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# OAR Box 1872 Prepped by Keeia Richards



# Document

Number: 

# 5 ) 11-1-5 4 Docket Number: 

# A-90-1 9

Printed 11/26/2008 8:51:47

AM Sheet 5of 204

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# Globa l Warmin g Need s Mor e Study , Congres s Tol d Scientifi c expert s o n th e phenomeno n o f globa l warmin g tol dCongres s las t wee k tha t mor e researc h an daddition

in g fundin g fo r

researc h ar e neede dbe

for e th e tru e exten t

o f th e proble mca n b e determine d Meanwhile . Rep . Claudin e Schneider (R

RL ) introduce dlegislatio n sh e sai dwoul d promot e energ y saving s andspu r th e devel

opment o f solar andrenewabl e resource s tha t d o not ad dt o global warming . Som e 6 0 othe r Hous e member s co-spon sore dth e wide-rangin g measur e whichwoul d establis h national andinternationa l goal s o f reducin g curren t

carbo n dioxid e emission s by 2 0 percen t b y th e yea r 2000 . an dphas e out chloronuorocarbo n productio n ove r th e nex t six yean . Prominen t

governmen t

scientist s tol dth e Hous e Energ y & Commerc e Committe e tha t pres s coverag e o

f th « 'greenhous e effect " ha s been simplisti c andsensational . Other expert s testifie dbefore th e Hous e appropria

tion s foreig n operation s subcommittee . Whil e th e witnesse s agree di

ngenera l that th e continue demissio n o

f certai n greenhous e gase s (primaril y CO, . CH, , NO

_ CFC s an d omoe ) woul

dlea d( o global warmin g i n th e long term , they were unsure o f how warmth e glob e will b o an dwha t 'flee t th e warmin g woul dhav e o nhumans . Presentin g th e busines s community' s poin t o f \le w o ngloba l warming . National Associa

tio n o f Manufacturer s toldth e Senat e Com

merce . Scienc e & Transportatio n Committe e i t strongl y support s integrate dscientifi c re searc ha s proposedi

n legislatio n sponsore d b y committe e chairman Sen . Ernes t Ho i ling s (D-S.C) . Bu t Thoma s G. Lambrix . directo r o f gov ernmen t relations . Phillip s Petroleu mCom

pany , stresse dthat

climat e chang e is aglobal issu e demandin g globa

l cooperatio n i

n seek

ing evidence , answer s an dpolicy . H e sai dNA M support s continuin g develop

men t o f climati c scienc e t o addres s th e broad , far-reachin g question s o n global cli

mat e patterns . "Manufacturer s support ag gressiv e researc hinto th e caus e an deffec t o f globa l climat e change , th e socio-economi c impac t andimpact s o

f propose dcontro l mea sure s —als o accurat e andbalance dIpubli c educatio n t

o increas e understandin g o nwha t is , andwha

t i s not . know

n about global cli

mai e issues, " sai dMr. Lambrix . Th e Phillip s Petroleu mexecutiv e als o pointe dout

that globa l climat e chang e "I s an issu e affectin g al l o

f us . requirin g global co Continue do o Pag e 48 

# BAS F Win s New Roun d I n Lousian a Labo rBattl e BAS FCorporatio n di dno t violat e th e Nationa l Labo r

Relation s Ac t

b y perma nentl y subcontractin g maintenanc e wor k a t it s Geisma r

work s i n Louisiana , accordin g t o aFebruar y 1 5 decisio n b y th e regiona l offic e o

f th e Nationa l Labo r Relation s Boar d(NLRB ) i n Ne w Or

leans . Th e rulin g I s I

n referenc e t o charge s brough t b y th e Oil , Chemica

l an dAtomi c Worker s Union , whic

h allege dtha t

B AS Fhad no t bargaine dI

n goo dfait h a t th e Geismar facilit y -n dba dviolate dth e law . The decisio n b

y th e NLRB' s regional direc

to r wa s th e secoo di

nBASF' s favor

withi n te n day s concernin g 25 charge s originall y brough t by th e union las t

