WORLD WIDE CHEMISTRY - C&EN Global Enterprise (ACS

Nov 5, 2010 - Considering the insignificant size of the plants in relation to the plants to which they would be joined and also considering the loss ...
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IG Farben Settlement Attacked By German Industrial Leader F R A N K F U R T . - T h e present IG Farbenindustrme split-up was attacked as unsatisfactory by W . A. Menne in an address given In ere a t the 75th anniversary jubilee of the Verband der Chemischen Industrie on Oct. 3 . Mr. Menne, president of Verband, said that it had b e e n expected that the smaller units "of the German chemical industry could be incorporated into larger units and tlaus reduce production costs. This has noit come about, he said, "because the Allies nave insisted on a division of IG into a score of plants." The result is that the IG successors are reduce*d to such a small size that with respect * o foreign companies they are as "David to Goliath/* Mr. Menne expressed a h o p e that "the Allies would not persist stubbornly in their earlier decision, which is obsolete." Considering the insignificant size of the plants in relation to the plants to which they vs/ould b e joined and also considering the loss to t h e Russians of the substantial I G plants i n central and eastern Germany, Mr. N4enne said that the prevention of undue· concentration cannot be accepted a s sufficient reason for the persistence exhibited by t h e Allies. Spesaking on the same program, Minister-President Zinn of the State of Hesse said fchat I G should have been cut into only -*hree units instead of several. He made it clear that he felt that influence o f foreign competitors had some effect on the decision. [Editor's Note: A U. S. State Department official in Washington stated that the «decision to break up the IG combine into -three major units and nine smaller ones -was reached in 1949 in conjunction with the Waiben. Dispersal Panel, a German agency. T h e German government confirmed this agreement in October 1950. I» July 1952 Chancellor Adenauer re«qucsfeed the Allied High Commission to reconsiider this agreement with respect to allowing o n e large chemical company to absorb one of the smaller ones. The commission b y letter dated S e p t 8, 1952, poinfeed o u t to the Chancellor that it felt that the original diversification pattern was sound and therefore opposed any attempt to upset the arrangement even on a small scale on the basis that such a move could lead to still further consolidations and eventually destroy the whole plan.]

The proposed draft of the law against restrictions in competition provides prohibitive sanctions instead of sanctions regulating abuse. In practice, he said, market agreements increase productivity by standardization and distribution of labor. Market agreements make possible rationalization of sales, protect the middle class economy, and secure employment b y preventing abuse of competition. Mr. Menne raised a warning voice against t h e proposed regulation of competition. H e also said that the German chemical industry favors the idea of a European steel-coal union but does not believe that such a scheme is practicable in chemicals as such unions tend to restrict the supply of goods by the participating nations in too violent, fast, and uneven a manner. Instead h e favors the establishment of private economic organizations, composed of the participating economic parties of Europe. Such economic collectives, based on free agreement, he said, had been customary the world over in the period between the t w o wars. T h e y are t h e ideal industrial institutions for overcoming national boundaries and for developing a joint market, he said.

Prof. Heisenberg said that materials and conditions for the construction of an atomic reactor exist in Germany although there are some doubts as to the quality of the domestic uranium supply. Mr. Menne welcomed a number of former IG leaders w h o were present. None of the accusations made against the former leaders at Nuernberg stood public scrutiny, he declared, and it is mandatory for its o w n self-respect that the entire chemical industry stand by these men who unwarrantedly served long sentences.

N e w O r e Belts Discovered in Serbia Large deposits of chrome ore and magnesite are reported to have been discovered in southwest Serbia. T h e deposits of chrome ore are estimated at about 500,000^ tons while the quantity of magnesite is not yet established. Yugoslavia's reserves not including the. newly found deposits are estimated at 1.5 million tons and her magnesite reserves at 7 million tons.

