Polyethylene Producers Hike Foreign Prices US I executive cites better balance between supply and demand
SPACE SAVER. Signal's new crude unit occupies less than two acres. The unit it replaces sprawled over 16 acres. New unit is part of modernization started in 1960
Signal Adds New Crude Unit Combines crude topping, vacuum distillation, and viscosity breaking in 72,000 barrel-per-day unit As 1961 closed, Signal Oil and Gas put on stream a new $5 million crude processing unit at its Houston, Tex., refinery. The new unit has a capacity of 72,000 barrels per day. The new unit is a part of a modernization program that has been going on at Signal's Houston refinery since early 1960. Signal began the program soon after it merged with Eastern States Petroleum & Chemical by an exchange of stock in September 1959. Other units added to the refinery include a catalytic cracking unit and a hydrodealkylation unit. The newest unit handles crude topping, vacuum distillation, viscosity breaking, and other processing steps. In addition to equipment for these operations, it has a stabilizer column, a debutanizer column, a steam plant, a closed cooling-water system with its own water well, and other auxiliaries. Working with Signal engineers, Brown & Root designed and built the crude unit. Until the new crude unit went on stream, Signal's Houston refinery consisted of two plants. Now that it has
consolidated into the new unit several operations formerly performed in separate facilities, Signal has closed the older of the two plants, the first units of which were built soon after World War I. The new crude unit occupies just under two acres; the old facilities covered more than 16 acres. Signal estimates that the new combination unit reduces by about 85% the total number of pieces of process and storage equipment that were required to operate the old plant. The unit handles all the crude fed to Signal's Houston refinery. Its topping section produces gasoline, naphthas, kerosine, heating oil, a heavy gas oil, and topped crude oil. The topped crude goes to the vacuum section, where more gas oil is produced. About 12 to 15% of the crude fed to the unit is eventually converted to aromatic chemicals or aromatic and aliphatic solvents, Signal engineers say. The remainder of the crude goes into a full line of refinery products that are sold along the Gulf Coast and in the South Atlantic states.
The overseas price war in polyethylene may be about over, at least for the time being. Several U.S. producers—Union Carbide, Tennessee Eastman, Du Pont, and U.S. Industrial Chemicals—have raised the price of several types of conventional polyethylene resins from 10 to about 20% in a number of countries in Europe, South America, and other parts of the world. Dow Chemical says it intends to go along with the price increases, but gives no further details. Spencer Chemical hasn't issued a price schedule yet, but a Spencer executive says, "The recent price increases are definitely necessary." Monsanto finds the move "encouraging," but at press time hadn't followed suit. The action, which is on a countryby-country basis, comes in the face of sagging profits in the export market and possible antidumping legislation in several European countries, including West Germany, the Netherlands, and Great Britain (C&EN, Nov. 13, 1961, page 3 4 ) . Carbide kicked off the round of increases several weeks ago by hiking the price of film-grade polyethylene about 10% in West Germany. It then boosted prices a like amount in Scandinavia, Spain, France, and the Benelux countries and 10 to 12% in South America. The company has also extended the hike to other types of resins, including molding, extrusion, pipe, and coating grades. Tennessee Eastman raised prices on certain grades of low-density material in Germany and Scandinavia but not, so far, in the Benelux countries. Du Pont moved its prices up an average of 10% on several resins exported to such areas as West Germany, Belgium, Scandinavia, Israel, and most of Latin America. The company says it acted in line with price increases made by foreign producers. Overseas prices, it says, had fallen below cost of manufacturing and technical services. USI has so far posted higher prices in 16 countries in Europe, the Far East, and Latin America. USI's increase ranges from 1 to 4 cents a pound but generally is about 3 cents on the previous price of 14 cents. JAN.
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Overcapacity Exaggerated. According to Dr. Robert E. Hulse, executive v.p. of National Distillers and general manager of its USI division, the price rise seems to reflect, at least partially, a better balance between supply and demand. Dr. Hulse says: "Sales of U.S. produced high-pressure polyethylene have strengthened greatly during the last few months. Overcapacity that existed in the industry has been greatly reduced and all indications 'point to a tight supply situation, particularly for premium resins." Dr. Hulse feels that overcapacity has been exaggerated. Productivity of a high-pressure polyethylene plant falls off rapidly with increasing resin density, he says. For example, a plant rated at 100 million pounds per year of 0.915 density polyethylene can produce only about 75 million pounds of 0.925 density material. Since demand is shifting to higher density product (0.925 to 0.930 on the average), actual capacity may be 2 5 % below original rated capacity, he adds. The USI executive figures that actual U.S. capacity-is about 1.5 billion pounds per year instead of the 1.8 billion that's been quoted (C&EN, May 29, 1961, page 8 1 ) . And he estimates that the year-end rate of use for 1961 was 1.375 billion pounds. For the future, Dr. Hulse foresees "periodic shortages through a good part of 1962 followed by an adequate supply situation until at -least 1967."
