P. I



# OAR Box 1872 Prepped by Keeia Richards



## Document

Number: 

# 95 ) 11-1-14

4

Docket Number: 

# A-90-1 9

Printed 11/26/20088:52:01 AM

Sheet 95of 204P. 2

'<Ka- TBY-RTP

. N.C

. 2770 9 ; 3

- 8-9 1 ; 3:50P M ; RAD ,



### gfa^tffMj

faf,/*(ff+

?yTffjWl f AUGUS T199

0 PrrtouRtpon - Februar y 198 8 AN~CO.RP C ^ i

- . 

## s i :i i ! •ir. ' 

# A-90-1 9

H-l-14 4 OE C 1 R I99 2 BISPHENO L A £ =-A/•«.;.' : FOCUS....Bispheno l A (abbreviate d BPA ) i a a primar y ra

wmateria l Fo r th e productio n o f polycarbonat e (PC) , epoxy , bispheno l A/formaldehyde , phenoxy , an d high-performanc e resin e includin g polyesters , polyacrylatae , an d polysulfones
. Polycarbonate s hav e substantiall y outpace d epoxie e aa th e larges t derivativ e o f BPA , accountin g fo r almos t 60S o f tota l U S consumptio n o f BPA
. Mos t engineerin g plastic s an d high-performanc e reams , le d b y th e PC's , continu e t o hav e hig h rate s o f consumptio n growt h s s nata l replacement s i n automotive , applianc e an d electroni c applications
. Polyeerbonete a hav e becom

e th e larges t volum e engineerin g plastic , i n 198 9 finall y surpassin g deman d fo r nylon , excludin g fibe r applications
. Wit h continue d stron g growt h i n PC' s and unexpectedl y stron g growt h i n epoxies , considere d b y man y t o b e to o mature t o gro wa t mor

e tha n th e genera l economy , BP A demand increaae d a t th e rat e o f abou t S S pe r yea r sinc e 198 6 an d productio n gre ws t a n eve n highe r rste , reachin g th e on e billio n poun d leve l i n 1967 an d e n al l tim e hig h o f ove r 1. 1 billio n pound s i n 1989
. Stron g expor t market s ala o bolstere d BP A demand , nu n s siee p cnang e upward s i n 198 7 a s tn a u s ooiia r weaxene o an a neipe o c

o apu r expor t seje s o r OP A en o i t s ke y derivative s - epoxie a an d PC'a
. Productio n statistic s tske n fro m th e U S Internationa l Trad e CUIIHII.IOOJ.UI I icyui'ko u luia a u s uuvpu i u i e m i n 170 0 u i I,J- uimon

pounce , HU B rjgur w1 0 ueuavv u w u urn overstate d sinc e i t i s mor e tha n 20 0 millio n pounds greate r tha n estimate d BP A capacit y i n piec e tha t year . A mor

e reasonabl e estimat e o f productio n ha e bee n include d herein
. OUTLOOK....Deman d fo r polycarbonate s ros e drsmstieall y i n th e lat e I960'a , reachin g a leve l o f abou t 65 0 millio n pound s i n 1989 , wit h deman d growt h i n th e rang e o f 8-10 8 pe r year . Afte r a fla t yea r i n 199 0 owin g t o th e economi c slowdown , P C growt h i a expecte d t o resum e i n 199 1 t o a rat e i n th e rang e o f 5-8 8 pe r yea r fo r moa t o f th e 1990'a
. Consumptio n o f epox y resin s we

e suppose

d t o hav

e levele d of f som

e year s ago , bu t fo r th e perio d 1986 - 198 9 gre we t abou t a 6-73

5 compounde

d rate
. Epoxie s ma

y hav e onl y limite d futur e growt h i n en d use s suc h a a protectiv e coating s an d adhesives , bu t ther a wil l b e growt h i n eleetrieel/electroni e application s i n fiber-reinforce d laminate s fo r printe d circui t board s an d encapsulation s fo r electroni c devices
. Afte r a n expecte d 5-7 S downtur n i n 1990 , epox y growt h shoul d pic k u p t o th e 3-5 * pe r yea r leve l throug h 1995
. Based mainl y o n a hig h leve l o f growt h fo r P C resins , overal l U S BP A consumptio n wil l probabl y increas e b

