PB-234 845
ECONOMIC ANALYSIS OF EFFLUENT GUIDELINES-FLAT
GLASS INDUSTRY
Arthur D. Little, Incorporated
PREPARED FOR
Environmental Protection Agency
August 1974
DISTRIBUTED BY:
MJul
National Technical Information Sonic*
U. S. DEPARTMENT OF COMMERCE
-------
OIULlUUXAfMH. L)»7,A I* 1' <' M'.
SHEET rn4 Jf hit 1
| PB 234 84!
4. : .tit , /
Economic Analysis of Effluent Guidelines-- Flat Glass
Industry
7. Ki i >ri Miii
4 uigusr ^
7* ^ttrl"William Lee
8. 1 *t rforininc (Vp im tu>n l\i p
\o.
9. Pi Monnri'^ mi. N i'iil ifM
Arthur D. Little, Inc.
Acorn Park
Cambridge, Mass. 02140
10. 1 'ro)< < r t i^L Ut>rl» 1 mt
Task Order No* 34
1 1* ( ontr.ix: k»r.1 ni \o,
68-01-1541
12. T«"»n-Nori'V Or«: \ *»"<
Office of Planning 5 Evaluation
Environmental Protection Agency
Washington, D. C. 20460
13. 1 > |u t»t i«i pert
( 11' < flvl
Final
15. \.|»pK im i«t,i \iM n
16. M->-
This study supplies the Environmental Protection Agency with an analytical
framework for determining the economic impact of water pollution control require-
ments and water effluent standards upon the flat glass industry. The industry
was segmented into sectors; Sheet Class (SIC 3211), Plate Glass (SIC .>211),
Float Glass (SIC 3211), Laminated Class (SIC 3231),.and Tempered Class (SIC 3211).
There were no plant closings, the expected price increase for BPT is less than
o.l% and less than o.3% for BAT.
The expected capital investment required for pollution control be $1,133,000
for BPT, $5166,000 for BAT. The expected annualized cost (including operating,
maintenance, and capitalization of the investment will be $447,000 for BPT and
51,409,000 for BAT.
17. i 7o
Economic Analysis
Effluent Guidelines
Flat Glass Industry
Sheet Glass
Plate Glass
Float Glass
Laminated Glass
Tempered Glass
17b. I < t)T 31 , * N f ' J I p,»»s»
I i ii !.?/(
19. k ur , ' i •. » ' I h I
U i j"n>rt
' II t>
*>o
-1,1' ' 1 >.>. ( i "l->
'l\f I 1>
2; v> »! p
22. I'rii i
2Z
% * t. u V 1 ' _
*!••>! OKM MAY HI IU ( 1 \i
: J MM DC ' 4 »•>.. p %
-------
ECONOMIC ANALYSIS
OF
EFFLUENT GUIDELINES
FLAT GLASS INDUSTRY
Report to
U.S. ENVIRONMENTAL PROTECTION AGENCY
Office of Planning and Evaluation
Washington, D.C. 20460
August 1974
i-A
-------
PREFACE
The attached document 1s a contractor's study prepared with the supervision
and review of the Office of Planning and Evaluation of the U.S.Environmental
Protection Agency (EPA). Its purpose 1s to provide a basis for evaluating
the potential economic Impact of effluent limitations guidelines and
standards of performance establshed by EPA pursuant to sections 304(b) and
306 of the Federal Water Pollution Control Act.
The study supplements an EPA technical "Development Document" Issued In con-
junction with the promulgation of guidelines an*1 standards for point sources
within this Industry category. The Development Document surveys existing
and potential waste treatment and control methods and technologies within
this category and presents the Investment and operating costs associated with
various control technologies. This study supplements that analysis by esti-
mating the broader economic effects (Including product price Increases,
continued viability of affected plants, employment. Industry growth and
foreign trade) of the required application of certain of these control
technologles.
This study has been submitted In fulfillment of Contract No. 68-01-1541,
Task No. 34 by Arthur D. Little, Inc. Work was completed as of August 1,1974.
The study 1s based primarily upon an earlier study, also prepared by Arthur
D. Little, Inc., entitled "Economic Analysis of Proposed Effluent Guidelines
for Flat Glass Industry." The earlier report was circulated 1n conjunction
with the publication of the Federal Register of a notice of proposed rule-
making under sections 304(b) and 306 for the subject point source category.
The analysis contained In the original study has been updated based upon
Information received during the period of time between publication of the
notice of proposed rulemaking and the promulgation of the final regulation.
Because of the constraints of time, the control and treatment costs analyzed
1n this study may not 1n all instances be Identical to those associated with
the requirements of the promulgated regulation. However, those differences,
when they exist are minor Insofar as the final conclusions of the study are
concerned.
This report represents the conclusions of the contractor. It has been re-
viewed by the Office of Planning and Evaluation and approved for publication.
Approval does not signify that the contents necessarily reflect the views of
the Environmental Protection Agency. The study has been considered, to-
gether with the Development Document, Information received 1n the form of
public convnents on the proposed regulation, and other materials In the
establishment of final effluent limitations guidelines and standards of
performance.
11
-------
TABLE OF CONTENTS
Page
List of Tables 1v
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 9C
c. Float Glass 12
4. Flat Glass Fabrication 14
a. Laminated Glass 14
b. Tempered Glass 17
5. Shipments and Consumption of Flat Glass 19
6. Intra-Industry Trends 26
II. FINANCIAL PROFILES 29
III. PRICE EFFECTS 33
IV. IMPACT ANALYSIS 36
A. Major Segments 36
B. Sheet Glass Manufacturing Segment 36
C. Float Glass 37
D. Plate Glass 38
E. Solid Tempered Automotive Glass 39
F. Laminated Windshield Fabrication 41
V. LIMITS OF THE ANALYSIS 48
111
-------
LIST OF TABLES
Table
No. Page
S-l Summary of Anticipated Investments and Annual
Operating Costs for Typical Plants S-4
S-2 1973 Financial Data - Flat and Automotive Glass
Manufacturers S-5
S-3 Suimiary of Incremental Unit Costs to Meet Proposed
1977 and 1983 Guidelines S-7
1 Approximate Operating Parameters of Sheet Glass
Process 7
2 Flat Glass Plants 8
3 New Investment by U.S. Flat Glass Producers 10
4 Location of Automotive Fabrication Flat Glass Plants
1n the United States 16
5 Shipments of Flat Glass, 1968-1973 20
6 Flat Glass Shipments by U.S. Producers, 1973 21
7 Apparent Consumption of Flat Glass, 1972 23
8 U.S. Consumption of Automotive Glass, 1972 23 /
t
9 Applications of Automotive Glass, 1972 25^
10 Foreign Trade 1n Automotive Glass, 1973 25
11 Float Glass: Supply and Demand Capacity Projections 28
12 1973 Financial Data - Flat and Automotive Glass
Manufacturers 30
13 Financial Profile of Operations, 1967-1970 31
14 Tentative Effluent Requirements for Flat Glass Industry
for B.P.T., B.A.T. and N.S.P.S. Controls 44
15 Summary of Investment and Annual Operating Costs 45
16 Production Data - Automotive Glass Plants 46
17 Summary of Investments and Annual Operating Costs 47
1v
-------
EXECUTIVE SUWARY
S-7
-------
I. INTRODUCTION
The objective of this study 1s to provide an analysis of the economic Impact
of the water pollution control requirements anticipated under the Federal
Water Pollution Control Amendnents 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
• Prof1tab111tyi 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 1n 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 stu4y the flat glass Industry was divided fnto
Industrial segments which differentiated the Industry by technology, products,
end-use applications, and markets. In each segment the production techniques
and technologies were documented: market size and trends, price history and
pricing policies and product distribution determined, participating companies
S-V«-
-------
ind the financial characteristics of these companies Identified, and char-
acterization 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 segnents
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 trans-
lated Into unit cost and compared with existing unit prices. The antici-
pated Investment required to meet the three levels of 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, profit-
ability, employment, 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 prelim-
inary data from the Effluent Guideline Development Stuqy that relatively
minor waste water effluent problems existed within the sheet and float glass
segments of the Industry and the costs associated with meeting anticipated
S-2
-------
guidelines were small. However, 1t was evident that relatively greater
problems and cost might be Involved 1n 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 analyz-
ing 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. Oper-
ating costs and investment requirements for each level of control were
selected on the basis of the anticipated guidelines recommended. These
data are summarized 1n Table S-1.
