mca hears global business philosophy urged

6
INDUSTRY & BUSINESS MCA Hears Global Business Philosophy Urged Industrial leader urges U.S. businessmen to enlarge their views; declares that in long run high protective tariffs should not stand International economic thinking to- ward a worldwide theater of business and industrial operations is the pre- scription of H. E. Humphreys, Jr., for the future. Mr. Humphreys, board chairman of U.S. Rubber Co., told members of the Manufacturing Chem- ists' Association, at their annual meet- ing at White Sulphur Springs, W.Va., that sharing our system and working closely with businessmen in other countries might well lead to a free world economic community. Mr. Humphreys admitted that be- fore plans for such an approach could be discussed the matter of protective tariffs had to be dealt with. He said that if a company already has tariff protection, as his does, he would fight persistently to keep it. He said that the extremely low wages and other costs in countries manufacturing com- peting products are just too low to compete against. But if one takes a realistic, long-term view, Mr. Hum- phreys declares, one realizes that high protective tariffs have no permanent place in free-world markets. He would base our plans less and less on pro- tection and more and more on the self-reliance of higher productivity. Six Point Program. In proceeding toward a future in free-world trade, Mr. Humphreys has six suggestions. First, he said, we must stop looking upon competition between nations as a form of economic war and stop vis- ualizing the U.S. as pitted against the rest of the world in the battle to win markets and maintain economic leadership. We should be as ready to build a plant in India as in Indiana. Second, we must design our prod- ucts to meet the specific needs of peo- ple in various world areas. "The time has long since passed," says Mr. Hum- phreys, "when we can say in over- seas markets, 'If the product is good enough for the U.S., it is certainly good enough for you/ " His third suggestion is to realize that when we start to do business in another country we are actually be- coming a part of the economy of that country. He recommended taking part as corporate citizens of the coun- Howard S. Bunn MCA executive committee chairman try in which we are doing business. For his fourth point, Mr. Hum- phreys said we should realize that the greatest need overseas is not Amer- ican technical know-how but manage- ment and marketing know-how. Suggestion number five is that we strongly resist inflation at home. He noted that the Europeans are old hands at currency management, and says that unless we keep our guard up we might work ourselves into an inter- national money crisis while Europe might come through unscathed. Mr. Humphreys' sixth point is to encourage our Government to help narrow the dollar gap by urging the resurgent free nations abroad to share the burden of less fortunate ones. Closer Economic Bond. Mr. Hum- phreys believes that following such a plan will give us a good return on our investment. But that would not be the only result. More investment by Americans abroad will help increase standards of living overseas, and thereby tend to equalize labor rates the world over. Increased trade across borders would draw nations closer to- gether economically, which would be a step toward a unity which can be- come the greatest guarantee of peace. The key to all this, he said, is the course taken by businessmen of the free world during the next few years. McCurdy, Bunn Elected. R. C. Mc- Curdy, president of Shell Chemical, was elected MCA board chairman at the meeting. He succeeds John T. Connor, Merck president. As chair- man of the executive committee, MCA chose Howard S. Bunn, president of Union Carbide. Bunn succeeds David H. Dawson, Du Pont vice president. R. C. McCurdy Chairman of the MCA board H. E. Humphreys, Jr. Plants for India as well as Indiana 34 C&EN JUNE 2 0, 1960

Upload: vuongmien

Post on 11-Feb-2017

217 views

Category:

Documents


4 download

TRANSCRIPT

Page 1: MCA Hears Global Business Philosophy Urged

I N D U S T R Y & B U S I N E S S

MCA Hears Global Business Philosophy Urged Industrial leader urges U.S. businessmen to enlarge their views; declares that in long run high protective tariffs should not stand

International economic thinking to­ward a worldwide theater of business and industrial operations is the pre­scription of H. E. Humphreys, Jr., for the future. Mr. Humphreys, board chairman of U.S. Rubber Co., told members of the Manufacturing Chem­ists' Association, at their annual meet­ing at White Sulphur Springs, W.Va., that sharing our system and working closely with businessmen in other countries might well lead to a free world economic community.

