growth drops off to 1% this year, and this rate continues through 1905, new plants coming into production could knock operating rates to as low as 70% by that time. This presupposes that all of the current U.S. pigment capacity will continue full operation through this period. In fact, much of this capacity is in old plants. It could become uneconomical before 1966. The sulfate process may not be basically as cheap to operate as the chloride process. New plants building, or scheduled, are all chloride plants. Ampot, in fact, first scheduled a sulfate plant, later switched to chloride. In addition, present sulfate-process producers are known to be conducting research on the chloride route. Markets. The growth items of the domestic titanium dioxide market seem to be printing papers (including papers that back all printed matter except newspapers), high-gloss boxes, and photographic paper. These end uses seem likely to continue to grow. Over the eight years from 1954 to 1962, they accounted for roughly one third as much tonnage increase as paint, according to estimates made by the Bureau of Mines and based on figures supplied by producers themselves. In fact, paper and the socalled minor end uses (floor coverings, rubber, coated fabrics and textiles, printing ink) have accounted for almost as much tonnage increase over the eight years as has paint—40,000 tons against 53,000 tons. Paper seems sure to continue this trend. Thus if producers can keep imports down during the next few years, and develop some other promising minor uses (such as roofing granules and concrete curing agents), they could hold plant operating rates at a fairly high level. This could keep prices from possible strong pressure in 1965. Yet one price is almost certain to break before year's end. Although rutile grade pigments sell at 27 cents per pound in 30-ton cars east of the Rockies, they are V 2 cent higher west of the Rockies. All titanium dioxide products and quantities in fact are 1 / 2 cent more expensive west of the Rockies. A representative of one paint company that buys for both eastern and western delivery sums up succinctly the feeling in the industry. Asked if he expected the differential to drop when Du Pont begins western production, he said "it will be abolished."
PVC Prices Are Steadying After a 10-year downward trend in prices, PVC resin makers are trying to hold prices stable Prices of polyvinyl chloride resins are firming up after a long downward trend since 1952. The main reason is that PVC producers have attained a better balance between supply and demand. This year sales in generalpurpose and copolymer resins will reach a record high, and capacity and output are coming more into balance. In fact, some resins, particularly profile extrusion resins for rigid applications, have been in tight supply. PVC makers indicate that demand for these resins usually slackens in June and July, but there appears to be no slowdown this year. These factors, plus slim profit margins in both homopolymer and copolymer PVC resins, prompted producers to follow Monsanto's lead in establishing a new list price of 15 cents a pound for general-purpose grade in May. List price for the material at the time was 16 cents, but customers were being offered prices as low as 12 to 13 cents. With total cost to produce the material estimated at 13 to 1 3 1 / 2 cents a pound, it's not surprising that some companies were reported to be only breaking even, if not actually losing money. The 15-cent price is expected to hold steady, although spot purchases are probably still being made at prices as low as 12 cents. However, customers are becoming less ready to accept these offers because they can be readily canceled and delivery is precarious. It is possible that a further price increase may be in store for general-purpose grade around September or October when business in the plastics industry normally picks up. Many producers feel that further increases are warranted because even at 15 cents profits are still too low, they say. Price activity is also occurring in PVC compounds, probably the result of the firming up of general-purpose grade PVC at 15 cents a pound. Last month Cary raised prices on 11 PVC compounds of both electrical and nonelectrical grades ranging from 5 to 10%. The new prices were effective July 26. Monsanto Chemical's plastics division followed last week with price in-
creases on nine PVC compounds effective Aug. 1. Monsanto's new prices range from 2 to 3 cents a pound more for six compounds used in building and communication wiring and jacketing; compounds for business machines and military wiring were raised from 7 to 8 cents a pound. Both Cary and Monsanto point out that the increases bring PVC compounds into balance with new levels of raw material costs. Copolymer Prices Steady. There have also been recent attempts to raise prices of special-grade copolymer resins used for phonographic records and flooring. These have not been successful. Producers also complain of slim profit margins in these materials, which cost an estimated 1 to l 1 / 2 cents more per pound to produce than general-purpose homopolymer. Presently, record-grade material sells for 1 6 1 / 2 cents a pound, and flooring grade at 1 5 1 / 2 cents. An attempt to raise the price of record-grade copolymer failed mainly because of difference in pricing of various grades with different acetate content. In May, B. F. Goodrich Chemical raised the price of record-grade copolymer containing 15% vinyl acetate from 1 6 x / 2 to 17 and 18 cents a pound. Other major producers, including Monsanto and Union Carbide, followed. However, Cary Chemical raised prices on record-grade copolymers ranging in acetate content from 1 1 % (16 to 17 cents a pound) to 15% (I6V2 to 18 cents). But many smaller producers didn't take any action at all. According to one source, the price increase came at a time when the record industry is experiencing a poor year, and many companies took advantage of the situation to enhance their position by selling at a lower price. Confusion prevailed and the price was rescinded to 1 6 1 / 2 cents a pound. However, sources indicate that another attempt to raise prices of record-grade copolymer will come before year's end/ The price increase of 1 cent a pound on flooring-grade copolymer resin initiated by Monsanto in May failed mainly because of price protection contracts. Under these contracts, a AUG.