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 S-2 displays the significant financial data for the publicly held
U.S. flat and automotive glass producers. Most of these companies are
fully integrated, multlproduct and multi-Industry participants with signifi-
cant positions 1n 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 1s unavailable for Ford's glass business which Is a small
proportion of Ford's total business. Financial data on private companies
(Safetee, Safellte) are also unavailable.
S-3
-------
Sheet
TABLE S-1
SUMMARY OF ANTICIPATED INVESTMENTS AND ANNUAL OPERATING COSTS FOR TYPICAL PLANTS
(OT1
Segment Plant Size Investment
B.P.T.
Annual
Operating
Cost
B.A.T.
Annual
Operating
Investment Cost
N.S.P.S.
Annual
Operating
Investment Cost
Float 400t000 tons
i
Plate
165,000 tons
Tempered 37.5 WSF
Lamina J 8.0 M4SF
n o
57
81
32
cost
32.8
24.1
14.6
52
656
149
115
16
138.3
42.1
32.8
52
656
149
115
16
138.3
42.1
32.8
Source: Effluent Guideline Development Document
-------
TABLE S-2
1973 FINANCIAL DATA - FLAT AND AUTOMOTIVE GLASS MANUFACTURERS
(* Values In HI!Hons)
to
CI
Basis for
Net
Net
Share- Return
Working holders on
Glass
Earnings
Net Before
Glass
Sales as
% of Total
Year End
Sales
Earnings
Capital
Equity
Eaulty
Sales
Taxes
Sales
PPG Industries
Dec.
31
1512.6
104.4
393.1
802.6
13.0
665.5
51.2
44.0
Ford Motor Company
Dec.
31
23015.1
906.5
1660.5
6405.1
14.2
N.A.
N.A.
N.A.
L1bbey-0wens-Ford
Dec.
31
689.2
62.2
113.2
370.3
16.8
463
48.5
67.2
American Sa1nt-Goba1n
Dec.
31
67.3
2.9
24.9
25.5
11.4
N.A.
N.A.
*95.0
Guardian Industries
Dec.
31
87.2
9.2
14.8
32.8
28.0
75.1
8.1
86.1
Combustion Engrg.
Dec.
31
1272.7
43.6
148.8
321.1
13.4
N.A.
N.A.
N.A.
Shatterproof Glass
Oct.
31
45.2
(0.1)
15.3
22.9
(0.4)
45.2
(0.1)
100.0
Source: 1973 Company Annual Reports and Contractor estimates.
-------
VI. IMPACTS
Based on Information generated 1n this stu
-------
TABLE S-3
SUMMARY OF INCREMENTAL UNIT COSTS TO HEET PROPOSED 1977 AND 1983 GUIDELINES
Present
Segment Average Price
Float
Plate $0.13/lb
Tempered $0.50/SF
Laminated $1.5O-1.B0/SF
Incremental Cost
To Meet B.P.T. % of Present
(19771 Price
No Cost
O.OU/lb 0.1
0.064/SF 0.1
0.184/SF < 0.1
Incremental Cost
To Meet B.A.T. t of Present
(1983) Price
Neg.
0.04
-------
B.P.T. (1977) or B.A.T. (1983) are small, and b) continuation of the man-
ufacture of glass by the plate process will be limited by other factors.
1.e«, the replacement by float glass operations. Due to the noncompetitive
nature of plate glass manufacturing, future construction of plate glass
plants will not take place and new sources treatment will not be a con-
sideration.
• Solid Tempered Automotive 61ass
The incremental cost of meeting the proposed B.P.T. (1977) for tempered auto-
motive 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 1s 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
*re 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
0.184/SF and 0.4U/SF. respectively. This incremental cost represents less
than 0,1% of the present price of laminated windshields 1n the former case
and less than 0,2% for the latter. Thus 1t 1s concluded that the cost
resulting from the recommended control and treatment technologies 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 profit-
ability or plant operations are anticipated. The required capital will be
available to meet these costs. The proposed requirements for new sources
are Identical with those proposed for B.A.T. (1983) and therefore the con-
clusions will not be altered for new plants.
S-8
-------
VII. LIMITATIONS
In arriving at the conclusions of this analysis certain assrapttons about
the econony have been made such as the rate of growth of the Gross National
Product. Constant 1973 dollars for all future expenditures have also been
assuned.
Specifically, the conclusions 1n this stuty are based on the guidelines as
proposed 1n the Effluent Guideline Development Document, the associated
technology to meet these limits, and the related cost. If the assunptlons
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.
We believe that this analysis as presented represents an accurate descrip-
tion 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 1n decisions to close certain operations and expand
others.
S-9
-------
INDUSTRY SUMMARY - PLATE GLASS
Industry - Plate Glass
SIC Code - 3211
# Plants In segment 3
% Total plants 1n Industry 5.5%
# Plants direct discharging 0
% Total plants In segment
# Plants with BPT treatment In place 0
% Total plants In segment
B.P.T. B.A.T.
COST OF POLLUTION ABATEMENT
Capital costs for segment
Total capital cost 170,000 1,960,000
Total capital expenditures as % ^
of average annual Investment 102 110*
Total capital expenditures as %
of total capital in place N.A. N.A.
Annualized costs for segment
Total Incremental Increase
Including capital charges 96,000 415,000
Total incremental Increase
excluding capital charges 74,000 159,000
Total Incremental Increase
Including capital charges
as % of sales 0.1% 0.3%
EXPECTED PRICE INCREASE
Expected increase due to
pollution control 0.1% 0.3%
PLANT CLOSURES
Total closures anticipated None None
% reduction of segnent capacity
due to closures
*Due to the small annual Investments, largely for modifications, 1n plate
glass facilities over past several years.
S-10
-------
B.P.T.
B.A.T.
EMPLOYMENT
Total # of employees affected
X of total employees 1n
segment
COMMUNITY EFFECTS
IMPACT ON INDUSTRY GROWTH
BALANCE OF TRADE EFFECTS
None None
M m
None None
None None
None None
S-11
-------
INDUSTRY SUMMARY - FLOAT 6LASS
Industry - Float Glass
SIC Code - 3211
# Plants 1n segment 15
% Total plants In Industry 271
f Plants direct discharging 9
% Total plants 1n segment 60%
# Plants with BPT treatment In place 15
% Total plants 1n segment 100%
COST OF POLLUTION ABATEMENT
Capital costs for segment
Total capital cost 0 416,000
Total capital expenditures
as % of average annual
Investment - 1.4%
Total capital expenditures
as % of total capital In
place - -v. 0.1%
Annualized costs for segment
Total Incremental Increase
Including capital charges 0 134,000
Total incremental Increase
excluding capital charges - 93,000
Total Incremental Increase
Including capital charges
as % of sales - Neg.