May . I n th e Febru

ar y 1 5 rulin g oo seven o

f th e union' s charges , th e NLRB' s regiona

l directo r declare dtha t BAS Fdidnot

violat e th e ac t

"b y perma nentl y subcontractin g maintenanc e wor k previousl y performe db y ani l employee s inasmuch a s th e permanen t subcontractin g bega n after 'h e lockou

t ended , aadafte r

th e partie s ha

dbargaine dI

n goo dfait ht o im

pass e on thi s issae. " It

wi s fo r thes e reason s that th e NLR H w u "refusin g t o utsu

e acom plain t i n thi s matter. " BAS FImpiemesle da lockout o n J-a e 15.1984 when , afte r complet

ing numeiou s negotiatin g sessions , th e unio n refuse dt o compromis e o n it s demand s fo

r wag e andbenefit s increases . The compan y lifte dtb e lockou t

I n Octobe r

198 7 an d brough t back al l but tb e facility' s mainte

nanc e workers . Thes e employee s wer e re place dby contrac t

employees . I n aFebruary 6 rulin g on I B o f tb e union' s charges , th e NLR

B genera l counse l i

n Wash

ington . D.C . sai dthat

BAS Fha dnot engage d i n bad-fait hbargainin g wit

hih e union . The genera l counsel als o foun dtha t "althoug h BASF , fo r purpose s o

f efficiency , remaine d fir mi n it s decisio n t o subcontrac t mainte

nanc e work , i

t a t variou s time s mad e pro posal s designe dl o continu e th e employmen t of . o r eas e th e Impac t

upon , th e maintenanc e employee, " at

tb e Geisma

r facility . BAS Fha s o'fere dIh e Geismar facility' s approximatel y 10

0 terminate dmaintenanc e worker s a

n "effects-bargaining " packag e tha t Include s aseveranc e pa y plan an dre tiremen t incentive- . I

n addition , th e com pan y offeredl o negotiat e concernin g tb e em ploymen t o f terminate dmaintenanc e work

er s i n tb e Geisma

r operations , andt o discus s outplacemen t

service s whic

hcoul dhav e re sulte dI n employment

a t othe r BAS Floca

tion s or wit h other employer* . " . be unio n ha s resiste dthes e proposals . The Ceuma r

facilit y i s BASF s larges t manufacturin g plant

i n Nort hAmerica . 

# 1 A-90 - 

# BP A Producers Se

< H+ M Capacity Loosenin g Dliphenol- A producer , ar e scram blin g t o mee t

commitment s I

n asnu g 198 9 marketplace . Nex t year , however , th e Industr y shoul dloose n u p apprecia

bl y a s majo r

c apnclt y addition , com e o n stream . * "Thing * ar t

ver y tight I n o w system , and w e don' t believ e other

producer s hav e exrm a matcrlal , cither . flupftenol-A ha s tradition

ally bee n i . cooperativ e Induatry " concernin g auppl y arrangement s "but

th e ability Is Just no t there now, " say . amanufacturer . Th e tw o dominant

outlet * fo

r th e produc t

—polycarbonat e resi n an depox y resi n — hav e bot hbeen enjoying itlrong growt hrate s th e pas t coupl e years , wit

h polycarbonates ' well int o double-digl l territor y Significant contributor s ar e sai dt o Includ e transporta tion , alloys , packagin g an dvariou s consume r Items . Epox y resi n demandh* » bee

n surprisingl y strong , recordin g a

n 8. 8 percent

Increas e I

n 198 7 anda n estlmntc dris e o

f 10 percen t

I n 1 1 percent i n 198 8 The majo r

applicatio n fo

r epoxy resin s I

s i n surfac e coating? . Continuing healthy growt h I n polycarbon

at e an depoxy resin s i s expecte dt o keep th e blsphenol- A marke t

tigh t throughout

1989 , a s n o majo r capacity addition s will be arrivin g unti l ver y lat e i n th e yea r a t th e earliest . A smal l BP

A expansio n i s schedule dl o cw mo n strea mn»t t

T«ert" » a

t ArnurS j Chemica l Corporation s IU-W^III . OH M fa

cilit y Thai mov e will nw * li e imuaamy* capacity by 34 millio n omnia, t o ttt milium Con-rvmdo n Pam 1 1

Joh n a Mhttaon

Jr.. w d*H l O f AfC O 0>WF_>«t-_-

l Al%-#f1CaW

. V W l-WJV^ I ^ f ffww* wofklNrtcJ-

f unit. , niewtt f tafjf^d tff *VQ O 

# Bioge n Interfero n Paten t I s Reinstate d byth e E C Th e Europea n Paten t

Offic e ha s de

cide dt o reinstat e Biogen , Inc.' s paten t fo r geneticall y engineere dalph ainter

ferons . Th e decisio n wa s hande ddow n b y th e technica l boar do f appeals , th e highes t lega l aut K

