National Starch and Chemical Company

Mission Statement

NATIONAL STARCH AND CHEMICAL COMPANY is and will remain a global specialty products company with demonstrated expertise in its fundamental competencies of natural and synthetic polymer chemistry.

National will strive to be recognized by customers as “the best” at understanding and anticipating their needs and rapidly responding with innovative, value added products and services.

National will make continuous improvements in safety, environment and quality an integral, seamless part of Nationals business process.

Nationals goal is to continue Nationals long-term trend of 10 percent annual growth in sales and earnings by a combination of internal growth and acquisitions.

VITAL STATISTICS

 

COMPANY NAME : NATIONAL STARCH AND CHEMICAL COMPANY

 

ADDRESS OF HEAD QUARTERS :NATIONAL STARCH AND CHEMICAL COMPANY,

10 Finderne Avenue,

Bridgewater, NJ O8807 – 3300.

United  States of  America.

 

COUNTRY CODE: 01

 

TELEPHONE :  908 – 685 – 5000

 

FAX : 908 – 685 – 5005

 

 

Dec. 1993 Data

 

NUMBER OF EMPLOYEES WORLD WIDE : 7,744.

 

TOTAL ASSETS :$1,492,427,000

 

TOTAL LIABILITIES :$693,220,000

 

NET SALES : $1,808,819,000.

 

GROSS PROFIT : $615,821,000.

 

NET INCOME : (after provision of taxes and operating expenses) $181,292,000.

 

PERCENTAGE OF PROFIT TO SALES :34.04%

 

 NATIONAL: A GLOBAL INTRODUCTION

National is a leading worldwide producer of adhesives , specialty chemicals , resins , electronic materials , specialty industrial starches and specialty food starches. It’s headquarters are located Bridgewater , New Jersey , and the company had 7,744 employees in the year 1993. It’s net income in the year reached a record high level of $181.3 million increasing from the 1992 figure of $ 169.7 million. During this year it’s operating profit increased -registered an increase of 3.3% over the last year.

 

National manufactures , distributes , and through extensive research and development supports thousands of advanced products from a network of more than 31 countries on five continents.

 

The products that National makes become important components or ingredients in countless industrial and consumer products the people of the world use or come in contact everyday.

 

For instance, the adhesives manufactured by this company firmly attach labels to bottles and securely seal cases and cartons , while the automotive sealents prevent moisture , dust and noise from entering and damaging a car’s structure.

 

The resins that this company manufactures provides the holding power in hair sprays and binds the fibers in non-woven fabrics. The polymers raise the performance level of laundry detergents and specialty papers.

 

National products are present in the  electronic materials and adhesives in consumer , industrial , and military micro electronic equipment . Here , these adhesives are used to attach devices , form the circuitry elements in hybrid integrated circuits or function as interlaying dielectric in multichip modules.

 

National is also the world’s largest producer of specialty starches. The food starches made at National improve the texture , stability and flavor of processed food. Also , the industrial products made here are the key ingredients in making high quality paper , packaging , and textiles.

 

RESEARCH AND TECHNICAL SUPPORT

 

Anticipating the needs of it’s customers and their markets is important to the growth of National and the success of it’s customers. This company accomplishes these objectives through close working relation-ships , solid knowledge of the industry it is catering for and a strong and consistent technical effort.

 

A proof of its consistent efforts for technological advancement is depicted by the fact that more than 1100 highly qualified and professional researchers and technicians are working every day on new developments , product refinements and new applications for existing products. They , along with technical service personal , also invest a large portion to provide the best product and processing recommendations.

 

A number of technical centers around the world contain pilot plants , where immaculate typical food processing , adhesive application , corrugating and other manufacturing methods are developed. National helps its customers in putting new ideas into practice prior to full scale production by supporting them at each step in the development of their new products.

 

 

A DEPENDABLE AND CONSISTENT SERVICE

 

National Starch and Chemical  operates a global manufacturing and distribution network that provides consistent quality no matter where the customers are located. Products manufactured in Europe , Asia  and South America are made to the same standards as those in the United States.

 

National is uniquely equipped with to provide multinational customers with locally supplied products that meet their standards and specifications where ever the manufacturing is done.

 

Nationals plants and ware houses are strategically located through out the regions where ever business is done to deliver timely service to Nationals customers. Nationals trained and attentive customer service representatives provide prompt , accurate and timely responses.

 

NATIONAL: GLOBAL COMMITMENT TO QUALITY

Quality is a concept at National as old as National itself. It has been a part of Nationals tradition since the beginning. National however  has recognized that customer needs and market place conditions change, National has developed the “Commitment to Quality ” process. It is also striving to raise employee and plant performances to new heights and convey the progress to its customers.

 

All National employees participate in quality training process. National is  learning the value of “doing it right  the first time” and how eliminating waste provides greater value and service to its customers.

 

In its plants , National is employing more statistical process controls and disciplines which will lead to better products. The overall goal of ” Commitment to Quality ” process is to increase National Starch and Chemical’s value as a supplier and , ultimately , create stronger bonds with its    industrial and business customers.

 

NATIONAL AND THE GLOBAL CHALLENGE

The rules of the global business game are changing rapidly. The advent of emerging spheres of trade, real time communications, more acute and demanding environmental consideration, the RESPONSIBLE CARE initiative and an accelerating and intense emphasis on the quality process make managing a global business organization like the National Starch and Chemical company a complex task. Factor in the for expanded research and development efforts to capitalize on market opportunities and you have a potentially puzzling situation.