EXPECTEO PRICE INCREASE
Expected Increase due to
pollution control - None
PLANT CLOSURES
Total closures anticipated - None
% reduction of segment capacity
due to closures
S-12
-------
EMPLOYM0IT
Total # of employees affected - None
% of total employees 1n
segment
COIWUNIT EFFECTS - None
IMPACT ON INDUSTRY GROWTH - None
BALANCE OF TRADE EFFECTS - None
S-13
-------
INDUSTRY SUMMARY - LAMINATED GLASS
Industry - Laminated Glass
SIC Code 3231
# Plants 1n segment 12
X Total plants 1n Industry 721
# Plants direct discharging 9
X Total plants 1n segment 70X
f Plants with BPT treatment In place N.A.
X Total plants In segment
B.P.T. B.A.T.
COST OF POLLUTION ABATEMENT
Capital costs for segment
Total capital cost 403,000 1*760*000
Total capital expenditures
as % of average annual
Investment N.A. N.A.
Total capital expenditures
as % of total capital In
place N.A. N.A.
Annualized costs for segment
Total Incremental Increase
Including capital charges 182,000 574,000
Total Incremental Increase
excluding capita] charges 130,000 272,000
Total incremental Increase
Including capital charges
as X of sales 0.1% 0,2%
EXPECTED PRICE INCREASE
Expected Increase due to
pollution control o.l% q,2*
PLANT CLOSURES
Total closures anticipated None None
% reduction of segment capacity
due to closures
S-14
-------
B.P.T.
B.A.T,
EMPLOYMENT
Total # of employees affected
% of total employees In
secpnent
COJtlUNITY EFFECTS
IMPACT ON INDUSTRY GROWTH
BALANCE OF TRADE EFFECTS
None None
None None
None None
None None
S-15
-------
INDUSTRY SUMMARY - TEMPERED GLASS
Industry - Tempered Glass
SIC Code - 3211
# Plants 1n segment 13
% Total plants 1n Industry 24%
# Plants direct discharging 10
% Total plants 1n segment 80%
# Plants with B?T treatment 1n place N.A.
% Total plants 1n segment
COST OF POLLUTION ABATEMENT
Capital costs for segment
Total capital cost 560,000 1,030,000
Total capital expenditures
as % of average annual
Investment N.A. N.A.
Total capital expenditures
as % of total capital 1n
place N.A. N.A.
Annualized costs for segment
Total incremental Increase
Including capital charges 169,000 286,000
Total incremental Increase
excluding capital charges 95,000 154,000
Total Incremental Increase
Including capital charges
as % of sales 0,1% 0.2%
EXPECTED PRICE INCREASE
Expected Increase due to
pollution control 0,1% 0.2%
PLANT CLOSURES
Total closures anticipated None None
% reduction of segment capacity
due to closures
S-16
-------
B.F.T« B.A.T«
EMPLOYMENT
Total # of employees affected
% of total employees 1n
segment
COMMUNITY EFFECTS
IMPACT ON INDUSTRY GROWTH
BALANCE OF TRADE EFFECTS
None None
None None
None None
None None
S-17
-------
I. INDUSTRY SEGMENTS
A. Introduction
This study 1s 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 Industry was seg-
mented Into appropriate sectors. Within the scope of this study we Intend
to cover the following sectors of primary glass manufacturing.
• Sheet Glass
• Plate Glass
• Float Glass
The principal distinction between the sectors 1s technological, I.e., the
manufacturing processes are quite distinct. Markets and applications how-
ever do overlap for each segment.
The remaining sector of primary glass manufacturing, rolled and polished
glass, was excluded on the basis that 1t represented a relatively minor
fraction of the total glass Industry. Due to budget limitations those
principal sectors of the flat glass Industry related to fabrication -
laminated and tempered automotive glass - were not to be Included. It be-
came evident at the completion of Phase I of this study that on the basis
of preliminary data developed by the contractor carrying out a study of the
proposed water effluent guidelines and the related cost to meet these pro-
posed guidelines, that relatively minor water effluent problems existed 1n
the primary flat glass segment of sheet and float glass manufacturing.
However, the flat glass automotive fabricating Industry sector of lamination
and tempering were of somewhat greater concern due to the composition of
effluent water streams.
It was agreed at the Phase I review meeting to change the direction of the
study within the time and budget remaining to focus on the economic Impact
of the proposed water effluent guidelines on the flat glass automotive
1
-------
fabricating sector of lamination and tempering. Obviously within these con-
straints of time and effort an in-depth analysis was not possible bu£ based
on the available Information an attempt was made to analyze the economic
Impact on these segments.
B. Flat Glass Products and Applications
1. Sheet Glass
Sheet glass 1s a transparent flat glass with a smooth f1re-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," weighing over 28 ounces per square foot.
2. Plate Glass
Plate glass 1s a rolled glasc that has been ground and polished to make the
glass transparent and to produce parallel surfaces that are virtually
distort! on-free.
3. Float Glass
Float glass 1s of a similar quality to plate but is manufactured by floating
a layer of molten glass on molten tin 1n a continuous horizontal ribbon that
theoretically could be Infinite in Its length.
Current technology limits the range of thicknesses 1n which each type of
flat glass can be produced, and these thicknesses thus define the potential
applications. Thin sheet glass up to 12 ounces 1s used for the manufacture
of slides, transparencies and picture glass; over 12 ounce thin glass is
used 1n storm windows and for laminating. Window glass 1s 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 fre-
quent material used for tempered patio doors and 1s purchased in thicknesses
of 5/32" to 7/32".
2
-------
Plate and float glass are principally used 1r. automotive applications and
In store display windows, curtain walls and high quality mirrors. Plate
glass is available 1n thicknesses of 1/8" to 1-1/2" while float Is 1/8" to
1/4"; float glass technology 1s advancing rapidly In making even thinner
sheets that might compete with 3/32" sheet glass In the very near future.
While sheet glass 1s generally cut for immediate use 1n residential construc-
tion, some of it and the majority of plate and float glass is further processed
or fabricated for automotive or building safety applications. This processing
1s either a tempering or a laminating process. Tempered glass 1s a type of
safety glass that 1s used principally for glazing the side and rear windows
of motor vehicles and 1s used Increasingly 1n 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 1n
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 1n a formed shape with an
Intermediate layer of clear v1r\yl. Laminated glass is most frequently used
1n automotive windshields; 1n 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 1s highly
concentrated and Involves only seven companies. Over 87% of the U.S. output
of sheet glass 1s produced by PPG Industries (PPG), Ford Motor Company,
L1btey-0wens-Ford (LOF), and ASG Industries (ASG).
The U.S. producers of float glass are PPG, LOF, ASG, Ford Motor Company,
Guardian Industries and C-E Glass (a subsidiary of Combustion Engineering);
however, PPG, LOF and ASG account for all of the plate glass manufacturing.
In summary, three firms largely dominate U.S. production of plate glass. PPG
and LOF are large, multlproduct firms producing a wide range of flat glass
3
-------
products, Including rolled and tempered as well as other Industrial products.
The two companies also participate 1n the foreign production of flat glass
through arrangements ranging from process licensing agreements and joint
ownership of foreign facilities. The third major company. Ford, produces
float ^nd tempered glass primarily for Its own consumption 1n the manufacture
of vehicles, but also for sale to the trade.
Two smaller firms - ASG and Fourco Glass Company - also are fairly significant.
AS6 produces plate, sheet, float and rolled glass (as well as tempered archi-
tectural glass) while Fourco's production 1s 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.
Guardian Industries, Ford, LOF and PPG are manufacturers of raw glass as well
as fabricators of laminated and tempered automotive glass. These four com-
panies, plus Chrysler who purchases raw glass and fabricates 1t for Its own
use 1n the manufacture of automobiles, probably account for over 80% of
automotive glass manufactured 1n the United States tod«y; 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 lamlnators. All three
companies purchase raw glass from the major producers for further processing.
