Record tire sales forecast - C&EN Global Enterprise (ACS Publications)

Nov 6, 2010 - Earl B. Hathaway, president of Fire-stone Tire & Rubber Co., predicted that 1966 will be another record year for the rubber industry, wi...
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Pollution funds for industry The chemical industry has the opportunity and responsibility to put its special knowledge of the reactions and relationships among chemical compounds to work to solve pollution problems. This is one of the conclusions of the House Subcommittee on Science, Research, and Development in a report released last week on environmental pollution. The subcommittee, headed by Rep. Emilio Q. Daddario (D.-Conn.), has been investigating the adequacy of technology to handle pollution problems (C&EN, Aug. 22, page 11). The current need in pollution abatement is for new and improved chemical and chemical engineering techniques and processes, the committee says. The market for processes and equipment, although largely nonfederal, will be stimulated by government regulation. Thus, the chemical industry should take part in the federal research and development program on pollution control. This would have two benefits: It would help the Government speed up development of advanced abatement methods and it would give industry a more intimate knowledge of, and voice in, the evolving policies and the timetables for pollution abatement. To stimulate industry interest, the proprietary rights and patent provisions in federal R&D contracts may have to be altered, the committee says. One reason is that new pollution technology will be marketed to meet federally imposed standards. The committee thinks that some system can be worked out under which the Government could contract (perhaps on a cost-sharing basis) for the high-risk stage of R&D. If a successful abate-

ment technique resulted, the contractor could market it and repay the Government's share of the R&D as a royalty on sales. If the research failed to produce anything of commercial value, the contractor would at least have recovered some of his costs. The committee believes that industrial laboratories must become more deeply involved in pollution abatement. However, there are two barriers to getting greater industrial participation. First, the costs of not abating have not been made clear; second, standards, which would lead to competitive means of better pollution control, have not been set. The Federal Government must lay the ground rules, identify, and quantify guilty pollutants. Then industry can logically add abatement as a cost of doing business similar to the costs of industrial hygiene or plant safety. The chemical industry is sometimes unfairly accused as the principal source of pollution, the committee notes. This is because the major effect of environmental contaminants is through chemical reaction. But life itself is a chemical process and the contaminants arise from all of industry and from individual homes and autos, the committee philosophizes. From its hearings the committee concludes that the desired goals in environmental quality can only be reached by minimizing wastes at their sources. The concept of using the "natural assimilative capacity" of the environment is not yet feasible because it cannot be identified. Where contamination cannot be completely eliminated, precise knowledge of its effects must be obtained. "It is true that many streams and air masses can be considerably im-

Industry uses little federal money for pollution R & D Federal expenditures for pollution R&D, fiscal 1966a Air

Solids

Water R&D R&D intramural and demonand contract stration grants

Federal operations State and local agencies Universities Other nonprofits Profit organizations Other Totals Source:

$ 7,041 64

$5,604 318

4,974 1,224

22 C&EN OCT. 31, 1966

$ 87 1,984

797

607

164

13,910

5 6,091

House Subcommittee on Science, Research, and Development

» Thousands of dollars.

$1,385 5,993

35 8,210

183 2,254

proved without any argument because the greatest net benefit is not being realized. But after the first steps have been taken the next degree of improvement may not be so clear. Sooner or later, the attempt to manage the environment in an optimum manner suffers from a lack of hard facts," the committee says. To get the facts, the committee recommends a substantial increase in federal spending for research, development, and demonstration in projects related to environmental quality. The present level of spending (about $30 million a year) should be expanded about 10 times within the next five years.

Record tire sales forecast Earl B. Hathaway, president of Firestone Tire & Rubber Co., predicted that 1966 will be another record year for the rubber industry, with the boom continuing through 1967. Speaking at the National Tire Dealers and Retreaders Association convention in Chicago, Mr. Hathaway said that total tire shipments in 1967 will be more than 229 million units, better than 4 million ahead of 1966. What is giving Mr. Hathaway, and rubber industry executives in general, grounds for such optimism is the fouryear boom in the auto industry, which presently consumes over 60% of U.S. rubber production. Original equipment tire sales, being tied to new car production, are down so far this year—about 9% below the 1965 pace as of Sept. 1, according to statistics from the Rubber Manufacturers' Association. And although figures which reflect initial production of the 1967 models will probably show a gain, original equipment tire shipments for 1966 will probably be about 6 to 8% below 1965. But replacement tire sales, which run about twice the value of original equipment shipments, are just now reaping the benefit of recent record years in auto production. RMA figures peg replacement passenger tire shipments through Sept. 1 of this year at 68.7 million units, 8% above the comparable 1965 period. Shipments of original equipment and replacement tires for trucks and buses (about 13% of total tire shipments) are up 15% for the same period. These gains were enough to push this year's total automotive tire production 6.8% ahead of 1965, as of Sept. 1. Aside from the bright outlook for total automotive tire shipments, other, more subtle, forces are active in the tire market. For instance, as a result of the current interest in auto safety, auto makers are recommending larger

Earl B. Hathaway Grounds for optimism

size tires for their new models, a fact which will probably improve dollar sales for tire makers. (The fact that truck, bus, and replacement passenger auto tires, most of which use nylon cord, are outstripping original equipment sales means a decreasing share of the tire-cord market for rayon.) Yet to be determined is the impact of the premium-priced radial tire, now being test marketed by four major U.S. tire makers and being offered as options on some Ford Motor cars. The U.S. rubber industry does not yet have any sizable capacity for radiais. In fact, Ford has disclosed that it is adding Michelin Tire Co. of France to its list of radial tire suppliers.