At National company, its formidable work force is focusing their efforts to develop the right answers to make the company and a more responsive member of the global community.

 

An analysis of the company’s accomplishment shows that in the recent past the National Starch and Company kept moving profitably forward. National expanded the scope and depth of its operations worldwide despite slow down in the economies of  North America, Europe, Japan and Australia.  This organization also continued to invest to position the company for growth in the coming years.

 

The ongoing investment encompasses four primary areas :acquisition, new and expanded physical plants, technology and human resources. Each one of them is a vital link in a chain of developments that will help National Starch and Chemical Company in maintaining its leader ship position throughout the world.

 

NATIONAL’S  INDUSTRIAL DIVISIONS

There are five broad industrial markets which are served by National Starch and Chemical. They are :

 

1) ADHESIVES AND SEALENTS

2) RESINS AND SPECIALTY CHEMICALS

3) ELECTRONIC MATERIALS AND ADHESIVES

4) FOOD PRODUCTS

5) INDUSTRIAL STARCH

 

I  will now introduce each one of these divisions of the organization. In this regard , I will give a brief introduction to the products made by each of these divisions.

 

ADHESIVES AND SEALANT

This division serves the following industries:

 

I)Packaging: National makes sealing for cases and cartons. It also manufactures adhesives for labeling of cans , bottles and other containers. Wrappings of foods , drugs , and cosmetics is another market taken care for by National Starch and Chemical.

1. II) Converting: Adhesives and sealant made are used in the following industries , at large:

Tube winding , envelope making , flexible packaging , industrial laminations , bags , cups , remoistenable toilets , stamps , tissues, pressure sensitive labels , tapes , decals , transfer films , cigarettes and textile laminations.

 

III)  Book binding : The adhesives manufactured by National are used in foolproof binding of paper back books , the more modern and expensive edition bound books , magazines , pamphlet binding , and other publication materials. The binding done with National made adhesives is a trustable guarantee for longevity of the publication materials; an achievement which National portrays as its image for the advancement of literacy in the world.

 

1. IV) Disposable : National’s products are always made hygienically and are up to the medical standards. That is why this firm has got a massive holding and investment in the business market of the firms making such health related items as disposable diapers for babies , products for feminine hygiene and adult incontinence and the highly sterile manufacturing of surgical gowns.

 

1. V) Furniture , Lumber and General Woodwork: The adhesives used in the manufacturing of wood materials. This includes furniture and cabinet assembly , plastic counter top laminations , veneering , edge banding , finger-jointing , laminating of lumber and millwork , pre fabricated building components , paneling , honey-comb construction which is an important domestic industry world wide. Also, National adhesives are used in the making of doors , curtain walls , insulation lamination , air filters. National  also makes sealents for glazing , window assembly and cable making industry.

 

1. VI) Transportation : In automobiles , the interior and many other important vital components are either sealed or glued together with the help of powerful , and long lasting adhesives. National is a strong competitor in the business market of these products. This market include the automobile departments of interior and exterior trimming , sealents for filters. Also , the recreational equipment in cars , coaches and trucks are glued to the interior of the respective automobile. National is also in the market of making sealant for locking devices and threaded fasteners.

 

VII)  Appliances :  Certain small in size but large in production volume industries also make use of the adhesive and sealant made by this organization. This includes the bonding insulation industry , gaskets , name plates specially for the military , trim speaker assembly units , sealant for cabinets and product assembly.

 

RESINS AND SPECIALTY CHEMICALS

                                   The resin and specialty chemical division of the National Starch and Chemical company serves the following industries:

 

1. I) Cosmetics and Toiletries : Special chemicals are used in the making of personal care products . These chemicals have to be approved by the health departments of all countries where the product is being used. This is no easy task for the manufacture of these specialty chemicals to get approval by the stringent boards or health departments. However, , despite these strict measures , National has always been a major supplier for specialty polymers used in the making of hair sprays , conditioners , shampoos , mousses , lotions , sunscreens and other skin care preparations.

 

1. II) Detergents : The detergents are based on the bases of adhesives. The theory is that The special cleansing chemical in the detergent sticks the dirt particles to it, and on washing these particles are taken away by the clean water molecules. Thereby , the working and thus the success of the soap product depends primarily upon these adhesive cleansing agents in the detergents. national guarantees the success of it’s detergent manufacturing customers by supplying to them perfect cleansing agents and other rheology modifiers.

 

III)  Water treatment and Oil Field:  In the rapidly industrializing world , various forms of pollution has become a major problem for all the environment conscious people and governments of the world. Increased attention is being paid to the recycling or treatment of industrial and commercial waste. An important aspect of the pollution problem has been the waste water which is left untreated after the water is used. National has been making its contribution towards the planet it works for by making highly researched specialty chemicals for the treatment of waste water in the heavy engineering industries as depressants for cooling towards , boiler making industry , oil drilling and the microbiocides industry.

 

1. IV) Non woven : The increasingly large market of non woven clothing. This includes binders for diapers and under pad facings , wipes , towels , inter linings , roofings , spray and foamable binders for high loft fiber fill and fiber pads.