LOF 1s 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 1n the United States utilizes a variety of
distribution channels. It 1s significant to note, however, that while approxi-
mately two-thirds of primary plate and float glass produced 1n the United
States 1s Initially destined for 1ntracompar\y transfers for further fabrication
or processing (mainly for automotive uses), about 85-90% of sheet glass Is sold
directly to customers through various distribution channels without 1ntra-
company processing.
4
-------
Direct sales from the factory to Independent glass distributors, fabricators,
processors (such as for automotive applications), and glazing contractors
are the most frequently used channel. These prequallfled buyers have the
advantage over other potential purchasers of flat glass who must order their
glass, even 1n 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 1n 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 1t from the agents who might have Imported
glass for their own account. Importers may thus resell the landed product
or use 1t themselves 1n 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, 1s sold directly to motor
vehicle manufacturers at negotiated prices. Some automotive replacement
glass 1s distributed by some of the major motor vehicle manufacturers through
their new-car dealer franchises. Replacement glass 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
1s 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.
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 same changes 1n working conditions of the glass; however,
5
-------
the major ingredients of silica sand, limestone, soda ash and cullet (recycled
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 1n size and detail construction, the
basic function 1s essentially the same 1n all flat glass manufacturing. The
tank provides a high temperature environment in which the raw materials de-
compose and react to form an inorganic melt of NagO-CaO-SIOg. The residence
time 1n the tank allows for homogenlzatlon 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 working
compartment, vertical drawing or horizontal drawing. In the Fourcault and
the Pittsburg Process, the glass sheet 1s 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 1s drawn upward from
the forehearth for a distance of 2 - 2-1/2 ft and then directed Into a hori-
zontal 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.
Sheet glass product quality Is subject to stria, cords and distortions due
to the variations 1n control of the sheet thickness as It Is being formed.
Thus, sheet glass quality 1s considerably below that of plate or float glass
but 1s adequate for residential construction, the primary application.
6
-------
TABLE 1
APPROXIMATE OPERATING PARAMETERS OF SHEET GLASS PROCESS
Average No.
Machines/
Process Tank
Speed
Max. Range*
Width ft/hr Yield %
Average Time
Between
Shutdowns
Fourcault
Colburn
Pittsburg
4-6
1-2
4-6
108" 225-300 65-75
144" 320-400
120" 280-400
200-250 hrs
250-500 hrs
* For single strength window glass (3/32")
Speed 1s 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 1s for cooling around the
tank, the forehearth, and at the forming position where water 1s 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.
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
1n West Virginia and the remainder in the Midwest, Oklahoma, and California.
Although relatively few sheet glass plants have been built In the last 20 years,
the technology has not changed a great deal and equipment Is reasonably
• Plants and Locations
7
-------
TABLE 2
FLAT GLASS PLANTS
Type of Plant
Company
ASG
Combustion Engrg.
Sheet
Jeanette, Pa.
Okmulgee, Okla,
Plate
Float
Klngsport.Tenn. Green!and,Tenn.
#Floreffe, Pa.
Almonesson, N.J.
Ford
Dearborn* Mich.
*Nashv11le, Tenn.
Tulsa, Okla.
Fourco
C1arksburg,W.Va.(2)
Ft. Smith, Ark.
Guardian
LOF
PPG
Charles ton,W.Va. Rossford, Ohio
Honryetta, Okla.
Mt. Vernon,Ohio
Clarksburg, W.Va.
Mt. Z1on, 111.
Fresno, Calif.
Cumberland,Md,
Carleton, Mich.
Toledo, Ohio
Ottawa, 111.
Lathrop, Calif.
**Rossford, Ohio
Laur1nberg,N.C.
Cumberland, Md.
Meadvllle, Pa.
Crystal City* Mo.
^Carlisle, Pa.
Wichita Falls, Tex.
Under construction
Planned 1974
8
-------
modernized. Plant capacities vary from 100 to 680 tons/day output and employ
between 150 to 900 production workers. Production per manhour has risen to
MJ0-85 sq ft/manhour through improved efficiency. New Investment In sheet
glass facilities over the past seven years has been modest at a total of
%35MM$. (Table 3)
• Employees
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 1n eriployment has
been a result of plant closings, although some reduction 1s due to product
efficiency. Reduction 1n capacity of U.S. sheet manufacturers 1s 1n 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 1n thickness are unavoidable and cause distortion. High quality
Image transmission for undlstorted vision requires that the two surfaces of
the glass be flat and parallel and this condition can be obtained by grinding
and polishing.
Plate glass 1s 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 1s 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 1s 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.
After annealing and cooling, the continuous ribbon 1s cut to standard size
and then ground and polished on one side at a time. Alternatively the twin
9
-------
TABLE 3
NEW INVESTMENT BY U.S. FLAT GLASS PRODUCERS
January 1964 - June 1971
(OOO $)
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
-------
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 1s supported from below by the grinding and polishing
machine. Since the process 1s a continuous one the speed at the sheet forming
end of the line dictates the speed of the finishing operation. Cutting and
packaging Is similar to other flat glass processes.
• Water Streams
In addition to the normal requirements for noncontact cooling water and dis-
charge from water pretreatment systems (1.e.t water softening and Ion exchange),
the plate glass process uses significant amounts of water 1n 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 1s ground flat with silica and polished
with iron oxide rouge and/or cerium oxide. This process produces a high level
of suspended solids with a low level of dissolved solids and a very low level
of BOD In the plant effluent.
The production of plate glass 1s 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 manufacturer of plate glass.
• Plants and Locations
Three plate glass manufacturers have been Identified as presently operating
1n the United States. The locations of plate glass plants are listed 1n
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 1n the past 15 years. The AS6
plant at Klngsport, Tennessee was brought on stream 1n 1960. Plant capacity
ranges from 270-380 ton/day with one tank and line per plant. The Investment
1n plate glass facilities over the period 1964-1971 1s believed to be about
$15.5MM with less than 8% of that Investment 1n new facilities.
11
-------
The rapid replacement of plate glass capacity with float 1s expected to con-
tinue simply because of process economics. In 1970 the product per manhour
1n plate glass manufacture was *33 sq ft/manhour compared with *112 sq ft/
manhour 1n float glass. Plate glass demand was probably about 70 MM sq ft
1n 1972 — less than 4% of the total flat glass consumption.
• Employees
The number of employees 1n the plate glass Industry has been reduced drasti-
cally over the past five years. From 1967, when the number of production
workers was 5560. to 1972 the employees 1n 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 1n 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 which was developed 1n the United Kingdom represents
the most significant technical development 1n the flat glass Industry 1n
this century. This process makes 1t 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.
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 *400-500 ton/
day producing 50-150 MM sq ft of product. The process 1s a continuous 1n-l1ne
operation and one tank serves one line. Production speeds are high and depend-
ing upon thickness may reach 1500 ft/hr or greater.
The key element 1n the process 1s the fact that the molten glass Is drawn from
the forehearth on to a molten tin bath and due to the density differences the
12
-------
molten glass floats and 1s supported on the tin bath. Surface tension forces
result 1n a natural thickness of the floating glass of 1/4". The top face
of the floating sheet 1s fire polished and the lower surface defined by the
tin bath.
The continuous ribbon of glass, after cooling sufficiently to prevent dis-
tortions, 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 1n that the speeds are high, labor
content low and the expensive grinding and polishing 1s eliminated.
• Water Streams
In float glass facilities the major water use 1s for noncontact, recirculated
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
1s washed with detergent, city water, and delonlzed water. Washing with
detergent 1s gradually being discontinued, so the process wastewater effluent
generally contains primarily sodium sulfate (from SO2 treatment of the glass)
at a concentration of about 400 ppm.