Quaker Oats Introduces Levulinic Ester Change in emphasis comes with Crown Zellerbach's entry into levulinic acid On top of last week's move by Crown Zellerbach into levulinic acid, levulinic producer Quaker Oats says that it has changed its product emphasis from the acid to butyl levulinate ester and is making both products at Omaha, Neb. (C&EN, Jan. 1, page 7 ) . Crown Zellerbach's move came at the same time that S. C. Johnson & Son announced a commercial diphenolic acid plant. CZ says Johnson's DPA plant will be the chief outlet for its levulinic acid. Quaker Oats had been supplying Johnson with levulinic acid for its 250,000 poundper-year pilot diphenolic unit for two years. Johnson would not comment on 30
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its contracted supply situation. However, announced capacities—Johnson's 10 million pound-per-year diphenolic plant and Crown Zellerbach's 5 million pound-per-year levulinic p l a n t make it appear that Crown Zellerbach will have ample capacity to fill Johnson's needs. Quaker Oats' move to the ester seems to stem primarily from the belief that its price will allow it to capture some of the acid's present uses and move the ester into areas where the acid is priced too high to find a market. One big intangible is the price at which Crown Zellerbach will sell acid from its new plant. CZ hasn't revealed the price as yet. Quaker Oats says that butyl levulinate is easier to produce than the acid. Either small or large volumes can be produced economically. Present price is 40 cents per pound in 55-gallon drums, compared with levulinic acid's $1.00. Thus, the levulinic portion is available from the ester at about 60 cents per pound. Although levulinic acid has a number of small-volume uses in synthetic processes, its biggest use, thus far, has been for Johnson's diphenolic acid. The 10 million pound-per-year plant should continue this pattern. Quaker Oats says diphenolic acid has been made from the levulinic ester in small laboratory tests. The company has explored some other uses. These include manufacture of calcium levulinate, a promising source of therapeutic calcium for animals, and formation of plasticizers through ester interchange reactions with long-chain hydrocarbons. Another point QO raises is the acid's tendency to form lactones. These, along with water, make up the principal impurities in commercial acid. Heating it can form more lactones. The principal one is 3-pentanoic-y-lactone. With some reactants, these lactones can form colored compounds. And they can interfere with some reactions. Physical properties make the ester easier to handle for many uses, QO believes. It's a liquid, melts at —75° C , while the acid melts at 33° to 35° C Another strong point, the company says, is the cost of shipping and storing the acid. It requires either lined drums or drums made of special metals, because it's corrosive. The ester, however, can be shipped in ordinary drums or with an inexpensive liner, if iron contamination is a factor.
BRIEFS Von Kohorn International Corp. has filed a countersuit against Du Pont and its Argentine affiliate, Ducilio, asking $30 million in triple damages. Earlier, Du Pont and Ducilio sued Von Kohorn, charging the White Plains, N.Y., firm with misappropriating trade secrets developed by Du Pont (C&EN, Dec. 11, 1961, page 38). Von Kohorn denies the Du Pont charges (C&EN, Dec. 18, 1961, page 3 0 ) . In the countersuit, Von Kohorn charges Du Pont, Ducilio, and others with a worldwide conspiracy to restrain the export sale of know-how for manmade fibers and film. Von Kohorn accuses Du Pont and Ducilio of violating the Sherman Antitrust Act by attempting to monopolize the export sale of knowhow and construction and operation of plants for manmade fibers and films. Von Kohorn also claims, among other things, that Du Pont and Ducilio have interfered with Von Kohorn's obtaining of import and export licenses from the Government, that they have tried to intimidate Du Pont employees to prevent them from seeking jobs with Von Kohorn, and that they brought suit in order to cause unjust and unreasonable publicity so as to destroy Von Kohorn's business.
Air Products has acquired two Dallas, Tex., companies-Hill Equipment and Supply Co. and Hill Industrial Gas Co. Hill Equipment markets gases and welding equipment; Hill Gas produces and wholesales oxygen, hydrogen, acetylene, and other industrial gases.
Cities Service and Columbian Carbon stockholders have okayed plans to merge the two firms (C&EN, Sept. 4, 1961, page 2 8 ) . The merger is scheduled to be completed on Jan. 31. Under the plan, Cities Service will issue not more than 1,107,100 shares of no-par, convertible preferred stock. Columbian Carbon shareholders will get 0.67 share of the new stock for each Columbian share.
Parke-Davis says it has broken off merger talks with Smith-Douglass Co., Norfolk, Va., producer of fertilizers, after Smith-Douglass decided it did not want to go along with the proposed deal.
