EPA-230/1-73-D13
AUGUST 1973
ECONOMIC ANALYSIS
OF
PROPOSED EFFLUENT GUIDELINES
FLAT GLASS INDUSTRY
QUANTITY
U.S. ENVIRONMENTAL PROTECTION AGENCY
Office of Planning and Evaluation
Washington, D.C. 20460
'
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This document is available in limited quantities through the
U. S. Environmental Protection Agency, Information Center,
Room W-327 Waterside Mall, Washington, D. C. 20460.
The document will subsequently be available through the
National Technical Information Service, Springfield, Virginia
22151.
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ECONOMIC ANALYSIS
OF
PROPOSED EFFLUENT GUIDELINES
FLAT GLASS INDUSTRY
FINAL REPORT
To
U.S.Environmental Protection Agency
Office of Planning and Evaluation
Washington, D.C. 20460
August 1973
230 !•:.;
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TABLE OF CONTENTS
Pag_e
List of Tables ill
EXECUTIVE SUMMARY S-l
I. INDUSTRY SEGMENTS 1
A. Introduction 1
B. Flat Glass Products and Applications 2
1. Sheet Glass 2
2. Plate Glass 2
3. Float Glass 2
C. Industry Structure and Characterization 3
1. Participating Companies 3
2. Product Distribution 4
3. Flat Glass Production Manufacturing 5
a. Sheet Glass 6
b. Plate Glass 8
c. Float Glass 12
4. Flat Glass Fabrication 14
a. Laminated Glass 14
b. Tempered Glass 16
5. Shipments and Consumption of Flat Glass 19
6. Segments Likely to be Impacted 27
II. FINANCIAL PROFILES 31
III. PRICE EFFECTS 35
IV. IMPACT ANALYSIS 38
A. Major Segments 38
B. Sheet Glass Manufacturing Segment 38
C. Float Glass 39
D. Plate Glass 40
E. Solid Tempered Automotive Glass 41
F. Laminated Windshield Fabrication 43
V. LIMITS OF THE ANALYSIS 49
ii
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LIST OF TABLES
Table No. Page
1 Approximate Operating Parameters of Sheet Glass Process 7
2 Flat Glass Plants 9
3 New Investment by U.S. Flat Glass Producers 10
4 Location of Automotive Fabrication Flat Glass Plants
in the United States 17
5 Shipments of Flat Glass, 1968 - 1972 20
6 Flat Glass Shipments by U.S. Producers, 1972 21
7 Apparent Consumption of Flat Glass, 1972 23
8 U.S.Consumption of Automotive Glass, 1972 24
9 Applications of Automotive Glass, 1972 26
10 Foreign Trade in Automotive Glass, 1972 26
11 Float Glass: Supply and Demand Capacity Projections 29
12 1972 Financial Data - Flat and Automotive Glass
Manufacturers 32
13 Financial Profile of Operations, 1967 - 1970 33
14 Tentative Effluent Requirements for Flat Glass Industry
for B.P.T., B.A.T. and N.S.P.S. Controls 45
15 Summary of Investment and Annual Operating Costs 46
16 Production Data - Automotive Glass Plants 47
17 Summary of Investments and Annual Operating Costs 48
iii
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EXECUTIVE SUMMARY
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I. INTRODUCTION
The objective of this study is to provide an analysis of the economic
impact of the water pollution control requirements anticipated under the
Federal Water Pollution Control Amendments of 1972. The impact was
analyzed for three levels of treatment:
• Best Practicable Technology available (B.P.T.) - to be
met by industrial dischargers by 1977
• Best Available Technology economically achievable (B.A.T.) -
to be met by 1983
• New Source Performance Standards (N.S.P.S.) - to be applied
to all new facilities that discharge directly to navigable
waters and constructed after the promulgation of guidelines.
Specifically the economic impacts analyzed are:
• Price
• Profitability, growth and capital availability
• Employment
• Community
• Balance of Payments
• Related Industries
The information and data base for carrying out this analysis were developed
primarily from three sources: 1) information in the effluent guideline
development document on the flat glass industry, 2) our background,
knowledge and experience with the flat glass industry, and 3) assistance
of certain participating companies in the industry and other external
sources.
II. METHODOLOGY
In the first phase of this study the flat glass industry was divided into
industrial segments which differentiated the industry by technology,
products, end-use applications, and markets. In each segment the produc-
tion techniques and technologies were documented: market size and trends,
price history and pricing policies and product distribution determined,
S-l
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participating companies and the financial characteristics of these com-
panies identified, and characterization of existing plants in terms of
size, employment, etc. was carried out.
At the conclusion of Phase I and with the aid of information supplied
by the Contractor of the Effluent Guideline Development Study, those
segments that are most likely to be significantly impacted were defined.
In Phase II of this study, those segments of the flat glass industry
which appeared from the first phase work to be most severely affected
by the cost of controls were analyzed for the magnitude of the impact.
In this phase the cost information generated in the Effluent Guideline
Development Study was used as the basis of the analysis. The anticipated
guidelines and associated cost were reviewed with the management of
representative firms for reaction and discussion. Independently these
costs were translated into unit cost and compared with existing unit
prices. The anticipated investment required to meet the three levels
cf abatement was also analyzed relative to existing investment and our
estimate of the ability of industry to meet these additional costs.
Consideration was given to the present and projected economic state of
the various industry segments and conclusions drawn as to the effects
of additional cost on price, profitability, employments,, etc.
III. SEGMENTATION
Initially this study of the economic impact of water pollution control
on the flat glass industry was limited to three major segments of
primary glass production: 1) sheet glass, 2) plate glass, 3) float glass.
The remaining segment of the primary flat glass manufacturing, rolled and
polished glass, was excluded on the basis that it represented a relatively
minor fraction of the total glass industry.
It became evident at the conclusion of Phase I and with support of pre-
liminary data from the Effluent Guideline Development Study that relatively
minor waste water effluent problems existed within the sheet and float
glass segments of the industry and the costs associated with meeting
S-2
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anticipated guidelines were small. However, it was evident that rela-
tively greater problems and cost might be involved in the industrial
segments of 1) automotive glass tempering, and 2) automotive glass
lamination.
It was appropriate then that the Phase II study concentrate on these
two segments of automotive glass fabrication. Therefore, Phase II of
this study focused heavily on developing the necessary information and
analyzing the impact of water pollution control on these latter two
industry segments.
IV. COSTS
The cost data used as a basis of analysis in this study were taken from
the Effluent Guideline Development Document on the flat glass industry.
Operating costs and investment requirements for each level of control
were selected on the basis of the anticipated guidelines recommended.
These data are summarized in Table S-l.
Manufacturing cost data are not available for the large number of
products of these industry segments. We found that understandably,
participating companies are reluctant to provide such data; therefore,
we have used average prices as a basis for comparison in the study.
V. FINANCIAL PROFILE
Table 12 displays the significant financial data for the publicly held
U.S. flat and automotive glass producers. Most of these companies are
fully integrated, multiproduct and multi-industry participants with
significant positions in the U.S. economy. Glasss sales naturally repre-
sent a greater proportion of the sales of the smaller companies such as
Shatterproof, Guardian and ASG, but is still a significant portion of
LOF's and PPG's total business. Data is unavailable for Ford's glass
business which is a small proportion of Ford's total business. Finan-
cial data on private companies (Safetee, Safelite) are also unavailable.
S-3
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Sheet
TABLE S-l
Segment
SUMMARY OF ANTICIPATED INVESTMENTS AND ANNUAL OPERATING COSTS FOR TYPICAL PLANTS
Typical
Plant Size
($000)
B.P.T.
Investment
Annual
Operating
Cost
B.A.T.
Investment
Annual
Operating
Cost
N.S.P.S.
Annual
Operating
Investment Cost
Float
Plate
400,000 tons
165,000 tons
no cost
57
32.8
7-134* 3.1-58.6*
656
138.3
7-134* 3.1-58.6*
656
138.3
Tempered
37.5 MMSF
81
24.1
149
42.1
149
42.1
Laminated
8.0 MMSF
32
14.6
115
32.8
115
32.8
Source: Effluent Guideline Development Document
Alternative depends on total production and degree of solids buildup
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TABLE 12
to
I
Cn
PPG Industries
Ford Motor Company
Libbey-Owens-Ford
American Saint-Gol
Guardian Industrie
Combustion Engrg.
1972 FINANCIAL DATA - FLAT AND AUTOMOTIVE GLASS
($ Values
MANUFACTURERS
in Millions)
Glass
Basis
Year
Dec.
Dec.
Dec.
. Dec.
Dec.
Dec.
Oct.
for
End
31
31
31
31
31
31
31
Net
Sales
1395.9
20194.4
594.4
60.7
61.9
1179.9
42.7
Net
Earnings
82.7
870.0
52.6
3.5
5.7
39.3(1)
1.1
Working
Capital
346.1
1684.5
118.2
19.3
8.4
153.5
13.4
Share-
holders'
Equity
731.2
5961.3
352.4
26.0
23.5
295.3
23.1
Return
on
Equity
11.3
14.6
14.9
13.5
24.3
13.3
4.8
Net
Sales
614.2
N.A.
404.2
57.7
53.9
45.0
42.7
Earnings
Before
Taxes
69.5
N.A.
81.6
6.3
10.8
N.A.
2.0
Glass
Sales as
% of Total
Sales
44.0
N.A.
68.0
95.0
87.0
3.8
100.0
(1)
Before extraordinary charges
Source: 1972 Company Annual Reports and Contractor estimates
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VI. IMPACTS
Based on information generated in this study the economic impact of the
cost of meeting the anticipated water pollution guidelines for the three
levels of treatment are summarized below. The cost and effect on present
prices for each segment are summarized in Table S-2.
• jSheet Glass
In the manufacture of sheet glass products, no process waste waters are
involved; therefore, no waste water or waste load need be treated and
none should be discharged.
In the light of these findings no additional costs are anticipated for
sheet glass manufacturing operations and there will be no corresponding
impact on price, profitability, production curtailment, employment or
related community effects. These conclusions apply to all three levels
of treatment.
Glass
To meet the B.P.T. level of treatment no additional costs are required
and therefore no economic impact in price, production, profitability,
employment, etc., will result.
