OAR Box 1872 

Prepped by Keeia Richards 

Document Number: 

15) II-I-64 

Docket Number: 

A-90-19 

Printed 11/26/2008 8:51:49 AM Sheet 15 of 204 

P.1 
P.2 

! STYRENE 

i 

m 

August 14,1989 

SUPPLY 

PRODUCER ; . .- • . • CAPACITY* 

Amoco, Texas City, Tex goo 

Arco, Channelview, Tex 1,310 

Chevron, St. James, La 625 

Dow, Freeport, Tex 1,500 

Fina Oil & Chemical (Cos-Mar), Carville, La...;.-.......... 750 

GE Plastics (Cos-Mar), Carville, La. .v........;.....'; : 750 

Hoechst Celanese, Bayport, Tex 1,000 

Rexene Products, Odessa, Tex....'.-........ •; 320 

Sterling Chemicals, Texas City, Tex 1,500 

Total. 8,655 

•Millions of pounds annually. Dow is erecting a one-billion-pound-a-year plant at the 

Texas Gulf, probably Freeport, by 1993. Arco is building a styrene/propylene oxide 

plant with styrene capacity of 1JI5 billion pounds, scheduled for 1991 or 1992, also at 

the Gulf. The Cos-Mar plant will be expanded by 400 million pounds in the first 

quarter next year, to be evenly divided between the two partners. Chevron is adding 

900 milion pounds of capacity at its St. James site in the fourth quarter next year. 

Polysar has recommissioned an Idled 200-million-pound unit in Sarnia, Ontario, 

Canada, which should be in full operation by the end of this month. Polysar and 

Deltech are restarting an idled Baton Rouge plant with capacity of 900 million 

pounds, due for start up in late 1991. Last year, El Paso Products became Rexene, 

and Borg-Warner chemicals division was bought by GE. Arco has a 225-millionpound unit in Beaver Valley, Pa., which it brings on and shuts off according to market 

conditions. Hoechst Celanese has agreed to sell its styrene facility to Huntsman 

Chemical in March 1991. Meanwhile, Hoechst is operating the plant exclusively for 

Huntsman, which markets tne material. Taiwan-based Taita Chemical is considering 

building a small styrene plant in the US. Profile last published 8/4/86; this revision, 

8/14/89. 

DEMAND 

1988: 8,580 million pounds; 1989:8,700 million pounds; 1993: 9,950 million 

pounds. (Includes exports, but not imports, which totaled 470 million pounds last 

year.) " 

GROWTH 

Historical (197S-1988): 1^5_ percent per^ear; future: 3 percent per year 

through 1993. *""""" 

PRICE

 : T " " • 

Historical (1954-1989): High, 50c. per pound, tanks, f.o.b., works; low, 6.6c. 

per pound, tanks dlvd. Current: 36V_c. per pound, tanks, f.o.b., works. 

USES 

Polystyrene, 55 percent; acrylonitrile-butadiene-styrene (ABS), 10 percentstyrene-butadiene rubber (SBR), 5 percent; styrene-butadiene latex, 5 percent; 

unsaturated polyester resins, 5 percent; miscellaneous uses, including other 

copolymers and styrene-acrylontitrile (SAN), 7 percent; exports, 13 percent. 

STRENGTH 

Two very strong years for styrene derivatives have raised average demand 

levels. The polystyrene market has grown appreciably, and ABS continues to 

w demonstrate sharp growth. Capacity utilization rates have been close to 100 

percent. —-•- S*- - , — 

i " • 

Continued on Page 40 

a 

! 

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A-90-19 

II-I-64 

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Issue for 90's 

Addressing the National Conference 

of State Legislatures in Houston last 

week, William D. Ruckelshaus, chairman and chief executive officer of 

Browning-Ferris Industries Inc. (NYSE: 

BFI) and twice administrator of the US 

EPA, stressed that we have in this country the technical solutions to the waste 

problem, but lack the necessary political 

solutions. 

"The problem of waste in America," he 

said, "is not that we do not know how to solve 

it... it has to do with values, public priorities 

and trade-offs. It is an intersection problem, 

in which private enterprise is trying to mesh 

with a set of public processes, and there is 

sand in the gears." 

Mr. Ruckelshaus believes that while waste 

increases and disposal capacity decreases, 

"it is difficult to exaggerate the difficulty 

today of siting any facility having to do with 

the disposal of solid waste." He says that 

while we must recycle and we must reduce 

waste at the source, we still must face up to 

the present necessity for disposal capacity. 