NEW FACILITIES Hercules Powder will build a monosodium glutamate plant, based on a new fermentation process, adjacent to its existing MSG facilities at Harbor Beach, Mich. The new plant will have a capacity of more than 5 million pounds a year. Hercules says its process uses a new microorganism isolated by its own research. Design information for the plant was developed for Hercules by Distillers Co. of Great Britain. Wheat starch produced at Harbor Beach will serve as raw material.
Pennsalt Chemicals is building five new buildings at its King of Prussia, Pa., research center. The first laboratory (a technical service lab) of the $8 million, six-building complex was completed last March. The new buildings include an engineering lab, a high pressure lab, a central utilities building, a chemical storage building, and a research and development lab. The R&D lab will contain a $250,000 fallout shelter.
Merck Sharp & Dohme division of Merck will build a new pharmaceutical production plant at West Point, Pa. Pharmaceutical production and related operations will be transferred from their present location in Philadelphia when the new plant is completed in the summer of 1963. The move will consolidate all of Merck Sharp & Dohme's major operations at West Point, where MSD now has its headquarters, biological production operations, and other facilities.
National Starch and Chemical has acquired a plant formerly owned by Rohr Aircraft Corp. in Los Angeles, Calif. The plant will be remodeled for the manufacture of adhesives by this spring. It also will be used to distribute starches and resins to southern California markets.
Glidden Co. plans to build a $250,000 addition to its inorganic research and development center in Baltimore, M'd. A major part of the money will be spent for equipment. The twostory addition should be completed this spring.
Georgia-Pacific will put up a forest products research center near Portland, Ore. To be substantially larger than the company's present lab in the area, it will serve as central headquarters for all the company's research and will allow G-P to expand research on wood products, chemicals from wood, and related fields.
Aldrich Chemical Co. is expanding its plant at Milwaukee, adding 65,000 square feet to facilities now housing labs, offices, manufacturing, and warehousing. The extension is to be ready for occupancy in the spring. Aldrich makes rare organic research chemicals.
Stauffer Chemical has driven haulage and service shafts into the main body of its trona deposit near Green River, Wyo. The deposit of high grade natural sodium sesquicarbonate is at a depth of less than 900 feet. Stauffer's engineers say that the main bed of the deposit averages better than 10 feet thick. The project, which includes a trona refinery, should be in operation by mid-1962. Stauffer started developing its Green River project in October 1960 (C&EN, Nov. 7, 1960, page 38).
Tidewater Oil and Air Products have awarded the construction contract for their new oxo alcohols plant to Badger Mfg. Co. The plant, which will have an initial capacity of 30 million pounds per year, will be built at Tidewater's Delaware City, Del., refinery (C&EN, May 1, 1961, page 17). The plant will make octyl, decyl, and tridecyl alcohols. It should go on stream by next July.
FINANCE Guardian Chemical is calling all of its 6% convertible debentures outstanding. The redemption, coupled with the recent retirement of the company's preferred stock, retires all securities senior to Guardian's common stock. The company says it "is clearing the decks for the purpose of establishing a dividend policy next year."
Pennsalt has declared a year end extra dividend, payable Dec. 25, of 15 cents a share, 5 cents more than last year's
extra. The payment brings the company's total dividend for 1961 to 75 cents a share.
Spencer Chemical is arranging to borrow $35 million at 4 7 / 8 % interest from an insurance company. Proceeds from the loan will retire all current long-term debt and supply about $14 million of new capital, much of which will be used for expansion projects, the company says.
U.S. Rubber Reclaiming has deferred action on its regular 12 1 / 2 -cent quarterly dividend due Jan. 2. The company's board says it wants to conserve cash during a period of reduced earnings because of future capital requirements, including money needed to exploit the company's Reclaimator process overseas and to build a nylon recovery pilot plant.
Hercules Powder stockholders will be asked to approve a two-for-one split of the company's common stock at their annual meeting next March.
Parke-Davis has declared a year-end extra cash dividend of 15 cents a share, to be paid with its next regular 25-cent quarterly dividend on Jan. 31. Last January, the company paid stockholders a 40-cent extra.
U.S. Vitamin and Pharmaceutical will increase its quarterly dividend by 2 1 / 2 cents to 1 7 1 / 2 cents a share with the payment due Feb. 15.
Mead Johnson will ask stockholders to approve three-for-one splits of its common and preferred stock at the company's annual meeting in April. If the split of the common is approved, the company's board plans to set the annual dividend rate on the new shares at 68 cents a share, equivalent to $2.04 on the present stock; current annual rate is $1.80 a share.
Texas Gulf Sulphur expects this year's earnings to be slightly less than the $1.27 a share it earned in 1960, but looks for some improvement next year. "In 1962 we expect to sell a little more sulfur, and we assume that the price JAN.
