P. 1 

# OAR Box 1872 Prepped by Keeia Richards



## Document

Number: 

# 16 ) II-I-6 5 Docket Number: 

# A-90-1 9

Printed 11/26/2008 8:51:49 AM Sheet 16 of 204

# A-90-1 9 II-I-6 5

' Produc e Q er - Othe r Nd . J ' s deman d" aa dCE O & M o pollutio n ie s stemme d 5 o f sodium ^ int o a rt appea r iden t eve r \ •ehin dus. " < | 'bee n Iroo mt o y agree dt

o in dpa y a rls o 

### di n th e I perform - .:•

' IN C enounce d c s gne da n pat e i use dt o s , an d for it . The i reve agoo d th e firs t J . 7) . A s bi dbu y ' Praxi s xluct . diar y I . Th e all s >roduc -

_(BST) . Sharr y immis imu h e i , 

# OXYCHE M TAKE S ANOTHE R SOVIE TSTAK E

Occidenta l Chemica l ha s signe da definitiv e agreemen t

t o se t u p a$200
- millio n polyviny l chlorid e (PVC) res in s an dfilms join t

ventur e a

t Kalus h i n th e Sovie t Union . Th e dea l wa s inke d las t wee k i n Mosco w b y OxyChe m presiden t J. Roge r Hirl ; O . N . Roma penko , directo r

o f th e chloroviny l product[on comple x a

t Kalush ; an d V . M . To : -nkfl

i deput y ministe r

o f th e USSR's chemica l an dpetrochemica l Ipdustry . Unconfirme dreport s sugges t tha t OxyChem , whic hi s providin g tech nolog y an dknow-how , wil l hol da25 % stak e i n th e venture— ashar e equiva len t t o it s estimate dinvestmen t i n th e project . Th e venture , t o b e know n a s Arnica , wil l prc ro e di n tw o stages . Th e firs t involve : instructio n o

f a40,000-m.t. / yea r PV C dispersio n resin s plan t usin g OxyChem' s Hybri dtechnology , wit h wor k startin g i n 199 0 fo r

completio n b y 1993 . Outpu t

wil l b e use dt o mak e a variet y o f consume r

products , includ in g viny l floorin g an dupholster y fab rics . I n th e secon dstage , a50,000-m.t. / year PV C fil mplan t

wil l b e built , al thoug hatim e frame ha s no t ye t bee n draw n up . Product s wil l includ e foo d packagin g film, pon dan dreservoi r linings , an dwal l coverings . "Thi s ventur e represent s afurthe r commitmen t

t o OxyChem' s PVC busi ness, " Hir l says . "W e anticipat e mar ket s fo r Arnica' s product s wil l gro w steadil y an drapidl y ove r th e ensuin g year s a s th e Sovie t

econom y continue s t o develop. " I

t i s believe dtha t

bot hth e resin s an dfilm s plant s can b e easil y debottlenecke dt o increas e capacity . Unde r th e term s o f

th e deal , 75 % o

f productio n fromArnic awil l b e sol di n th e Sovie t

Unio n an dothe r

Eas t blo c countries . OxyChe mwil l sel l th e re mainin g 25 % i n th e internationa l marketplace . I

t i s understoo dtha t

al l feedstoc k requirement s wil l b e pro vide db y th e existin g comple x a t Kalus h i n th e Ukraine . Say s Occidenta l Petroleu mchair ma n Arman dHammer . "W e ar e avery please dthi s projec t

i s goin g forward . I

t Hirl : a commitmen t t o PVC . i s i n keepin g bothwit hth e strengthen in g o f ou r chemical s busines s an dwit h curren t effort s t o elevat e th e standar d o f livin g fo r th e Sovie t

people. " PETER COOMBES 

# ED C TAB S TAK E ADIV E Th e ._ownwar

dslid e i n ethylen e dichlorid e (EDC

) price s continue s a s buyers report

transactio n level s fo

r th e materia l a t 8 cts/lb , wit hstron g indica tors o f eve n furthe r

pric e deterioratio n i n th e nea r future . The drop-of

f fro mth e 12-ct/l b lev el s o f thre e month s ag o ca n b e blame d i n par t o n lowe r oversea s deman dfo

r EDC. fro mcountrie s suc ha s Taiwa n and• .an . couple dwit hslidin g do mes!: , Jeman dfo

r viny l compound s such as viny l chlorid e monome r (VCM ) andpolyviny l chlorid e (PVC) . "Bot h producer an dcustome r

inventorie s [fo

r EDC ) ar e high, " say s Ken Steel , execu tiv e vic e presiden t

o f K. A . Stee l Chemi cal s (Schille r

Park , IL) , adistributo r an dmanufacture r

o f chlor-alkal i de rivatives . "Th e result, " h e adds , "ha s bee n lowe r

produc t prices. " Mos t marke t observer s ech o tha t evaluation , notin g tha t

adro p i n EDC deman dcouple dwit ha n increase d chlorin e suppl y ha s le dt o apric e dip . " I ma y b e bein g abi t

pessimistic , bu t

I se e price s goin g a s lo w a s 7 t o 6 cts/l b before thi s lates t

tren di s over, " say s a

n EDC/VC M buye r fo r Maruben i (Hous ton) . I n fact , mor e tha n on e marke t playe r say s tha t materia l re centl y ha s bee n quote di n th e 7-ct range ; bu t

it' s no t clea r ho w muc hmateria l wa s in volve dan di

f ther e wer e an y taker s a t tha t level . A majo r questio n fo

r chlor alkal i producer s i s whethe r operatin g rate s wil l hav e t o b e reduce di n th e fac e o

f stag nan t chlorin e deman dwhil e causti c sod acontinue s t o sho w strengt hi n th e market place . Withoperatin g rate s near 95% , producer s hav e bee n force dt o stor e ED

C i n tank s an dsal t

dome s an dthe n eventu all y lowe r price s i n a n attemp t

t o mov e inventory . But

a s on e markete r

com ments : "Lowe r

pricin g or

not . th e deman di s jus t

no t there. " O n th e derivative s market , VC M i s holdin g a

t abou t 24.2 5 cts/lb . whil e PVC—depending o n grade—i s cur rentl y sellin g a

t 3 9 ct s t o 4 1 cts/lb . "Order s fo

r Augus t see mt o b e pickin g up, " say s amajor

PV C producer . "T

l ma y b e anothe r

penn y dro p i

n i betwee n Augus t

an dSeptember , bu t inventorie s shoul db e dwindling , an d w e expec t price s t o firmb y th e Septem ber-Octobe r

period. " Marke t player s hesitat e t o predic t th e duratio n o

f th e curren t

glu t o f EDC . "Ther e ar e jus t

to o man y variable s t o conside r i n makin g tha t

kin do f predic tion, " say s amarke t

source . O n th e othe r

hand , source s agre e tha t if chlor-alkal i producer s st; i ducin g operatin g rate s t o offse t lowe r chlorin e demand , price s o n th e causti c sid e wil l mov e upward . "Withou t a doub t causti c price s woul dincrease, " say s a n Eas t

Coas t distributor . "Bu t

I thin k abi g reaso n producer s haven' t lowere doperatin g rate s n o eve n wit hanegativ e retur n o n chlo rine , causti c sod asale s ar e doin g very wel l an dhav e offse

t this. " MA URICE

MARTORELLA Augus t 16.1989/Chemicalwee k 7P. 3