• Plants and Locations
In 1972 there were 11 float glass plants 1n operation In the United States.
Since that time the ASG plant 1n Greenland, Tenn. has come on stream and three
additional plants are under construction or are planned for construction this
year. By the end of 1973-early 1974, 15 float plants, representing 21 float
glass lines will be 1n production having a total capacity of 1700 MM sq ft of
glass. This represents a ~700% Increase 1n float capacity since 1967. The
location of specific plants are listed 1n Table 2.
13
-------
Obviously all plants are relatively new and represent substantial Investment
on the part of the glass producers. The Tariff Commission Report states
that 216 MM$ have been Invested 1n new plants and modifications of float
glass facilities from 1964 to 1971.
• Empioyees
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 1n employment Is the
output per manhour which has risen from an average of 87 sq ft/manhour 1n
1967 to ~120 sq ft/manhour. That figure varies substantially since new
plants have been constantly coming on stream; however, 1t Is expected that
the efficiency will continue to Increase as experience 1s 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 splintering
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.
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
heating sagging 1n a specifically designed jig or frame. Two mated pieces
of glass separated by a parting compound are mounted 1n the J1g and passed
through a lehr at the softening temperature of the glass.
Prior to laminating the glass 1s washed free of dirt and parting compound,
interlayered with a sheet of polyvinyl butylate and prepressed between rollers
14
-------
to remove entrapped air. The final bonding 1s accomplished 1n oil or air
autoclaves. 011 autoclaves are generally used and pressing Is done under
a pressure of 28-85 lb/1n.2 at ^212°F. Residual oil from the lamination
step 1s removed by draining followed by a series of washing and rinsing
cycles. If seaming 1s done after autoclavlng a final wash 1s used. Fab-
ricated windshields are then packed and shipped.
• Waste Water Streams
Contact water streams 1n 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-
move oil, grease and dirt prior to sagging. Both once through and recycle
type washers are used.
Prel ami nation washes include washing of the v1r\y1 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 postlami nation wash Involves removal of residual oil from the autoclaves.
Older methods use a first stage detergent wash followed by two or 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.
• Plants and Locations
We have Identified twelve facilities that participated 1n the automotive
lamination fabrication (Table 4). Approximately 50$ of the plants are located
in the Midwest, principally Ohio and Michigan. In most cases windshield lam-
ination facilities are Integrated with automotive tempering facilities
although some large producers segment their operations. The total U.S. cap-
acity for windshield lamination Is given as 75,000 sq M/day (810,000 sq ft/day)
15
-------
TABLE 4
LOCATION OF AUTOMOTIVE FABRICATION FLAT GLASS PLANTS
IN THE UNITED STATES
Type of Plant
Company
Chrysler
Ford
Guardian
LOF
PPG
Safellte
Safetee
Shatterproof
Laminating
Detroit, M1ch.
Dearborn, Mich.
Detroit, Mich.
Toledo, Ohio
Ottawa, 111.
Lathrop, Calif.
Crelghton, Pa.
Greenburg, Pa.
Wichita, Kan.
Enfield, N.C.
Philadelphia, Pa.
Detroit, M1ch.
Tempering
Detroit, Mich.
Nashville, Tenn.
Millburg, Ohio
Toledo, Ohio
Ottawa, 111.
Lathrop, Calff.
Rossford, Ohio
Crestline, Ohio
Tipton, Pa.
Carlisle, Pa.
Detroit, M1ch.
16
-------
and the average plant size is 6,900 sq M/day (74,000 sq ft/day) according to
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 1s 3 type of safety glass made by processing flat glass to
Increase Its mechai. 1 strength. Due to the nature of the process, tempered
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 1s required 1n all side and back Htes 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 processing
of precut flat glass to raise the residual stress of the glass In such a way
as to increase its strength. In this process the temperature of the glass
1s raised near the softening point, the glass removed from the heating furnace
and the surface chilled quickly. By and large forced air cooling 1s used 1n
the automotive tempering operation. The surface layer quickly becomes rigid
while the interior is still fluid and expanded. As the temperature gradient
through the glass approaches equilibrium the stresses in the surface become
highly compressive while the interior 1s 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 1t will propagate
and release the high internal stress causing the material to fracture Into
very small fragments.
Tempered glass cannot be cut or ground after the tempering process. Therefore
all cutting, drilling and seaming are done prior to the thermal processing.
For curved side and back Htes, bending 1s carried out in the laminating
process just prior to the quenching of the surface.
17
-------
• Waste Water Streams
The principal waste water streams In automotive tempering of glass are 1n the
pretemperlng operatlons such as seaming and drilling, and the washing prior
to tempering.
In the pretemperlng operations, small amounts of water are used In the seam-
ing operation to hold down dust. Edge grinding 1s carried out on all exposed
edges of side 11tes. An oil-water emulsion 1s used to flush away glass
particles. All of this coolant 1s 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
recyllng 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 1f any contaminants are picked up 1n water spray quenching operations.
The study carried out by the effluent guideline contractor Indicates there 1s
a considerable range of process waste water flow depending upon the amount
of recycling carried out. A typical plant flow 1s of the order of 49*/gm
(1200 gal/1000 sq ft). Twenty percent of the plants surveyed were discharging
to municipal systems.
• Plants and Locations
It 1s estimated that there are 13 facilities engaged 1n tempering and automo-
tive back and side Htes. There are a large number of additional tempering
operations, mostly smaller facilities, that do not participate 1n the auto-
motive market. By and large the principal tempering operations are located
1n the Midwest 1n close proximity to the automobile manufacturers. Tempering
facilities are 1n mar\y cases Integrated with windshield lamlnators and some-
times contiguous to primary glass manufacturing plants. The effluent
18
-------
guideline development document gives the total U.S. capacity as 95,500
sq M/day (1,050,000 sq ft/day) and the plant sizes ranging from 1,396-
24,700 sq M/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 1n the period 1967 to 1968; however there was a decline
to 16,139 1n 1970 according to the Tariff Commission Report. Over that same
period the output per manhour Increased from 29.7 sq ft/hr 1n 1967 to
32 sq ft/hr 1n 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 gen-
erally moved with the level of residential construction and reached 1.2
billion square feet 1n 1972, dropping slightly in 1973. 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 1405 million square feet In 1973. (Less than 5% of
this total 1s represented by rolled or wire glass.) The value of shipments
also Increased substantially from $248 million 1n 1968 to $433 million 1n
1973. No breakdowns are available for the shipments of plate as opposed to
float glass but the proportion of float has Increased from zero 1n 1964,
when it was first Introduced to the United States, to a level believed to
be about 952 of plate-float production.
Table 6 shows the flat glass shipments by U.S. producers 1n detail for 1973.
While sheet glass represented about 45% of total flat glass on a surface
area basis, It was only 28% of total tonnage and 26% of value of shipments.
Window glass, 1n single and double strengths, totalled 89% of sheet glass
shipments, this proportion Increasing gradually over the years as heavy
sheet glass 1s replaced by float. Thin glass has similarly declined and
1s now only 2% of total sheet glass.