':; y o f th e Europea n Paten t Office . Thi s decisio n reverse s th e previou s revo catio n o f th e BioRe n paten t b y th e European paten t office' s oppositio n divisio n The Boar d hel dthat Bioge n s alpha- 2 interfero n claim s were patentabl e i

n al l respects . It remande dBiogen' s broad , generi c claim s fo r processe s an dIntermediate s fo r producin g recombinan t

alph ainterferon s t o th e oppositio n division , solel y fo r decisio n o

n on e issue , "inventiv e step " —a n Issu e no

t addresse di

n th e Jun e 198

7 decisio n o

f th e oppositio n division . I

n al l othe r

respects , th e boardfoun

dthes e claim s t o be patentable . The Bioge n patent , file

di n 1980 . i s base do

n th e pioneerin g wor

k o f Professo r

Charle s Weissman n o f th e Universit

y o f Zuric hSche

ring-PloughCorporatio n market s recombi

nant alph.i- 2 interf-ro o urde r th e brass}

- nam e Intro n A' througha n reclusiv e worl d wid e licensin g .ljtrwmen t

wi: h Biogen 'W e view Ih e board' s dechio n a i r v trcmcl y significant

I n Ih e fk t J o f biotechnol

og y patro l law."saysS-ttaa f 'Onstad . direc

to r fo r patent s international fo r Schermg

Plough Becaus e Biogen' s aloh ainterfero n was (h e f in t biotechnology ras e t

o be decide d b y th e technical boar

do f appe.il s after

oppo sitio n proceedings , thi s dectuo o set s aprece den t that shouldg o alon

g wi y i n helpin g biotechnology companie s protec t Ihe i lerlua l propert

y right s internationall y "Th e board' s decisio n establishe s that our licensor Bioge n was th e firs t

t« > produc e re combinant

alpha- 2 interferon , th e onl y spe cie s o f recombinant

alph ainterfero n no

w o n th e market. " h

e adde d Th e board' s decisio n make s u s even mor confiden t i n ou r ability t o main t

i ou r com mercia l momentu mandamajo i 3*<ar e o f th e worldwide interfero n markrt , ay s Hug h A O'Andrade , executiv e vice-presjdent —ad

ministratio n o i Schenng-Plougb , 

# Cellulos e Acetat e Deman d Soars ; Fibers an d Filters Are Sol d Ou t Deman dfo r

cellulos e acetat e cigarett e filte r

to w i n Chin aha s th e spot buyin g element s o

f thi s marke t

scram blin g fo r

materia l aroun dth e world . Producer s sa y tb e relativ e wealt h an d autonom y o f

severa l province s ha s opene dChin at o th e conversio n fro m non-filtere dt o filter-tippe dcigarett e smokin g tha t

bega n i n th e U S S

O year s ago . U S cigarett e consumptio n i s no w 95. 7 filter-tippe dan di s declinin g yea r b y yea r du e t o healt h concern- . China' s consumption , however , Is approxi

matel y 3 5 percen t

converte d(andwomen ar e onl y beginning t o smok

e there ) an dcellulos e acetat e producer s say th e proces s o f conver sion wil l las t

Int o Ih e 1990s , keepin g acetat e to w supplie s tigh t

despite deboUlenecking s at every to w plan t Producer s ar e not

ye t ready thought o In

ves t i n grassroot s plant s becaus e tb e cellu

los e acetat e flake andspinnin g procesM

- ar e particularl y expensiv e an dbecaus e pricin g i s stil l belo w reinvestmen t level s o n majo r contracts . Majo r buyer s get

discount s o

f 25

- 5 5 percen t The spot marke t fo r acetat e fille r

to w rep resent s onl

y 10 percen t

o f th e buuaets . un

cordin g t o producers , so dwhile sjo t price * hav e doubledi

n th e las t tw o years , domesti c price s hav e onl

y movedup I

n rrspo<» e ion * materia l woo

dpulp coats , about

1 5 percent Expor t fibe r deman dha s als o puke dup i n Ih e pas t yea r a s Sout h Korea n b.yta t fo r garmen t lining s andlabel s ha s Unlive doo th e strength o