The cost and investment of control technology for B.A.T. level of treat-
ment in a float glass operation (no discharge) are minimal. Considering
the healthy state of this segment of the industry no economic impacts
are anticipated.
The proposed limit for new sources of flat glass manufacturing is the
same as for B.A.T., i.e., no discharge. Considering the substantial
investment required for new float glass facilities, the incremental in-
vestment will not impose restrictions on future plant construction.
* Plate Glass
The anticipated economic effect of water pollution control treatment on
the plate glass manufacturing segment of the industry will be minimal.
The conclusions are based on two factors: a) the incremental costs to
S-6
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TABLE S-2
CO
I
SUMMARY OF INCREMENTAL UNIT COSTS TO MEET PROPOSED 1977 AND 1983 GUIDELINES
Segment
Float
Plate
Tempered
Laminated
Incremental Cost
Present To Meet B.P.T.
Average Price (1977)
Neg.
$0.13/lb O.OlC/lb
$0.50/SF 0.06C/SF
$1.50-1.80/SF 0.18C/SF
Incremental Cost
% of Present To Meet B.A.T.
Price (1983)
Neg .
0.1 0.04c/lb
0.1 O.llC/SF
< 0.1 0.41C/SF
% of Present
Price
—
0.3
•v 0.2
* 0.3
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meet either B.P.T. (1977) or B.A.T. (1983) are small, and b) continua-
tion of the manufacture of glass by the plate process will be limited
by other factors, i.e., the replacement by float glass operations. Due
to the noncompetitive nature of plate glass manufacturing, future con-
struction of plate glass plants will not take place and new sources
treatment will not be a consideration.
• Solid Tempered Automotive Glass
The incremental cost of meeting the proposed B.P.T. (1977) for tempered
automotive glass represents approximately 0.1% of present average prices.
It was concluded that this incremental cost will be passed on by the
glass fabricator and therefore would have no negative effects on current
rates of profitability. The required investment will be available on a
plant-by-plant and company-by-company basis and in no way restricts
production or expansion.
It is further concluded that incremental costs to meet B.A.T. treatment
(1983) will be small (less than 0.2% of present prices) and this small
increase will be passed on by the fabricator. Therefore no impacts are
anticipated.
The proposed control technology for new sources of tempered automotive
glass are identical with those for B.A.T. (1983) and therefore will
impose no negative economic factors on the industry.
• Laminated Windshield Fabrication
The unit costs for meeting the proposed B.P.T. and B.A.T. guidelines
are O.lSc/SF and 0.41C/SF, respectively. This incremental cost repre-
sents less than 0.1% of the present price of laminated windshields in
the former case and less than 0.3% for the latter. Thus it is concluded
that the cost resulting from the recommended control and treatment tech-
nologies will have little or no economic effect on the laminated windshield
fabrication industry. Any incremental cost will be passed on and thus no
negative effect on profitability or plant operations are anticipated. The
required capital will be available to meet these costs. The proposed re-
quirements for new sources are identical with those proposed for B.A.T.
(1983) and therefore the conclusions will not be altered for new plants.
S-8
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VII. LIMITATIONS
In arriving at the conclusions of this analysis certain assumptions
about the economy have been made such as the rate of growth of the
Gross National Product. Constant 1973 dollars for all future expendi-
tures have also been assumed.
Specifically, the conclusions in this study are based on the guidelines
as proposed in the Effluent Guideline Development Document, the asso-
ciated technology to meet these limits, and the related cost. If the
assumptions in deriving these costs or the effluent requirements are
changed as to require different technologies, then the conclusions of
this study may not necessarily be valid. In our discussion with
industry particpants we noted that exceptions were taken with the con-
clusion of the Guidelines Contractor relating specifically to laminating
facilities, and some companies question whether the proposed control
and treatment technologies would achieve the required effluent quality
and at the indicated cost. However, these same participants indicated
that if the control technology and associated cost base proposed were
valid that these incremental costs would have no impact on their present
operation or decision to expand.
We believe that this analysis as presented represents an accurate de-
scription of the economic effect of the cost of pollution on this
industry. There are other factors operating within the industry such
as the replacement of much of the present sheet glass capacity with
float that probably are overriding factors in decisions to close certain
operations and expand others.
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I. INDUSTRY SEGMENTS
A. Introduction
This study is intended to supply the Environmental Protection Agency
with an analytical framework for determining the economic impact of water
pollution control requirements and proposed water effluent standards upon
the flat glass industry. For purposes of the study and to be consistent
with studies on the proposed effluent standard and related cost, the in-
dustry was segmented into appropriate sectors. Within the scope of this
study we initially covered the following sectors of primary glass manu-
facturing.
• Sheet Glass
• Plate Glass
• Float Glass
The principal distinction between the sectors is technological, i.e.,
the manufacturing processes are quite distinct. Markets and applications
however do overlap for each segment. The remaining sector of primary
glass manufacturing, rolled and polished glass, was excluded on the basis
that it represented a relatively minor fraction of the total glass in-
dustry.
It became evident at the completion of Phase I of this study that on the
basis of preliminary data developed by the subcontractor carrying out a
study of the proposed water effluent guidelines and the related cost to
meet these proposed guidelines, that relatively minor water effluent
problems existed in the primary flat glass segment of sheet and float
glass manufacturing. However, the flat glass automotive fabricating
industry sectors of lamination and tempering were of somewhat greater
concern due to the composition of effluent water streams.
It was therefore agreed at the Phase I review meeting to change the di-
rection of the study and to focus on the economic impact of the proposed
water effluent guidelines on the flat glass automotive fabricating
sectors of lamination and tempering.
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B. Flat Glass Products and Applications
I. Sheet Glass
Sheet glass is a transparent flat glass with a smooth fire-
polished surface made by machine drawing in one of a number of semi-
proprietary processes. Although sheet glass may be either clear or
colored, U.S. consumption is invariably clear. Sheet: glass can either
be "thin," weighing between 4 ounces and 16 ounces per square foot;
"window," weighing between 16 ounces and 28 ounces; or "heavy," weigh-
ing over 28 ounces per square foot.
2^. Plate Glass
Plate glass is a rolled glass that has been ground and polished
to make the glass transparent and to produce parallel surfaces that are
virtually distortion- free.
3. Float Glass
Float glass is of a similar quality to plate but is manufactured
by floating a layer of molten glass on molten tin in a continuous hori-
zontal ribbon that theoretically could be infinite in its length.
Current technology limits the range of thicknesses in which each type
of flat glass can be produced, and these thicknesses thus define the
potential applications. Thin sheet glass up to 12 ounces is used for
the manufacture of slides, transparencies and picture glass; over 12
ounce thin glass is used in storm windows and for laminating. Window
glass is a common glazing material for residential construction and is
available single-strength (18-19 ounces) or double (24-26 ounces).
Single strength glass is about 3/32" and double strength about 1/8".
Heavy sheet glass is the most frequent material used for tempered patio
doors and is purchased in thicknesses of 5/32" to 7/32".
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Plate and float glass are principally used in automotive applications
and in store display windows, curtain walls and high quality mirrors.
Plate glass is available in thicknesses of 1/8" to 1-1/4" while float
is 1/8" to 1/4"; float glass technology is advancing rapidly in making
even thinner sheets that might compete with 3/32" sheet glass in the
very near future.
While sheet glass is generally cut for immediate use in residential con-
struction, some of it and the majority of plate and float glass is
further processed or fabricated for automotive or building safety appli-
cations. This processing is either a tempering or a laminating process.
Tempered glass is a type of safety glass that is used principally for
glazing the side and rear windows of motor vehicles and is used increas-
ingly in residential patio doors, shower enclosures and large fixed glass
panels. Over the past two years, a number of states have enacted
legislation to make tempered glass a mandatory product in residential
patio doors; when broken, tempered glass crumbles harmlessly instead of
shattering. Laminated glass is formed by softening panes of sheet,
float or plate glass and then joining them together in a formed shape
with an intermediate layer of clear vinyl. Laminated glass is most fre-
quently used in automotive windshields; in these applications the product
can be tinted or can have embedded the radio aerial wire.
C. Industry Structure and Characterization
1. Participating Companies
The production of sheet, plate and float glass in the United
States is highly concentrated and involves only seven companies. Over
87% of the U.S. output of sheet glass is produced by PPG Industries (PPG),
Ford Motor Company, Libby-Owens-Ford (LOF), and ASG Industries (ASG).
PPG, LOF and ASG account for all of plate glass manufacture, while these
three companies and Ford Motor Company, plus Guardian Industries and
C-E Glass (a subsidiary of Combustion Engineering), are the only pro-
ducers of float glass.
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In summary, three firms largely dominate U.S. production of plate glass.
PPG and LOF are large, multiproduct firms producing a wide range of flat
glass products, including rolled and tempered as well as other industrial
products. The two companies also participate in the foreign production
of flat glass through arrangements ranging from process licensing agree-
ments and joint ownership of foreign facilities. The third major company,
Ford, produces float and tempered glass primarily for its own consumption
in the manufacture of vehicles, but also for sale to the trade.
Two smaller firms - ASG and Fourco Glass Company - also are fairly sig-
nificant. ASG produces plate, sheet, float and rolled glass (as well as
tempered architectural glass) while Fourco's production is limited to
sheet glass. Finally, Guardian, while a substantial processor of laminated
and tempered automotive glass, only commenced the production of float glass
in 1970; C-E Glass did so only as recently as 1971.
In addition to Guardian Industries, Ford, LOF, and PPG are manufacturers of
raw glass as well as fabricators of laminated and tempered automotive glass.
These four companies, plus Chrysler who purchases raw glass and fabricates
it for its own use in the manufacture of automobiles, probably account for
over 80% of automotive glass manufactured in the United States today; the
remainder is produced by three small independent companies - Shatterproof
Glass Corporation; Safelite Industries; and Safetee. Shatterproof produces
both laminated and tempered glass, while the other two companies are only
laminators. All three companies purchase raw glass from the major producers
for further processing.
LOF is the largest automotive glass fabricator, serving General Motors' needs
together with PPG. Shatterproof, Guardian and other small companies mainly
supply the replacement market.
