P.1 

OAR Box 1872 

Prepped by Keeia Richards 

Document Number: 

5) 11-1-54 

Docket Number: 

A-90-19 

Printed 11/26/2008 8:51:47 AM Sheet 5 of 204 
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R-Mardwi bare -reaied. rrnmcriciil 

. • Con-ooo. on Page 22 

Global Warming Needs 

More Study, Congress Told 

Scientific experts on the phenomenon 

of global warming told Congress last 

week that more research and additioning funding for research are needed before the true extent of the problem can 

be determined 

Meanwhile. Rep. Claudine Schneider (RRL) introduced legislation she said would 

promote energy savings and spur the development of solar and renewable resources 

that do not add to global warming. 

Some 60 other House members co-sponsored the wide-ranging measure which would 

establish national and international goals of 

reducing current carbon dioxide emissions 

by 20 percent by the year 2000. and phase out 

chloronuorocarbon production over the next 

six yean. 

Prominent government scientists told the 

House Energy & Commerce Committee that 

press coverage of th« 'greenhouse effect" 

has been simplistic and sensational. Other 

experts testified before the House appropriations foreign operations subcommittee. 

While the witnesses agreed in general that 

the continued emission of certain greenhouse 

gases (primarily CO,. CH,, NO_ CFCs and 

omoe) would lead (o global warming in the 

long term, they were unsure of how warm the 

globe will bo and what 'fleet the warming 

would have on humans. 

Presenting the business community's point 

of \ lew on global warming. National Association of Manufacturers told the Senate Commerce. Science & Transportation Committee 

it strongly supports integrated scientific research as proposed in legislation sponsored 

by committee chairman Sen. Ernest Hoi lings 

(D-S.C). 

But Thomas G. Lambrix. director of government relations. Phillips Petroleum Company, stressed that climate change isa global 

issue demanding global cooperation in seeking evidence, answers and policy. 

He said NAM supports continuing development of climatic science to address the 

broad, far-reaching questions on global climate patterns. "Manufacturers support aggressive research into the cause and effect of 

global climate change, the socio-economic 

impact and impacts of proposed control measures — also accurate and balanced Ipublic 

education to increase understanding on what 

is, and what is not. known about global climaie issues," said Mr. Lambrix. 

The Phillips Petroleum executive also 

pointed out that global climate change "Is an 

issue affecting all of us. requiring global coContinued oo Page 48 

BASF Wins New Round 

In Lousiana Labor Battle 

BASF Corporation did not violate the 

National Labor Relations Act by permanently subcontracting maintenance 

work at its Geismar works in Louisiana, 

according to a February 15 decision by 

the regional office of the National Labor 

Relations Board (NLRB) in New Orleans. 

The ruling Is In reference to charges 

brought by the Oil, Chemical and Atomic 

Workers Union, which alleged that B ASF had 

not bargained In good faith at the Geismar 

facility -nd bad violated the law. 

The decision by the NLRB's regional director was the secood in BASF's favor within ten 

days concerning 25 charges originally 

brought by the union last May. In the February 15 ruling oo seven of the union's charges, 

the NLRB's regional director declared that 

BASF did not violate the act "by permanently subcontracting maintenance work 

previously performed by anil employees 

inasmuch as the permanent subcontracting 

began after 'he lockout ended, aad after the 

parties had bargained In good faith to impasse on this issae." It wis for these reasons 

that the NLRH wu "refusing to utsue a complaint in this matter." BASF Impiemesled a 

lockout on J-ae 15.1984 when, after completing numeious negotiating sessions, the union 

refused to compromise on its demands for 

wage and benefits increases. The company 

lifted tbe lockout In October 1987 and 

brought back all but tbe facility's maintenance workers. These employees were replaced by contract employees. 

In a February

 6 ruling on IB of tbe union's 

charges, the NLRB general counsel in Washington. D.C. said that BASF had not engaged 

in bad-faith bargaining with ihe union. The 

general counsel also found that "although 

BASF, for purposes of efficiency, remained 

firm in its decision to subcontract maintenance work, it at various times made proposals designed lo continue the employment 

of. or ease the Impact upon, the maintenance 

employee," at tbe Geismar facility. 

BASF has o'fered Ihe Geismar facility's 

approximately 100 terminated maintenance 

workers an "effects-bargaining" package 

that Includes a severance pay plan and retirement incentive-. In addition, the company offered lo negotiate concerning tbe employment of terminated maintenance workers in tbe Geismar operations, and to discuss 

outplacement services which could have resulted In employment at other BASF locations or with other employer*. ". be union has 

resisted these proposals. 

