Imperial Chemical Industries

Company Meetings The SEVENTH ORDINARY GENERAL MEETING of Imperial Chemical Industries, Limited, was held yesterday at the Central Hall, Westminster, London, S.W. SIR HARRY McGOWAN, K.B.E. (chairman and managing director), presided. The SECRETARY (Mr. J. E. James) having read the notice convening the meeting and the TREASURER (Mr. P. C. Dickens) the auditors' report, The CHAIRMAN said:-My lords, ladies, and gentlemen:

EXTRACTS

PETROL FROM COAL Commencing with the first annual meeting of the company, a reference has been made year by year, with an exception in 1928, I think, to the development of a new field in chemistry- namely, the production of petrol from coal. This new enterprise is now in process of establishment. On July 17 last the Prime Minister announced in the House of Commons that his Majesty's Government had decided to introduce legislation to provide a guaranteed preference in respect of light hydrocarbon oils manufactured in this country from indigenous coal, shale, or peat, or from products derived from those substances. I immediately issued an official state- ment that your directors, in view of this under- taking, had authorized a scheme for the erection of a large commercial plant, to be located at OUT Billingham works, for the hydrogenration of coal, tar, and other materials. This step was fore- cast in my speech to you last year, when I told you that large-scale commercial development only waited upon progress in regard to a limited number of economic factors. I added that when that was achieved, we should be prepared to invest a substantial sum out of our present liquid resources in this enterprise. Our work in this new field may be divided into three sections. The first covers technical research, the second relates to the.~ patent' and market situation, and the third is concerned with our conversations with the Government. A REMARKABLE DEVELOPMENT The hydrogenation of coal represents a remarkable development in the very difficult technique of high-pressure synthesis. Founded upon experiments by Berthelot in 1868, and carried to the patent stage by Dr. Bergius at the beginning of this century, the full development of this process from the laboratory to commercial manufacture has involved costly research extending over a period of more than seven years. During this time we have spent over ?1,000,000 upon this work. including the cost of the pilot plant for manufacture upon a semi-technical scale. At this point I must pay a tribute to my colleague Colonel Pollitt, whose firm belief in the ultimate success of this enterprise and unremitting direction of the technical work have inspired us all. Numerous obstacles had to be surmounted; continual disappointments had .to be borne; but science, backed by patience and persistence, has now, we are convinced, overcome them all. (Applause.) The patent field also offered its difficulties, which were, however, cleared away three years ago by the conclusion of an agreement between your company and the International Hydrogenation Patents Company, in which were already gathered the interests in this field of the Standard Oil Company of New Jersey, the I.G. Farben- industrie, and the Royal Dutch Shell. Provision has been made for the pooling of informa- tion and complete exchange of operating experi- ence. This agreement is a brilliant instance of the cooperation of world interests designed to secure the orderly development of a new industry with a great future. In this country it assures us a definite market for our product. We shall not be concerned with the distribution of the petrol. Once it is made it will be handed over in bulk to nominated oil distributing companies, and we shall receive the net average market price for products of the grade we supply. This arrangement relieves us of many anxieties. THE HYDROCARBON OILS ACT The British Hydrocarbon Oils Production Act, now on the Statute-book, provides a preference on home manufactured motor spirit, com- mencing on April 1, 1935. The preference repre- sents the difference between the rate of Customs duty on imported oil and any Excise duty pay- able on home-produced oil. The maximum duration of the guarantee period is nine years, but its actual length is dependent upon the amount of preference that emerges year by year in future Finance Acts. Our new capital expenditure on this plant will exceed ?2,500,000. That we can provide out of our present liquid resources. In addition we shall bring into use plant at present un- occupied. The plant is designed to produce 100,000 tons per annum of petrol by the hydro- genation of bituminous coal, and will be capable of treating, in addition, certain quantities of high or low temperature tar. Construction work on the plant has proceeded under favourable weather conditions, so that our programme is fully up to date. The value of the expenditure and orders placed up to March 31 is ?1,600,000. We have approximately 1,850 men on this work, under some 200 managers, engineers, chemists, and other staff, apart irom about 550 men employed by contractors on the site. The total employment, direct and indirect, that is being afforded at the moment is estimated at 13,600 men. We expect that production will commence towards the end of this year.