2. Product Distribution
The distribution of flat glass in the United States utilizes a var-
iety of distribution channels. It is significant to note, however, that
while approximately two-thirds of primary plate and float glass produced in
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the United States is initially destined for intracompany transfers for
further fabrication or processing (mainly for automotive uses), about
85-90% of sheet glass is sold directly to customers through various dis-
tribution channels without intracompany processing.
Direct sales from the factory to independent glass distributors, fabrica-
tors, processors (such as for automotive applications), and glazing
contractors are the most frequently used channel. These prequalified
buyers have the advantage over other potential purchasers of flat glass
who must order their glass, even in carload lots, at higher prices from
the distributors. The major glass producer, PPG, distributes a significant
part of its output through captive warehouse and service centers in addition
to selling to recognized factory buyers. These outlets serve buyers at all
distribution levels and are thus in direct competition with PPG's normal
direct factory customers.
Most of these factory buyers are also importers of flat and tempered glass.
They place their orders through U.S. sales agents representing the foreign
manufacturers or they purchase it from the agents who might have imported
glass for their own account. Importers may thus resell the landed product
or use it themselves in glazing for manufacturing products that use glass.
Tempered and laminated automotive glass for original equipment, accounting
for a major share of the fabricated glass market, is sold directly to motor
vehicle manufacturers at negotiated prices. Some automotive replacement
glass is distributed by some of the major motor vehicle manufacturers through
their systems of franchised new-car dealers; it might also be marketed from
the producer to the independent glass distributor, hence to the auto glass
jobber and then to the auto repair shop.
3. Flat Glass Production Manufacturing
All flat glass production is a continuous process, that is,
once production is started it continues around the clock until interrupted
by breakdown or shutdown. In this respect flat glass manufacture differs
from any other glass forming processes.
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Basically the raw material for all three production processes, sheet, plate
and float are the same. Minor changes in batch compositions may be made to
introduce color and some changes in working conditions; of the glass; however,
the major ingredients of silica sand, limestone, soda ash and cullet (re-
cycled plant scrap) remain relatively constant. Raw material storage and
batch preparation and feeding to the furnace do not differ significantly in
any of the three sectors or from plant to plant within each sector.
Although glass tanks (furnaces) differ in size and detail construction,
the basic function is essentially the same in all flat glass manufacturing.
The tank provides a high temperature environment in which the raw materials
decompose and react to form an inorganic melt of Na«0-CaO-Si07. The
residence time in the tank allows for homogenization and removal of
bubbles and seeds and results in a high quality glass of the correct
viscosity to be delivered to the working section of the tank. The
uniqueness of the three flat glass processes begins at the forming end
of the tank.
a. Sheet Glass
• Manufacturing Process
There are basically two processes for drawing sheet glass from the work-
ing compartment, vertical drawing or horizontal drawing. In the Four-
cault and the Pittsburg Process, the glass sheet is drawn vertically
through a system of pairs of asbestos covered rollers. Vertical drawn
machines may be from 16-30 feet tall. In the Colburn process the glass
is drawn upward from the forehearth for a distance of 2 - 2-1/2 ft and
then directed into a horizontal position by a guide roll and passed
through an annealing lehr (~180 ft). In all three processes the glass
is automatically cut in specified sizes, inspected and packaged. Yields
vary between 60-75% as a result of edge loss, cutting, breakage and off
quality sheet. Characteristics of the sheet glass processes are given
in Table 1.
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Sheet glass product quality is subject to stria, cords and distortions
due to the variations in control of the sheet thickness as it is being
formed. Thus, sheet glass quality is considerably below that of plate
or float glass but is adequate for residential construction, the primary
application.
TABLE 1
APPROXIMATE OPERATING PARAMETERS OF SHEET GLASS PROCESS
Process
Fourcault
Colburn
Pittsburg
Average No.
Machines/
Tank
4-6
1-2
4-6
Max.
Width
108"
144"
120"
Speed
Range*
ft/hr
225-300
320-400
280-400
Average Time
Between
Yield % Shutdowns
65-75 200-250 hrs
250-500 hrs
*For single strength window glass (3/32") Speed is not linear with thickness
• Water Streams
The waste water streams in a sheet glass operation, excluding sanitary
sewerage, are all noncontact water. The principal use of water is for
cooling around the tank, the forehearth, and at the forming position
where water is used to extract heat from the newly formed sheet and to
cool the rolls. In addition there is compressor cooling and boiling water.
The effluent streams then are the blowdown from the recirculated cooling
water, boiler and from water softener regeneration.
In integrated sheet glass facilities that have tempering capabilities
for finishing in plant or intraplant transfer, additional waste water
streams exist. These streams are principally contact cooling water in
edge grinding, hole drilling and cutting. The effluent stream contains
oil, coolant and glass. The flow rates appear to vary considerably from
plant to plant, depending on quality of the effluent.and might vary from
1-2 gal/day/sq ft of production. At this point in time the quality of
water to be treated and the composition of the effluent do not appear to
offer significant problems.
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* Plants and Locations
Eleven sheet glass plants have been identified in the United States. The
parent company and plant locations are given in Table 2. One-third are
located in West Virginia and the remainder in the Midwest, Oklahoma, and
California. Although relatively few sheet glass olants have been built
in the last 20 years, the technology has not changed a great deal and
equipment is reasonably modernized. Plant capacities vary from 100 to
680 tons/day output and employ between 150 to 900 production workers * Pro-
duction per manhour has risen to ^80-85 sq ft/manhr through improved
efficiency. New investment in sheet glass facilities over the past seven
years has been modest at a total of ^35MM$. (Table 3)
The sheet glass industry employs less than 5000 production and related
workers, plus an additional 20% other employees. The number of employees
has dropped 30% over the past five years. By and large the decrease in em-
ployment has been a result of plant closings, although some reduction is due
to product efficiency. Reduction in capacity of U.S. sheet manufacturers is
in part attributed to lower profitability, competition from float glass
products and pressures from imports.
b_. Plate Glass
• Manufacturing Process
In the manufacture of sheet glass certain defects are always present. Small
variations in thickness are unavoidable and cause distortion. High quality
image transmission for undistorted vision requires that the two surfaces of
the glass be flat and parallel and this condition can be obtained by grind-
ing and polishing.
Plate glass is produced by a continuous tank rolling process. The molten
glass from the tank forehearth flows over a weir or through a refractory slot
to define the initial shape. The still viscous glass is then passed between
two water cooled rolls to give it final thickness and width. The glass ribbon
is stretched slightly to improve dimensional control and then passed into a
continuous lehr for annealing. Production speed is controlled by glass level
and roll setting and speeds of up to 1250 ft/hr are obtained with maximum
widths of 132 inches. Tank outputs are of the order of 250-400 ton/day.
8
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TABLE 2
FLAT GLASS PLANTS
Company
Type of Plant
Sheet
Plate
Float
ASG
Combustion Engrg.
Jeanette.Pa.
Okmulgee,0kla.
Kingsport,Tenn. Greenland,Tenn.
Floreffe,Pa.
*Almonesson,N.J.
Ford
Fourco
Clarksburg,W.Va.(2)
Ft. Smith,Ark.
Dearborn,Mich.
Nashville,Tenn.
*Tulsa, Okla.
Guardian
LOF
Charleston,W.Va.
Rossford,Ohio
Carleton,Mich.
Toledo,Ohio
Ottawa,111.
Lathrop,Calif.
Rossford,0hio
**Laurinberg ,N.C.
PPG
Henryetta,0kla.
Mt.Vernon,Ohio
Clarksburg,W.Va.
Mt. Zion,Ill.
Fresno,Calif.
Cumberland,Md.
Cumberland,Md.
Meadville,pa.
Crystal City,Mo.
Carlisle,Pa.
*Wichita Falls,Tex.
* Under construction
** Planned 1974
-------
TABLE 3
NEW INVESTMENT BY U.S. FLAT GLASS PRODUCERS
January 1964 - June 1971
(000 $)
Flat Glass
Sheet
Plate
Float
Modification of Existing
Facilities
15,892 11,714 45,272
New Facilities
19,272
929 171,292
Total
35,164
12,643 216,564
Source: U.S. Tariff Commission Report, No. TEA-1-23, January 1972
10
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After annealing and cooling, the continuous ribbon is cut to standard
size and then ground and polished on one side at a time. Alternatively
the twin grinding process allows for grinding and polishing both sides
of the glass simultaneously without interrupting the continuous flow by
cutting. In the latter process the glass is supported from below by
the grinding and polishing machine. Since the process is a continuous
one the speed at the sheet forming end of the line dictates the speed
of the finishing operation. Considerable quantities of sand, iron
oxide and cerium oxide in water suspension are used as grinding and
polishing agents in the plate glass process. Cutting and packaging
is similar to other flat glass processes.
• Water Streams
In addition to the normal requirements for noncontact cooling water and
discharge from water pretreatment sytems (i.e., water softening and ion
exchange), the plate glass process uses significant amounts of water in
the grinding and polishing stages. Water usage varies from 1.5 to 4 MM
gal/day depending on the specific plant.
In plate glass manufacture, the glass is ground flat with silica and
polished with iron oxide rouge. This process produces a very high level
of suspended solids (15,000 ppm) with a low level of dissolved solids
and a very low level of BOD in the plant effluent. Primary settling is
reported to reduce the level of suspended solids from 15,000 ppm to
30 ppm. It should be possible to reduce the 30 ppm level of suspended
solids even further to about 5 ppm through filtration if this is be-
lieved necessary.
The production of plate glass produces the largest and most concentrated
effluent per ton of glass in flat glass manufacturing. It is also the
most expensive flat glass manufacturing process. Producers of plate glass
have been switching over to float glass at a very rapid rate and it is
quite possible that in several years there will be at most one major manu-
facturer of plate glass.
11
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• Plants and Locations
Three plate glass manufacturers have been identified as presently oper-
ating in the United States. The locations of plate glass plants are
listed in Table 2. Since 1964, 12 plate glass lines have been closed
as the market has been consumed by the more effluently produced float
glass. Only one of the present plate glass facilities has been built
in the past 15 years. The ASG plant at Kingsport, Tennessee was brought
on stream in 1960. Plant capacity ranges from 270-380 ton/day with one
tank and line per plant. The investment in plate glass facilities over
the period 1964-1971 is believed to be about $15.5MM with less than 8% of
that investment in new facilities.