The Ceumar facility is BASFs largest 

manufacturing plant in North America. 

1 A-90-

BPA Producers Se< H+M 

Capacity Loosening 

Dliphenol-A producer, are scrambling to meet commitments In a snug 

1989 marketplace. Next year, however, 

the Industry should loosen up appreciably as major ca pnclty addition, come on 

stream. * 

"Thing* art very tight In ow system, and 

we don't believe other producers have exrma 

matcrlal, cither. flupftenol-A has traditionally been i. cooperative Induatry" concerning 

aupply arrangements "but the ability Is Just 

not there now," say. a manufacturer. 

The two dominant outlet* for the product 

— polycarbonate resin and epoxy resin — 

have both been enjoying itlrong growth rates 

the past couple years, with polycarbonates' 

well into double-digll territory Significant 

contributors are said to Include transportation, alloys, packaging and various consumer 

Items. 

Epoxy resin demand h*» been surprisingly 

strong, recording an 8.8 percent Increase In 

1987 and an estlmntcd rise of 10 percent In 11 

percent in 1988 The major application for 

epoxy resins Is in surface coating?. 

Continuing healthy growth In polycarbonate and epoxy resins is expected to keep the 

blsphenol-A market tight throughout 1989, as 

no major capacity additions will be arriving 

until very late in the year at the earliest. 

A small BPA expansion is scheduled lo 

cwm on stream n»tt T«ert"» at ArnurSj 

Chemical Corporations IU-W^III. OHM facility Thai move will nw* lie imuaamy* 

capacity by 34 million omnia, to ttt milium 

Con-rvmd on Pam 11 

John a Mhttaon Jr..w 

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Biogen Interferon Patent 

Is Reinstated by the EC 

The European Patent Office has decided to reinstate Biogen, Inc.'s patent 

for genetically engineered alpha interferons. The decision was handed down by 

the technical board of appeals, the 

highest legal autK ':;y of the European 

Patent Office. 

This decision reverses the previous revocation of the BioRen patent by the European 

patent office's opposition division The Board 

held that Biogen s alpha-2 interferon claims 

were patentable in all respects. 

It remanded Biogen's broad, generic 

claims for processes and Intermediates for 

producing recombinant alpha interferons to 

the opposition division, solely for decision on 

one issue, "inventive step" — an Issue not 

addressed in the June 1987 decision of the 

opposition division. In all other respects, the 

board found these claims to be patentable. 

The Biogen patent, filed in 1980. is based on 

the pioneering work of Professor Charles 

Weissmann of the University of Zurich Schering-Plough Corporation markets recombinant alph.i-2 interf-roo urder the brass}-

name Intron A' through an reclusive world 

wide licensing .ljtrwment wi:h Biogen 

'We view Ihe board's dechion ai r v 

trcmcly significant In Ihe fkt J of biotechnology patrol law."saysS-ttaaf 'Onstad. director for patents international for SchermgPlough Because Biogen's aloha interferon 

was (he f int biotechnology rase to be decided 

by the technical board of appe.ils after opposition proceedings, this dectuoo sets a precedent that should go a long wiy in helping 

biotechnology companies protect Ihei 

lerlual property rights internationally 

"The board's decision establishes that our 

licensor Biogen was the first t«> produce recombinant alpha-2 interferon, the only species of recombinant alpha interferon now on 

the market." he added 

The board's decision makes us even morconfident in our ability to maint i our commercial momentum and a majoi 3*<are of the 

worldwide interferon markrt, ay s Hugh A 

O'Andrade, executive vice-presjdent — administration oi Schenng-Plougb, 

Cellulose Acetate Demand Soars; 

Fibers and Filters Are Sold Out 

Demand for cellulos e acetat e 

cigarette filter tow in China has the spotbuying elements of this market scrambling for material around the world. 

Producers say tbe relative wealth and 

autonomy of several provinces has 

opened China to the conversion from 

non-filtered to filter-tipped cigarette 

smoking that began in the US SO years 

ago. US cigarette consumption is now 

95.7 filter-tipped and is declining year by 

year due to health concern-. 