 

1. V) Textiles : The textile industry is probably one of the biggest markets for the use of specialty chemicals. The industries which make use of the National chemicals here are polymers and thickeners for the textile finishing , pigment printing , foam coatings , upholstery , back coatings, hand builders, carpet backing , Fiber lubricants , softeners , durable press resins , catalysts and fiber glass industry

 

1. VI) Building Products : The construction industry also uses many of the products National makes. National makes cement additives , super plasticizer , bonding agents , caulk and sealant binders , ceiling tile coatings , tape joint compound vehicles, construction adhesives , concrete coatings and rheology modifiers.

 

VII) Paper : National makes coating binders , rheology modifiers , internal size, specialty saturates for wall paper , book covers , filters , tape , release coatings and antistats for specialty papers.

 

VIII)  Photographic :  In the photographic film making industry , conductive polymers and antistats are used for the making of the special quality papers. National makes these polymers and antistats for the film industry.

 

ELECTRONIC MATERIALS AND ADHESIVES

Another important division of the National Starch and Chemical  is the electronic materials and adhesives divisions. This division has been given the responsibility and the technologically innovative task of supporting the rapidly advancing electronics industry through a large variety of adhesives.

 

Electronic equipment being delicate and sensitive in nature require adhesive material which do not interfere with their sensitive working process. National is the company many of these electronic equipment manufactures look for this part of their products. The following electronic products and there manufacturing concerns are the significant markets for National Starch and Chemical Company.

(I) Semi Conductors: Semi conductors are sensitive electronic gadgets used in a multitude of electrical equipment ranging from primitive fans to computers. Adhesives are used in the conductors as film and paste die – attach : adhesives for packaging of electronic equipment in there cases ;alpha barrier coatings ;dielectric interlayers which prevent different charges to flow from one electrode to another thereby allowing the electric current to function without sparking of any sort in the equipment. National also manufactures adhesives for the making of stress proof absorptive coatings which resist mechanical stress in the electronic equipment.

 

(II) Hybrid  and Multichip Module Microcircuitry : National makes adhesives for the making of ceramic conductors , resistors , thermistors , dielectric :ceramic tapes for the multilayering ; die – attach adhesives ;paste and preform adhesives for package sealing and assembly ; encapsulates ; protective coatings , conductive adhesives for solder replacements are some of the industries National is helping in growth.

(III)  Electronic Systems : National makes the special types and kinds of adhesives used in the assembly for circuit boards , including the special chip on PW boards and surface mount ; LCD display ; data recording devices and encapsulates. Polymer thick film pastes for membrane touch switch and PW board fabrication processes.

Pastes and adhesive film for electronic systems , microwave hybrids and antenna assembly. Resins for composites and holdings , ceramic material systems . Lastly it also makes premixed and frozen adhesives.

 

 

FOOD PRODUCTS

This is the division of this huge organization which is concerned most directly with the ultimate consumer market ; i.e. the general population. Special attention has thereby always been paid on this division to sustain and improve upon the excellent quality standards must for ensuring a reliable and stable position in this market. This is specially a quality conscious division because of the stringent health laws which it has to follow in order to remain in business One of the benefits of having a reliable image in the food processing market is the vast diversification which can be done. National has done just that and it has 12 major sub – divisions catering to various types of food markets. They are :

 

(I) Baby Foods: A multitude of stabilizers and a wide variety of thickeners for glassed and dry preparations. These stabilizers and thickeners are used in the making of a variety of ready to serve baby foods.

 

(II)  Bakery Goods and Desserts : National daily eat tons and tons of cakes , breads , pies , puddings ,desserts and decoratory icings e.t.c. All these pre – cooked delights make use of specialty starches ,dairy and fat replacers and various types of ingredient systems. National is an important manufacturer of al these products so vital to us.

 

(III)Confections : National is in the market of Gelling agents for hard and soft jelly gums  ; film formers  and binders for pan coated candy centers and other food products .

 

(IV) Soups , Sauces and Dressings : In the making of soups , thickeners are used for the purpose of giving an appetizing look to the soups. National makes a wide variety of thickeners and texturizers for a wide variety of shelf stable, frozen and dry mix products.

 

(V)  Low Fat Foods :  Low fat and calorie foods are the fashion in the world today. National produces a user friendly diverse line of application and other specific fat mimetic.

 

(VI)  Beverages : National makes a wide variety of encapsulating agents for flavors , clouds and vitamins. It also makes stabilizers for liquid emulsionsand other beverage related products.

 

(VII) Meat Products : National makes binders for smoke house meats , formed meats and fish  products.

 

(VIII)  Cereal and Snack Foods: Cereal made foods are prepared with the aid of specialty starches and flavors . The idea is to improve expansion and crispiness in the extrude , baked or fried products which under various conditions have different shelf life.

 

(IX)  Frozen Foods : This company makes specialty starches and flavors to improve excellent low temperature stability for a range of frozen and refrigerated foods.

 

(X)  Aseptic Products :National manufactures aseptic products to provide process – tolerant creamy textures and shelf stability for the longevity of the product.

 

(XI) Pet Foods : National makes modified starches for canned, semi – moist and extruded pet foods.

 

(XII)  Pharmaceuticals : National Starch and chemical Company makes specialty starches for use as carriers, binders and disintegrants in tablets; surgical dusting

 

 

NATIONAL’S GLOBAL INVESTMENT

An analysis of the company’s accomplishments in 1993 reveals a consistent theme: National Starch and Chemical Company kept moving profitably forward. National expanded the scope and depth of its operations worldwide despite slow economics in North America, Europe, Japan, and Australia. National continued to invest to position the company for growth in 1994 and beyond.