The rapid replacement of plate glass capacity with float is expected to
continue simply from an economical base. In 1970 the product per manhour
in plate glass manufacture was ^33 sq ft/manhr compared with ^112 sq ft/
manhr in float glass. Plate glass demand was probably about 70 MM sq ft
in 1972 — less than 4% of the total flat glass consumption.
• Employees
The number of employees in the plate glass industry has been reduced
drastically over the past five years. From 1967,when the number of pro-
duction workers was 5560,to 1972 the employees in this industry have been
reduced to 1000-1200 workers. Significant numbers of these people have
been absorbed by the new float glass facilities however. It is expected
that further reductions in the production employees will occur over the
next 3-5 years as essentially the remainder of the plate glass facilities
are replaced by float capacity.
c. Float Glass
• Manufacturing Process
The float glass process developed in the U.K. and introduced in 1959
represented the most significant technical development in the flat glass
industry in this century. This process makes it possible to produce a
continuous ribbon of glass having perfectly flat and parallel surfaces
without grinding and polishing. Float glass products have the high surface
finish of sheet glass and the flatness and freedom from distortion of high
optical quality plate glass.
12
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Tanks for melting and refining of glass for float glass lines tend to be
larger than those for sheet glass. Typical tanks have a pull capacity of
v400-500 ton/day producing 50-150 MM sq.ft. of product. The process is a
continuous in-line operation and one tank serves one line. Production speeds
are high and depending upon thickness may reach 1500 ft/hr or greater.
The key element in the process is the fact that the molten glass is
drawn from the forehearth on to a molten tin bath and due to the density
differences the molten glass floats and is supported on the tin bath.
Surface tension forces result in a natural thickness of the floating
glass of 1/4". The top face of the floating sheet is fire polished
and the lower surface defined by the tin bath.
The continuous ribbon of glass, after cooling sufficiently to prevent
distortions, is drawn from the tin bath on to an annealing lehr to remove
strain due to any thermal induced stresses. Cutting and packaging are
similar to other flat glass products.
The economics are extremely attractive in that the speeds are high, labor
content low and the expensive grinding and polishing is eliminated.
• Water Streams
In float glass facilities the major water use is for noncontact, recircu-
lated cooling water at the tanks and tin bath, boiler feed water and
compressor cooling. In addition, some facilities require wash water to
remove surface contamination prior to further processing or packaging.
The effluent flow varies somewhat from plant to plant and limited data
indicates that quantities are of the order of 20-35 gal/ton of glass
product. In those cases the glass is washed with detergent, city water,
and deionized water. Washing with detergent is gradually being discon-
tinued, so the process wastewater effluent generally contains primarily
sodium sulfate (from S0_ treatment of the glass) at a concentration of
about 400 ppm. It is quite possible that this wash water could be con-
centrated by using two countercurrent city water washes and then recycled
to the glass raw material batching process, thereby closing the system
through total recycle.
13
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• Plants and Locations
In 1972 there were 11 float glass plants in operation in the United States.
Since that time the ASG plant in Greenland, Tenn. has come on stream and
three additional plants are under construction or are planned for construc-
tion this year. By the end of 1973-early 1974, 15 float plants, representing
21 float glass lines will be in production having a total capacity of
1700 MM sq ft of glass. This represents a ^700% increase in float capacity
since 1967. The locations of specific plants are listed in Table 2.
Obviously all plants are relatively new and represent substantial invest-
ment on the part of the glass producers. The Tariff Commission Report
states that 216 MM$ have been invested in new plants and modifications
of float glass facilities from 1964 to 1971.
• Employees
The number of production and related employees in the float glass industry
segment has risen to nearly 400% since 1967 when the industry employed 1500
workers. By the end of 1973 the production employment should reach 7300.
A portion of this growth has obviously come at the expense of employment
in plate glass facilities. Commensurate with the increase in employment
is the output per manhour which has risen from an average of 87 sq ft/
manhr in 1967 to—120 sq ft/manhr. That figure varies substantially
since new plants have been constantly coming on stream; however, it is
expected that the efficiency will continue to increase as experience is
gained.
4. Flat Glass Fabrication
a. Laminated Glass
• Manufacturing Process
Automotive windshield requirements demand not only resistance to forces
of impact but the elimination, as far as possible, of hazards of splinter-
ing if fracture occurs. Laminated glass is constructed of two glass plates
normally 1/8" thick bonded with an interlayer of 0.015" thick polyvinyl
butylate.
14
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The in-line fabrication process begins with template cutting of windshield
shapes from large sheets of float glass. Edges are seamed to facilitate
handling. Precut and precleaned shapes are bent into windshield shapes
by heat sagging in a specifically designed jig or frame. Two mated pieces
of glass separated by a parting compound are mounted in the jig and passed
through a lehr at the softening temperature of the glass.
Prior to laminating the glass is washed free of dirt and parting compound,
interlayered with a sheet of polyvinyl butylate and prepressed between
rollers to remove entrapped air. The final bonding is accomplished in oil
or air autoclaves. Oil autoclaves are generally used and pressing is done
2
uneer a pressure of 28-85 Ib/in. at ^212°F. Residual oil from the lamina-
tion step is removed by draining followed by a series of washing and rinsing
cycles. If seaming is done after autoclaving a final wash is used. Fabri-
cated windshields are then packed and shipped.
• Waste Water Streams
Contact water streams in the lamination glass fabrication are primarily wash
water. In wet seaming small amounts of water are used to flush away glass
particles produced by the grinding process. Initial washing is used to re-
remove oil, grease and dirt prior to sagging. Both once through and recycle
type washers are used.
Prelamination washes include washing of the vinyl sheeting and removal of
dirt from the glass surface. Three stage washers are used and include
detergent wash, city water rinse and ionized water rinse. Water is recycled
through the stages and discharged.
The postlamination wash involves removal of residual oil from the autoclaves.
Older methods use a first stage detergent wash followed by two to three
rinses. More recently some plants include an initial hot water rinse prior
to the detergent rinse thus reducing the amount of detergent required. Small
amounts of waste water are generated from the separation of oil and water
from the autoclaves. Typical flow rates from lamination facilities are of
the order of 4300 gal/1000 sq ft of product.
15
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• Plants and Locations
We have identified twelve facilities that participated in the automotive
lamination fabrication (Table 4). Approximately 50% of the plants are
located in the Midwest, principally Ohio and Michigan. In most cases wind-
shield lamination facilities are integrated with automotive tempering
facilities although some large producers segment their operations. The
total U.S. capacity for windshield lamination is given as 75,000 sqM/day
(810,000 sq ft/day) and the average plant size is 6,900 sqM/day (74,000
sq ft/day) in the work of the effluent guideline development document for
the EPA. This work also estimated that 30% of these facilities discharged
to municipal systems.
b. Tempered Glass
• Manufacturing Process
Tempered glass is a type of safety glass made by processing flat glass to
increase its mechanical strength. Due to the nature of the process, tem-
pered glass when fractured will break into small cubes instead of long
sharp slivers thus reducing the probability of serious injury to vehicle
passengers and operators. Tempered glass is required in all side and
back lites of U.S. automobiles but has been replaced as a windshield
structure for some time.
Virtually all tempered and automotive glass is produced by thermal process-
ing of precut flat glass to raise the residual stress oE the glass in such
a way as to increase its strength. In this process the temperature of the
glass is raised near the softening point, the glass removed from the heating
furnace and the surface chilled quickly. By and large force air cooling is
used in the automotive tempering operation. The surface layer quickly be-
comes rigid while the interior is still fluid and expanded. As the tempera-
ture gradient through the glass approaches equilibrium the stresses in the
surface become highly compressive while the interior is placed under a tensile
stress. Therefore, the residual surface compressive stress must be overcome
by an applied tension stress before the glass can be fractured. Once the
tensile strength of the glass is exceeded and a crack initiated it will propa-
gate and release the high internal stress causing the material to fracture
into very small fragments.
16
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TABLE 4
LOCATION OF AUTOMOTIVE FABRICATION FLAT GLASS PLANTS
IN THE UNITED STATES
Company
Chrysler
Ford
Guardian
LOF
PPG
Safelite
Safetee
Shatterproof
Type of Plant
Laminating
Detroit, Mich.
Dearborn, Mich.
Detroit, Mich.
Toledo, Ohio
Ottowa, 111.
Lathrop, Calif.
Creighton, Pa.
Greenburg, Pa.
Wichita, Kan.
Enfield, N.C.
Philadelphia, Pa.
Detroit, Mich.
Tempering
Detroit, Mich.
Nashville, Tenn.
Millburg, Ohio
Toledo, Ohio
Ottowa, 111.
Lathrop, Calif.
Rossford, Ohio
Crestline, Ohio
Tipton, Pa.
Carlisle, Pa.
Detroit, Mich.
17
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Tempered glass cannot be cut or ground after the tempering process. There-
fore all cutting, drilling and seaming are done prior to the thermal
processing. For curved side and back lites, bending is carried out in
the laminating process just prior to the quenching of the surface.
* Waste Water Streams
The principal waste water streams in automotive tempering of glass are in
the pretempering operations such as seaming and drilling, and the washing
prior to tempering.
In the pretempering operations, small amounts of water are used in the
seaming operation to hold down dust. Edge grinding is carried out on all
exposed edges of side lites. An oil-water emulsion is used to flush away
glass particles. All of this coolant is recycled after removing scum.
Holes for window handles and brackets are drilled prior to tempering and
coolant water is used to flush away the glass from the drilling operation.
The primary source of waste water is the wash just prior to the tempering
process. The glass must be washed free of all dirt, glass particles and
oil from the cutting, seaming and drilling operations. Both once through
and recycling washers are used and two or more steps for each recycle.
No detergents are used in this washing process.
Although air quenching is normally used some operations utilize a water
spray. Little if any contaminants are picked up in water spray quenching
operations.
A study carried out by the effluent guideline contractor indicates there is
a considerable range of process waste water flow depending upon the amount of
recycling carried out. A typical plant flow is of the order of 49fc/gm (1200
gal/1000 sq ft). Twenty percent of the plants surveyed were discharging to
municipal systems.
