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thumbnail ~ k e t c h e ~ The Chemical Industry, Integration, and Mergers W. Conard Fernellus Kent State University Kent. OH 44240
To designate a specific technical material or property by a common everyday word is certain to cause confusion. To say that certain particles possess charm has a specific meaning to a physicist hut bewilders most people. The common meaning of determinution is quite different from the meaning when used hy an analyst. The word integrate also has multiple uses. Mathematicians speak of integration as a specific mathematical process, and chemists and physicists know about radioactive distintegration products. However, as used in the chemical industry, integration has no relation to the above nor to policies of hiring and advancement. It refers to a method used by a company to ensure the continuity of its operations. Traditionallv. the chemical industrv has been in an intermediate positi& between the suppli& of raw materials and the manufacturer of a finished product for use by aconsumer. There are disadvantages in occupying this intermediate position. Any interruption of operations at a plant supplyingraw
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Journal of Chemical Education
edited by MARYVIRGINIAORNA,0.S.u College of New Rochelle New Rochelle. NY 10801
materials interferes with the smooth operation of those plants utilizine the raw materials. Similarlv. ,. if a manufacturer of consumer products iinds an alternate intermediate or a sup~ l i e willine r or ahle toacce~ta lower rice. then thechemical Lompany &eviously suppiying the ianufacturer has lost a customer, and that loss can spell trouble. An obvious way, at least partially, to avoid such problems is for a chemical company to integrate its operations to include more of the steps in the process of converting raw materials into finished products. If a chemical company acquires a mine or an oil well, it is integrating backward; if it decides to use its own intermediates to manufacture finished products or consumer goods, it is integrating forward. A nonchemical company may integrate its operations by acquiring a chemical company. A producer of finished products engages in hackward integration in this acquisition while a petroleum producer engages in forward integration. Now do you understand at least partially why chemical companies are frequently involved in mergers?
Brief descriptions of phenomena, topics, facts, etc., which chemical ed~catorshave found to be of interest in their teaching, are presented in a "note type" format throughout the JOURNAL.