Mr. Humphreys admitted that be­fore plans for such an approach could be discussed the matter of protective tariffs had to be dealt with. He said that if a company already has tariff protection, as his does, he would fight persistently to keep it. He said that the extremely low wages and other costs in countries manufacturing com­peting products are just too low to compete against. But if one takes a realistic, long-term view, Mr. Hum­phreys declares, one realizes that high protective tariffs have no permanent place in free-world markets. He would

base our plans less and less on pro­tection and more and more on the self-reliance of higher productivity.

Six Point Program. In proceeding toward a future in free-world trade, Mr. Humphreys has six suggestions. First, he said, we must stop looking upon competition between nations as a form of economic war and stop vis­ualizing the U.S. as pitted against the rest of the world in the battle to win markets and maintain economic leadership. We should be as ready to build a plant in India as in Indiana.

Second, we must design our prod­ucts to meet the specific needs of peo­ple in various world areas. "The time has long since passed," says Mr. Hum­phreys, "when we can say in over­seas markets, 'If the product is good enough for the U.S., it is certainly good enough for you/ "

His third suggestion is to realize that when we start to do business in another country we are actually be­coming a part of the economy of that country. He recommended taking part as corporate citizens of the coun-

Howard S. Bunn

MCA executive committee chairman

try in which we are doing business. For his fourth point, Mr. Hum­

phreys said we should realize that the greatest need overseas is not Amer­ican technical know-how but manage­ment and marketing know-how.

Suggestion number five is that we strongly resist inflation at home. He noted that the Europeans are old hands at currency management, and says that unless we keep our guard up we might work ourselves into an inter­national money crisis while Europe might come through unscathed.

Mr. Humphreys' sixth point is to encourage our Government to help narrow the dollar gap by urging the resurgent free nations abroad to share the burden of less fortunate ones.

Closer Economic Bond. Mr. Hum­phreys believes that following such a plan will give us a good return on our investment. But that would not be the only result. More investment by Americans abroad will help increase standards of living overseas, and thereby tend to equalize labor rates the world over. Increased trade across borders would draw nations closer to­gether economically, which would be a step toward a unity which can be­come the greatest guarantee of peace. The key to all this, he said, is the course taken by businessmen of the free world during the next few years.

McCurdy, Bunn Elected. R. C. Mc-Curdy, president of Shell Chemical, was elected MCA board chairman at the meeting. He succeeds John T. Connor, Merck president. As chair­man of the executive committee, MCA chose Howard S. Bunn, president of Union Carbide. Bunn succeeds David H. Dawson, Du Pont vice president.

R. C. McCurdy

Chairman of the MCA board

H. E. Humphreys, Jr.

Plants for India as well as Indiana

34 C & E N J U N E 2 0, 1960

Page 2: MCA Hears Global Business Philosophy Urged

REACTOR SIMULATOR. Vickers-Armstrongs, Ltd., shows off its Mk. 2 reactor simulator, which can be used to train operators and to stage reactor experimental programs. The setup includes control rods for a nuclear reactor on the right above. Based on analog computer principles, with voltage varying as neutron flux varies in a reactor, the equipment continuously solves the equations relating neutron flux, reactivity, and time. It has provision for connecting a reactor core model into the power circuit and for study of automatic control systems and xenon reactor poisoning effects

British Stage Gala Trade Show

Items displayed range from tourist attractions to particle accelerators and plant models

The giant British Exhibition now en­tering its second week at New York's Coliseum displays a cross section of British economy and culture crammed into four floors of the huge hall. Billed as the largest show of its kind ever staged outside of the British Isles, it runs through June 26.

The chemical end is only a small segment of the over-all show, but it is broad and impressive. Items range from heavy equipment and plumbing to linear particle accelerators, from nu­clear reactor simulators to plant models, and from electron microscopes to fork-lift trucks.

"Although the main sponsors of this exposition are the Dollar Export Coun­cil, the Federation of British Indus­tries, and the British Overseas Fairs Limited, it is not simply a trade or in­dustrial fair," Prince Philip, Duke of Edinburgh, told visitors at the opening ceremonies. True, he concedes, its main purpose is to foster Anglo-Amer­

ican trade—preferably from Britain to America. "But we also want you to get a balanced view of Britain, from our quaint customs, ceremonies, and traditions, right through to our scien­tific and technological achievements," he stresses. But later, Mr. William H. McFadzean, president of the Federa­tion of British Industries, placed fur­ther emphasis on trade. "Friendship we have in abundance, but not yet enough trade. . . . Last year our pur­chases of American goods averaged $20 per head of our population, whereas the American people only spent $6 per head on British goods."