China's consumption, however, Is approximately 35 percent converted (and women are 

only beginning to smoke there) and cellulose 

acetate producers say the process of conversion will last Into Ihe 1990s, keeping acetate 

tow supplies tight despite deboUleneckings 

at every tow plant 

Producers are not yet ready though to Invest in grassroots plants because tbe cellulose acetate flake and spinning procesM- are 

particularly expensive and because pricing 

is still below reinvestment levels on major 

contracts. Major buyers get discounts of 25-

55 percent 

The spot market for acetate filler tow represents only 10 percent of the buuaets. uncording to producers, sod while sjot price* 

have doubled in the last two years, domestic 

prices have only moved up In rrspo<»e ion * 

material wood pulp coats, about 15 percent 

Export fiber demand has also puked up in 

Ihe past year as South Korean b.ytat for 

garment linings and labels has Unlived oo 

the strength of fashion trends and to rcphce 

material now going into low Flake made for 

apparel fiber can also be used for ta*. bus 

"flip-flopping" oo end-use is not raay. according to a producer 

Lsck of low pU.it capacity wil! proiorg 

China's conversion procesa. acco«nn« t>< oru-

.ucers. and will hold growth back 

from a possible 7 percent to approomit-iy 

7.5 percent China currently make* IJ trillion cigarettes per year, filtfml * 

lered and consumes aboux 132 mill 

of tow. The RJ. neynoU-s Tc-«accv .'cmwuty 

opened the first Joint vesture ttgatti 

Continued on P_c- 1 * 

F*xva*yZ7,lvW CHE-sBCAi. i-UJW-TTHQ 5__pcrrr£-i 
P.3 
P.4 

AROMATIC ORGANICS 

BPA Producers 

pounds from 192 million pounds. A fourweek shutdown will be taken during this 

period Aristech's addition will lift total 

industry nameplale capacity to 1.171 

billion pounds from 1.137 billion pcunds. 

Sotecquent industry move, are expected 

to remit in a net rise to between 1.5:J bUlkn 

pounds and 1.S7J billloa pounds by tbe middle 

of next year. 

Thjs amounts to a one-year hike io Mspbenol-A production capability of between 3&0 

million pounds and 400 million pounds, which 

translates Into a SO-to-34-percent potential 

production surge. Ia all likelihood, then, 

there will bea fair amount of excesscipacily 

around, which might Itensify competitive 

pressures in the short-term but sboUd help 

the industry sustain projected long-term 

growth levels. 

The first major BPA addition scheduled 

for startup is Shell Chemical Company at 

Deer Park, Tex. Shell says the foundaUon Is 

being laid lor its 2S0-mii:ion-potind project 

which Is targeted to come on stream .'ate this 

year or ia early 1890. 

Shell has said that a certain airount of 

rationalisation of older capacity at the 350-

milllon-pound site will be feasible imce the 

n e * unit is running. Rival produceTM expect 

the company to tike down between 125 million pounds and 1 SO million pounds of prodoetion capability (taken into account above) 

which has been running since tbe early 

1970*. 

GESTARTUP 

General Electric is believed to be targetting the first quarter of neit year for the 

startup of a unit at Burkeville, Ala. Capacity 

Is estimated by industry source! between 150 

million pounds and 175 millkn poinds. GE 

now operates a 370-milUoB-pound facility la 

Mount Vernon, Ind. 

While GE Is said to be moving forward with 

Its plant, an air permitting difficulty at the 

..site (CMR 10/10/8S, pg. 14) remains unresolved. A source at the Alabama Department 

of Environmental Management say i that attorneys representing parties objecting to 

GE s attempt to alter Its original plans for 

certain boilers at the site "are brlnjrlng op a 

bunch cf very fine points." 

This has resulted in an unusually long appeal process which is not eipeeted » be settled until next quarter and could throw a 

wrench into GE . plans if tbe boilert at Issue 

are disallowed. 

flow Chemical Company says it will add 

100 million pounds of output capability to IU 

frreport, Tex. complex during 1J8», startup 

Is likely during Ihe secood quarter, Industry 

sources say. 

A Dow source has previously sail that the 

company Intended to add yet another ISO 

million pounds of btapbeool-A st a later date. 

Now a source at Dow says that thtre are no 

firm plans for further additions. 

Aristech nays it has no definite plans on 

whether It will build a bisphenol-A unit to 

accompany its SOO-millioo-pound leedstock 

Conttnuod from Pope 5 

phenol plant which is schedule- ta come on 

stream by the end of Iff ] In Louisiana. 

Producers note that all of the bi*pheool-A 

capacity coming oo stream Is of the higher 

quality, polycarbonate-grade material, a 

logical development since that market la 

larger, less mature, and more valne^ddnd. 

