e h i s coimments a t the opening of the 7th National Plastics Exposition held at t h e n e w Coliseum h e r e last week. The show, most ambitious yet undertaker* by this growi n g industry, featured s o m e 2 3 5 exhibitors; about 3 0 % w e r e chemical raw 3092
C&EN
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1956
material suppliers. T h e show was viewed b y nearly 35,000. This gave C&EN the chance t o q u e r y chemical people on business conditions, not to find if they are growing, but how fast. • How's Business? ""Companies in plastics can no longer keep on making last year's products," says a spokesman for Naugatuck Chemical, a division of U. S. Rubber. "They can't afford to live on their old established reputations. T h e plastics field is changing very rapidly, so that manufacturers must keep continually abreast of the newest developments. Only in this w a y can they protect their positions in the field/' Continuing, the Naugatuck man explains that business is good. Especially active for his firm have been vinyls, sheets and laminates, for use on luggage, TV cabinets, a n d air conditioning units. B. F . Goodrich, another company active in vinyls, expects over-all plastics sales to increase 5 to 1 0 % this year. "It would h a v e b e e n better," comments a company m a n , "had i t not been for the decline in t h e anto industry." Goodyear also cites the auto drop, b u t explains, however, that company sales
are now running 1 0 % above last year. Vinyl and nylon prices are dropping, in turn, opening up t h e market for new uses. The Goodrich spokesman also points to a trend toward high softening point materials, as opposed to thermosetting products. As end products, they would b e useful in autos, electric motors, and other h i g h temperature applications. Company is also looking forward to Darlon, vinylidene chloride-vinyl acet a t e copolymer. It is in t h e pilot plant n o w and should be commercial in about a year or so. • Phenolic Sales Up. Sales have been up about 20 to 3 0 % over last year, says a spokesman for Borden's chemical division. General Electric expects phenols t o b e up about 20%. Both explain t h e recent increase in the price of phenol (1 cent a pound) will be passed along in final phenolic products. GE people also a d d that the company has expansion plans in the «mill, not only for phenolics, hut for polymers as well. B u t plant site or total investment involved h a s not been crystallized. The company sees the phenolic market improving about 5 0 % in the next six to eight years. They say that trend to automation in t h e phenolic manufacturing end has been a big help. Already, a spokesman adds, phenolics h a v e regained some business lost to thermoplastics. An S P I spokesman points out that phenolics jumped to 505 million pounds i n 1955, or 2 9 % over 1954 figures. He also adds that polystyrene resins hit
500 million in 1955, u p 3 0 % over the 1954 count. Dow expects sales to be up 1 5 % this year, with Styron still its best performer. • Expansions G a l o r e . Company after company has plans for expanding facilities—either by enlarging existing units or building new plants. Most of the expansion is coming in the poly ethylene field—the fastest growing plastic—which is just beginning t o climb to an estimated 800 million pounds by 1960. Outlets for P E are increasing as market development people cultivate them. Most popular n o w are packag ing, molded toys and housewares, and miles of light, easily coiled pipe—the latter finding its way into the chemical industry. U. S. Industrial Chemicals division of National Distillers, has plans to ex pand its Tuscola, 111., plant the first quarter of 1957. Company's facility can now make 40 million pounds of conventional polyethylene. U.S.I, is also interested in more linear (less branching) polyethylene. Pilot plant samples are available now and t h e prod uct should b e marketable in about a year. Still with polyethylene, Spencer Chemical says sales of its P E have in creased 3 0 0 % in the past year. Com pany only entered the field a year ago with a 45-million-pound-per-year plant at Orange, Tex. N e w plants for PE are in Koppers' future. A representative says two new facilities will be ready by late 1957. One will be a t Woodbridge, N . J., the other in Brea, Calif, ( t h e latter a joint adventure with Brea Chemical). • Phillips Halts Licensing. Phillips Petroleum expects to have commercial Marlex available by t h e end of this year. T h e company says it is not taking orders for its brand of poly ethylene, but does have a semiworks plant in operation for potential cus tomer interest. The Marlex plant at Houston will have a rated capacity of 110 million pounds per year. Price is not yet fixed but should b e around 50 cents a p o u n d . So far, Phillips has licensed W. R. Grace, Celanese, Carbide & Carbon, and M. W . Kellogg. And, this may well be the extent of it for the time being, according to a company spokesman. • Licenses Moving A h e a d . The Phillips-licensed companies are moving ahead on construction plans. Grace plans completion of its Baton Rouge plant by mid-1957." T h e P E , says a high company official, will form a broad base for future activity in plastics. From t h e basic process it hopes to make a wide variety of products with ethylene, propylene, and other olefins. Celanese hopes to have its Houston poly plant going by the spring of 1957.