Textile glass to double by 7 0 The U.S. market for textile glass fiber in 1970 will be more than double that in 1965, says William W. Boeschenstein, marketing vice president for Owens-Corning Fiberglas. U.S. mill consumption of textile glass fibers in 1965 totaled 268.5 million pounds and should reach 330 million this year. Mr. Boeschenstein predicts that consumption will reach 610 million pounds by 1970. Speaking before the textile section of the New York Board of Trade, Mr. Boeschenstein pointed to rubber reinforcements, commercial hard-use fabrics, and decorative fabrics as uses for textile glass fiber that could develop into major-volume markets within the next five years. Mr. Boeschenstein says that textile glass has an excellent chance of capturing a major share of the tire-cord market because its strength as a reinforcing material prolongs tire life. This is now being demonstrated, he says, in the first commercial glass-fiber-

reinforced tire, which Armstrong Rubber introduced earlier this year. Tire cord, at more than 400 million pounds a year, is the biggest single industrial user of all textile fibers. Mr. Boeschenstein says also that textile glass fiber is a good candidate for use in radial-ply tires because it gives tires higher resistance to wear and a more comfortable ride than some other fibers. Radial-ply tires are widely used in Europe and are now beginning to enter the U.S. tire market. Although textile glass has been a major factor in drapery fabrics for many years, it is still only on the threshold of the decorative fabric market, Mr. Boeschenstein believes. Recent developments in fiber quality, styling, and finishing may open broad new market possibilities. "Fiberglas Beta [Owens-Corning yarn made from fine-diameter filaments] gives glass-fiber fabrics the long-desired softness, pliability, and flexibility needed for other decorative fabric applications, such as bedspreads, tablecloths, slip covers, and upholstery," the OwensCorning Fiberglas v.p. adds. Another active area of development, according to Mr. Boeschenstein, is the use of Fiberglas Beta in blends and combinations with other man-made fibers. He says that such combinations could potentially give yarns with any desirable mix of strength, elongation, and recovery properties. A fabric combining Fiberglas Beta and modacrylic fiber, for instance, may be a good candidate for the 34 million square-yard-per-year canvas goods market, he says. The growth of textile glass fabrics has been increasing at a higher rate than man-made fiber fabrics as a whole, Mr. Boeschenstein points out. Production of man-mades increased 70% since 1960-from 2.3 billion to 3.9 billion linear yards in 1965. This compares with a 92% increase for textile glass fabrics—from 146 million linear yards in 1960 to 280.4 million linear yards in 1965.

equate supplies, and low selling prices caused TGS to halt mining in Mexico in 1960. TGS will be a minority stockholder in the new company with a 34% interest. As a result of the government being the majority stockholder, the new company will thus be "eligible" to seek rights to explore for sulfur, according to the announcement of plans for the new company. Such an ownership arrangement again confirms efforts by the Mexican government to foster control by Mexicans of the companies mining sulfur there. Limited and high-cost private capital is hindering moves of sulfur producers to shift majority ownership to Mexicans. The situation is similar for other companies owned by foreigners. As a result, the government is increasing its efforts to become a partner. Pan American Sulphur also is working to sell control of its principal operating subsidiary, Azufrera Panamericana, to Mexicans and the Mexican government. Under terms of the arrangement proposed early this month and later delayed (C&EN, Oct. 24, page 2 7 ) , the government would hold 4 3 % of Azufrera Panamericana, Mexican investors would hold 2 3 % , and PASCO 34%. PASCO would get cash and cash equivalents amounting to about $62 million after taxes. However, the cash would be only the working capital of Azufrera Panamericana—$12.3 million as of June 30, 1966. (The terms actually call for PASCO to get all the accumulated retained earnings of Azufrera Panamericana, not to exceed the net working capital. ) The other cash equivalents would be 7.25% obligations of Nacional Financiera, S.A., totaling $49.5 million. These would mature in five equal installments beginning in April 1968. In addition, PASCO will keep $6

TGS plans return to Mexico Hardly a day goes by without a new development relating to mining sulfur in Mexico (C&EN, Oct. 24, page 2 8 ) , with the latest move being Texas Gulf Sulphurs plans to form a company with the Mexican government to explore for sulfur in that country. TGS formerly mined sulfur in Mexico, working a concession in the Isthmus of Tehauntepec in Veracruz through a subsidiary, Compania Exploradora del Istmo. The sulfur was stockpiled near the mine site. High costs (compared to other mines), ad-

PASCO's Webb Additional permits OCT. 31, 1966 C&EN

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