A Mspheaol-A producer says that, given 

PRICE TRENDUNES 

WEEK ENDING FEB. 24.1989 

CHANGES/UP 

M M 

CHANGES/DOWN 

AHOMATfCSINPEX 

The .Aromatic Organics index reflects 

th© prices of 14 represent,live materials 

si this sector and the quantity of each 

produce-in 1987. 

February 24,1MB 237.15 

February 17,1989 237.1S 

January 27,1989 233.42 

February 28.1988 1673 4 

Ctm*c1Pncm Start on Peja 34 

a^emnamWaTawmnmeamthe rising anility requirements oa epoxygrade material, "long-term, you're only going to have one (Br A) grade." as polycarbonate-grade material can be used n eposy applications. 

"Since it's fairly clear that polycarbonate 

Is going to be the driving force In Ihe market, 

the bispbenol-A available worldwide Is going 

to be polycarbonate grade," comors another 

BPA producer. Renecting the strong growth 

In polycarbonates and eposies, btspoenol-A 

pricing bas been firm the past couple years. 

Most recently, a S-cent-per-pouad Increase 

was put through January I. 

BTX — Spot benzene Is quoted between 

$1.50 per gallon and tl.SS per aalloo, while 

spot toluene Is quoted between f 1.10 per gallon and 11.15 per gallon. -

Both levels are equivalent to portions of 

tbe previous week's quotations. However, the 

benzene market has arrived at Its position 

after a considerable drop from the end of last 

month, while lb* toluene market has rebounded appreciably from a similar decline. 

Benzene contract postings of 11.7$ per gallon this month face the likely prospect of a 

substantial cut for March 1 unless the spot 

market recovers. 

Tbe xylene market remains firm. Spot 

pricing is quoted between 11.50 per gallon 

and 11.55 per gallon. 

BUTYL CATECHOL - Melrlebem/DIC 

AROMATIC ORGANIC EXPORTS: DECEMBER 

BUREAU OF CCNSUS FIGURES IN POUNDS ON THE KEY AROMATICS. 

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0.1. . 

ouMrmv SVAU * 

...» . 1.IJS.1J0 1.014.M4 

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...*. *.saaj«4 

...•». ii.rn.MS 

...fe. IXOSJATt 

...fe. a.ies.tS7 

...fe. iMiijrrs 

...a>. ii.srus i 

...fe. 1.744.S1S 

...fe. 3.444JS1 

...fe. 1.M.W 

...fe. 1.4S4JJ4 

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...«>. san.xa 

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141S.414 

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soo.roa 

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t*SJ4«.1SS 

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ftunrim* 

st.aM.rrr 

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in.aer.eo* 

fuai.r o 

n.M4.tia 

is.ssi.sor 

III.MT.O M 

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r1.a4r.011 

1M444.U1 

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1JO.OM.111 

IM.541.M4 

TOM . 

SVALUE 

iMsoase 

TSjm.417 

aa,aaa^e4 

is,asa.i*4 

JSJ71JM 

•XOMI I 

1M14JW 

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7.1M.1JJ 

SI MUS I 

114SS.00S 

tMJiaja r 

S1J40.MS 

141.1r1.a11 

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isr. M 1.410 

isuMji i 

Pyridine 

still pyridine -terirattwi Improve: 

D A^rinltunl Proui-ti OCafelysis 

D Rubber dwinlcitt DPtetra 

D PhannacsatlGals DtatHe, 

Pyridine or Ks derivatives 

could be your answer to 

Improving processes, devsloping new applications or 

Intermediates, or creating 

entirely new technologies. 

Ck ir tecfviical assistance and 

RAO can help you put. 

Nepera . Improved, quality-' 

consistent pyridine to Its best 

use for your products. 

Call or write for Data File today. 

NEPERA 

The people to talk to 

for pyridine chemistry 

Nepera, Inc. 

, Route 17. Hamman. NY 10926 

(914) 782-1200 

*CALCURETMCQ 

d,.-CAMPHORQUINONE 

T oo Gradm-99 % Purity and 90% Purlly 

Available Immediately 

Literature. Mmplas and orders placnd al me.. . 

CALCIJRETM HOTLINE (714) 621 -4635 

for at • Mt) Ol cmt g ssO-fHB 

SOUTHWEST PHOTO CHEM. INC. 

599 So. East End Ave.. Pomona. CA 91766 

J 

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