19
-------
TABLE 5
SHIPMENTS OF FLAT GLASS. 1968 - 1973
Sheet Glass Including
Colored, Total
Plate, Float, and Rolled
and Wire Glass
1968
1969
1970
1971
1972
1973
1000 so ft Value $1000 1000 so ft Value $1000
1,095,800
1,160,950
1,069,700
1,188,750
1,196,700
1,126,900
139,391
150,123
131,551
15C.344
157,222
152,242
656,004
705.244
698,394
943,064
1,191,830
1,404,567
248,078
266,747
253,239
314,330
393,263
433,048
Source: U.S. Department of Commerce/Bureau of the Census,
Current Industrial Reports (MQ-32A)
20
-------
TABLE 6
FLAT GLASS SHIPMENTS BY U.S. PRODUCERS, 1973
Quantlty
MM sq ft
MM lbs
%
Flat Glass, Total
2501.1
100.0
4762.3
100.0
Sheet Glass, Total
1125.0
45.0
1339.4
28.1
Single Strength, Uncolored
699.0
27.9
831.8
17.5
Double Strength, Uncolored
297.0
11.9
353.4
7.4
Heavy Sheet, Uncolored
110.1
4.4
131.0
2.8
Thin and Tinted or Colored
19.5
0.8
23.2
0.5
Plate, Float, & Rolled and
Wire Glass
1376.1
55.0
3422.9
71.8
Plate & Float, not over 1/8"
541.1
21.6
882.0
18.5
Plate & Float, over 1/8",not
over 1/4"
749.5
30.0
2248.5
47.2
Plate & Float, over 1/4" and
Rolled and Wire
85.5
3.4
292.4
6.1
Value
(MMS) %
Flat Glass, Total 576.0 100.0
Sheet Glass, Total 152.3 26.4
Single Strength, Uncolored 92.3 16.0
Double Strength, Uncolored 41.0 7.1
Heavy Sheet, Uncolored 14.3 2.5
Thin and Tinted or Colored 4.7 0.8
Plate, Float, & Rolled and Wire Glass 423.7 73.6
Plate & Float, not over 1/8" 140.3 24.4
Plate & Float, over 1/8",not over 1/4" 245.9 42.7
Plate & Float, over 1/4" and Rolled
and Wire 37.4 6.5
Unit Value
Flat Glass, Total 12.1
Sheet Glass, Total 11.4
Single Strength, Uncolored 11.1
Double Strength, Uncolored 11.6
Heavy Sheet, Uncolored 11.0
Thin and Tinted or Colored 20.3
Plate, Float, & Rolled and Wire Glass 12.4
Plate & Float, not over 1/8" 16.0
Plate & Float, over 1/8", not over 1/4" 10.9
Plate & Float, over 1/4" and Rolled & Wire 12.8
Source: U.S. Department of Conmerce/Bureau of the Census
Current Industrial Reports (Series MQ-32A)
21
-------
The majority of plate and float glass shipments are between 1/8 Inch and 1/4
Inch 1n 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 1n 1968 that caused sufficient alarm 1n the Industry for 1t 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 1n 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 40.52 of the U.S. consumption 1n 1972.
U.S. Imports of plate and float glass also Increased gradually 1n the late
1960's and 1n 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 1n 1968. Exports of sheet, plate or float glass have
not been significant. However, exports 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 1n that year
and that Imports represented an average of 21% of consumption.
The overall demand for automotive glass 1s dictated largely by the level of
production of passenger cars and other motor vehicles. Laminated glass, fre-
quently curved, 1s the only type of glass used In the windshields of vehicles
and solid tempered glass 1n the side and back lltes. 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 pre-
cut to the desired shape; each piece measures from 10 to 14 sq ft 1n surface
22
-------
TABLE 7
APPARENT CONSUMPTION OF FLAT GLASS. 1972
(Millions of sq ft)
Plate and
Sheet Float Total
Domestic Shipments 1197 1191 2388
Imports 524 93 617
Exports 2 66 68
Apparent Consunptlon 1719 1218 2937
Imports as % of Consumption 30.5 6.A 21.0
Source: Contractor estimates, based on Department of Commerce data
TABLE 8
U.S. CONSUMPTION OF AUTOMOTIVE GLASS. 1972
Float
OEM
Replacement
55
10
MMSF
630
115
Sheet and Other
*
Total
2
MMSF
35
50
MMSF
665
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
23
-------
area, averaging 11 sq ft. Rear and side windows of tempered glass are
7/32-1nch single thickness and measure 8 sq ft and 10 to 12 sq ft. repec-
tively although these surface areas can vary widely according to model and
year.
Original equipment applications for automotive glass totalled 665 million
sq ft 1n 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 1n automotive applications, totalling 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 1n 1972. We esti-
mate that approximately 530 million sq ft of laminated glass (single thickness)
1s 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% 1s taken for replacement applications.
Foreign trade 1n automotive glass, as shown 1n Table 10, totalled 64.5 million
dollars In Imports and 31.7 million dollars 1n exports 1n 1973; Imports de-
clined and exports Increased over 1972. It 1s estimated that approximately
half of the Imports enter from Canada for use as original equipment 1n 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 subsidiaries and then return-
ing 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 1n the data for tempered glass, both Imported
and exported, 1s a certain proportion of architectural glass used for patio
doors and other safety applications, but this 1s believed to be small.
Real growth In value of flat glass 1n the United States 1n 1972-1980 1s ex-
pected to be at the rate of about 3% for building construction applications,
24
-------
TABLE 9
APPLICATIONS OF AUTOMOTIVE GLASS. T972
(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. 1973
Imports Exports
MMSF SMM HMSF $MM
Tempered 37.8 34.8 21.5 20.1
Laminated - 20.7 10.2 19.3
64.5 31.7 39.4
Average Value ($/SF)
Imports Exports
Tempered 0.92 0.93
Laminated - 1.89
Source: Department of Commerce Data
25
-------
below the anticipated growth rate for the Gross National Product, and at
about 2.5% annually for automotive applications. It Is estimated that
approximately 70% of sheet glass consumption Is In windows and other building-
related applications and that 302 goes to miscellaneous uses, including some
laminating and tempering *or automotive applications. Sixty-five percent of
plate and float consumption finds use 1n the automotive Industry, with the
remaining 35% 1n building construction, furniture and miscellaneous other
uses. Thus, the projected demand for sheet glass will probably average about
2.5% annually to the end of the decade and that for plate and float glass
about the same. However, the growth rate of float glass could be considerably
faster than 2.5%/year as plate glass facilities are shutdown and as float
glass becomes technologically capable of replacing sheet glass In window
applications.
Other potential product trends which could affect demand 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. Also, the current mood of the automobile consumer 1n favor of
small vehicles In order to save fuel and to minimize on parking problems will
affect automotive glass demand. Our conversations 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. However, the long-term domestic trend will undoirt-
edly be to a smaller average-sized vehicle and thus a reduction 1n the size
of both new and replacement automotive glass.
6. Intra-Industry Trends
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 - 3.82 per year, a healthy demand situation. The
26
-------
dollar volume of manufacturer shipments has grown at an average rate com-
parable to the growth rate of the GNP and 1t would seem unlikely that this
relationship would change substantially over the next five years.
During the recent growth of the Industry, 1t 1s 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 1s essentially complete.
The tremendous rapid Increase 1n float capacity 1n the recent past and new
facilities planned In the next two years has raised a question concerning
the supply/demand of float glass (Table 11). With the replacement of plate
glass with float complete, 1t 1s expected that 1n 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 1n the
double strength window glass market now served by sheet glass. The Invest-
ment In float glass facilities by the major producers - ten times more than
1n sheet and plate facilities combined - seems to substantiate the trend.
Thus It would appear that plate glass facilities will continue to be shutdown
as new float capacities come on stream. It 1s 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 the areas traditionally served by sheet glass.
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 1s con-
ceivable that additional costs associated with meeting guidelines could
accelerate plant closings particularly 1n the plate glass segment.