• Plants and Locations
It is estimated that there are 13 facilities engaged in tempering and auto-
motive back and side lites. There are a large number of additional tempering
operations, mostly smaller facilities, that do not participate in the auto-
motive market. By and large the principal tempering operations are located
18
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in the Midwest in close proximity to the automobile manufacturers. Temper-
ing facilities are in many cases integrated with windshield laminators and
sometimes contiguous to primary glass manufacturing plants. The effluent
guideline development document gives the total U.S.capacity as 95,500
sqM/day (1,050,000 sq ft/day) and the plant sizes ranging from 1,396-24,700
sqM/day (15,000-266,000 sq ft/day).
• Number of Employees
The total number of employees in all glass tempering operations increased
from 17,779 to 18,750 in the period 1967 to 1968; however there was a de-
cline to 16,139 in 1970 according to the Tariff Commission Report. Over
that same period the output per manhour increased from 29.7 sq ft/hr in
1967 to 32 sq ft/hr in 1970.
5. Shipments and Consumption of Flat Glass
Domestic shipments of sheet glass have changed only slightly over
the past five years (Table 5), but have lost market penetration. From a
level of 1.1 billion square feet in 1968, the shipments of sheet glass
have generally moved with the level of residential construction and
reached 1.2 billion square feet in 1972. By value, shipments totalled
$139 million in 1968 and reached $157 million in 1972.
Plate, float, rolled, and wire glass shipments increased from 656 million
square feet in 1968 to 1192 million square feet in 1972. (Less than 5% of
this total is represented by rolled or wire glass.) The value of shipments
also increased substantially from $248 million in 1968 to $393 million in
1972. No breakdowns are available for the shipments of plate as opposed
to float glass but the proportion of float has increased from zero in 1964,
when it was first introduced to the United States, to a level believed to
be about 95% of plate-float production.
Table 6 shows the flat glass shipments by U.S. producers in detail for
1972. While sheet glass represented about half of total flat glass on a
surface area basis, it was only 32% of total tonnage and 28.6% of value
of shipments. Window glass, in single and double strengths, totalled 84%
of sheet glass shipments, this proportion increasing gradually over the
years as heavy sheet glass is replaced by float. Thin glass has similarly
declined and is now only 2% of total sheet glass.
19
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TABLE 5
SHIPMENTS OF FLAT GLASS, 1968 - 1972
1968
1969
1970
1971
1972
Sheet Glass Including
Colored, Total
Plate, Float, and Rolled
and Wire Glass
1000 sq.ft.
1,095,800
1,160,950
1,069,700
1,188,750
1,196,700
Value $1000
139,391
150,123
131,551
150,344
157,222
1000 sq.ft.
656,004
705,244
698,394
943,064
1,191,830
Value $1000
248,078
266,747
253,239
314,330
393,263
Source: U.S.Department of Commerce/Bureau of the Census,
Current Industrial Reports (MQ-32A)
20
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TABLE 6
Flat Glass, Total
Sheet Glass, Total
Single Strength, Uncolored
Double Strength, Uncolored
Heavy Sheet, Uncolored
Thin and Tinted or Colored
Plate, Float, & Rolled and
Wire Glass
Plate & Float, not over 1/8"
Plate & Float, over 1/8",not
over 1/4"
Plate & Float, over 1/4" and
Rolled and Wire
TS BY U.S. PRODUCERS, 1972
Quantity
MM sq.ft.
2388.0
1196.7
713.6
292.0
166.8
24.3
1191.3
445.5
% MM Ibs %
100.0
50.0
29.9
12.2
7.0
0.2
50.0
18.7
4422.1
1424.1
849.2
347.5
198.5
28.9
2998.0
726.2
100.0
32.2
19.2
7.9
4.5
0.7
67.8
16.4
659.7
86.1
27.6
3.6
1979.1
292.7
44.8
6.6
Flat Glass, Total
Sheet Glass, Total
Single Strength, Uncolored
Double Strength, Uncolored
Heavy Sheet, Uncolored
Thin and Tinted or Colored
Plate, Float, & Rolled and Wire Glass
Plate & Float, not over 1/8"
Plate & Float, over 1/8",not over 1/4'
Plate & Float, over 1/4" and Rolled
and Wire
Flat Glass, Total
Sheet Glass, Total
Single Strength, Uncolored
Double Strength, Uncolored
Heavy Sheet, Uncolored
Thin and Tinted or Colored
Plate, Float, & Rolled and Wire Glass
Plate & Float, not over 1/8"
Plate & Float, over 1/8",not over 1/4"
Plate & Float,over 1/4" and Rolled & Wire
Source: U.S.Department of Commerce/Bureau of the Census
Current Industrial Reports (Series MQ-32A)
Value
(MM$)
550.5
157.2
90.3
39.5
22.4
5.1
393.3
128.0
224.7
40.6
•e
Unit Value
(C/lb)
12.4
11.0
10.6
11.4
11.3
17.6
13.1
17.6
11.4
13.9
%
100.0
28.6
16.4
7.2
4.1
0.9
71.4
23.3
40.8
7.4
21
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The majority of plate and float glass shipments are between 1/8 inch and
1/4 inch in thickness — 55% on a surface area basis; and 66% by weight.
These proportions have remained fairly constant over the past five years
and are not expected to change significantly in the near future.
Imports of sheet glass were significant during the 1960's and reached
a level in 1968 that caused sufficient alarm in the industry for it to
seek some form of action by the U.S. Tariff Commission. In that year,
sheet glass imports totalled 629 MM pounds, accounting for 32% of U.S.
consumption. Imports declined in 1969 and 1970 but then increased in
1971 and 1972 because of the strong residential construction market in
the United States, reaching about the same level of 1968. On a square
foot basis, sheet glass imports accounted for 40.5% of the U.S. consump-
tion in 1972.
U.S. imports of plate and float glass also increased gradually in the
late 1960's and in 1972 reached a level of 93 MM square feet. This total
amounted to 6.4% of apparent U.S. consumption of plate and float glass,
below the ratio of 8.2% reached in 1968. Exports of sheet, plate or
float glass have not been significant. However, those of plate and float
have increased gradually and totalled 66 MM square feet in 1972 — 7 MM
square feet of plate glass and 59 MM square feet of float.
In Table 7 we show the apparent consumption of flat glass for 1972. This
table shows that consumption totalled 2.9 billion square feet in that
year and that imports represented an average of 21% of consumption.
The overall demand for automotive glass is dictated largely by the level
of production of passenger cars and other motor vehicles. Laminated glass,
frequently curved, is used exclusively in the windshields of vehicles and
solid tempered glass in the side and back lites. As Table 8 shows, the
U.S. consumption of automotive glass in 1972 totalled 830 million square
feet, or 28% of raw glass consumed.
Windshields are manufactured by laminating two thicknesses of raw glass
precut to the desired shape; each piece measures from 10 to 14 sq ft in
22
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TABLE 7
APPARENT CONSUMPTION OF FLAT GLASS, 1972
(Millions of sq.ft.)
Sheet
Plate and
Float
Total
Domestic Shipments
1197
1191
2388
Imports
524
93
617
Exports
66
68
Apparent Consumption
1719
1218
2937
Imports as % of Consumption
30.5
6.4
21.0
Source: Contractor estimates, based on
Department of Commerce data
23
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TABLE 8
U. S. CONSUMPTION OF AUTOMOTIVE GLASS, 1972
Float
% MMSF
Sheet and Other
MMSF
Total
MMSF
OEM
55
630
35
665
Replacement 10 115
50
165
65
745
**
85
28
830
**
of total raw glass consumed
Float glass represents 90% of flat glass consumed in
automotive applications
Source: Contractor estimates
24
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surface area, averaging 11 sq ft. Rear and side windows of tempered glass
are 7/32-inch single thickness and measure 8 sq ft and 10 to 12 sq ft,
respectively although these surface areas can vary widely according to
model and year.
Original equipment applications for automotive glass totalled 665 million
sq ft in 1972, with replacement units making up the remainder. Original
equipment applications are a major user of float glass, taking 55% of total
U.S. consumption, with a further 115 million sq ft of float glass going to
the replacement market. Approximately 5% of sheet and other types of raw
glass are consumed in automotive applications, totaling 85 million sq ft
in 1972. On aggregate, automotive applications take 28% of U.S. raw glass
consumption.
In Table 9 we showed the applications of automotive glass in 1972. We
estimate that approximately 530 million sq ft of laminated glass (single
thickness) is consumed with about 30% of the laminated units going to the
replacement market and the remainder going to original equipment. Of the
300 million sq ft of tempered glass consumed, only 5% is taken for replace-
ment applications.
Foreign trade in automotive glass, as shown in Table 10, totalled 43.5 million
dollars in imports and 39.5 million dollars in exports in 1972. It is esti-
mated that approximately half of the imports enter from Canada for use as
original equipment in the manufacture of automobiles and are duty-free under
the Automotive Products Trade Act of 1965. These entries include float glass
shipped to Canada by U.S. producers for processing by their Canadian sub-
sidiaries and then returning to the automobile plants in the United States.
A large proportion of exports are also finished processed units going to
the Canadian assembly and replacement market. Included in the data for
tempered glass, both imported and exported, is a certain proportion of
architectural glass used for patio doors and other safety applications,
but this is believed to be small.
25
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TABLE 9
APPLICATIONS OF AUTOMOTIVE GLASS, 1972
(Million Square Feet)
Laminated Tempered Total
OEM 380 285 665
Replacement 150 15 165
530 300 830
Source: Contractor estimates
TABLE 10
FOREIGN TRADE IN AUTOMOTIVE GLASS. 1972
Imports Exports
Tempered
Laminated
MMSF
30.0
-
$MM
25.0
18.5
MMSF
20.2
11.7
$MM
17.8
21.8
43.5 31.9 39.5
AVERAGE VALUE ($/SF)
Imports Exports
Tempered 0.83 0.88
Laminated - 1.85
Source: Department of Commerce Data
26
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Future growth in demand for flat glass in the United States is expected
to be at the rate of about 4% for building construction applications,
slightly below the anticipated growth rate for the Gross National Product,
and at about 3% annually for automotive applications. It is estimated
that approximately 70% of sheet glass consumption is in windows and other
building-related applications and that 30% goes to miscellaneous uses,
including some laminating and tempering for automotive applications.