I G Farben Successor Prepares Development Plans

In anticipation of the release from Allied control due this month, Farbwerke Hoechst AG vormals Meister Lucius & Bruning, one of the three big successor companies to the IG Farben trust, has laid extensive plans for its future work. The company employs 14.400 workers in its own works—Farbwerke Hoechst ( 1 1 , 0 0 0 ) , Chemische Fabrik Griesheim (1400), Naphtol-Chemie Offenbach ( 1 0 0 0 ) , and Lech-Chemie Gersthofen (1000)—and another 7500 through affiliated compaNuclear Research Ban nies—Knapsack-Griesheim AG fur Stickstoffdunger und Autogentechnik ( 4 9 0 0 ) , Mr. Menne stated that insufficient funds Kunstseidefabrik Bobingen AG ( 1 9 0 0 ) , are being allotted to basic research and Behringwerke AG Marburg ( 5 0 0 ) , and development work- T h e per capita exFassholzfabrik Goldbach GmbH ( 2 0 0 ) . penditure for all research in Germany is The production range of the group inabout one twelfth that being spent in the cludes dyestuffs, textile and leather chemiUnited States, h e said. cals, tanning agents, anorganic chemicals, With respect to research in nuclear intermediates, acetic acid and compounds, chemistry, Mr. Menne said Germany solvents, plastics, synthetic resins, adalone is without such research. Because hesives, softeners, cleaning and refrigerathe use of radioactive isotopes is the basis tion agents, insecticides, fertilizers, and of modern chemistry, it is absolutely pharmaceuticals. necessary that considerable public funds b e appropriated for this purpose. T h e predominance of chemicals manufactures as distinct from basic chemicals In addition to funds for research, Mr. in the Hoechst group's production range Menne said, large sums are needed for was responsible for the fact that last year capital investment. Modifications in tax no less than 4 0 % of the total output (exlaws to allow adequate depreciation writecluding the affiliated companies ) were sold offs and retention of more of the profits abroad. In the first half of 1952 domestic are necessary to raise needed capital. The corporate income tax is now 70%. This*· sales were maintained at the 1951 level but exports fell off by fully one third» with lack of capital has held back production. the result that foreign customers are unMr. Menne said that between 1938 and likely to absorb much more than one 1952 chemical production in the U. S. rose quarter of the total output this year. Dye* 300%, in Great Britain» 240%, in Switzerstill account for 4 2 % of all exports, chemiland, 210%, and in Germany, only 105%. Chancellor Adenauer paid tribute to the cals for 30, pharmaceuticals for 17, and agricultural chemicals for 11%. Total sale* chemical industry and praised Werner in the home and foreign markets amounted Heisenberg's work in negotiations with the Mnrlcct Agreements Prohibited Allies over regulation of scientific research to DM 243.2 million in January-July 1952^ a decline b y over 10% compared with thl T i i e German Federal Republic, Mr. which had been effective in reaching a corresponding period of 1951. This h Menne said, is impeded in its participa- good compromise to allow Germany to resaid to be more favorable than the experi tion in t h e European coal-steel union by sume nuclear research on ratification of ence of other German manufacturers. prohibition against market agreements. the Bonn a g r e e m e n t

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Research work of t h e group is being concentrated on dyestuffs a n d intermedi­ ates, pharmaceuticals a n d sera, solvents, plastics, a n d waxes. Some attention is also b e i n g devoted t o refrigeration agem„, agricultural plant protection, synthetic fibers, and textile auxiliaries. T h e produc­ tion of antibiotics w a s recently extended by work on Omnacillin. I n t h e plastics field a n u m b e r of vinyl acetate derivatives have been included into t h e production range. Great hopes are being entertained for polytrifluorochloroethylene, marketed under t h e t r a d e n a m e of Hostaflon. T h e n u m b e r of scientific workers employed is 350, a n d 4 % of t h e sales proceeds w e r e spent o n research work last year. It would appear that t h e n e w organiza­ tional setup meets all essential needs. T h e factory at Offenbach, well known for its range of naphthol dyestuffs, will effectively supplement t h e dyestuffs production at Hoechst. L e c h - C h e m i e is expected to supply Hoechst with substantial quantities of chlorine for t h e ehlorination of methane. Great value is attached t o t h e camphor plant a t Gersthofen, o n e of t h e largest in t h e world, and t h e production there of synthetic waxes. T h e works a t Knapsack will shortly start t h e production of ele­ m e n t a r y phosphorus. Bobingen, finally, will supply increasing quantities of fully synthetic fibers.

An extensive research program has been set u p b y t h e Study Society for Norwegian I n d u s t r y to learn t h e most effective ways of p r e v e n t i n g rust, which annually costs N o r w a y about $14 million. T h e society will establish seven control stations in various parts of Norway, employing a fulltime staff of 26 scientists to test all sorts of rust preventives. Aboiil 2 0 0 standard-sized steel plates will b e set u p a t each control station. Equally exposed to wind, rain, and other climatic factors, all t h e steel plates will face south a t an angle of 4 5 ° . A variety of paints a n d other metal protectives will be applied a n d regularly tested by travel­ ing inspectors. After a year or more, the society hopes to b e able t o draw certain conclusions concerning t h e most effective ways of checking rust.

Japanese Titanium and Synthetics Industries Stimulated by Governmental A i d T h e Japanese government has committed itself to do everything possible to increase the production ot titanium in Japan, where the d e m a n d for titanium has rapid!}· grown among machinery manufacturers. T h e Ministry of International T r a d e ami In­ dustry of Japan is working on a three-year plan under which it will raise the nation's annual production total to 5000 tons. T h e ministry h a s also formulated ι five-year plan to promote t h e Japanese synthetic industry which is turning o u t at present \ inylon a n d amilan, reported to be "finer than gossamer and stronger than 3 0 , Ν Ο.

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