The drop i n butyl consumption i s attributed to industry-wide conversion*, to tubeless tires. The major producer,. Esso Standard Oil, is believed, to b e en gaged in an all-out drive t o develop butyl tires for passenger automobiles, Reclaiin rubber consumption has also moved ahead strongly this year vt&L· a 2 9 # gain to 184,300 tons f o r the first seven months. • Tire Production. Passenger car First r o u n d o f synthetic p l a n t increase b e g i n n i n g t o tire production* established n e w allm a t e r i a l i z e u n d e r f r e e c o m p e t i t i o n a n d short s u p p l y time record in the month ofaJune with. 9,383,439 units. For the balf year, jtTL MAJOR EXPANSION in synthetic rub showed a less than normal seasonal production of tires exceeded 5 0 million, ber capacity, t h e first under conditions drop to 46,300 tons, while t h e seven- units, u p 2 6 % from the 40 m i l l i o n units of private ownership of synthetic rub month total reached 377,000 tons, shipped during the same period in In terms of passenger car tire ber producing facilities, will b e accom 10.3% ahead of last year's consumption. 1954. plished during the next two years. In The ratio of natural rubber consump shipments, the greatest g a i n w a s re creased capacity is made necessary by tion to total new rubber is now running alized in t h e ca-tegory of original equip ment, shipments of which reached the high level of rubber consumption around 42% versus 48% last year. sustained b y the boom in automobile Synthetic rubber consumption is 22,667,603 mots for an increase oE production and by some limitations in running an amazing 40% ahead of last 44%. This performance a g a i n serves the supply of natural rubber. The net year, and 52% ahead for the compara to emphasize tlie tremendous influence effect o f these developments has been tive months of July. T h e preliminary the automobile industry h a s on sup a steady rise in the price of natural July consumption as reported by t h e porting industries a s rubber, glass, rubber to 4 5 to 46 cents a pound, a sit Rubber Manufacturers Association w a s chemicals,, steel, and s o forth. • Capacity Expansion. I n the face uation which certainly stimulates t h e 63,400 tons a total which includes demand for synthetic rubber. GR-S, neoprene, butyl, and TV-types. of record consumption estirriated this • Record Consumption. Strong de The seven months' total of 503,900 tons year at 1,-450,000 tons of b o t h natural and synthetic rubbers, c o u p l e d vdthi mand for rubber is revealed in record breaks down as follows: strong consumption abroad a n d rising consumption statistics for June with % change natural rmbber prices, the TJ. S. syn a total of 137,000 long tons. Natural vs. '54 Tens thetic rubber industry has considerable rubber usage was reported at 56,000 417,601 +49% incentive to expand capacity. It has tons, with half-year consumption GR-S 4-27% 40,336 been five montlis since the industry has equalling 330,700 tons. For the month Neoprene —21% Butyl 1,002 been converted to private OAvnersLip, of July, natural rubber consumption N-types 4-55% 14,953
BUSINESS
Rubber Capacity to Expand
EMPLOYMENT (Chemicals)
CAEN CHARTS
THOUSAMDS OF WORKERS 850750·
PROCESS
C H EMI CALS & ALLIED PRODUCTS
650: INDUSTRIAL O R G A N I C
300-
INDUSTRIES
200lOO-
TRENDS
INDUSTRIAL I
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S Y N T H E T I C RUBBER CONSUMPTION ?e THOUSANDS OF LONG TONS
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SEPT.
1955
19, 1 9 5 5
RECLAIMED RUBBER
N A T U R A L RUBBER CONSUMPTIOH THOUSANDS OF LONG TONS
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coHSumrsoN THOUSANDS OF LUNG TOHS
. JUNE
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1955
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at which time most producers indicated ' a desire to expand. Copolymer Corp. then stated that the rubber industry would spend $200 to $300 million over the next few years for new plant con struction. Recently, Goodyear announced a two-stage plant expansion which will increase capacity of the Houston plant about 50% to more than 2 0 0 , 0 0 0 tons. The first stage, scheduled for comple tion early in 1957, will cost nearly $ 6 million and will provide 33,000 tons of capacity. Firestone is engaged in a 50% expansion of Lake Charles, La., capacity to 150,000 tons. Phillips Chemical has started construction of facilities designed to increase capacity of the Borger, Tex., plant b y 159$, with completion scheduled for September 1956. Expansion plans are certainly in process of formulation b y such com panies as U. S. Rubber, Goodrich-Gulf, Copolymer Corp., and others. Public statements from rubber com pany officials indicate that U. S. syn thetic capacity will be raised by at least 30% by 1960. Also, Goodyear has stated that raw rubber requirements in 1957 will approach statistical limits of existing rubber plantations and syn thetic rubber facilities. It is known that rubber industry executives have realized for some time the need for enlarged GR-S facilities. At 2 3 cents a pound, GR-S has a sub stantial price advantage over natural rubber which sells at almost twice the synthetic price. In the government plant disposal program, brochures on GR-S plants indicated a production cost of about 18 cents a pound, a cost based on a realistic transfer price for buta diene. With depreciation and some overhead costs in addition, there is little profit margin for operators. The expan sion of economic facilities in l o w cost areas, however, should have the effect of reducing unit cqsts still further. In view of the present high price for nat ural rubber, chances for initiation of a price increase in GR-S by a noncaptive producer would seem good. Certainly, it may be difficult to justify capital expenditures for new capacity at pres ent GR-S prices. Perhaps differentials in price may be established for newer and better grades of synthetic. The way was pointed in the statement from Goodrich-Gulf that their new "dupli cated natural rubber," presumably a polyisoprene, could be marketed at a price competitive with prices of crude rubber during 1955, apparently mean ing 45 cents a pound.
Unique Suspending Ability at a wide range of viscosity
KELCO
ALGIN
In a wide variety of applications Kelco Algins are proving their remarkable suspending ability. Suspension is effected at any chosen viscosity.
Product
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