Universal Oil Products, Calumet & Hecla plan merger - C&EN Global

Nov 6, 2010 - Calumet & Hecla will become part of Universal Oil Products, if an agreement to merge is culminated by the two firms. The agreement calls...
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Nitrogen solutions, petroleum products pipelined together

Model 700 One half the cost company hopes will end the "sticky pen" problem—the perennial bane of recording instrument manufacturers. Prior to introduction of the 700 this week, the lowest priced IR spectrophotometers available from Perkin-Elmer were the $5550 Model 137B and the $6550 Model 237B. The highest priced-the Model 225-costs $27,500. The company does not plan to discontinue any of its present IR model line. The new spectrophotometer is a grating instrument, as are the 237B and the 225. The 137B is a prism instrument. Other things being equal, an instrument which uses a grating to diffract light into a spectrum costs more and performs with more refinement than an instrument which uses a prism. The 700 costs much less than comparable instruments primarily because its production takes less time and effort. A combination of simplified design, modern materials, and automated production machinery makes this possible. Operation of the 700 involves only two buttons—an on-off power button and a scan button—and a lever to apply the pen to the paper. Scan time is fixed at eight minutes—a happy medium between the fast (three minutes) and slow (12 minutes) scan times of the 137B, the company says. Spectra are recorded on the top sheet of tear-off pad, so the instrument need not be reloaded with paper for each spectrum. The spectra are linear in wave numbers, with an automatic scale change at 2000 cm.- 1 . Although the 700 is not described by Perkin-Elmer as portable, it weighs only 60 pounds, about half as much as other small models. Weight-savers in the 700 include a cast aluminum optical bench and a molded Fiberglas cover. 12 C&EN JAN. 1, 1968

Nitrogen fertilizer solutions can now be batched with refined petroleum products and transported compatibly for the first time in a common pipeline, according to Allied Chemical. The method, which involves a new buffering technique, will go into commercial operation next spring to meet Allied's fertilizer transportation requirements for the 1968 planting season and for future years. Allied, one of the nation's largest producers of fertilizers (ammonia, urea, nitrogen, and phosphate solutions), expects a substantial savings in transportation costs with the new method. It is also looking forward to increased distribution of its fertilizer materials in the upper midwestern states through the use of pipelines in that area. The technique is the result of joint research by Allied and Williams Brothers Co., Tulsa, Okla. It will be used through an extensive pipeline distribution system operated by Williams Brothers Pipe Line Co., a subsidiary of Williams Brothers. The key aspect of the method is the use of special buffering materials which ensure the specification purity of the solutions in multiple product shipment. A joint patent application covering the process has been filed, Allied says. Neither Allied nor Williams Brothers will therefore disclose details of the process or name the buffering materials. Development work was carried out at a pipeline test loop constructed by Williams Brothers at its West Tulsa pumping station. Test results were verified by a 25,000-barrel movement

of fertilizer solution through a pipeline from Nebraska City to Doniphan, Neb., a distance of 131 miles. At present, the subsidiary transports gasoline, fuel oil distillate, and liquefied petroleum gas from several originating points to delivery points in nine North Central states. The system consists basically of 6778 miles of 4-, 6-, 8-, 10-, and 12-inch pipeline, 62 pumping stations, 29 terminals, and 13 metering stations. Just how much of this system is to be used to transport liquid fertilizer solutions has not been revealed by either company. At the line terminals the fertilizer solutions will be recovered and carried via motor transport and rail tank cars to ultimate destinations. Williams Brothers has indicated that the pipeline system will be available to other fertilizer manufacturers as well as to Allied.

Universal Oil Products, Calumet & Hecla plan merger Calumet & Hecla will become part of Universal Oil Products, if an agreement to merge is culminated by the two firms. The agreement calls for Calumet & Hecla to continue as an autonomous unit following the merger, which is currently valued at about $120 million. The merger would further broaden the activities of UOP, already a widely diversified company, Currently the main activity of the Des Plaines, 111., company is in providing research, development, and engineering for the petroleum industries. The company is also active in catalysts, fragrances, and air pollution control. Through Calumet & Hecla's production of metal and