 

 

” The investment encompasses four primary area: acquisitions, new and expanded physical plant, technology and human resources.”

This is a vital link in a chain of developments that will     help National Starch and Chemical maintain its        leadership positions in markets throughout the world.

 

New companies, new countries

National accomplished one of Nationals goals of establishing operations in nearly every major country in the Pacific. The acquisitions of adhesive companies in the Philippines and Hong Kong will help us meet rapidly increasing demand for high technology adhesive products. The Philippines operation has already been relocated to a new facility, and National upgraded the existing Hong Kong plant.

 

National also expanded Nationals new network of sales and technical support facilities in Indonesia and opened a representative office in Guangzhou in the People’s Republic of China. This is National Starch and Chemical’s first facility in China, and it will allow us to significantly improve the level of technical support for Nationals many customers there.

 

On the other side of the globe, National purchased manufacturing companies in Argentina (wholly owned) and Chile (60 percent share.) The Buenos Aires facility is the leading producer of liquid and hot melt adhesives and resin emulsions for the packaging and disposable diaper industries. The Santiago operation makes resin emulsions and liquid emulsions adhesives for paint, packaging and textile industries. National completed the purchase of the remaining US share of Nationals greater capacity in this growing technology.

 

Physical plants

The company expended record amounts for capital additions in 1993. Construction crews in Kalasin, Thailand made excellent progress on the new specially tapioca starch plant, and an early 1994 opening is anticipated. The starch group in the US installed a new flash dryer in Indianapolis, Indiana and began a major capacity increase in North Kansas City to keep pace with demand for starch specialties.

 

National commissioned new hot melt/ waterborne adhesives plants in Saudi Arabia and South Africa. The Saudi facility, which came on stream in the second quarter, was built to overcome problems caused by long supply lines and to provide support to the Saudi market. The South African plant provided us with modern, expandable facilities and replace three older units.

 

 

Higher capacities, greater efficiencies.

National purchased land and a new building adjacent to Nationals existing Malaysia plant for expanded waterborne adhesive capacity which will go into operation in 1994. The very positive and fast market reaction to Nationals new EASYMELT adhesive process led to the installation of new production lines in the US and Europe.

Throughout Europe National increased casein, hot melt pastille and waterborne and waterborne adhesive capacity by installing new equipment or upgrading existing facilities. In the US National expanded Nationals Los Angeles, California and Woodruff, South Carolina waterborne plants and the Meredosia, Illinois solvents adhesive operations.

 

Resin capacity also expanded during the year: dithiocarbamate capability at Alco Chemical in the US, detergent polymer capacity in the UK,: and specially polymer emulsions in Australia and Canada. National also brought on line equipment to produce new low volatile organic (VOC) compound emulsion technology in the UK

 

 

Technology investments

The corporate research and process development groups invested in training, analytical tools and a new pilot plant to bring more product innovations to the marketplace at a faster pace.

They established “centers of expertise” in the US to facilitate development and scale up to key polymer technologies: organic chemistry at Salisbury, North Carolina; emulsion polymers, Woodruff, South Carolina; starches, Indianapolis, Indiana.

 

National also increased Nationals investment in information technology to link Nationals operations in Europe and improve order handling there and in the US

 

Many of Nationals businesses in Europe are already benefiting from new order processing inventory and sales data systems that cut across national boundaries and eliminate translation difficulties.

 

Human resources impact

The company continues to spend record sums for training personnel because National realize that the path to success in people working more effectively and creatively. The expanded training effort was truly universal, from production personnel in Malaysia to the Senior Management Committee in Bridgewater.

 

National increased the scope of Nationals college reciting and summer intern programs to provide a continuous flow of talent into the company. To ensure that National have the best people in each job, to improve synergy’s and to enhance managers experience, National now have more expatriates working around the world than ever.

 

The quality of Nationals expanded programs earned recognition in UK, where National received the “Investors in People” award. This is a government led initiative, which encourages employers to invest in the training and development of their people. The Braunston and Cambridge operations are cited for their achievements this year, and several other locations should be acknowledge in 1994. Receiving the awards is satisfying, but more importantly, the process gives us a very useful opportunity to benchmark against other companies and identify areas for further improvement.

 

Now that the reader has a general overview of the managerial functioning of the organization, I will elaboraye upon each and every single one of the divisions of this mammoth organization. As required in the course (Hope Chest), I have chosen one division i.e the adhesives devision for a detailed report. The rest of the divisions are not discussed in detail. Rather, a brief introduction with particular reference to recent developments is given to justify the requirements of the course.

ADHESIVES & SEALANT

Continued strong development of Nationals Asian business was further enhanced by a return to growth in Australia and New Zealand and full year sales from new companies in Hong Kong and the Philippines. In Europe National maintained volume in critical markets and saw some share gains, in spite of a very Slack economy.

 

Nationals US businesses performed National due to refocused sales and marketing efforts in growth markets. Canada attained modest increases, and National saw good growth in Mexico. National also received initial contributions from new acquisitions Chile and Argentina.

 

Packaging and Converting

The diaper and sanitary product market continues to gain in global importance. National registered sales increases in New Zealand, Korea, Taiwan and throughout Southeast Asia, and made major gains in the Netherlands, Germany and France. Sales Are also very strong in the US, where National introduced unique products and captured additional market share.