Sixty-five percent of plate and float consumption finds use in the auto-
motive industry, with the remaining 35% in building construction, furniture
and miscellaneous other uses. Thus, the projected demand for sheet glass
will probably average about 3.8% annually over the next five years and that
for plate and float glass about 3.3%. However, the growth rate of float
glass could be considerably faster as plate glass facilities are shutdown
and as float glass becomes technologically capable of replacing sheet glass
in window applications.
Other potential product trends that can be anticipated include a greater
proportion of tinted or colored float glass for reflective architectural
uses and the increased demand for tempered glass for safety applications
in buildings. We have also considered whether the current mood of the
automobile consumer in favor of small vehicles in order to save fuel and
to minimize on parking problems will effect automotive glass demand.
However, we believe that, in the short term, this trend will be served
principally by imported vehicles and that the mix of automobile sizes in
domestic manufacture will not change appreciably. In fact, our conversa-
tions with automotive glass producers shows a short-term trend to larger
pieces for basically the same vehicle, reflecting both higher visibility
requirements and the impact of the recessed windshield wiper that requires
an additional five to six inches of glass below the hood.
6. Segments Likely to be Impacted
In consideration of the apparent waste water streams, the initial
indications of guidelines and the economic state of the float glass indus-
try, some tentative conclusions can be drawn concerning those segments
likely to be impacted significantly.
27
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Factors completely independent of any impacts of water pollution control
appear to be operating within the basic glass manufacturing segments of
sheet, plate and float glass. Basically the efficiencies and economics
of float glass production are having a considerable effect on the future
development of the industry. The future demand for flat glass products
will continue to grow at least at a rate of 3.3 - 3.8% per year, a healthy
demand situation. The dollar volume of manufacturer shipments has grown
at an average rate comparable to the growth rate of the GNP and it would
seem unlikely that this relationship would change substantially over the
next five years.
During the recent growth of the industry, it is important to recognize
the interrelationship between the three segments of sheet, plate and float
glass. Since the introduction of the float glass process, this technology
has rapidly replaced the production of plate glass. Throughout these years
the bulk of float glass has been sold to markets formerly served by plate
glass. As the technology developed where thinner than 1/4" glass could
be produced by float, not only construction markets but the important
automotive glass markets switched to float glass. To date the replacement
of plate by float glass is essentially complete.
The tremendous rapid increase in float capacity in the recent past and
new facilities planned in the next two years has raised a question con-
cerning the supply/demand of float glass (Table 11). With the replacement
of plate glass with float complete it is expected that in the future
float glass will penetrate the sheet glass market as well. At least one
firm has already announced its intention to use an intermediate quality
float glass in the double strength window glass market now served by sheet
glass. The investment in float glass facilities by the major producers -
ten times more than in sheet and plate facilities combined - seems to
substantiate the trend.
Thus it would appear that plate glass facilities will continue to be shut-
down as new float capacities come on stream. It is unlikely that more than
one plate plant will be operating three years from now. The effects on the
sheet glass segment will occur at a slower rate and will depend on the rate
of market penetration of float into these areas traditionally served by
sheet glass.
28
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TABLE 11
FLOAT GLASS: SUPPLY AND DEMAND CAPACITY PROJECTIONS
(Million Square Feet)
1967 1968 1969 1970 197IE 1972E 1973E 1974E 1975E
U.S. Producers' Shipments
of Float Glass 243 409 529 669 1040 1200 1470 1800 2050
Year-end Float Glass
Capacity 280 600 1160 1730 2100
Source: F.S.Smithers & Co., Inc., estimates
-------
By and large the future capacity of the plate and sheet facilities in
the United States will probably be governed by economic and marketing
factors independent of any impact of water pollution control. However,
it is conceivable that additional costs associated with meeting guide-
lines could accelerate plant closings particularly in the plate glass
segment.
As far as effects related to cost of water pollution control, it further
appears that the absence of significant contact process water in the man-
ufacture of sheet glass indicates that there will not be any significant
economic effect of that industry segment. The float glass manufacturing
segment has enjoyed good profit margins and as efficiency continues to
improve these profit margins are expected to remain high in spite of
any price erosion. The relatively minor uses of contact water in the
manufacture of float glass are amenable to further processing to meet
proposed guidelines. The cost to meet pollution guidelines for the plate
glass segment of the industry could be significant and these costs could
accelerate decisions to shutdown the remaining facilities.
The waste water streams that exist in automotive tempering of glass and
laminated windshield fabrication are relatively more difficult to deal
with than those involved in primary glass manufacturing and therefore
relatively greater impact might be expected. However, these waste water
streams appear to be amenable to known treatment technologies. Both
the solid tempered and laminated windshield business involve a span of
companies ranging from the integrated glass producer to small companies
that purchase glass and the magnitude of the impact over the range of
companies could be different.
30
-------
II. FINANCIAL PROFILES
Table 12 displays the significant financial data for the publicly held
U.S. flat and automotive glass producers. Most of these companies are
fully integrated, multiproduct and multi-industry participants with sig-
nificant positions in the U.S. economy. Glass sales naturally represent
a greater proportion of the sales of the smaller companies such as
Shatterproof, Guardian and ASG, but is still a significant portion of
LOF's and PPG's total business. Data is unavailable for Ford's glass
business but is a small proportion of total business both for Ford and
for Combustion Engineering. Financial data on private companies (Safetee,
Safelite) are also unavailable.
Data on the manufacturing costs and profitability of individual facilities
is not available, but the data shown in Table 13, computed from information
submitted to the U.S. Tariff Commission by the U.S. producers, does indi-
cate the level of net operating profit before taxes for sheet, plate and
float glass.
The relative difference in profitability between sheet, plate, and float
glass is dramatically seen in this table. The profitability of sheet
glass in the late 1960fs was very low and ranged from a breakeven situa-
tion in 1970 to a net profit as a percentage of net sales of 5.9% of
net sales in 1969. Plate glass only returned a 5% net profit on net
sales in 1970, but this was significantly lower than the 15% to 20%
experienced in the three preceding years. Float glass has, in general,
been improving its profitability over time. In 1967 the net profit as
a percentage of net sales was 28.8%; in 1969, it was 37.2%, and then
dropped slightly to 33.4% in a poor demand year. In all cases, operating
profits are believed to have increased substantially over the 1970 levels
for the years 1971 and 1972.
However, sheet glass is still a relatively unprofitable business and
speculation is strong that existing facilities will be phased out grad-
ually as float capacity comes on stream and as float technology permits
the production of thinner glass.
31
-------
TABLE 12
PPG Industries
Ford Motor Company
Libbey-Owens-Ford
American Saint-Gobz
Guardian Industries
Combustion Engrg.
Shatterproof Glass
1972 FINANCIAL DATA - FLAT AND AUTOMOTIVE GLASS
MANUFACTURERS
($ Values in Millions)
Glass
Basis
Year
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Oct.
for
End
31
31
31
31
31
31
31
Net
Sales
1395.9
20194.4
594.4
60.7
61.9
1179.9
42.7
Net
Earnings
82.7
870.0
52.6
3.5
5.7
39.3(1)
1.1
Working
Capital
346.1
1684.5
118.2
19.3
8.4
153.5
13.4
Share-
holders '
Equity
731.2
5961.3
352.4
26.0
23.5
295.3
23.1
Return
on
Equity
11.3
14.6
14.9
13.5
24.3
13.3
4.8
Net
Sales
614.2
N.A.
404.2
57.7
53.9
45.0
42.7
Earnings
Before
Taxes
69.5
N.A.
81.6
6.3
10.8
N.A.
2.0
Glass
Sales as
% of Total
Sales
44.0
N.A.
68.0
95.0
87.0
3.8
100.0
(1)
Before extraordinary charges
Source: 1972 Company Annual Reports and Contractor estimates
-------
TABLE 13
FINANCIAL PROFILE OF OPERATIONS, 1967 - 1970
Net Sales
Cost of Goods Sold
Admin, and Selling Expenses
Net Operating Profit before Taxes
Net Profit as % of Net Sales
Net Sales
Cost of Goods Sold
Admin, and Selling Expenses
Net Sales
Cost of Goods Sold
Admin, and Selling Expenses
1967
10.6
9.1
1.2
0.3
2.8
37.8
26.8
3.3
Net Operating Profit before Taxes 7.7
Net Profit as % of Net Sales 20.4
32.9
20.9
2.5
Net Operating Profit before Taxes 9.5
Net Profit as % of Net Sales 28.8
1968
1969
1970
Sheet
10.5
8.7
1.2
0.6
5.7
Plate
38.2
27.4
3.0
7.8
20.4
Float
32.6
17.7
3.2
11.7
35.8
Glass
10.
8.
1.
0.
5.
Glass
38.
29.
3.
5.
15.
Glass
33.
17.
3.
12.
37.
(C/lb)
2
5
1
6
9
(C/SF)
7
6
3
8
0
(C/SF)
3
4
5
4
2
9.6
8.6
1.0
neg/
—
42.1
36.1
3.9
2.1
5.0
31.7
17.5
3.6
10.6
33.4
Source: U.S.Tariff Commission Report No. TEA-1-23; January 1972
33
-------
As most automotive glass producers are integrated concerns or privately
held, specific financial data on tempered and laminated glass production
is only available from Shatterproof Glass Corporation.. This is shown
in Table 12. Integrated producers generally transfer raw glass at a
computed market value and, as prices for automotive glass are very com-
petitive, processors do not achieve very high levels of profit. In fact,
operating losses or a breakdown situation is generally the case with most
manufacturers in their process operations. The financial returns of
Shatterproof have always been good, reflecting the company's concentration
on glass processing, but 1972 profits were less than half the record levels
reached in 1971 due to weaker prices, despite a strong market demand.
Capital requirements for new float glass facilities will be considerable.
