mca hears global business philosophy urged
TRANSCRIPT
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
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
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
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
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
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
2Ό
1.5 Mili
ions
2Ό
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