 

Sales to the bookbinding/graphic arts market grew in North America and Europe with the increased acceptance of polyurethane reactive hot melts for perfect binding applications.

PSAs. FLAs

Nationals pressure sensitive adhesive (PSA) and flexible laminating adhesive (FLA) business turned in a very strong performance in the US Contributing factors include grow in water borne and solution acrylic PSAs for graphic application, such as clear bottle and paper labels and FLA technology. Australia also demonstrated good growth in film and foil laminating products.

 

 

ADHESIVES & SEALANT

Bondmaster advances

Asia/Pacific achieved major increases in Bondmaster sales, particularly Malaysia and Indonesia. Australia made excellent progress, as did New Zealand. National expect to benefit from New Zealand’s increasing furniture exports because of Nationals strong position in the wood working adhesive market.

US woodworking adhesive sales also advanced strongly, exceeding the growth rate of a rejuvenated housing industry. Other Bondmaster lines performed National, including the heating, ventilating and air conditioning (HVAC) insulation segment. Woodworking sales in Canada grew due to more wood exports to Europe, where national’s adhesives meet stringent DIN standards.

In the automotive market, sales to North American OEM’s outpaced the industry’s renewed growth. Australia achieved very strong growth and was one of only three nominees to receive Toyota’s Top Supplier Award. Permabond posted excellent sales gains in core products, GASEAL gas line sealant and fire safety system sealant.

 

 

New products, processes lead growth

Nationals development focus to meet market place demands for higher performing adhesives and environmentally friendlier products continued to pay dividends. Customers in North America and Europe reacted very positively to a unique form of pressure sensitive hot melt. The new EASYMELT process results in a pressure sensitive hot melt with an integral film wrapper that is convenient to handle and substantially reduces packaging waste.

 

Another new product, ULTRA-MELT adhesive, quickly became one of Nationals largest selling case and carton seal hot melts. It combines excellent adhesion with high heat stability to reduce field failures, particularly in temperature extremes. Because it resists charring, it minimizes equipment maintenance problems.

 

Reducing solvents impact

National made several advances in improving waterborne adhesive technology to replace solvents. DURO-FLEX Clear FLA provides solvent-like clarity for food packaging, hereto fore unavailable in a waterborne product. National brought to market a patented polyester heat seal adhesive with an environmentally friendlier solvent system for foil packaging applications.

 

A new waterborne adhesive for furniture and automotive foam-to-foam bonding is quickly replacing products made with chlorinated solvents. Much of Nationals success in HVAC insulation can be attributed to converting customers from solvent borne to waterborne adhesives.

 

Upgrading people and systems

National completed the initial phase of the most comprehensive adhesive sales/technical training program in the company’s history. Experienced and new personnel alike gained additional product needs and provide better service.

In addition, National installed more application and testing equipment in Nationals technical service and development labs to run and evaluate pilot tests and troubleshoot customer problems more rapidly. The European Development Laboratory in Slough, England was officially opened in 1993 and has already made major contributions to key projects, such as the development of true European product ranges.

 

Major investments in Nationals Meredosia, Illinois solvent based PSA/FLA adhesive plant are improving productivity and quality. National now exceed Nationals pharmaceutical customers GMP (good manufacturing practices) requirements, and ISO certification in imminent.

ADHESIVE TECHNOLOGY

I will give the account of one of the numerous small factories which make use of the National adhesives to complete their jobs and earn their living. The small book binding factory discussed here is by the name of Hamilton Printing Co. of Newyork. I have taken this account from an edition of the production management book which is taught in to our senior classes. I have tried to make the account as UN-TECHNICAL as I could in order to fit it into my marketing report. The idea for taking this example was that the end business use of the product made at National could be elaborated so that the working of this organization could be understood.

Improves and Speeds Bookbinding Production

Bookbinding, that art of fastening many pages together into a single volume and putting a cover on the volume, has been modernized and made more efficient since the art was introduced in the 10th century – but the definition still applies,” cited the bindery superintendent, at Hamilton Printing Co., Inc., of Castleton-on-Hudson, NY.

The earliest printed paper books We very heavy. The paper was thick and strong, and the covers of the books were made of wooden boards covered with leather. As books became more popular, they Were made lighter and easier to handle. Instead of being clipped together they could now be sewn.

“The basics haven’t changed, but today’s books are made using many different varieties of paper.  And, although some books are still sewn, they are not sewn by hand and most are glued. Also, the glue or adhesive has become more efficient as the years went on,” explains the superintendent.

The specially formulated hot melt adhesives Hamilton uses, for instance, didn’t exist a few years ago. These new adhesives are used in modern  automated production lines, which are designed to speed-up the whole process.

At Hamilton, a hot melt primer is applied to the signatures. Then a hot melt binding adhesive is immediately applied on top of the primer. The use of a 100% solids adhesive eliminates the need for drying equipment.

Hamilton Printing had its beginnings on Hamilton Street, in Albany, NY in 1912, by the present owner’s grand-father, Ira G. Payne, and two co-owners.

In 1923, the company moved to East Greenbush, NY where it is presently located its headquarters and where the bulk of the printing is still done. A binding operation was acquired and moved to Castleton-on-Hudson in 1979.

Complementing and rounding out Hamilton Printing’s capabilities are two Albany based sister companies; Bri-Gar, a direct-mail operation and New-Art Printing, where four color components are printed.