In the period, January 1964 to June 1971, the industry expanded $217 MM
in new facilities, $171 MM on modifications to existing ones at 12
locations. Since that time an additional 10 lines have been added or
will be added by the end of 1974. These lines range in investment from
$20 MM to $25 MM, depending on the rated capacity (usually 400 to 600
tons per day) and whether the line is an addition to an existing one
or at a completely new facility.
It is not inconceivable that at least six of the 12 sheet glass plants
presently in operation, and the three plate glass plants, will be closed
down within five years as a result of their technology and economics.
These closedowns will only be accelerated, and not stimulated, by the
potential increases in costs brought about by pollution abatement
requirements.
34
-------
III. PRICE EFFECTS
The distribution channels discussed earlier help to define various levels
of pricing that exist in the marketplace today. Typically, a direct
factory buyer will be able to obtain more competitive prices than a pur-
chaser who has to obtain his stock from independent glass distributors
or from the PPG distribution centers. Nonfactory buyers who have been
forced to seek competitive prices have thus examined the imported
products.
Published price lists for window glass show variations with thickness,
size', quality, and packaging of the sheets and it has been calculated
that as many as 270 different prices may theoretically be available for
combinations of these different specifications. In practice, about one-
half of that number is listed and thus no "typical" product combination
exists. List prices are the same for the leading producers and are
quoted freight prepaid to continental U.S. destinations. Freight ab-
sorbed in this way averages seven or eight percent; freight allowances
or rebates are allowed for factory pickup and this is estimated to be
done in at least 50% of sheet glass shipments.
List prices are invariably higher than actual prices paid as discounts
are almost always obtainable by purchasers. The level of these dis-
counts will vary depending upon the demand conditions existing, but
averages have ranged up to 13% in a relatively poor demand year such as
1970 and currently average about 8%. These discounts are also obtain-
able on a greater proportion of total shipments in poor years — 27% in
1970 — but typically this proportion would be less than 20%. These
proportions are less for plate and float glass as a substantial fraction
of shipments of these products are on a negotiated and contract basis
directly to OEM customers. Thus, average discounts below published
prices are probably no more than five percent currently for plate and
float, and are probably given in less than two percent of total shipments,
Apart from these differences, product pricing is structured similarly to
sheet glass and varies with product form.
35
-------
The prices of automotive glass are negotiated and depend on a variety of
considerations, including size and shape of the piece, as well as the
volume of order. Prices for original equipment customer are always nego-
tiated and, as Ford and Chrysler supply the bulk of their own needs,
competition is aggressive for the business of the other automotive manu-
facturers and these negotiations can be crucial, although the automobile
manufacturer is relatively more concerned with timely delivery and con-
sistent quality. Price competition is even more severe in serving the
replacement market as a number of functional markups occur before arriving
at a retail selling price and price is often the sole criteria on which
wholesalers and retailers purchase.
Unit prices of sheet glass averaged ll.Oc/lb in 1972 as compared to
13.1C for plate and float and 12.4c for all flat glass. The flat glass
wholesale price index, as reported by the Bureau of Labor Statistics,
has moved as follows over the last five years:
1967
1968
1969
1970
1971
1972
This index conceals the price drops experienced by sheet glass in 1970
as float and plate prices generally held up. The drop in the index in
1972 probably reflects the effects of the price freeze: and would be
contrary to normal expectations in what was a high demand year. Prices
have finned and increased since the beginning of Phase III of price
controls.
Because automotive glass prices are mostly negotiated or heavily discounted,
no firm data exists and current net unit values range from $1.50 to $1.90
per sq ft for laminated windshield glass and from $0.50 to $0.75 per sq ft
36
100.0
104.4
109.6
115.6
123.9
122.4
+5.0
+5.5
+7.2
-1.2
-------
for tempered side and rear windows. Average replacement market prices
experienced a sharp drop in 1972 because of added processing capacity in
the industry.
The ability of the flat glass industry to pass on increased cost
caused by new pollution abatement requirements would depend upon the
product being marketed. It is believed that imported sheet glass re-
quires a price advantage of about five percent to be competitive with
domestic production; currently the price gap is almost nonexistent
because of the strong demand for materials available from any source.
Under normal circumstances, therefore, domestic producers could increase
the price of sheet glass up to five percent from current levels before
losing market share to importers and thus impacting their profitability.
The United States is in a strong competitive position relative to imported
float and plate glass products. We believe that U.S. producers would not
have their sales significantly impacted by price increases of 5% to 10%
relative to foreign competition and would still retain attractive returns
on investment, but the latter conclusion is merely speculative on the
basis of incomplete data.
Automotive glass for replacement use is totally price inelastic at the
retail level as no competitive material exists, but is very competitive
at each level from the fabricator to the retailer; OEM prices are far less
competitive. The ability of the processing industry to pass on increased
costs, therefore, would depend largely on intraindustry competition and
that with importers. Because of the difficulty in serving the replacement
market with its wide variety in sizes and styles of glass and because of
the stringent delivery requirements of the original equipment manufacturers,
imported automotive glass has never been a serious factor in the U.S.market.
(This is true with the exception of duty-free imports entering from Canada
under the Automotive Products Trade Act of 1965 and destined for original
equipment manufacture.) The industry as a whole, therefore, will be able
to pass on all costs caused by pollution abatement requirements, although
individual companies may be disadvantaged relative to their competitors
if they experience disproportionate cost increases.
37
-------
IV. IMPACT ANALYSIS
A. Major Segments
In Part I of this report the major segments of the flat glass industry
were set forth and the product, technology, plant characteristics and other
relevant information on each segment detailed. In this section the economic
impact of proposed water pollution control requirements and proposed efflu-
ent standards on each of these segments will be analyzed.
The major segments of the flat glass industry included the three segments
of primary glass manufacturing and the two segments related to flat glass
fabrication — namely, laminated and tempered automotive glass.
In this study the economic impact of the cost of pollution abatement re-
quirements was analyzed for three levels of treatment.
• Proposed Best Practicable Technology (B.P.T.) currently
available - to be met by industrial dischargers by 1977
• Proposed Best Available Technology (B.A.T.) economically
achievable - to be met by 1983
• Proposed New Source Performance Standards (N.S.P.S.) -
approximately January 1, 1974.
The economic impact on each segment of the industry is examined for the
above three levels in terms of price effects, profitability, production
curtailment, employment effects and related community effects.
B. Sheet Glass Manufacturing Segment
1. Best Practicable Technology
In the manufacture of sheet glass products, no process waste waters
are involved in the process. Therefore, no waste water or waste load should
be discharged.
In light of these findings in the study by the guidelines contractor, no
additional costs are anticipated in sheet glass manufacturing operations
and correspondingly there will be no impact on price, profitability, pro-
duction curtailment, employment or the community.
38
-------
2. Best Available Technology
Similarly, the lack of waste water streams and the no discharge
requirement do not impose any related cost on the industry and therefore
no excessive impact can be expected.
3. New Source Performance Standards
Requirements for water pollution controls for new sources of
sheet glass manufacturing are the same as for B.P.T. and B.A.T. and there-
fore no economic impacts are anticipated.
C. Float Glass
1. Best Practicable Technology
The proposed limits on waste water effluent for float glass manu-
facturing plants are given in Table 14 for all three levels of control. For
B.P.T. the proposed altenvative involved the elimination of detergents in
the washing process. No costs are associated with meet B.P.T. and only a
change in plant practice of using detergents is involved. Therefore, no
economic effect on price, production, profitability, employment, or the
community will result.
2. Best Available Technology
The proposed requirement for B.A.T. is a no discharge limit. In
Table 15 the cost to meet this limit is minimal, although the exact cost
(Alternatives B and C) will depend somewhat on total production of the
plant and the degree of dissolved solids buildup.
In light of the small incremental cost and the healthy condition of this
segment of the industry, no economic impact is anticipated.
3. New Source Performance Standards
The proposed limit for new sources of float glass manufacturing
is the same as for B.A.T., i.e., no discharge. Considering the substantial
investment in new float glass facilities, incremental investments and costs
associated with N.S.P.S. limits will not impose any restrictions on future
plant construction.
39
-------
D. Plate Glass
I. Best Practicable Technology
The proposed process waste water limits for plate glass manufac-
turing facilities are summarized in Table 14 for a typical plant having an
annual production of 150,000 metric tons and a waste water flow rate of
45,900£/MT. The costs to meet the proposed level on limitations are given
in Table 2 at ^$33,000/year.
a. Price Effects
On a unit cost basis the incremental annual cost, 0.01 cents/lb compares
to a present selling price of approximately 13 cents/lb for plate glass.
This small incremental unit cost will have no impact on the price of plate
glass.
b. Financial Effects
Since the incremental cost of meeting proposed B.P.T. controls is small
and may be passed on, the effect on profitability is nonexistent. Other
factors have in the past and will in the future have far greater effects
on profitability. Plate glass has not remained as a competitive process for
producing flat glass. The replacement by float produced glas is about corn-
plate and this factor will remain the overriding one in profitability
considerations.
c. Other Effects
At the present time there are only three plants in the United States manu-
facturing glass by the plate process. We believe that by 1977 when B.P.T.
controls are instituted that at most one plant will be operating. Whether
that remaining facility continues operation will certainly depend on other
factors than any incremental cost associated with water pollution control.
2^ Best Available Technology
While the incremental cost associated with meeting proposed B.A.T.
guidelines (Table 15) are larger than those imposed by B.P.T. requirements,
they are still modes. Our conclusions as to the economic impact of B.A.T.
controls are equally valid and the future of this segment of the industry
is highly doubtful for other reasons.
40
-------
3. New Source Performance Standards
No future construction of plate glass facilities is anticipated.
E. Solid Tempered Automotive Glass
1. Best Practicable Technology
The recommended control technology involves coagulation-sedimen-
tation with sludge dewatering by centrifugation. The proposed effluent
levels are given in Table 14.