"We need safe disposal facilities regardless 

of how much waste we can reduce or recycle," he said. 

SITING A PROBLEM 

We hear of the difficulties of siting disposal 

facilities every day. But, he says, "we have to 

understand that in order to get anything done 

in a free society three things are needed." He 

cites first the need for a set of values, of a 

public consensus that there is a goal worth 

pursuing. 

Next, he says, is a set of incentives that will 

reward society for pursuing the goals, and 

finally the institutions that can "adopt the 

values and administer the incentives." Mr. 

Ruckelshaus says, "Our multi-layered system of government has failed to develop an 

institutional solution to the waste problem." 

He warns that simply treating the disposal 

industry like a utility and subjecting it to rate 

regulation is a worse error than supposing we 

can do without more disposal capacity. He 

cites New Jersey, a state that has aggressively pursued the public utility option, 

where the number of waste haulers has declined from 2,300 to fewer than 650, where 

much of their waste is now going out of state, 

and where a recent governor's task force has 

recommended deregulation. 

"Free markets are not perfect," Mr. Ruckelshaus says, "but they are efficient allocators of services. A look around the world 

today shows us nation after nation desperately trying to establish free market systems 

after years of public sector monopoly. In the 

waste disposal system of this country," he 

says, "we have such a free market system." 

"There are no quick fixes," he emphasizes; 

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P.3 
STYRENE August 14,1989 

Continued from Page 46 

WEAKNESS 

Prices have fallen 131/. cents per pound since their record highs at the 

beginning of the year, due primarily to falling world prices and weakening 

4 benzene. 

OUTLOOK 

Demand should remain steady through the rest of this year and beyond, 

although the spectacular growth of 1987 and 1988 are behind the industry now. 

Growth this year will be slight, less than 2 percent, but the five-year average from 

1988 should be 3 percent. There is room for further price erosion short-term; if all 

of the announced capacity expansion projects are realized, operating rates "and 

prices will drop. 

Lfcfly. '^K\^yu^^-vnifFiilr^^^r t^;^T7^^ _."»«*'•: :'^miffsjJj?,t

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Generics 

Continued from Page 7 

Dr. Young has told Congress he expects more 

indictments within the agency. 

In addition, Rep. John Dingell (D-Mich.), 

chairman of a House oversight & investigations subcommittee, has accused Bolar Pharmaceutical Company of also fraudulently 

submitting SmithKline Beecham Company's 

"Dyazide" in place of its own version in an 

effort to win FDA approval — a charge Bolar 

has denied. 

FDA's actions last week seem contrary to 

the position the agency took when it testified 

before Rep. Dingell's subcommittee last 

month. Dr. Young said the agency lacked 

legal authority to withhold products made by 

companies involved in wrongdoing or by 

firms whose employees have bribed officials 

to speed up or slow down applications for 

drug approvals. 

Faced with the threat of litigation, Dr. 

Young said Congress should pass legislation 

that would enable FDA to bar companies 

involved in corruption or to revoke or refuse 

to approve applications from companies for 

a certain period of time. 

As a result of these recent events, it appears the $1.4 billion generic drug industry is 

certain to face increased government regulation as well as public suspicion about the 

safety and effectiveness of its products. The 

question is whether allegations against a few 

firms can dampen the entire industry's 

prospects. 

Under a major change in Federal law in 

1984, generic drug manufacturers are not 

required to carry out the clinical tests that 

cost research-based, brand-name manufacturers millions of dollars. Instead, they must 

prove only that they have made exact c 

of brand-name drugs that have lost 

patent protection. 

Because their research and develop 

overhead is much smaller, generic mar 

turers can price their products well ! 

competing brand-name drugs. As a r 

the industry has grown dramatically an 

accounts for 30 percent of new prescrip 

and 8 percent of the $18 billion prescr 

market. 

Du Pont 

Continued from Page 9 

velopment engineer for Du Pont Autor 

Products. 

The agreement between Du Por. 

Showa Denko continues a rapidly gr 

worldwide trend toward the use of pTi. 

replace steel in fuel tanks. Accord 

Showa Denko, plastic tanks offer grea 

sign flexibility for added fuel capaci 

A patented Du Pont process allows 

rier resin to be dry blended with high-t 

polyethylene and blow-molded in a 

step to produce a fuel tank with an ii 

laminar barrier. 