Williams Brothers' pipeline With special buffering materials

UQP chairman Venema Business studies

alloy tubing, UOP would also gain a position in nuclear energy, desalination, and thermal water pollution control. According to Maynard P. Venema, UOP chairman of the board and chief executive officer, and C. Chester Jung, Calumet & Hecla chairman and chief executive officer, the agreement is subject to certain business studies being conducted by both companies. It is also subject to approval by the boards of directors and the shareholders of both companies, appropriate legal agreements, and favorable tax rulings. The merger would become final with an exchange of stock, 0.6 share of UOP common for each share of Calumet & Hecla common. The proposed merger continues UOP's heavy acquisition activity, through which it's diversifying in several directions. Just this past year, for example, the company in February acquired a 25% interest in Abcor, Inc., a Cambridge, Mass., company specializing in development of separation and purification processes and techniques. In May, UOP acquired the assets of Pellar Laboratories, Inc., a Chicago formulator of spices and seasonings, meat flavors, and dehydrated sauces and gravies. In June, Bostrom Corp., Milwaukee manufacturer of truck and tractor seating, was added. In August, UOP purchased REF Dynamics Corp., Long Island, N.Y., a manufacturer of aircraft galleys and test equipment. And in November, still another acquisition gave UOP a majority interest in the French fragrance compounding firm, Société Antoine Chiris. Calumet & Hecla, headquartered in Evanston, 111., produces copper, copper alloy, aluminum, zirconium, and

titanium specialty tubing. Backed by its experience with zirconium tubing for nuclear generators, the company has supplied the fuel cladding for a substantial share of existing light-water nuclear reactors. Calumet & Hecla also mines and refines copper in upper Michigan and operates forest and timber holdings in Wisconsin and Northern Michigan for producing hardwood veneers. Through its Alamet division, the company is the only U.S. producer of magnesium metal other than Dow Chemical. In the first nine months of 1967, Calumet & Hecla had sales of $108.7 million and earnings of about $4.2 million. In the same period in 1966, sales were $123.6 million and earnings $5.3 million. According to the company, the lower sales and earnings in 1967 are due to reduced sales by the company's Canadian subsidiary along with losses in certain mining operations because of strikes and development expenses. UOP had gross income of $215.9 million in the first nine months of 1967 ($193.9 million in the same period of 1966). Net income for the first nine months was about $7.8 million ($7.3 million in 1966).

U.S. mineral output in 1967 worth $23.8 billion U.S. mineral output in 1967 set a new value record for the sixth successive year. Metals, nonmetals, and fuels produced domestically last year were worth $23.8 billion or $0.9 billion more than in 1966. Compared to a 1966 growth rate of 6.6%, the 1967 growth rate slowed abruptly to 3.8%. The Bureau of Mines says the slowdown can be largely attributed to strikes at copper, lead, and zinc mines. Total value of domestic metal output dropped to less than $2.3 billion, compared to $2.6 billion in 1966. Largely offsetting the loss, fuel production showed a value increase of $1.1 billion, resulting partly from the Middle East crisis. Output of nonmetallic minerals rose $13 million to $5.19 billion. In metals, strikes, a drop in worldwide demand, and increasing availability of foreign ores, concentrates, and metals caused domestic mines and processing industries to operate well below capacity in 1967. Copper, lead, and zinc led the decline. Mine production of copper fell to 65% of the 1966 level, with a value drop of more than 30%. Lead output dropped almost 11% in value and 4% in volume. Mine production of zinc fell by 9% in value and more than 5% in volume.

Iron ore and molybdenum production also fell. Reflecting labor problems, the value of iron ore output was off almost 5% and molybdenum output declined 13% in value. Gold and silver, often by-products at copper, lead, and zinc mines, also suffered from the strikes. The value of gold output dropped almost 18% to less than $52 million and silver production fell 13% to a value of $49 million. There were some bright spots in metal production. Aluminum, magnesium, uranium, and titanium production increased, with output of primary aluminum rising sharply to a new high of 3.26 million tons and the output of primary magnesium soaring 20% to its highest mark since 1965. Anticipating increased orders for nuclear power plants, uranium ore output (in terms of U 3 O s content) went up markedly for a total value of more than $162 million. Overall titanium consumption was only slightly higher than in 1966. Fuels fared much better than metals in 1967. Stimulated by the Middle East crisis, domestic crude oil production grew by 5.8%. The per-barrel price in 1967 was $2.92 or 4 cents more than in 1966. (For more on domestic crude, see page 24.) Natural gas production rose 6.7%, with output of natural gas liquids up more than 10% over the 1966 level. Production at bituminous coal and lignite mines rose 3%, but anthracite declined, dropping 7%. Dramatic gains in the prices of a few commodities, particularly sulfur and fluorspar, caused a fractional gain in nonmetallics even though production held steady or declined slightly. With the price of sulfur up substantially, Frasch sulfur production soared 33% in value although output remained about the same. Fluorspar production jumped 16%, but potash output dropped more than 10%.

Social science research to get more money, emphasis in 1968 In calendar year 1968, the increase in federal spending on social science research will exceed the increase in the physical sciences. This estimate is one of the significant predictions in the annual research and development spending forecast of the Columbus (Ohio) Laboratories of Battelle Memorial Institute. Battelle economists Ralph L·. Craig and Leonard L. Lederman expect total 1968 research and development expenditures in the U.S. to reach $26.5 billion. This is an increase of $700 million, or 3.3%, over estimated 1967 R&D spending. JAN. 1, 1968 C&EN 13