27
-------
TABLE 11
FLOAT GLASS: SUPPLY AND DEMAND CAPACITY PROJECTIONS
(Million Square Feet)
1967 1968 1969 1970 1971E 1972E 1973E 1974E 1975E
U.S. Producers' Shipments
of Float Glass 243 409 529 669 1040 1200 1470 1800 2050
& Year-end Float Glass
00
Capacity 280 600 1160 1730 2100
Source: F.S.Smlthers & Co., Inc., estimates
-------
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, -multlproduct and multi-Industry participants with significant
positions in the U.S. econony. Glass sales naturally represent a greater
proportion of the sales of the smaller companies such as Shatterproof,
Guardian and ASG, but 1s still a significant portion of LOF's and PPG's
total business. Data 1s unavailable for either Combustion Engineering's or
Ford's glass businesses but glass sales are a small proportion of total
business for either. Financial data on private companies (Safetee, Safellte)
are alsu unavailable.
Data on the manufacturing costs and profitability of Individual facilities
1s not available, but the data shown 1n Table 13, computed from Information
submitted to the U.S. Tariff Comnisslon by the U.S. producers, does Indicate
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 1n the
late 1960's was very low and ranged from a breakeven situation 1n 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 sig-
nificantly lower than the 15% to 20% experienced In the three preceding years.
Float glass has, 1n general, been Improving Its profitability over time.
In 1967 the net profit as a percentage of net sales was 28.8%; 1n 1969 1t 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.
Sheet glass 1s still a relatively unprofitable business and speculation is
strong that existing facilities will be phased out gradually as float capacity
comes on stream and as float technology permits the production of thinner
glass.
29
-------
TABLE 12
1973 FINANCIAL DATA - FLAT AND AUTOMOTIVE GLASS MANUFACTURERS
($ Values 1n Millions)
Basis for
Year End
Net
Sales
Net
Earnings
Working
Capital
Share-
holders'
Equity
Return
on
Equ1ty
Net
Sales
Glass
Earnlngs
Before
Taxes
Glass
Sales as
% of Total
Sales
FPG Industries
Dec. 31
1512.6
104.4
393.1
802.6
13.0
665.5
51.2
44.0
Ford Motor Company
Dec. 31
23015.1
906.5
1660.5
6405.1
14.2
N.A.
N.A.
N.A.
Llbbey-Owens-Ford
Dec. 31
689.2
62.2
113.2
370.3
16.8
463
48.5
67.2
American Sa1nt-Goba1n
Dec. 31
67.3
2.9
24.9
25.5
11.4
N.A.
N.A.
-------
TABLE 13
FINANCIAL PROFILE OF OPERATIONS. 1967 - 1970
1967
1968
1969
197p
Sheet Glass (4/1 b)
Net Sales
10.6
10.5
10.2
9.6
Cost of Goods Sold
9.1
8.7
8.5
8.6
Admin, and Selling Expenses
1.2
1.2
1.1
1.0
Net Operating Profit before Taxes
0.3
0.6
0.6
neg,
Net Profit as % of Net Sales
2.8
5.7
5.9
-
Plate Glass
(*/SF)
Net Sales
37.8
38.2
38.7
42.1
Cost of Goods Sold
26.8
27.4
29.6
36.1
Admin, and Selling Expenses
3.3
3.0
3.3
3.9
Net Operating Profit before Taxes
7.7
7.8
5.8
2.1
Net Profit as % of Net Sales
20.4
20.4
15.0
5.0
Float Glass
(f/SF)
Net Sales
32.9
32.6
33.3
31.7
Cost of Goods Sold
20.9
17.7
17.4
17.5
Admin, and Selling Expenses
2.5
3.2
3.5
3.6
Net Operating Profit before Taxes
9.5
11.7
12.4
10.6
Net Profit as % of Net Sales
28.8
35.8
37.2
33.4
Source: U.S. Tariff Commission Report No. TEA-1-23; January 1972
31
-------
As most automotive glass producers are Integrated concerns or privately held,
specific financial djta on tempered and laminated glass production 1s only
available from Shatterproof Glass Corporation. This 1s shown In Table 12.
Integrated producers generally transfer raw glass at a computed market value
and, as prices for automotive glass are very competitive, processors do not
achieve very high levels of profit. In fact, operating losses or a breakeven
situation 1s generally the case with most manufacturers 1n 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 tl'.an 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 1n Investment from $20 to $25 fW,
depending on the rated capacity (usually 400 to 600 tons per day) and whether
the line 1s an addition to an existing one or at a completely new facility.
It 1s not Inconceivable that at least six of the 12 sheet glass plants
presently 1n operation, and the three plate glass plants, will be closed
down within five years as a result of their technology and economics. Th<;
closedowns will only be accelerated, and not stimulated, by the potential
increases 1n costs brought about by pollution abatement requirements.
32
-------
III. PRICE EFFECTS
The distribution channels discussed earlier help to define various levels
of pricing that exist 1n the marketplace today. Typically, a direct factory
buyer will be able to obtain more competitive prices than a purchaser who
has to obtain his stock from Independent glass distributors or from the PPG
distribution centers. Nonfactory buyers who have been forced to seek com-
petitive 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 1s 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 absorbed In this way averages
seven or eight percent; freight allowances or rebates are allowed for factory
pickup and this Is estimated to be done 1n at least SOX of sheet glass ship-
ments.
List prices are Invariably higher than actual prices paid as discounts are
almost always obtainable by purchasers. The level of these discounts 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 obtainable on a greater proportion of
total shipments In poor years — 27% 1n 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 currently probably no more than five percent for plate
and float, and are probably given 1n less than two percent of total shipments.
Apart from these differences, product pricing 1s structured similarly to
sheet glass and varies with product form.
33
-------
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. As Ford and Chrysler supply the bulk of their own needs, compe-
tition 1s aggressive for the business of the other automotive manufacturers
and these negotiations can be crucial, although the automobile manufacturer
is relatively more concerned with timely delivery and consistent quality.
Price competition 1s even more severe 1n serving the replacement market as
a number of functional markups occur before arriving at a retail selling
price and price 1s often the sole criteria on which wholesalers and
retailers purchase.
Unit prices of sheet glass averaged 11.04/1b In 1972 as compared to 13.U
for plate and float and 12.H 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:
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 1n 1972
probably reflects the effects of the price freeze and would be contrary to
normal expectations 1n what was a high demand year. Prices have firmed and
recovered somewhat since, and the Index stood at 124.6 In February 1974.
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 for
tempered side and rear windows. Average replacement market prices experienced
a sharp drop in 1972 because of added processing capacity in the industry.
Dec. 1973
1967
1968
1969
1970
1971
1972
100.0
104.4
109.6
115.6
123.9
122.4
123.6
+5.0
+5.5
+7.2
-1.2
+1.0
34
-------
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 requires a price
advantage of about five percent to be competitive with domestic production;
currently the price gap 1s 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 1s 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 1s very competitive at each
level from the fabricator to the retailer; OEM prices are relatively less
competitive because of the other qualitative factors, discussed earlier, that
enter the decision process. The ability of the processing Industry to pass
on increased costs, therefore, would depend largely on Intra-industry compe-
tition and Import competition. Because of the difficulty 1n 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 1n
the U.S. market. (This 1s 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.)
35
-------
IV. IMPACT ANALYSIS
A. Ma.lor 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 rele-
vant Information on each segment detailed. In this section the economic
Impact of proposed water pollution control requirements and proposed effluent
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 fc •
rlcatlon — namely, laminated and tempered automotive glass.
In this study the economic impact of the cost of pollution abatement require-
ments 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 In-
volved in the process. Therefore, no waste water or waste load should be
discharged.
36
-------
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, production
curtailment, employment or the comnunity.
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 therefore no economic
Impacts are anticipated.