The Castleton-on-Hudson plant occupies 125,000 square feet, 65,000 of which was added within the past two years, as part of major expansion program. Included in this program were new folders with notching capabilities, a new Mueller Martini binder and a new Kolbus casing-in line. The second phase of the program includes a modern computerized plate-making department, recently installed.

 

Adhesive Selection

The same progressive attitude toward capital expansion is also applied to materials selection, especially adhesives. Hamilton looked for an adhesive that could be used in a wide variety of applications, one that would be efficient and reliable on different paper stocks, coated or uncoated. “National tried a number of other brands before working with National Starch and Chemical Corporation to produce the adhesives that have turned out to be just right for our  needs,” states a bindery supervisor.

“National are very impressed both with their products, the caliber of the technical people, and the support they have given us.”

 

Hamilton now uses National’s primer hot melt, INSTANT-LOK 34-2610, as National as a binder hot melt, FLEX-BACK 34-1111, a side glue, INSTANT-LOK 34-2787, and an emulsion resin, RESYN 76-0339. Originally, one shot hot melts We used on paperbacks on the perfect binder. Presently, they are using one or two shot hot melts in perfect binding and edition binding production with excellent results.

Edition Binding Production

College and professional textbooks, legislative reports and other edition binding projects run through the production line on a daily basis. Edition binding, done almost completely by machine, begins at Hamilton with large printed sheets of books pages delivered to the bindery from the company’s East Greenbush printing plant by one of their own trucks. The sheets are folded down to 32-page signatures and notched at the same time on one of their newly added  MBO folders, making a total complement of 13 folders, including such known names as Stahl, Baum and Dexter Quads.

 

After folding, signatures are gathered then travel along the conveyor belt, where they are collated to form a tight book block, in preparation to be picked  up by the binder clamp. Held firmly in the clamp, they  travel to the first of three glue stations where they receive a light coat of National’s low-viscosity, hot melt primer INSTANT-LOK 34-2610. This hot melt is formulated to provide the initial penetration of the innermost signatures. In order to maximize the quality of their books, Hamilton increases the surface area of the backbone by roughing the spine.

Within seconds, after priming. the binding adhesive is applied over the primer. This hot melt, National’s FLEX-BACK 34-1111, is especially formulated to perform the tough job of remaining resilient at both high and low temperature extremes. “The fact that 34-1111 is white in color is a plus, since it matches the paper of the books and adds to the book’s attractiveness,” states a bindery operator.

 

Immediately following the application of the FLEX-BACK 34-1111, the side glue, National’s INSTANT-LOK 34-2787, is applied to the book block in preparation for the combined end sheet or cover application.

 

Still traveling in the clamps, the books are dropped onto a conveyor which delivers them to the in-line trimmer where, in one operation, they are trimmed on three sides; top, bottom and front. Here again, National’s hot melts are called upon to perform. They must bond fast enough to be ready for trimming when the books reach that station.

Finished books are sent to quality  control where the cover and overall book is checked for wrinkles and squares of trim. Once approved, they are immediately packaged in shipping cartons. They are automatically sealed and sent out by common carrier, or the company’s own fleet of trucks, to the customer.

 

Case Bound Book Production

Being a versatile operation, Hamilton also produces a large number of casebound books. Hard cover or edition bound  books go through essentially the same production process as the soft cover books at Hamilton. After trimming, they are placed on skids are delivered to a Kolbus casing-in machine, Cases, or covers, are made in a separate operation from the book. The parts of the case are assembled and pasted together  by case making machines. Titles and publisher’s imprints are then ink or hot-stamped onto the cases. Hamilton does its own hot-stamping, with two modified Chandler and Price hand-fed presses. Finally, the cases are fed individually into the Kol-bus casing-in machine, National’s water-borne adhesive RESYN 76-0339, is applied to the combined end sheets, and the book is thrust upward into the case.

“The average printing runs on paperbacks and casebound books are smaller than on magazines which go up to 40 or 50,000,” says a bindery supervisor. “The advantage Hamilton has over larger companies in their ability to make fast production changeovers, allowing them to get a variety of titles out in a short time. The adhesives they use are a big contributing factor in making this capability possible.”

 

“National are constantly expanding and improving our operations. Everything National do, with new and better equipment, and National trained people, is aimed at making us more efficient and able to produce better quality for our customer,” states the bindery supervisor.

Keeping up with the latest trends in the industry has helped Hamilton to remain competitive in the market over the years. And, according to Brian  Payne, president and owner, “National must be doing something right; the company is celebrating its 75th anniversary this year.”

 

This was a small account of the working of a company which makes maximum use of the products National makes.

 

NATIONAL STAYS AT THE FOREFRONT OF P.E.T.(Poly.Ethelene.Toulene) ADHESIVE TECHNOLOGY.

 

P.E.T. solved a host of problems reducing bottle hipping costs, improving in-store handling, reducing breakage and increasing shopper convenience.

P.E.T. bottles opened new marketing doors by allowing for larger and larger sizes –  I liter, 2 liter, 3 liter bottles.

P.E.T. lightened the soft drink bottlers’  burden, but put a heavy load on the adhesive supplier.

 

 

Advanced  polymer technology

A series of new challenges never before encountered in soft drink bottling cropped up:  attaching  a base cup to a bottle; label expansion and contraction from large pressure and temperature differentials; and environmental extremes of processing, storage and shipping.