y ebou t 55 annuall y ove r th e nex t fiv e yea r period , afte r a aligh t downtur n i n 1990 , wit h P C deman d flat , epoxiB s dow n an d export s of f ebou t 20 5 Tra m 198 9 levele
. PRICING....Captiv e consumptio n fo r epoxy , polycarbonate , en d specialt y reai n manufactur e account s fo r abou t two-third s o f US bispheno l A demand
. Therefore , i t i e difficul t t o determin e what BP A trenefe r value s ar e assigne d fo r interna l use . Moa t merchan t market sale s ar e t o large-volum e reai n producer s a t negotiate d prices
. Thus , publishe d lia t price s generall y d o no t reflec t actua l sellin g pricea , whic h ar e reflecte d i n th e lowe r averag e sale s valu e ee reporte d b y th e USITC
. AVERAG E PRIC E RANG

E - BISPHENOL A Cent s Pe r Poun d - TL/C L (Hopper ) - Freigh t Allowe d •Epox y Grad e
196 0 Trad e Lis t T9 $ Avg
. Sals a 2 7 196 5 197 0 197 5



### TB I 

## To i "n y Z l 1 7 3 3 •HISTORICAL *********** 19B 0 198 5 198 6 198 7 

## T T 

## ST

T T 

## TT

T 4 8 4 8 4 3 4 9 198 8 198 9 TT 8739 T 55 56(E ) •PROJECTE D • 199 0 199 2


### • T7TJ 4 T T
The lis t pric e for polycarbonat e grad e i e 4 cant s pe r poundhigher ,
SUPPL YAN

D DCKAND....Million s o f Pounds....Estimated....Domeati c U S
196 0 Capseit y Productio n5 ) Merchan t Sale s Import s Export s Demand5 1 196 5 197 0 197 5



### T T U ~D1S

TT ? 9 7 20 2 29 3

9 7 • HISTORICA

L • * I96 0 198 5 198 6 

### ""Btf J TI B "9l B 53 0 94 9 95 6 13 0 33 0 34 1
9 7 20 2 293 4 0 49 0 6 2 66 7 7 9 87 7 ********

*.«»«••««#«• « PROJECTE D • 198 7 .198 8 198 9 199. 0 199 2 

### T E H TU B TI7 5 •1425 " T57 5 100 0 1070(E ) 1133(P ) • 40 9 42 2 440(E ) • 2 4 2 3 • 11 2 10 3 9 5 • 88 8 97 1 106 1 • 105 0 115 0 Import a o f bispheno l A , separatel y reporte db

y the U S Burea uo f Census , wer e les s tha n1/ 2 millio n pound s per yea r befor e 1987 . Export s o f BPA wer e no t separatel y

reporte dbefor e 1984 . Export s fo r I96 0 ar e estimated . Productio nstatistic s take nfro m USIT C data , excep t fo

r estimete d1988 . AVAILABILITY....Shortage s o f cunene-derive dpheno l ra w materia l coul ddevelop , bu t i t i s no t anticipate d tha t bispheno l A

suppl y wil l b e affected . Al l U S producer s o f BP A ala o manufactur e pheno l an d woul d probabl y give suppl y

preferenc e t o making ra w materia l availabl e t o manufactur e highe r velu e adde dderiva tive s sucha s BPA . From th e standpoin t o f capseit y fo r BP A itself , the U S i n199 0 appear s t o b e enterin g a protracte dperio do f exces s capacity . G E finisheda 15 0 millio npoun dpe r yea r uni t i nAlabam a i nearl y 199 0 bu t wit hdisappointin g demand , stert-uphs s bee npostpone dunti l 1991 . Shell' s expansio n( e ne t additio no f abou t 10 0 millio npounds ) hs s me t wit hcontinue ddelay s an d wil l no t etar t unti l 1991 . Adequat e supplie s o f BPA er e assure dfo