C. Float Glass
1. Best Practicable Technology
The proposed limits on waste water effluent for float glass manufacturing
plants are given In Table 14 for all three levels of control. For B.P.T. the
proposed alternative Involved the elimination of detergents in the washing
process. No costs are associated with meeting B.P.T. and only a change In
plant practice of detergents is involved. Therefore, no economic
effect on price, production, profitability, employment, or the comnunity will
result.
2. Best Available Technology
The proposed requirement for B.A.T. is diatomaceous earth filtration. In
Table 15 the cost to meet this limit is minimal, although the exact cost will
depend somewhat on total production of the plant.
In light of the small Incremental cost and the healthy condition of this seg-
ment of the industry, no economic impact is anticipated.
37
-------
3. New Source Performance Standards
The proposed limit for new sources of float glass manufacturing Is the
same as for B.A.T. Considering the substantial Investment 1n new float
glass facilities. Incremental Investments and costs associated with N.S.P.S.
limits will not Impose any restrictions on future plant construction.
D. Plate Glass
1. Best Practicable Technology
The proposed process waste water limits for plate glass manufacturing facil-
ities 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 45,9004/MT.
The costs to meet the proposed level on limitations are given 1n Table 2 at
^$33,000/year.
a. Prfce 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 1s 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 profit-
ability. Plate glass has not remained as a competitive process for producing
flat glass. The replacement by float produced glass 1s about complete and
this factor will remain the overriding one In profitability considerations.
c. Other Effects
At the present time there are only three plants 1n the United States manufac-
turing 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.
38
-------
2. Best Available Technology
While the incremental costs associated with meeting proposed B.A.T. guide-
lines (Table 15) are larger than those Imposed by B.P.T. requirements, they
are still modest. Our conclusions as to the economic Impact of B.A.T.
controls are equally valid and the future of this segment of the Industry
1s highly doubtful for other reasons.
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-sedimentation with
sludge dewatering by centrlfugatlon. The proposed effluent levels are
given In Table 14.
The production data (Table 16) 1s taken from the effluent guideline develop-
ment document and an average tempering plant 1s assumed to have an annual
output of 29 million square feet while a typical plant 1s 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 t' e age and size of the production facilities as a
possible means of subcategorlzatlon but concluded that these criteria are
not a proper basis for subcategorlzatlon.
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
0.055 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.
39
-------
b. Financial Effects
• Profitability
As all anticipated costs will be able to be passed on 1n the form of price
Increases, the reconmended 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 figure for the average plant In operation today 1s
$63,000, while the aggregate Industry Investment requirements 1s $560,000.
We believe the required capital will be available on a plant-by-plant and
company-by-company basis and the Industry will 1n 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 the use of filtration
(oil absorptive dlatomaceous earth) In addition to B.P.T. technology.
The economic cost data to meet B.A.T. requirements for a typical plant are
given 1n Table 17, extracted from Supplement A to the effluent guideline
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.
40
-------
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.
Me 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.
F. Laminated Windshield Fabrication
1. Best Practicable Technology
The proposed controls for B.P.T. for windshield fabrication Involve a modi-
fication of the post lamination washer sequence to provide a continuously
recycling hot water rinse, oil removal by centrlfugatlon of the recirculating
hot rinse water, recycling of oil back to the process and treatment of other
post lamination rinse water by gravity oil separation.
In Table 16 che production data contained 1n 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 sunmarlze the required Investment and annual operating cost
for each level of control technology extracted from Supplement A of the
effluent guideline development document. Again, 1t was concluded by that
contractor that plant size and age were not a basis for subcategorlzatlon.
a. Price Effects
The unit cost for meeting the proposed B.P.T. control 1s 0.18 cents per sq ft
as compared to current manufacturers' selling price of approximately $1.50
41
-------
per sq ft for flat laminated glass and approximately $1.80 per sq ft for
curved windshields. Thus, we conclude that the cost resulting from the
reconmended control and treatment technologies will have little or no effect
on selling prices. Any Incremental cost will be passed on 1n 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 auto-
motive laminating Industry 1s $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 1s also given 1n
Table 17 for the typical plant.
a. Price Effects
For proposed B.A.T. control, the unit cost for laminated windshields 1s 0.41
cents per sq ft. Compared with current prices of $1.50 per sq ft and $1.80
per sq ft for present flat and curved laminated windshields, these Incremental
costs are small. We conclude that costs will be passed on.
42
-------
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 lam*
Inatlng 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 with those
proposed for B.A.T. and the conclusions of no Impact are equally valid.
43
-------
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
B.P.T. B.A.T.
N.S.P.S.
Typical Plant
Size
Effluent
Constituents
Flow
Suspended
Solids
Dissolved
Solids
COD
BOD
Oil
Phosphorous
PH
360,000 Metric Tons
(400,000 tons)
1381/HT
2g/MT
14g/MT
1.4g/MT
.05g/MT
.70g/MT
1.4g/NT
•05g/MT
HI thin Range 6-9
S
A
M
E
A
S
B.
A.
T.
B.P.T. B.A.T. N.S.P.S.
150,000 Metric Tons
(165.000 tons)
45.9001/MT 9,200i/MT
1.38Kg/MT .045Kg/MT
N
0
D
I
S
C
H
A
R
G
E
B.P.T.
B.A.T.
3.5 x 10® Sq.Meters
(37.5 x 10* Sq.Ft.)
49t/sqM
1.22g/sqM
49t/sqM
.24t/sqM
,64g/sqM .49g/sqM
Within Range 6-9
Within Range 6-9
N.S.P.S.
S
A
M
E
A
S
B.
A.
T.
B.P.T. B.A.T. N.S.P.S.
750,000 Sq. Meters
(8.0 x 10® Sq.Ft.)
S
A
M
E
175t/sqM
4.4g/sqM
175t/sqM
.88g/sqM
1.76g/sqM 1.76g/sqM
1.07g/sqM 0.30g/sqM
Within Range 6-9
A
S
B.
A.
T.
Source: Effluent Guideline Oevelopoent Document
-------
TABLE 15
SUMMARY OF INVESTMENT AND ANNUAL OPERATING COSTS
($000's)
B.P.T. B.A.T.
Float Glass (Typical Plant 400,000 Tons)
Investment N 134
Operating Cost 0
Capital 11
r
Depreciation 6.7
Operating & Maintenance 0 28.4
Energy & Power ^ 12.5
Total Annual Cost y 58.6
Equivalent Unit Cost (t/lb) 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 U/lb) 0.01 0.04
Source: Effluent Guideline Development Document
45
-------
TABLE 16
PRODUCTION DATA* - AUTOMOTIVE GLASS PLANTS
(MM Square Feet of Surface Area)
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
*Assum1ng 250 days/year of operation
Source: Effluent Guideline Development Document
46
-------
TABLE 17
SUMMARY OF INVESTMENTS AND ANNUAL OPERATING COSTS
(SOOO's)
B.P.T. B.A.T.
Tempered Glass (Typical Plant 37.5 MMSF)
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 U/SF) 0.065 0.110
Laminated Glass (Typical Plant 8.0 MMSF)
Investment 32 115
Operating Costs
Capital 2.6 9.2
Depredation 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 U/SF) 0.180 0.410
Source: Effluent Guideline Development Document
47
-------
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 1n Gross National Product will average about At- per year between
1972 and 1977. We have assumed constant 1973 dollars for all future ex-
penditures, although we recognize that the relative cost of labor, energy,
materials and capital may change.
Specifically the conclusions 1n this study are based on the guidelines as
proposed In the effluent guideline development document and the associated
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.
We believe that this analysis as presented represents an accurate descrip-
tion 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 1n decisions to close certain operations and expand
others.
48
------- |