f fashion trend s an dt o rcphc e materia l now going int o lo w Flak e mad e fo r appare l fibe

r can als o b e usedfo

r ta* . bu s "flip-flopping " o o end-us e i s no t raay . ac cordin g t o aproducer Lsc k o f lo w pU.it capacit y wil ! proior g China' s conversio n procesa . acco«nn « t> < oru- .ucers . andwil l holdgrowt hback fro mapossibl e 7 percent

t o approomit-i y 7. 5 percen t

Chinacurrentl y make * I J tril

lion cigarette s per

year , filtfm l * lere dandconsume s abou

x 132 mil l o f tow . The RJ . neynoU- s Tc-«acc v .'cmwut y openedth e firs t

Join t vestur e ttgatti Continue don P_c

- 1 * F*xva*yZ7,lvW CHE-sBCAi . i-UJW-TTHQ 5__pcrrr£- i

### P. 3

### P. 4 

# AROMATI C ORGANICS BP A Producer

s pound s fro m 19 2 millio n pounds . A four wee k shutdow n wil l b e take n durin g thi s perio d Aristech' s additio n wil l lif t tota l industr y nameplal e capacit y t o 1.17 1 billio n pound s fro m 1.13 7 billio n pcunds . Sotecquen t industr y move , ar e expecte d t o remi t i n a ne t ris e t o betwee n 1.5: J bUlk n pound s an d 1.S7J billlo a pound s b y tb e middl e o f nex t year . Thj s amount s t o a one-yea r hik e i o Mspbe nol- A productio n capabilit y o f betwee n 3& 0 millio n pound s an d 40 0 millio n pounds , whic h translate s Int o a SO-to-34-percen t potentia l productio n surge . I a al l likelihood , then , ther e wil l be a fai r amoun t o f excesscipacil y around , whic h migh t Itensif y competitiv e pressure s i n th e short-ter m bu t sboU d hel p th e industr y sustai n projecte d long-ter m growt h levels . Th e firs t majo r BP A additio n schedule d fo r startu p i s Shel l Chemica l Compan y a t Dee r Park , Tex . Shel l say s th e foundaUo n I s bein g lai d lo r it s 2S0-mii:ion-potin d projec t whic h I s targete d t o com e o n strea m .'at e thi s yea r o r i a earl y 1890 . Shel l ha s sai d tha t a certai n airoun t o f rationalisatio n o f olde r capacit y a t th e 350 - milllon-poun d sit e wil l b e feasibl e imc e th e n e * uni t i s running . Riva l produce TM expec t th e compan y t o tik e dow n betwee n 12 5 mil lio n pound s an d 1 S

O millio n pound s o f prodoe tio n capabilit y (take n int o accoun t above ) whic h ha s bee n runnin g sinc e tb e earl y 1970* . 

### GESTARTU P Genera l Electri c i s believe d t o b e target tin g th e firs t quarte r o f nei t yea r fo r th e startu p o f a uni t a t Burkeville , Ala . Capacit y I s estimate d by industr y source ! betwee n 15 0 millio n pound s an d 17 5 millk n poinds . G E no woperate s a 370-milUoB-poun d facilit y l a Moun t Vernon , Ind . Whil e G E I s sai d t o b e movin g forwar d wit h It s plant , a n ai r permittin g difficult y a t th e ..sit e (CM R 10/10/8S , pg . 14 ) remain s unre solved . A sourc e a t th e Alabam a Departmen t o f Environmenta l Managemen t sa y i tha t at torney s representin g partie s objectin g t o G E s attemp t t o alte r It s origina l plan s fo r certai n boiler s a t th e sit e "ar e brlnjrln g o p a bunc h c f ver y fin e points. " Thi s ha s resulte d i n a n unusuall y lon g ap pea l proces s whic h i s no t eipeete d » b e set tle d unti l nex t quarte r an d coul d thro wa wrenc h int o GE . plan s i f tb e boiler t a t Issu e ar e disallowed . flo wChemica l Compan y say s i t wil l ad d 10 0 millio n pound s o f outpu t capabilit y t o I U frreport, Tex . comple x durin g 1J8» , startu p I s likel y durin g Ih e secoo d quarter , Industr y source s say . A Do wsourc e ha s previousl y sai l tha t th e compan y Intende d t o ad d ye t anothe r IS O millio n pound s o f btapbeool- A s t a late r date . No wa sourc e a t Do wsay s tha t thtr e ar e n o fir m plan s fo r furthe r additions . Aristec h nay s i t ha s n o definit e plan s o n whethe r I t wil l buil d a bisphenol- A uni t t o accompan y it s SOO-millioo-poun d leedstoc k Conttnuo d from Pop e 5 pheno l plan t whic h i s schedule - t a com e o n strea m b y th e en d o f Iff ] I n Louisiana . Producer s not e tha t al l o f th e bi*pheool- A capacit y comin g o o strea m I s o f th e highe r quality , polycarbonate-grad e material , a logica l developmen t since tha t marke t la larger , les s mature , an d mor e valne^ddnd . A Mspheaol- A produce r say s that , give n 

