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Industry/Business Chemical production was almost fully recovered
from the recession as 1975 ended. December figures from the Federal Reserve System show production of chemicals and allied products at an index reading of 155.2 (1967 = 100), just 2% under the record 158.3 of September 1974. For the fourth quarter, average monthly production went up 5% over the average for the third quarter. This gain compares with the 8% increase in the third quarter over the second quarter. The strong fourth-quarter increase came despite fears of plateauing in some chemical markets, particularly fibers and plastics.
Foreign investment in the U.S. dropped sharply in 1975 from 1974. In New York Gity last week, the Conference Board said that foreign firms announced 161 U.S. investments in 1975, down 35% from 249 in 1974. Slack economic conditions in the U.S. and abroad contributed heavily to the dip, spurring a number of companies to cancel or postpone investments that had been announced in 1974 and early 1975. Even so, total investments were substantially higher in 1975 than in the early 1970's and likely will rise in 1976. One strong reason the Conference Board mentions for the new rise is plans by European chemical companies that have little or no manufacturing in the U.S.
Surfactants are about a 4 billion lb annual market and will grow at an average 3% annual rate between now and 1980, according to a comprehensive report from Roger Williams Technical & Economic Services, Princeton, N.J. Among surfactant types, nonionics and cationics will have the greatest tonnage growth, about 9% per year during the next five years. For anionics, population-related growth is due for soap and a trifle faster pace for the workhorse alkylbenzene sulfonates. The best growth prospects, however, are for specialty sulfonates and sulfated ether products.
Monsanto's Roundup herbicide has won approval for U.S. and Canadian crop use following seven years of testing. In the U.S., the herbicide now has EPA's acceptance for pre-emergent use in corn, soybeans, wheat, barley, oats, and sorghum. Nonselective and nonpersistent, Roundup is a water-soluble formulation of the isopropylamine salt of glyphosate. Roundup was introduced in the U.S. in early 1974 for industrial uses.
Government EPA has moved to sharply curb air pollutants emitted
by new copper, lead, and zinc smelters. Recent studies have shown a higher than average number of lung cancer deaths among people living near arsenic-emitting, nonferrous smelters, such as copper smelters (C&EN, April 14, 1975, page 5). EPA estimates that the new rules will reduce smelter air pollutant emissions about 95% from
previous uncontrolled levels. The rules limit particulate discharges to 50 mg per eu m and the sulfur dioxide contained in gaseous emissions to 0.065% of volume.
FDA has banned the use of dye Red No. 2, a widely used coloring agent, in food, drug, and cosmetic products because an FDA study "suggests that it is a weak carcinogen" (C&EN, Jan. 19, page 7). The ban is effective immediately. But FDA will permit manufacturers to sell products that already contain the dye. About 1.1 million lb of the dye worth $2.9 million was sold in the U.S. in 1973, the latest year for which data are available.
Washington roundup • The Senate has confirmed Dr. Andrew W. Breiden-
bach, a biochemist, as EPA's new assistant administrator for water and hazardous materials. Breidenbach previously served as director of EPA's Research Laboratory in Cincinnati.
• HUD plans the first large-scale test of using solar energy to heat and cool dwellings. It is providing $1 million in grants for installation of solar units in 143 dwellings in 27 states.
International A Caribbean superport officially opened last week.
The port is a supertanker transshipment terminal at Bonaire in the Netherlands Antilles owned by Bonaire Petroleum Corp. N.V. (BOPEC). Facilities can handle tankers up to 500,000 deadweight tons and provide 8.3 million bbl of storage capacity. A shipping consultant estimate gives a current savings of at least 59 cents per bbl by the BOPEC terminal over direct shipment to the U.S. from the Middle East or Africa in smaller tankers. This advantage is projected to increase to between $1.44 and $2.23 per bbl in 1980.
U.K. chemical trade balance last year was 37% ahead of the 1974 level. The record surplus of some $2 billion of exports over imports stemmed from two factors. The $5.7 billion earned from exports, up a mere 1.6% over the 1974 value, reflects higher world prices on a reduced volume of exports. But chemical imports at $3.7 billion were 11% off from the 1974 figure because of the low level of industrial activity in the U.K.
West German chemical companies are teaming up in a nuclear fuel reprocessing venture. Bayer, Gelsenberg, Hoechst, and Nukem are partners in Kernbrennstoff-Wiederaufarbertungsgesellschaft GmbH (KEWA). KEWA has the go-ahead from the European Economic Community Commission to build a plant with an annual reprocessing capacity of about 1500 metric tons. Site of the unit has yet to be decided. The commission also approved creation of United Reprocessors between British Nuclear Fuels Ltd., Commissariat l'Énergie Atomique, and KEWA. The new company will market jointly the services of the three partners.
Jan. 26, 1976 C&EN 7
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