The refreshing "change of pace" built into the show, coupled with its tasteful displays, had most visitors singing the exhibition's praises. Scien­tific and industrial booths were bal­anced throughout by the tourist at­tractions (traditions and customs). Fourth floor shops and pubs brought a touch of old England to New York.

Du Pont Expands as Nylon Market Zooms Nylon pioneer will more than double its yarn capacity at Richmond

To help supply the zooming tire cord market, Du Pont is boosting its nylon fiber capacity at Richmond, Va., 2.5 times. The plant, now operating at a rate of 40 million pounds per year of 840 denier nylon yarn, will have 100 million pounds of capacity by the fall of 1961. When the new Richmond expansion is complete, about 300 em­ployees will be needed to run the plant.

Tire cord production should jump about 20% above 1959 totals to reach 150 million pounds this year. This year's over-all use of nylon fiber is expected to climb to 375 million pounds.

The increase, says Du Pont, in­volves basic nylon 66 production (from adipic acid and hexamethylene diamine) as well as additional spin­ning facilities. A new manufacturing process will be used, according to Dr. Rollin F. Conway, manager of fiber operations. The new process is said to give a lower-cost operation and to yield "superior" nylon yarn.

Du Pont presently makes nylon tire cord yarn at two other locations: Chattanooga, Tenn., and Seaford, Del.

Industry estimates for 1965, of an­nual sales for nylon fiber, range from 550 million to 670 million pounds. This means that expansions will be nylon 66 capacity should exceed 160 coming thick and fast. Chemstrand's million pounds by 1962 (C&EN, May 23, page 25) .

Nylon 6 producers are rushing to supply the general need for nylon fibers. Allied Chemical, foreseeing a 200 million pound-per-year tire cord market by early 1962, is rushing to boost its capacity at Hopewell, Va., will raise it incrementally to about 80 million pounds (including fine-denier yarn) by this time next year. At that time, Dow's new nylon 6 plant should be on stream in Williamsburg, Va. North American Rayon has a pilot plant running, Industrial Rayon is now making staple, American Enka is ex­panding, and Firestone is expected to start producing soon.

J U N E 2 0, 1960 C & E N 35

Page 3: MCA Hears Global Business Philosophy Urged

Science Pavilion Unveiled for Century 21 Exposition A courtyard below arching concrete towers will join a complex of five structures to make up the $3.5 million U.S. Science Pavil­ion, which will be built at the 1962 Century 21 Exposition in Seattle, Wash. The building will house the science exhibit of the U.S. Government, which has a $9 million backing, appropriated by

Congress. Architects for the pavilion are Minoru Yamasaki of Detroit, Mich., and Naramore, Bain, Brady and Johanson of Seattle. The aim of the exposition is to portray "Man in the Space Age." Century 21 has invited 84 nations to participate in the exposition which will run from April 21 to Oct. 21,1962.

BRIEFS

U.S. Borax & Chemical signs a con­tract w i t h Lithium Corp. of America under which it will act as sales agent, on a commission basis, for selling lithium compounds to the ceramic and glass industries in the U.S. and some foreign markets. The agreement makes existing sales contacts of U.S. Borax in these industries available to Lithium Corp. for the promotion of its products. It also covers development of other industrial uses for lithium.

Minerals Engineering Co. has bought a plant valued at $1.4 million from Howe Sound Co. The plant, 20 miles west of Salt Lake City, will be used by Minerals Engineering to pro­duce vanadium pentoxide for atomic energy uses, alloy steel, and vehicle smog control devices. Howe Sound

had used the plant to refine cobalt. Minerals Engineering has dropped its previous plans to put up a new vana­dium refinery adjacent to its Salt Lake City tungsten refinery.