Du Pont also has agreement* 

Kuhlman Corporation of Troy, Mitsui 

chemical Industries Ltd. of Japan an 

Industries of Finland covering the san 

nology. 

ARS Tests 

Continued from Page 9 

plains, would allow more types of proc 

be pre-sliced and packaged. That wc 

good news, he adds, for busy cons* 

cooks at restaurants and others in th 

industry. 

Future coatings may have other po 

uses, he notes. They might come in ha; 

keeping fillings in pizzas or preventi: 

from soaking the crust. 

A new, casein-derived coating n 

the three requirements of an ideal 

coating, says John M. Krochta. formei 

f CENTRIFUGES 

PM75000 Sharpies, 316 S/S. Like-New 

PM30000 Sharpies, 316 S/S. UNUSED 

PM20000 Sharpies. 316 S/S. UNUSED 

P5400 Sharpies, 316 S/S RECONDITIONED 

P3400 Sharpies. 316 S/S. (3) 

P850 Sharpies, 316 S/S. UNUSED 

P-660 Sharpies, 316 S/S 

40" x 60" Bird. 304 S/S. reconditioned by mfr. 

32" x 50" Bird, 304 S/S, 10 degrees contour 

NX210 AHa-Laval, 316 S/S, complete 

BSAG440 Veronisi, S/S, 3 way, complete 

SA18-00-0Q6 Westf alia, 3 way, sanitary S/S 

48" Sharpies "Sludge-Pak" Model SP-6500,316 S/S 

48" x 24" Tolhurst "Batch-Master", R/L (2) 

48" x 20" Tolhurst "Batch-Master, S/S 

40" Tolhurst, center slung, rubber-lined 

PC-30 Dorr-Oliver Merco, S/S 150 H.P^5) 

DRYERS/COOLERS 

32' dia. Niro Spray Dryer, 316 S/S, UNUSED 

10' dia. Niro Fluid Bed Dryer, 304 S/S, UNUSED 

7'6" Niro Spray Dryer, S/S, complete system 

4' Niro Utility Spray Dryer, S/S. complete 

30" Bowen # 1 Tower Lab Spray Dryer, S/S 

A-.f.-nonnebare rotary. S/S (2) 

REACTORS-KETTLES-TANKS 

6000 gal. Nooter Kettle, S/S, jacketed, agitated 

5000 gal. Kettle. Inconel. coil, agitator (2) 

3000 gal. Alloy Craft, 316L S/S, 15#/75# 

2500 gal. Koven. Nickel Clad. 125* ,'62 * 

1200 gal. Nooter. Hast. "B" 60#/90# 

1000 gal. Plaudler, G/L, 25#/75# (3) 

500 gal. Brighton, 304 S/S, 500#/150# 

200 gal. Pfaudler, G/L, 25#/75# 

20 gal. Pfaudler, G/L. 150#/115# 

5 gal. Pfaudlei, 316 S/S, 600#/150# 

NEW PURCHASES 

12" x 24" Bethlohem Lab Flaker, chrome, like-new 

RA28-K122 Rietz Disintegrator, sanitary, S/S 

3' x 10' Stakes Rotary Vacuum Dryer, 316 S/S, 15 H.P. 

FA150 FiUpatrick Fluid Bed Dryer, S/S (2) 

FA75 Filzpatrick Fluid Bed Dryer, sanitarv S/S 

10,500 gal. Tanks, S/S, vertical, 10'x16' (10) 

150 gal. Hamilton Kettle, S/S, double motion 

45 gal. S.S. Products Co. Reactor, S/S. 40#/60# 

30 gal. Pfaudler Reactor, G/L. 30#/105# 

20 gal. Pfaudler Reactor, G/L. 150#/105# 

12-H Shutz O'Neil Pulverizer, complete 

135 cu. ft. Paddle Mixer, S/S, jacketed, (2) 

36" x 14'6" Strong-Scott Solidaire Dryer, hastalloy 

24" x 10' Strong-Scott "Solidaire" Dryer 

43 sq.f 

33sq.f 

CT9 All 

400 cu 

250 cu, 

90 cu. 

150 cu 

75 cu 

69 cu 

30 cu 

300 ga 

2C0ga 

100 ga 

125 ga 

125 6a 

60 gc 

50 ga 

50 gp 

.75 gr 

FKM