5, 196 3 C & E N
27
WHY MESS WITH THIS? FISHER'S POLYPAC* MAKES
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producer guarantees a customer a certain price over a period of time. Another major factor was Cary Chemical, which did not follow Monsanto's lead, as did Union Carbide and Goodrich. Instead, Cary said it would raise prices on flooring grade to 161/2 cents on Sept. 1 to give the flooring industry sufficient lead time to assimilate and adjust to the price increase. As a result, the price was rescinded. Some producers say that Cary's action on flooring grade was a sensible move because there are many price protection contracts that expire about Oct. 1. However, other firms point out that unfortunately these contracts run at different time intervals, and price increases will continue to be difficult to effect. Thus, the trade speculates that Cary's scheduled price increase on Sept. 1 will not hold.
Devro Starts Collagen Sausage-Casing Plant
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C&EN
A U G . 5,
1963
The Devro division of Johnson & Johnson last week started to operate its pilot-production plant at Somerville, N.J., that will produce edible sausage casing from reconstituted collagen. The event is another step in J&J's effort to profit from its collagen knowhow by developing large-scale, nonsurgical uses -for the animal protein. The sausage casing made at Somerville contains only collagen, an unspecified plasticizer, and moisture. For the moment, Devro is making only the 21-mm.-diameter casing that is standard for the natural casing used on fresh pork sausage. The major competing material, the submucosa of sheep intestine, has almost all of the market today. More than 4 million pounds of fresh pork sausage have been stuffed in the Devro casing on a development basis. Devro has applied for "extensive" patent coverage of its process and product. Raw material is animal byproducts such as tendon and skin. This material is cleaned and comminuted and is then made into an aqueous-base dispersion. The dispersion is extruded in tubular form into a coagulating bath. It is then processed chemically to improve such physical properties as strength and elasticity. After drying, shirring, and further processing, it is packaged in hermetically sealed boxes that contain 1500 feet each of casing.
Nordic Countries Near Patent Agreement The Scandinavian countries—Denmark, Norway, and Sweden—and Finland may adopt similar patent laws that would be recognized and honored by each country by 1966. The result would be about the same as a common patent agreement. If the 1966 target date is met, these Nordic countries would probably beat the European Common Market in adopting a common patent policy. The drafting and checking of a preliminary report of the commissions that are studying the patent situation has been completed. The next step is to draw up a proposal for approval by the four governments. According to the plan, a patent application could be made in any patent office of the four member countries. If that country ratifies the application, the patent would be recognized in all four countries. The plan doesn't call for a central patent office.
The agreement would involve the granting of patents for inventions and processes in all technical and industrial fields. Patent applications wouldn't be restricted to members of the Nordic community but would be open to all countries. If, on examination, a patent application satisfies all the requirements of the convention, including that of novelty, it would be ratified and become operative for a period of 20 years from the date of filing the application. ECM Too. It is generally believed that countries belonging to ECM will adopt a common patent law, too (C&EN, Dec. 3, 1962, page 27). Discussions are slow and it doesn't seem likely now that agreement will be reached before 1966. The next meeting of the committees that are working on the proposal is set for the end of October in Brussels. In addition to ECM countries, Britain wants to participate in the preparation of ECM's patent convention and, eventually, to become a contracting member.