NEW FACILITIES

Goodyear Tire & Rubber plans to ex­pand production facilities at its vinyl resins plant in Niagara Falls, N.Y. The $1 million expansion will add about 20 million pounds per year to the plant's total capacity and will double production capacity for two specialty dispersion resins ( Pliovic WO and Pliovic AO ). Production is ex­pected by early this fall.

Diamond Alkali is starting a long-range expansion program at its chlorinated

products plant at Belle, W.Va. First step in the expansion program will im­prove efficiency and product quality by modernizing production facilities for methyl chloride, methylene chlo­ride, and chloroform. The three-to-four-year program will cost about $500,000 initially, probably double that by the time it's finished. Accord­ing to Diamond, it may also result in increased capacity.

Firestone Tire & Rubber has started construction of a multimillion dollar synthetic rubber plant at Port-Jerome, France. Initial capacity will be 10,000 long tons of synthetic rubber and latex; the plant is scheduled for com­pletion in 1961. Firestone is also building a tire manufacturing plant at Bethune, France, which will be com­pleted late this year.

36 C & E N J U N E 2 0, 1960

Page 4: MCA Hears Global Business Philosophy Urged

Michigan Chemical Corp. is expanding facilities at its fine chemicals and or­ganic and inorganic intermediates manufacturing plant at St. Louis, Mich. The $300,000 expansion will allow Michigan Chemical to produce a wider variety of chemicals in vol­umes ranging from 1000 pounds to one million pounds.

Monsanto Chemical has started up a new unit at Monsanto, 111., to produce a high grade of dihydroxydiphenyl sulfone for use in certain tin plating processes, as an additive in the manu­facture of phenolic resins, and as an antioxidant for polyvinyl chloride resins. The unit will more than double Monsanto's dihydroxydiphenyl sulfone capacity.

WEEK'S PRICE CHANGES June 13, 1960

Advances

CURRENT ] PREVIOUS

Ammonium chloride, white, 100 lbs.: c.L, bagst $6.00 $5.75 c.L, barrelst 6.50 6.25

Cedryl acetate, lb. 1.75 1.60 N-Ethyl-a-naphthyl-

amine, lb.* 1.04 1.02 Fumaric acid, l.c.l.,

250 lb. drums, lb.t 0.2474 0.247* Gum turpentine, So.,

gal. 0.49 0.477s Maleic anhydride, l.c.l.

250 lb. drums, lb.t 0.2572 0.25 2,7-Naphthalene disul-

fonic acid, disodium, lb.* 1.20 1.06

α-Naphthol, lb.* 1.02 1.00 α-Naphthylamine, lb.* 0.52 0.50 Neville and Winthers

acid, lb.* 1.40 1.30 p-Nitroanilin, c.L,

lb.* 0.4472 0.4272 Sodium naphthio-

nate, lb.* 0.72 0.70 Soybean oil,-

Decatur, lb. 0.0860 0.0850 Tin metal, lb. 1.01 1.00 Tin salts, lb.:

Potassium stannate 0.780 0.776 Sodium stannate 0.638 0.633 Stannous chlo­

ride, anhyd. 1.001 0.995 Stannic oxide,

400 lb. drum 1.08 1.0673 Tung oil, lb.:

Imported 0.2374 0.227^ Domestic, c.L 0.247* 0.247s

Decl ines

Cinnamic alcohol, lb. 1.65 1.80 Tallow, fancy, lb. 0.057s 0.06 t Single producer, effective July 1, 1960. * Effective July 1.

ANNOUNCING

The standard Type BZ Lectrodryer operates between 40 to 150 psig. Special units are avail­able for 300 psig and higher pressure,

NEW "BZ" LECTRODRYER for drying instrument air

and other gases For years, Lectrodryer has been known for leadership in the design and production of adsorbent dryers... with a reputation for providing extra peak load capacity, greater drying dependability. Now here's an even better dryer for compressed air and other gases—the new Type BZ Lectrodryer.

Special emphasis has been placed in the Type BZ Lectrodryer on sound but simplified mechanical design. It is fully automatic, supply­ing continuous drying with no attention other than occasional lubrica­tion. Since the valves and valve mechanism move only a few times per day, there is virtually no wear — unlike units which cycle frequently.