r th e foreseeebl e future . Domesti c availabilit y wil l ala o b e enhence db

y decrease dexport s a e mor e capacit y i s Installe doversees , Japa ninparticular . Mitsu i wil l b e adding 30,00 0 ton s capacit y slon e an

d wil l 0 V

a new 50,00 0 to nplan t wit hMitsubishi . Nippo nStee l an d Idemits uar s reportedl y

planning ne

w phenol/BP A

unita . Ne

w plant s ar e als o planne dfo r Europe .P. 3 Sgii TBYJRTP , N
. C
. 2770 9 ; 3 - 8-9 1 ; 3:51P M ; RADIA N CORPORATION - 21 5 64 3 2772. # 5

PRODUCER

S AM D CAPACITIE S - BISPHENO L A - HIL L IM S & TPOtfC S PRODUCE R LOCATIO N 199 0 CAPACITY Aristec h Haverhill , OH 23 0 Do wChemica l Freeport , T X32 5 Genera l Electri c Mt
. Vernon , I N 37 0 Genera l Electri c Burkaville , A L 15 0 Shel l Chemica l Dee r Park , T X35 0 TOTAL 142 5 Base do nannounce dcapacitie s an dtrad e estimates , a s o f mid-1990 . Do w adde d10 0 millio n pound s o f capacit y

i n1989 . GE' s ne

w plan t a t Burkevill a wa a complete di nearl y 199 0 bu t i a no t expecte dt o b

e starte dupunti l 199 1 du e t o slac k deman dinternall y for th e pro ductio no f polycarbonat e reaina . G E use s al l materie l ceptively . Shal l i a addin g a ne w 25 0 millio npounduni t a t Dee r Park , due onstream b y 1991 , bu t wil l tha nehu t some olde r capacity , resultin g i na ne t increas e o f ebou t 10 0 millio npound a pe r year *
EN D USES....Bispheno l A (BPA) , ala o referre dt o e s 2,2-bie(p-hydroxyphenyl ) propan e an d4, 4 ieopropyl idenediphenol , i a a monome r use dt o produc e epoxy , polycarbonate , BPA-formaldehyde , phenoxy , polyester , an dothe r reaina . I t ala o function s a a a chemica l intermediat e sinc e i t ca nb e readil y

halogenated , hydro genated . an

d sulfonated . Application s fo r variou s reain a andderivative s o f BP A includ e th a construction , automotive , aircraft , appliance , en delectroni c induatriea . BP A i a a crystalline , prilled , o r flak e materia l wit ha mil dphenoli c odor . Do w introduce da granu late dfor

m i n1987 . It i a solubl e i nalcoho l en dacetone , slightl y

solubl e i ncsrbo ntetrachloride , practicall y

insolubl e i nwater , bu t solubl e i naqueou s alkalin e solutione . Commercially , biepheno l A i s availabl e inbot hepox y en dhigher-purit y

polycarbonat e grades , sol dat a highe r price , th e polycarbonat e grad e i s ala o uaa dfor polyaulfon e resins , fo r makin g epox y reaina , an dmoa t othe r uaes , th e epoxy grad e i a usuall y

suitable . Polycarbonat e resins , mad e b y reactin g biepheno l A wit hphoagen e (carbony l chloride) , ar e water-white , impact-resistan t thermoplasti c polymer s use dfor high-performanc e moldings , shetterproo f windo w glazing , anda variet y

o f specialties . Polycarbonate s ar e no w th e majo r derivetiv e o f BPA , an dhav e surpsese dnylo n a a th e larges t volume so-celle d"engineering " resins . Epoxy resins , previousl y

th e largea t outle t fo r BPA , ar e commonl y the reactio nproduct s o f a polyhy dri e pheno l and a chlorohydri no r simpl e epoxida . The majo r commercie l epox y i e obtaine dusin g biepheno l A an depichlorohydri na s the reactants . Epoxy resin s provid e toughneaa , corroaio nresistance , adheaion , en d electrica l insulation , amon g othe r properties . Epoxie e ar e widel y use di nprotectiv e coatings , adhesives , en dplastics . Epox y