The production data (Table 16) is taken from the effluent guideline develop-
ment document and an average tempering plant is assumed to have an annual
output of 29 million square feet while a typical plant is given as 37.5
million square feet of annual production. In Table 17 we have summarized
the required investment and annual operating cost for the associated level
of control technology. These data are extracted from Supplement A to the
effluent guideline development document. In preparing these economics the
contractor considered the age and size of the production facilities as a
possible means of subcategorization but concluded that these criteria are
not a basis for subcategorization. Thus, we have assumed a straightline
relationship between annual cost and plant production output.
a. Price Effects
The annual operating cost resulting from the recommended B.P.T. control
technology will have little or no effect on selling prices of tempered
automotive glass. On a unit basis, these annual operating costs total
0.065 cents per sq ft as compared to a current average selling price of
50 cents per sq ft. We conclude that these costs will be passed on by
the automotive glass fabricators.
b. Financial Effects
• Profitability
As all anticipated costs will be able to be passed on in the form of
price increases, the recommended control and treatment technology will
impose no negative effects on current rates of profitability.
• Availability of Capital
Investment requirements for the typical tempering facility total $81,000
for B.P.T. A comparable fiture for the average plant in operation today
41
-------
is $63,000 while the aggregate industry investment requirement is $560,000.
We believe the required capital will be available on a plant-by-plant and
company-by-company basis and the industry will in no way have to restrict
production or additions to capacity because of capital availability.
2. Best Available Technology
The effluent requirements for B.A.T. can be met by technology in-
volving the addition of filtration, using oil absorptive diatomaceous
earth to B.P.T. technology.
The economic cost data to meet B.A.T. requirements for a typical plant
are given in Table 17, extracted from Supplement A to the effluent guide-
line development document.
a. Price Effects
The annual operating cost resulting from the recommended B.A.T. control
technology will have little or no effect on the selling price of tempered
automotive glass. On a unit basis their annual costs are 0.11 cents per
sq ft. This annual incremental cost will be passed on by the automotive
glass temperers.
b. Financial Effects
Since the small incremental cost will be passed on there should be no
effect on profitability.
Investment requirements for B.A.T. control technology are $149,000 for
the typical plant; an average plant will have an additional investment
of $115,000, while the aggregate industry investment for B.A.T. is $1.03
million. We believe this required capital will be available on a plant-
by-plant and company-by-company basis and that capital availability will
not affect present production or future expansion.
3. New Source Performance Standards
Proposed N.S.P.S. control technology for new sources is identical
to proposed B.A.T. controls and therefore the associated cost and related
impact will be the same as for B.A.T.
42
-------
F. Laminated Windshield Fabrication
1. Best Practicable Technology
The proposed controls for B.P.T. for windshield fabrication in-
volve a modification of the post lamination washer sequence to provide
a continuously recycling hot water rinse, oil removal by centrifugation
of the recirculating hot rinse water, recycling of oil back to the process
and treatment of other post lamination rinse water by gravity oil separa-
tion.
In Table 16 the production data contained in the effluent guideline develop-
ment document for a laminating facility are shown. An average laminating
plant has an annual capacity of 18.5 million square feet as compared to
the assumed typical plant of 8 million square feet.
In Table 17 we summarize the required investment and annual operating cost
for each level of control technology extracted from Supplement A of the
effluent guideline development document. Again, it was concluded by that
contractor that plant size and age were not a basis for subcategorization.
a. Price Effects
The unit cost for meeting the proposed B.P. . control is 0.18 cents per
square foot as compared to current manufacturers' selling price of approxi-
mately $1.50 per square foot for flat laminated glass and approximately
$1.80 per square foot for curved windshields. Thus, we conclude that the
cost resulting from the recommended control and treatment technologies
will have little or no effect on selling prices. Any incremental cost
will be passed on in the form of price increases.
b. Financial Effects
* Profitability
No negative effects on current profitability are anticipated as the small
incremental costs will be passed on.
• Availability of Capital
Investment requirements for a typical laminating facility total $32,000
and for the average plant this figure is $75,000. The aggregate for the
43
-------
automotive laminating industry is $0.8 million to meet the proposed
B.P.T. controls. We believe that this capital will be available and
will not limit current production or future expansion.
2. Best Available Technology
The proposed control technology for B.A.T. includes that imposed
by B.P.T. and described above plus oil absorptive diatomaceous earth
filtration of the total process waste water discharge and reduction of
detergent usage.
The related cost data estimated to meet the B.A.T. control is also
given in Table 17 for the typical plant. In extrapolating the cost for
average plant size and the aggregate industry, we have assumed a straight
line relationship between annual operating cost and plant production.
a. Price Effects
For proposed B.A.T. control, the unit cost for laminated windshields is
0.41 cents per square foot. Compared with current prices of $1.50 per
square foot and $1.80 per square foot for present flat and curved lam-
inated windshields, these incremental costs are small. We conclude that
costs will be passed on.
b. Financial Effects
There should be no negative effects on present profitability, since
the small incremental cost will be passed on.
The investment requirements for a typical laminating facility will be
$115,000 and for an average plant $266,000. The aggregate automotive
laminating industry cost will be $2.9 million. We believe these capital
requirements are available.
c. Other Effects
Based on the conclusions above, no effects are anticipated on production,
employment or the local community from the incremental cost of meeting
the proposed B.A.T. requirements.
3. New Source Performance Standards
The proposed control requirements for N.S.P.S. are identical eith
those proposed for B.A.T. and the conclusions of no impact are equally
valid.
44
-------
TABLE 14
TENTATIVE EFFLUENT REQUIREMENTS FOR FLAT GLASS INDUSTRY FOR B.P.T.. B.A.T. AND N.S.P.S CONTROLS.
(Effluent Flow Based On Typical Plant Size)
FLOAT
PLATE
TEMPERED
LAMINATED
'ypical Plant
Size
f fluent
Constituents
Flow
Suspended
Solids
Dissolved
Solids
COD
BOD
Oil
Phosphorous
B.P.T. B.A.T.
N.S
360,000 Metric Tons
(400,000 Tons)
138JI/MT N
0
2g/MT
D
I
14g/MT s
c
2g/MT
H
A
R
G
E
N
0
D
I
S
c
H
A
R
G
E
B.A.T.
150,000 Metric Tons
(165,000 Tons)
.45Kg/MT .09Kg/MT
B.P.T. B.A.T. N.S.P.S. B.P.T. B.A.T. N.S.P.S
3.5 x 106 Sq Meters 750,000 Sq Meters
(37.5xl06 Sq Ft) (8.0 x 10° Sq Ft)
45,900&/MT 9,200£/MT
1.38Kg/MT .045Kg/MT 1.22g/sqM
49£/sqM
s
A
M
E
A
S
175£/sqM 175«7sqM S
A
M
4.4g/sqM .88g/sqM
E
A
S
4.9g/sqM 4.9g/sqM
,73g/sqM .49g/sqM 3.
,64g/sqM .24g/sqM A, 1.76g/sqM .88g/sqM A.
T.
,98g/sqM .2g/sqM
Source: Zffluent Guideline Development Document
-------
TABLE 15
SUMMARY OF INVESTMENT AND ANNUAL OPERATING COSTS
($000's)
Float Glass (Typical Plant 400,000 Tons)
Investment
Operating Cost
Capital
Depreciation
Operating & Maintenance
Energy & Power
Total Annual Cost
Equivalent Unit Cost (C/lb)
B.A.T.
Alternative
B
7
.6
.4
2
.1
3.1
neg
C
134
11
6.7
28.4
12.5
58.6
neg
Plate Glass (Typical Plant 165,000 Tons) B.P.T. B.A.T.
Investment 57 656
Operating Cost
Capital 4.6 52.5
Depreciation 2.9 32.8
Operating & Maintenance 22.7 49.7
Energy & Power 2.6 3.5
Total Annual Cost 32.8 138.3
Equivalent Unit Cost (c/lb) 0.01 0.04
Source: Effluent Guideline Development Document
46
-------
TABLE 16
PRODUCTION DATA^- AUTOMOTIVE GLASS PLANTS
(Million Square Feet)
Laminating Tempering
Number of Plants 11 9
Total Industry Capacity 200 260
Average Plant Size 18.5 29.0
Range 1.8 to 42.5 3.8 to 66.5
Assuming 250 days/year of operation
Source: Effluent Guideline Development Document
47
-------
TABLE 17
SUMMARY OF INVESTMENTS AND ANNUAL OPERATING COSTS
($000')
Tempered Glass (Typical Plant 37.5 MMSF) B.P.T. B.A.T.
Alternative B Alternative C
Investment 81 149
Operating Costs
Capital 6.5 11.9
Depreciation 4.1 7.5
Operating and Maintenance 11.7 17.9
Energy and Power 1.8 4.8
Total Annual Cost 24.1 42.1
Equivalent Unit Cost (C/SF) 0.065 0.110
Laminated Glass (Typical Plant 8.0 MMSF)
Investment 32 115
Operating Costs
Capital 2.6 9.2
Depreciation 1.6 5.8
Operating and Maintenance 8.0 13.6
Energy and Power 2.4 4.2
Total Annual Cost 14.6 32.8
Equivalent Unit Cost (C/SF) 0.180 0.410
Source: Effluent Guideline Development Document
48
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V. LIMITS OF THE ANALYSIS
In carrying out our analysis of the economic impact of proposed
water pollution controls on the flat glass industry, we have made some
general assumptions about the economy. For instance, we have assumed
that real growth in Gross National Product will average about 4% per year
between 1972 and 1977. We have assumed constant 1973 dollars for all
future expenditures, although we recognize that the relative cost of
labor, energy, materials and capital may change.
Specifically the conclusions in this study are based on the guidelines
as proposed in the effluent guideline development document and the asso-
ciated technology to meet these limits and the related cost. If the
assumptions in deriving these costs or the effluent requirements are
changed as to require different technologies, then the conclusions of
this study may not necessarily be valid. In our discussion with industry
participants we noted that exceptions were taken with the conclusion of
the effluent guideline development document relating specifically to
laminating facilities, and some companies question whether the proposed
control and treatment technologies would achieve the required effluent
quality and at the indicated cost. However, these same participants in-
dicated that if the control technology and associated cost base proposed
were valid that these incremental costs would have no impact on their
pres"ent operation or decision to expand.
We believe that this analysis as presented represents an accurate de-
scription of the economic effect of the cost of pollution on this industry.
There are other factors operating within the industry such as the replace-
ment of much of the present sheet glass capacity with float that probably
are overriding factors in decisions to close certain operations and
expand others.
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