Meanwhile, C a r b i d e & Carbon has re vealed it will build two plants for pro duction of low pressure poly—one at Institute, *W. Va., the other at Seadrift, Tex. Combined r a t e d annual capacity -will be 55 million pounds. Plants, which will use b o t h the Ziegler and Phillips processes, are scheduled for completion next spring. A Monsanto Chemical spokesman says its business in plastics has been very good. Company's new poly ethylene plant at Texas City has done much to increase its activity. Concerning th.e new development with polypropylene, (C&EN, June 18, page 2980), the Monsanto man says the company doesn't know enough about it yet. H e notes, however, that Montecatini is expanding its production of polyethylene while at the same time installing commercial facilities for the production of polypropylene. Chemore Co., general representative of Monte catini in the U. S . and Canada, would not comment on plans. Most observers feel, however, its another plastic, there's room for it, and it will grow as P E also grows. • Step on It. Sales of cellulose acetate molding materials, external sheets, films and sheering, "reached an all time high in 1955/* says a Celanese official. He thinks 1956 will be even better. Company has been backordered in some acetate products, par ticularly cast film. But, opening of a new plant a t Belvidere, N . J., has re lieved the situation. The Celanese m a n also points out a new volume market for cellulosics ap pears to be in women's shoe heels. Total volume could reach 10 million pounds annually. Already, some $100,000 has been invested in molding fa cilities by t h e industry. • Mylar M o v i n g Well. Du Pont figures Mylar (glycol terephthalate) sales to be several hundred per cent over 1955, i n 1956. Applications have steadily increased since introduction in 1954—magnetic tapes, metallic yarns, appliances, and electrical insulating materials. Company's Circleville, Ohio, plant is now making 10 to 15 million pounds per year. D u P o n t is prepared to ex pand facilities w h e n and if business warrants it. 3Mo specific plans for licensing are in the mill. Price has dropped about 2,6% since 1954. One mill thickness material costs $3 to $3.50 then, now is about $2.25. Despite auto decline this year, acrylic molding p o w d e r sales have done well. Acrylic sHeet business is ahead of last year, explains a Rohm & Haas representative. H e says company plant in Houston will b e expanded to make more methanol and ammonia for use in acrylic manufacture.
Expansion of Plexiglas molding powder use, adds the company man, has resulted in three price reductions in 18 months. Cost is now down to 55 cents per pound from 70 cents. • Target: Building Trades. The plastics industry today is placing in creasing stress on applications in t h e building trades, says a spokesman for Barrett division of Allied Chemical & Dye. H e adds, "this will come slowly; practices in building trades d o not change rapidly." An interesting de velopment is the new panels which use polyester-glass fiber sheet on the two outside surfaces and ρolyurethane foam between the sheets. T h e foam is a rigid, strong insulating material. Firestone people are also watching the building trades. They feel best prospects are in the · industrial rather than the home field now. One reason may be the need for information on long term weathering and creeping tendencies. Until more engineering data are available, the use of plastics will proceed slowly in' home building. "Another trend," adds a Firestone representative, "is a growing aware ness today of plastisol resins/' They are now catching on, and one reason may be a downward trend in t h e price of vinyls. T h e price has dropped from about 4 1 cents a pound to 30 cents. • W r a p Up. Urea and melamine are still the workhorses of the industry, according to SPI. They are expected to account for some 540 million pounds of plastics b y 1960. Epoxies are also moving- well and should triple their position by 1960 with production ex ceeding 82 miUion pounds. Continuing, the SPI spokesman adds that nylon molding compounds are do ing well, particularly in the auto in dustry. Production should hit 45 mil lion pounds in three or four years. Silicones and fluorocarbons also show great promise. Increases can b e noted in other prod ucts too. Urethanes and vinyl foams are moving well. Nopco Chemical ex pects to complete a foam plant in North Arlington, N. J., this year. Sales have been 100% over last year. "The fine is beginning to m o v e / ' adds a com pany salesman. From end to end of product lines, it is hard to find a plastic not prospering. Durez Plastics, division of Hooker Elec trochemical, says its polyesters are moving well. Company is also en thusiastic about Hetron, claimed the first fire resistant polyester. I n 1954, 27 million pounds of poly esters were used according to SPI. A year later t h e figure has jumped to 49 million pounds, an 8 0 % increase. By next year it may jump another 5 0 % . • J U N E 2 5, 1956 C&EN
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