The proposal to set up a common patent agreement in the Nordic countries was first made in 1955. Each country then formed a commission of patent experts. The four commissions, known collectively as the Internordic Commissions, have been meeting two or three times each year since 1955. One of the commissions' biggest jobs was a close reassessment of the existing patent laws in each of the countries involved. Laws of the individual countries had to be adjusted to minimize differences. The preliminary draft of the revised patent laws has now been studied and agreed on by the commissions. Patent lawyers and industrialists have reviewed it during the past 18 months and it is now back in the hands of the commission members who will incorporate any changes, suggestions, or additions. The next step is a reformulation of the proposals. It is hoped that this draft will be printed and available for final review by the end of this year.
First-Half Sales Are Up But Profits Still Show No Strong Advance as More Chemical and Drug Companies File Reports For midyear financial data on other chemical and drug firms, see C&EN, July 29, page 25
First Half, 1963
CHEMICALS Allied Chemical Catalin Corp. De Soto Chemical Coatings Dow Chemical Eastman Kodak0 Essex Chemical National Distillers National Starch Olin Mathieson Pfaudler Permutit6 Pittsburgh Plate Glass Rayonier Southern Nitrogen Stein, Hall & Co. Texas Gulf Sulphur Vitro Corp. of America Witco Chemical
Net Sales (Millions)
Change from 1962
$490.5 8.3 39.1 470.2 478.9 6.0 378.2 36.1 385.1 26.3 371.7 72.3 18.2 37.5 31.5rf 25. T 60.2
+11.1% -10.9 +23.4 + 1.8 + 3.0 +23.6 - 4.3 + 1.0 + 4.9 + 8.3 +15.4 + 2.2 +51.2 + 9.0 + 3.1 + 4.6 + 7.0
Net Income (Millions)
Change from 1962
$22.4 0.1 2.2 42.4 58.6 0.2 10.2 2.3 19.1 0.9 20.1 6.2 1.6 0.7 4.8 0.4 2.1
+48.8% +241.1 +30.2 +16.7 - 4.0 +194.4 -12.3 + 4.7 + 8.6 - 8.5 - 4.2 +15.0 +18.0 + 6.0 -24.6 - 7.0 +16.0
2.3 3.0 5.0 8.6 16.5 13.8
-35.9 + 1.7 +78.0 +28.7 + 1.6 + 1.2
Second Quarter 1963
Earnings / Share Second First Quarter Quarter 1963 1962
$0.84 0.07 0.44 0.80 0.91 0.10 0.40 0.52 0.93 0.42 1.28 0.59 n.a. c 0.31 0.25 0.18 0.71
$0.64 0.07 0.20 0.63 0.61 0.11 0.34 0.49 0.55 0.40 0.61 0.44 n.a. c 0.29 0.23 0.18 0.52
$0.57 0.01 0.34 0.82 0.90 0.03 0.38 0.52 0.86 0.45 1.19 0.52 n.a. c 0.30 0.30 0.17 0.63
0.17 0.36 0.51 1.03 0.57 0.27
0.22 0.41 0.56 0.92 0.56 0.29
0.18 0.37 0.25 0.81 0.53 0.27
PHARMACEUTICALS Mead Johnson Norwich Pharmacal Rexall Drug & Chemical G. D. Searle Smith Kline & French Warner-Lambert
52.7rf 24.8 134.6 32.3 97.5 144.2
-24.7 + 3.5 + 0.9 +20.5 + 9.6 - 3.5
° For 24 weeks, ended June 16. b Shipments. c Per share earnings for the first six months of 1963 were $1.23 against $1.05 for the same period of 1962. Quarterly per share earnings aren't available. d Gross sales. « Gross revenues. >Sales and earnings for 1963 exclude those of Pro-phy-lac-tic Brush Co., which Warner-Lambert sold last December.
AUG.
5, 1963
C&EN
29
BRIEFS Atlas Chemical Industries sold its Aquaness department to Milwhite Mud Sales Co., Houston, Tex., for cash on July 3 1 . Aquaness makes and sells chemical specialties for the petroleum industry. Its principal plant is at Houston. Milwhite specializes in oil well drilling muds.
Sharp Laboratories, Inc., is now part of Beckman Instruments (C&EN, May 27, page 2 8 ) . Beckman has completed its acquisition of the La Jolla, Calif., nuclear instrumentation company for 24,000 shares of Beckman common stock. Beckman says the company will continue to operate at La Jolla, functioning primarily as a developmental laboratory. The unit will be headed by Dr. Rodman Sharp, who founded the company in 1960. Sharp's products include high-sensitivity radiation measuring instruments and carbon-dating laboratories.