National met these challenges with advanced polymer technology to develop the first generation of adhesives specifically created for the P.E.T. industry.

 

 

Patented concepts

New, higher performance standards called for stronger, tougher base cup adhesives. Once again, National met the challenge with adhesives so  unique that National was granted a US patent (No. 4,212,910) for their use in assembling P.E.T. bottles.

 

These hot melts adhesives are flexible at low temperatures and tough at high temperatures. They produce durable bonds that hold up through a wide range of conditions encountered during processing, warehousing and shipping.

National’s label  adhesive technology has kept pace with changes, too, with improved adhesion to new plastic film and plastic foam label stocks.

 

New Markets, New Adhesives

 

P.E.T. has  quick  become the container material of choice for many food and beverage packagers, in addition to soft drink bottles. Distilled sprites, edible oils, peanut butter, salad dressings and cold remedies are just a few of the products now packed in P.E.T. containers.

 

New “heat set” technology allows use of P.E.T.containers for hot-fill, and pasteurized items. These new markets demand high quality, high performance label adhesives to assure that the product identity remains intact throughout the life cycle of the container. National is ready  to meet the challenge of these new applications for P.E.T. containers with a complete line of high quality, high performance adhesives.

 

National’s adhesives for P.E.T. containers

 

Base cup assembly

 

INSTANT-LOK hot melts are unique adhesives with higher bond strength, excellent low temperature flexibility and impact resistance, as National as high temerpature toughness. This special balance of properties has made INSTANT-LOK hot melts the industry standard for base cup assembly.

 

Hot melts for labeling

 

Nationals INSTANT-LOK and KAN-TAK hot melt series include the right adhesive for any combination of labeling equipment and label stock. INSTANT-LOK hot melts are designed for use or roll feed labelers, while KAN-TAK  hot melts are perfect for “cut and stack” labels, All products provide excellent machine performance and adhesion over a broad range of temperatures. National also formulate specific products for different plastic film and plastic foam label materials.

 

Liquid labeling adhesives

 

IMPERVO liquid resin adhesives meet the challenge of any P.E.T. labeling application. Individual viscosity and tack levels are tailored for the needs of liquid labeling machines. Medium viscosity adhesives for rotary labelers, high viscosity adhesives for picker machines, and low viscosity adhesives for labeling and inner seal application are all available. Each IMPERVO resin offers the best balance of clean machining and clean-up properties, along with excellent adhesion to P.E.T.

 

NATIONAL ADHESIVE’S TOMORROW

 

What’s next on the horizon? No matter the P.E.T. challenge, National is ready. National’s chemists, technicians, engineers and customer service representatives are hard at work responding to today’s needs and searching for the answers to tomorrow’s problems.

The people at National are ever ready to face the challenges of tomorrow with their knowledge, expertise and resources at hand.

 

RESINS & SPECIALTY CHEMICALS

Sales of resins and specially chemicals advanced to a new record level in 1993, despite the divestiture of two businesses in the US Environmentally friendly products continue to lead the way in growth in North America and Europe. Australia and New Zealand’s slow economics began to turn around, bringing a return to growth in that region. Increased sales resources in Central results, gaining new customers and building sales volume in a relatively short period of time.

 

” Nationals low VOC development efforts with US hair spray marketers paid off handsomely in 1993″.

 

Specially products for the cosmetics industry performed very National in Europe and in the Pacific. New business in continental Europe and a better product mix generated significant sales increases.

 

Sales of AMPHOMER hair spray resin in Germany and conditioning polymers, led by CELQUAT SC240 polymer, Are especially strong. An increased commitment to technical and sales support in Asia Pacific resulted in size able sales increases of Nationals hair care polymers.

 

Low VOC hair sprays

Nationals low VOC development efforts with US hair spray marketers paid off handsomely in 1993. Nationals customers had to change their products to meet 80 percent VOC content regulations that were into effect in California and New York. National helped them reformulate with Nationals polymers to meet the standards and maintain consumer satisfaction.

 

Sales of skin care polymers recorded large gains in the US as customers increased their use of DRY-FLO polymer. This natural polymer enhances the aesthetic characteristics of skin lotions and creams .

 

 

Specially polymers for industrial and household products also did very National in Europe and North America. Sales to all major detergent producers in Europe Are on target, and National developed new business in the Middle and far East.

Volumes of novel disperants for textile and leather applications grew in 1993.

 

Alco polymers performed National, led by the L series gums sold to paper coating and adhesive industries and AQUATREAT water treatment lines for detergent and textile industries.

 

Expansion in powder polymers

The purchase of the outstanding portion of the ELOTEX powder polymers business in the US consolidate North America marketing and sales and improves Nationals responsiveness to customers in the construction and mortars industries. National successfully introduced the products to Canada, gaining sizable market share and customer approvals for future use.

 

Powder polymer sales in Europe held up National despite a continued recession in the construction industry, with particularly strong growth in Germany and Austria through increased perpetration of EVA based powders.

 

 

EVA emulsions gain

 

Nationals EVA pressure polymer emulsions for non wovens and EVA and atmospheric polymers for textiles made good progress in the US sales Are up in Europe, primarily on the Continent for low VOC paint and adhesive applications.

Products for air laid pulp non wovens, such as pre-moistened wipes, registered large sales gains in the US and Europe. Nationals operations in Canada significantly increased sales in wall paper saturation and paints, while foamed textile resins had strong growth in Australia.