resin s sr e els o widel y use di nlaminatin g printe dcircuit board s an dfor encapsulstin g electrica l devices . Phenox y resin s er e produce db y th e eopolymsrizstio no f BP A an depichlorohydri nbut , unlik e epoxies , d o no t requir e eeterificatlo nwit hlong-chai nunsaturate decid a o r reectio nwit hsnide s or amine s t o produc e cure dresins . Costing s base do nphenox y resin s ar e toug handhav e excellen t adhesion . Bispheno l A-formaldehyd e resin e ar e use dinspecialt y applications , includin g inks , coatings , var nishes , sn

dabrasiv e binders . Polyester s ar e prepsre dfro m BP A an danalkalen e oxid e suc ha s propylen e ox ide . Th e glyco l produce di nthe reactio nca nbe eeterifiw dwit hmalei c or othe r dibesi e aeido . Thes e poly ester s hav e excellen t chemica l resistanc e an dca nb e laminate dwit hglss s fibe r t o fabricat e eorroeion resisten t chemica l proces s equipment . Tetrabromobispheno l A , th e principa l hslogenate dderivativ e o f BPA , ha s flems-retardan t applications EN D US E PATTER N - 198 9 ESTIMAT E DERIVATIV E PERCEN T Polycarbonat a Reain a 5 8 Epox y Resin e 3 5 Tetrebromobispheno l A 2 Miscellaneou s 5 MANUFACTURING....Abou t 0.8 8 poundo f pheno l i e require dt o produc e on e poundo f biepheno l A , wit hebou t 0.2 8 poun do f aceton e needed . Bispheno l A l a produce db

y the condensatio no f tw o mole s o f pheno l wit hon e mol e o f ecetone . Exces s pheno l i e reecte dwit hsceton e inth e presenc e o f a naei dcatalyst , usin g a emai l amoun t o f a catalys t promote r suc ha s methy l merceptan . Th e catalyst , dr y hydroge nchlorid e gee , i e bubble dthroughth e mixtur e fo r severa l hour s an

dthe reactio ntemperatur e i a controlled . Afte r reaction , crud e produc t i s strippe do f HC I en dwate r o f reaction . Recovere dHC I andexces s pheno l er e recycled . Crud e BP A

i e droppe de s a slurry int o still e fo

r purification . Th

e slurry i s washe dwit hwater , neutral ize dwit hmil k o f lime , an ddiatille dunde r vacuu m at temperature s up t o 150 D C . Th e molte nproduc t remain in g i nth e stil l i s sparge dwit hstea m a t 15D' C t o remov e fina l trace s o f th e odorou s mercapta npromoter . The deodorize dmel t i a the nquenche di nwater , wasnaa , filtered , an ddried . Whil e biepheno l A

plant s er e comparativel y eimple , the productio no f BP A i s a delicat e procea e einc e e numbe r o f isomer s an dtri - o r mono-hvdroxy

byproduct s ar e formed . Whil e a produc t containin g thes e im puritie s ma y

be use dfo

r th e manufactur e o f epox

y resine , i t i s no t suitabl e fo r polycarbonates . Earl y batc hprocesse s eliminate dthes e impuritie s b y high-cos t crystallization . Newe r processe s employ distilla tionan dextractiv e crystallizatio nunde r pressur e t o purif y crud e biepheno l A

continuouely . Thi s greatl y improve s th e economics . Distillatio no f BPA i e eepsciell y

difficul t becaus e numerou s elements , some i n minut e concentration! , decompos e the produc t o r promot e the formatio no f polymer s an dtar . ENVIROKNTA L ASPECTS....Bispheno l A i s irritatin g t o ski nsn d eyes . Th e soli dmaterie l i e e nirritatin g dus t an d canirritat e uppe r respirator y passages . Th e EP A

ha e propoae dtest s o f pulmonar y effect s s s wel l a s aquati c toxicity . Th e ingestio ntoxicit y

o f BPA i s very low , bu t ingestio nshoul dbe minimized . T o th e bas t o f ou r knowledge , the informatio ncontaine dherei ni a accurate . However , we d o no t assume an

y liabilit y

whetsoeve r fo

r the completenes s or accurac y o f thi s report .