Rohm & Haas has completed its acqui-
C&EN PROGRESS REPORT
osition of Warren-Teed Products, a Co^, lumbus, Ohio, drug company (C&EN, ks May 20, page 29). The move marks to Rohm & Haas' first major entry into ?d the drug business. Warren-Teed Qmakes ethical drugs including decon:s, stipants and digestive aids; analgesics, aantispasmodics and antifebrins; hemaes tinics; and sedatives. It also produces nsome veterinary products. The comnpany is being operated as the Warrenof Teed Pharmaceuticals subsidiary of Rohm & Haas.
Spencer Chemical's sales reached $111.2 million during the year ended June 30, 1963. That's an increase of about 5r/c over the previous year. Profits, however, dropped about 14rv to $5.6 million. For the quarter ended June 30, Spencer's net income was $2.6 million compared with $3.3 million for the same quarter in 1962. Spencer blames reductions in the price of plastic products for its drop in earnings. Spencer's president J. C. Denton says that price reductions in polyethylene averaged more than 12' c during the year,
of Phillips Petroleum divested itself of of 1,340,517 shares of common stock of Union Oil Co. of California on July 19. 9. Delhi-Taylor Oil Corp. is putting its The price was $75 a share. The profit fit U.S. oil and gas properties up for on the sale before income taxes was as sale. Bids for the properties will be $45,924,000. Net profit, after income le accepted on Sept. 16. The protaxes, was $33,440,000 or 98 cents aa posed sale is part of Delhi-Taylor's share. About three years ago, the le program to sell its assets piecemeal U.S. Justice Department filed an antiti(C&EN, Dec. 24, 1962, page 9 ) . Textrust suit against Phillips Petroleum, n, Star Oil & Gas has already bought alleging that its purchase of roughly ly Delhi-Taylor's Delhi Pipeline Corp. 15 Vc of Union Oil's outstanding comn(C&EN, April 1, page 34) and Hess mon stock violated Section 7 of the le Oil & Chemical has purchased its reClayton Act (C&EN, Dec. 26, 1960, 0, fining and marketing assets (C&EN, page 2 5 ) . Jan. 28, P a r t i , page 21).
CI EXPANSION IN THE CHEMICAL INDUSTRY
Here are companies making news last month, adding to the chemical pre process industries by PLANNING . . .. Company and Site American Cyanamid Co. Bound Brook, N.J.
Plant cr Unit
Polyacrylate elastomers Urethane elastomers
Bound Brook, N.J. Bethlehem Steel Co. Sparrows Point, Md.
Houdry Litol unit for benzene, toluene, and xylenes
Hooker Chemical Corp. Niagara Falls, N.Y. Niagara Falls, N.Y.
Anhydrous hydrochloric acid THPC fire retardant Fine chemicals
Niagara Falls, N.Y. Kaiser Aluminum & Chemical Corp. Gramercy, La.
Polyisocyanates
Pickands, Mather & Co. Manganese Chemicals Corp. Baltimore, Md. Quaker Oats Co. Memphis, Tenn.
Hydroquinone Tetrahydrofuran Continued on page 32
30
C & E N A U G . 5,
1963
Remarks Capacity of 3 million to 5 million pounds a year. Completion expected eariy next year To be completed early next year. Capacity between 3 million and 5 million pounds a year Houdry will design the unit; Badger will build it. Capacity: 22 million gallons a year. Completion: late this year Expansion of plant will nearly double company's present capacity Completion scheduled for the end of this year New unit's output to be used in making plastics and agricultural products To be completed late next year. Pona Engineering, Houston, Tex., is designing the plant. Products will be based on aniline. Cost: $4 million, Capacity: 2.5 million pounds a year. To be operating early next year Completion scheduled for January 1964
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Expansion in the Chemical Industry continued Sinclair Oil Corp. Sinclair Petrochemicals, Inc. Channelville, Tex. Standard Oil Co. (Ind.) Amoco Chemicals Corp. Joliet, III. Standard Oil Co. (N.J.) Humble Oil & Refining Co. Enjay Chemical division Baton Rouge, La.
Methyl ethyl ketone
Forty million pound-per-year plant to be completed early next year
Dimethyl terephthalate, terephthalic acid, Isophthalic acid, phthalic anhydride
Expanding and modernizing facilities to give a total capacity for the four products of 150 million pounds a year, double the present capacity. To be completed in a year and a half Five million pound-a-year unit will make neopentanoic, neoheptanoic, neodecanoic, and neotridecanoic acids by the Koch process. Completion of $1 million unit set for early next year
Neo acids
STARTING CONSTRUCTION . . . American Cyanamid Co. Wallingford, Conn.