## PRIC E TRENDUNE S WEE KENDIN G FEB . 24.198 9 

## CHANGES/U P M M 

### CHANGES/DOW N AHOMATfCSINPE X Th e .Aromati c Organic s inde x reflect s th© price s o f 1 4 represent,liv e material s s i thi s secto r an d th e quantit y o f each produce-i n 1987 . Februar y 24,1M B 237.1 5 Februar y 17,198 9 237.1 S Januar y 27,198 9 233.4 2 Februar y 28.198 8 1673 4 Ctm*c1Pncm

Star t o n Peja 3 4

## a^emnamWaTawmnmeamth e risin g anilit y requirement s o a epoxy grad e material , "long-term , you'r e onl y go in g t o hav e on e (B r A ) grade. " a s polycarbon ate-grad e materia l ca n b e use d n epos y ap plications . "Sinc e it' s fairl y clea r tha t polycarbonat e I s goin g t o b e th e drivin g forc e I n Ih e market , th e bispbenol- A availabl e worldwid e I s goin g t o b e polycarbonat e grade, " comor s anothe r BP A producer . Renectin g th e stron g growt h I n polycarbonate s an d eposies , btspoenol- A pricin g ba s bee n fir m th e pas t coupl e years . Mos t recently , a S-cent-per-poua d Increas e wa s pu t throug h Januar y I . BT X —Spo t benzen e I s quote d betwee n $1.5 0 pe r gallo n an d tl.S S pe r aalloo , whil e spo t toluen e I s quote d betwee n f 1.1 0 pe r gal lo n an d 11.1 5 pe r gallon . - Bot h level s ar e equivalen t t o portion s o f tb e previous week' s quotations . However , th e benzen e marke t ha s arrive d a t It s positio n afte r a considerabl e dro p fro m th e en d o f las t month , whil e lb * toluen e marke t ha s re bounde d appreciabl y fro m a simila r decline . Benzen e contrac t posting s o f 11.7 $ pe r gal lo n thi s mont h fac e th e likel y prospec t o f a substantia l cu t fo r Marc h 1 unles s th e spo t marke t recovers . Tb e xylen e marke t remain s firm . Spo t pricin g i s quote d betwee n 11.5 0 pe r gallo n an d 11.5 5 pe r gallon . 

### BUTY L CATECHO

L - Melrlebem/DIC 

## AROMATI C ORGANI C EXPORTS : DECEMBE R BUREA U O F CCNSU S FIGURES I N POUNDS O N TH E KE Y AROMATICS .

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SVALU E iMsoas e TSjm.41 7 aa,aaa^e 4 is,asa.i* 4 JSJ71J M •XOMI I 1M14J W ri.iisj u isj4r,s a 4t,mjOST %.n7jm ia.iii.4 M 7.1M.1J J S I MUS I 114SS.00 S tMJiaja r S1J40.M S 141.1r1.a1 1 1SJ17.7 M isr. M 1.41 0 isuMji i 

# Pyridin e stil l pyridin e -terirattw i Improve : D A^rinltun l Proui-t i OCafelysi s D Rubbe r dwinlcit t DPtetr a D PhannacsatlGal

s DtatHe , Pyridin e o r K

s derivative s coul d be

you r answe r to Improvin g processes , devsl opin g ne wapplication s o r Intermediates , o r creatin g entirel y ne

wtechnologies . C k i r tecfviica l assistanc

e an d RA O ca n hel p yo u put . Neper a . Improved , quality- ' consisten t pyridine t

o It s bes t us e foryou r products . Cal l o r writ e fo r Dat a File today

. 

# NEPERA

Th e peopl e t o tal k

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