Bulletin BZ-161 describes this new Lectrodryer in detail. For a copy, or for drying help, write Pittsburgh Lectrodryer Division, McGraw-Edison Company, 305 32nd Street, Pittsburgh 30, Pa.

J U N E 2 0. 1960 C & E N 37

KEEP DESERT-DRY WITH... Lectrodryer

Page 5: MCA Hears Global Business Philosophy Urged

How can you use

new Liquithane

/

Here are just a few ways you can apply Liquithane, Berkeley's new eutectic liquid mixture of ethyl and methyl urethanes:

—as a solvent for organic compounds, re-crystallization polymer proc­essing, paints, lacquers. —as a raw material for high molecular weight carbamates, new chemicals, polymers.

^TRADEMARK AND PATENTS PENDING

For commercial quantities of Liquithane, samples or technical data, phone our sales agent in New York, Millmaster Chemical Corp., MU 7-2757, or write to

Berkeley Chemical Corp.

Berkeley Heights, N.J.

Production in many industries that are large consumers of chemical prod­ucts continues at levels moderately higher than a year ago.

Total output of man-made fibers, for example, ran about 4 % ahead of last year during the first quarter. The gain is largely accounted for by a 10% rise in production of noncellu-losics; production of rayon and ace­tate filament was only 2 % ahead of the year before, while rayon staple and tow was actually lower.

Output of paper and paperboard during the same period was up 7% from 1959's first quarter, with in­creases ranging from 10% for paper and 5% for paperboard to 3% for construction paper and board and wet machine board. During the first five

months of this year, paper producers have been operating at an average rate of over 9 7 % of capacity, higher than in any similar period since 1956.

Synthetic rubber production during the first four months topped the cor­responding months of 1959 by 18%. Production of tires, however, is only about 1 % ahead of last year, in part reflecting lower shipments this year of replacement tires. Original equip­ment tire shipments are about a third higher than during 1959. This, in turn, reflects higher automobile pro­duction.

Probably the weakest part of the picture is steel. Steel mills are oper­ating at less than two thirds of capac­ity as output has slipped more than 4 0 % under year-ago levels.

NONCELLULOSIC SYNTHETIC FIBER Production 250 Millions of Pounds

200

1st Qtr. 2nd Qtr. 3rd Qtr, 4th. Qtr.

RAYON & ACETATE FILAMENT Production 250 Millions of Pounds

1st Qtr.

Source: TEXTILE ORGANON

2nd Qtr. 3rd Qtr. 4th Qtr.

38 C & E N J U N E 2 0, 1 9 6 0

' , • · ! --J ! v - i (·• " ; . / ' . Λ : • ; / h ^ Λ

\..î v _ y tj ι* la U J u L; v.. ,y

Page 6: MCA Hears Global Business Philosophy Urged

This Week In Business J U N E 2 0, I 9 6 0

SYNTHETIC RUBBER Production

150

130

1960

c

D J F M A M

Source: Dept. of Commerce

WOOD PULP Production

• 1969

3.0 mami96C ) M M 1959

2.5

of T

ons

1.5 Mili

ions

1.5

1.0

I I I I I I I I I D J F M A M J J A S O N D Source: Dept. of Commerce

STEEL Production-Ingots & Steel for Castings

AUTOMOTIVE TIRE Production

15.0 «—1960 ——1959

2.5

oAjg£? I IV/I H VI

7.5 ^* 1 1

Ι ι ι I 1 1 1 1 "ΤΤΊ D J F M A M J J A S O N D

Source: Rubber Manufacturers Assn.

PAPER & PAPERBOARD Production

4.0 •«-«.1960 • — 1 9 5 9

3.5 CO

c t "o

3.0 _A_ «9

c

I 2.5 ^

X - — V * 'N 2.0

1 1 1 1 I I I I I D J F M A M J J A S O N D Source: Dept of Commerce

Source: American Iron and Steel Institute

1 MOTOR VEHICLES 1 Factory Sales 1 1050 «-«1960 ——1959

1 850

I 1 650 • 3 "~~ • o • H-1 450

I 252 1 I 252 1 1 !

) J F ft

Source: Autor

! 1 ft A M J noblie Manuf

I M J Α ί

acturers Assr

II I 0 Ν D 1.

J U N E 20, 1960 C&EN 39