Polyester, amino, and melamine resins
Chemetron Corp. National Cylinder Gas division Dallas, Tex. International Minerals & Chemical Corp. Bonnie, FJa.
Ultrapure hydrogen
Catalytic Construction has the construction contract. To be completed next spring Doubling capacity. To be completed in January
Granulated and coarse triple superphosphate and diammonium phosphate Butadiene
Capacity to be 250,000 tons a year. New unit will replace 10-year-old plant and increase capacity by 5 0 % Badger has construction contract for the 12 million pound-a-year unit
Bethlehem Steel Corp. Johnstown, Pa.
Tar distillates
Borden Co. Borden Chemical Co. Iliiopolis, III.
Polyvinyl chloride latexes
E. I. du Pont de Nemours & Co., Inc. Montague, Mich.
Acetylene
Eastman Kodak Co. Tennessee Eastman Co. division Kingsport, Tenn. FMC Corp. Lawrence, Kan. South Charleston, W.Va. H. B. Fuller Co. Greensboro, N.C.
Cellulose esters
Modernization. Plant can now process up to 50,000 gallons a day of coke oven tar from chemical-recovery ovens. Koppers Co. handled the construction New unit at existing plant has capacity for 12 million pounds a year. Monomer comes from company's plant at Geismar, La. Fifty million pound-a-year unit uses a modified electric arc process. Output is used to make neoprene Expanded capacity by 10 million pounds a year
Hysol Corp. El Monte, Calif. Monsanto Chemical Co. Nitro, W.Va.
Epoxy, silicone, and urethane compounds 2,4,5 - Trichlorophenoxyacetic acid
Pilot Chemical Co. Lockland, Ohio
Alkyl aryl sulfonates, sulfate nonionics, emulsifiers, aminemodified sulfonates, and hydrotropic solubilizers Aromatic, aliphatic, and isoparaffinic solvents and blends Alpha olefins
Tidewater Oil Co. Delaware City, Del.
STARTING PRODUCTION
Shell Oil Co. Wilmington, Calif. Standard Oil Co. of California California Chemical Co. Oronite division Richmond, Calif.
32
C & E N AUG. 5, 196 3
Sodium hexametaphosphate Chlorinated isocyanuric acids Industrial adhesives
Output is aimed at the textile, woodmaking, paper, and tobacco industries Replaces older unit and increases Monsanto's capacity for the herbicide by more than 5 0 % to an estimated 3 million pounds a year Cost: more than $1 million
Plant makes five grades of alpha olefins by paraffin cracking
NEW FACILITIES Smith Kline & French Laboratories plans to spend $4.2 million to build a new research building in Upper Merion Township, a suburb of Philadelphia. The two-story building will house SK&F's pathology and toxicology departments. Research on antibacterials and antivirals will also be carried out there. At present, part of SK&F's work in the fields of antivirals and antibacterials is done at Upper Merion and part at Philadelphia. The new building will probably be ready for occupancy early in 1965. Construction is expected to start next month.
Green Giant Co. is building a new laboratory at Le Sueur, Minn. The 7200 square-foot structure will house the company's process and chemical research department. Food technology and packaging will be the group's main areas of work. The new lab will be next to the company's agricultural research building, which was completed earlier this year.
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International Pipe & Ceramics Corp. plans to build a polyvinyl chloride pipe plant at Oklahoma City, Okla. The plant, slated to start production by year's end, will have an annual capacity of 5 million pounds of 1 / 2 inch to 12-inch diameter PVC pipe. International Pipe was formed last September by the merger of Lock Joint Pipe Co. with Gladding, McBean &Co.
Air Reduction Pacific Co., a division of Air Reduction Co., plans to build a 160 ton-per-day liquid oxygen, nitrogen, and argon plant in the Pacific Northwest. The plant will cost about $3.5 million. The company hasn't yet revealed the exact location of its proposed plant.
NT Research Institute, formerly Armour Research Foundation, has selected Sollitt Construction Co., Chicago, to build its new research building on the campus of Illinois Institute of Technology on Chicago's south side. The 20-story building, expected to cost $10 million, should be completed within two years. Construction is to start this month.
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AUG.
5, 1963
C&EN
33