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A SKILLED HAND IN CHEMISTRY... AT WORK FOR YOU
QUALITY means better performance To a great many industries, the name Metasap has meant a particularly high standard of quality for over 40 years. During that time the reliability of Metasap stabilizers, thickeners and lubricants, as well as agents for suspension and flatting, has been amply demonstrated. Listed below are some of the Metasap products. Write for our metallic soap booklet which covers the complete line .. . and feel free to consult us on new applications and developmental problems.
Aluminum Palmitate Aluminum Stearate (mono) Aluminum Stearate (Di) Aluminum Stearate (Tri) Aluminum Hydroxy Stearate Barium Stearate Calcium Stearate Lead Stearate
will average out to the same levels as this year," TGS president Claude O. Stephens told the Los Angeles Society of Financial Analysts. And by 1964 Mr. Stephens expects the company's potash project at Moab, Utah, to be contributing about $5 million a year to profits after taxes. The project should be in production in about a year.
tion plant in 1962 at Laverton, Victoria, where it will make Aureomycin, chlortetracycline, Achromycin, tetracycline, and Declomycin dimethylchlortetracycline. The plant will also formulate specialty drugs. Cyanamid's surgical suture plant in Hurstville will continue to operate through Cyanamid's affiliate, Cyanamid Australia Pty., Ltd.
INTERNATIONAL
Synthane Corp., Oaks, Pa., has licensed MAS, a subsidiary of Italy's Fratelli Marchi, to make and sell Synthane products in Europe, the Middle East, and North Africa. MAS has started to manufacture several grades of Synthane laminated plastics for electronics and electrical uses at a new $600,000 plant at Pistoia, Italy.
Du Pont's Swedish subsidiary, Du Pont de Nemours Nordiska, A.B., is building a paint plant at Marsta, Sweden. The plant will make paint, enamel, lacquers, varnishes, and thinners for automotive and household uses. Output will be sold in the Scandinavian countries. Production should start in 1963. This will be Du Pont's second paint plant in Europe. Its first one, at Malines, Belgium, began operation in 1959.
Goodyear International Corp. will build a $6 million synthetic rubber plant near LeHavre, France. The plant will make Chemigum nitrile rubbers and latices and Pliolite styrenebutadiene rubbers, resins, and latices for markets in western Europe. Compagnie Francaise Goodyear, S.A., will own and operate the plant, which should start production early in 1963. The plant is Goodyear's first synthetic rubber plant outside the U.S.
Lithium Stearate
Productos Farmaceuticos de Venezuela, C.A. (Profar), is operating its $700,000 drug and cosmetic plant in Maracaibo, Venezuela. Profar is jointly owned by Schering Corp., and Venezuela's Commercial Belloso, C.A.
Gulf Oil Corp. is going to build a refinery at the Europoort, Rotterdam, the Netherlands. The refinery will process 30,000 barrels per stream day of crude oil. A large part of the refinery's output will be marketed by Gulf in Belgium and the Netherlands. Construction should start early next year. Gulf is now building a refinery at Stigsnaes, Denmark.
Lithium Hydroxy Stearate Magnesium Stearate Strontium Stearate Zinc Palmitate
Zinc Stearate
Metasap Division
NOPCO CHEMICAL COMPANY 6 0 Park Place, Newark, N.J.
Plants: Harrison, N.J. • Carlstadt, N.J. Richmond, Calif. • Cedartown, Ga. London, Canada • Mexico, D.F. Corbeil, France • Sydney, Australia Manufacturing Licensees Throughout the World
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Kawecki Chemical is setting up a joint venture in tantalum and niobium with the Dutch firm N.V. Billiton Maatschappij. Both partners will own equal shares of the new enterprise, N.V. Billiton Metaalindustrie, which will b e located at Arnheim, the Netherlands. Tantalum and niobium sheet and foil rolling mills and a tantalum anode plant are scheduled for completion in 1962, and other tantalum and niobium operations may be added later.
American Cyanamid and Drug Houses of Australia are forming a joint company to make and sell Lederle-brand pharmaceuticals. Total assets of the new company, called Cyanamid D.H.A. Pty., Ltd., will be $3 million. Cyanamid is to hold the major interest. The new company will build a fermenta-
WEEK'S PRICE CHANGES January 1, 1 9 6 2 Advances CURRENT PREVIOUS
Anethole, drums, lb.: $1.10 USP Tech. 1.00 Corn oil, crude, lb. 0.22
$1.00 0.90 0.217 2
Declines Ergot, imported, lb. Gum turpentine, So., gal. a-D-Methyl glucoside, c.l., lb. Oiticica oil, tanks, lb. Peanut oil, crude, lb. Tin salts, lb.: Potassium stannate Sodium stannate Stannous chloride, anhyd. Vinyl acetate, monomer, tanks, lb.
$1.65
$1.85
0.197 2
0.20
0.23 0.14 0.187a
0.26 0.147, 0.19
0.727 0.861
0.731 0.866
1.117
1.123
0.147 2
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