 

Adhesive resins sales advanced in all key regions. Nacan in Canada combined new EVA sales with vinyl acetate emulsion products National acquired earlier from Hoechst Canada, Inc. to capture major market share.

 

Environment a strong influence

National continues to develop new products that meet the demands for environmental friendliness in the workplace and at home. LOVOCRYL-47 high performance hair spray polymer was welcomed by formulators of low VOC sprays and pumps because of its excellent spray pattern and drying characteristics.

 

A new acrylated EVA for very low odor coalescent-free paints imparts toughness and reliance and has already produced excellent sales in Europe. Environmentally friendly products now compose the largest portion of Nationals sales to Europe’s interior paint market. In Japan Kanebo-NSC introduced super fine particle size emulsions that replace solvent systems in aqueous sealers.

 

Vinyl chloride-ethylene flame-resistant products for textiles and back coatings got off to a strong start in the UK and France, as did low formaldehyde fiberfill and fiberpad binders in the US National are seeing a large increase in the use of emulsion polymers for paper and non wovens to replace other types of resins due to the environmental advantages of lower emissions and undesirable residual chemicals.

 

Expanding Nationals capability

National completed a major polymerization capacity expansion at Nationals Sydney, Australia site. This facility will allow National to supply an even wider range of specialty emulsion polymers to the textile, paint and building industries in Australia and New Zealand.

 

National established a cosmetic polymers service laboratory in Singapore that has substantially improved service to customers throughout the region and contributed to major sales gains.

 

Capacity expansions Are also completed in Canada and the US to support the growth of Nationals emulsion and specialty polymers business. The Glenn facility in the Netherlands earned ISO 9002 certification at the beginning of the year. Now, all polymerization manufacturing sites in Europe have achieved full ISO 9000 series accreditation.

 

ELECTRONIC MATERIALS & ADHESIVES

Ablestik Laboratories registered strong increases in die-attach adhesives sales for semiconductors in Japan, Korea and Southeast Asia, where National have been working closely with customers to develop products for their specific applications. Sales of film products for die-attach and general electronics assembly, particularly larger circuits, also demonstrated significant increases.

New Ablestik facility in Korea

National opened a new Ablestik EM&A technical service and sales facility in Korea which will help us expand Nationals business and maintain Nationals leadership position in semiconductor assembly materials. The market for semiconductor assembly adhesives continues to grow in both Southeast Asia and North America.

 

Ablestik has invested in new technology to improve products for existing applications and prepare for next-generation microelectronics. New lead-on-chip bonding materials will aid semiconductor manufacturers in producing their next generation D-Ram chips.

 

Low temperature snap cure conductive adhesives have helped “smart” card producers automate their manufacturing processes. National also introduced a new faster curing conductive epoxy that replaces lead solder and helps eliminate the use of ozone depleting CFCs in circuit production.

 

 

EMCA-Remex gains

EMCA-Remex increased sales, substantially broadened its customer base and brought several new products to the marketplace. New surge resistor systems, first introduced in Europe, Provide the highest performance in the industry, protecting telecommunications and other electronic components from lightning strikes and voltage surges.

 

The new silver MULTISYST material system replaces gold in high density interconnect hybrids for hi-role/commercial aviation applications. This unique system delivers the high reliability expected from gold but at a much lower cost.

 

FOOD PRODUCTS

National’s global food products business prospered in 1993, outperforming the economies of those regions emerging from recessions and growing strongly in other regions. In the US specialty food starch sales expanded at a faster rate than the food industry. The increases in the US are due to a combination of factors: new technology that has helped expand the market; the development of new applications for specialty starches; and technical and customer service departments that are attuned to the challenges and changes in the food industry.

The ULTRA cold water starches continue to make an impression with processors looking to improve their instant products. Reduced fat foods remains a major growth market, and Nationals N-LITE fat replacers have penetrated key markets, such as salad dressings, dairy products, particularly frozen desserts, and toppings.

Nationals Canadian operations also had a very strong year led by Nationals new products. These products sold National and also provided Nationals sales force with an opportunity to showcase the functionality of Nationals other modified starches and ingredients.

 

Growth in Europe

Nationals operations in Central and Southern Europe attained good results. Their achievements Are the result of improved product mix and the ability to effectively serve an industry whose customers are looking for more convenient products.

The dairy sector in Europe continues to out perform the industry as a whole, and National have responded with products that improve the processing and aesthetics of yogurt and dairy.

National also have been able to satisfy consumer demands for new and different textures in battered and breaded foods.

 

Strong results from Asia/Pacific

Sales throughout Asia/Pacific surged with the increasing development and consumption of prepared foods. The application of specialty starch technology for the many types of condiments and sauces consumed in this region has helped fuel Nationals growth, particularly in modified waxy and tapioca products. Emulsification and encapsulating food starches and products for retort applications Are also major contributors.

Several changes-the new company in Japan, additional technical staff, new tapioca starch capacity in Thailand in 1994-will allow us to better serve this part of the world and keep pace with emerging markets.

 

Globalization of food tastes

The increased consumption of “foreign” foods around the world is having global implications for Nationals business. Consumers in North America and Europe are enjoying more Asian and Latin American foods, while those in Asia are becoming fond of traditional European and eastern fare.

 

National’s international network of technical facilities and experienced multinational staff are helping processors enter or increase their presence in this growing market. No matter what regional foods Nationals customers are developing, National probably have done something similar in one of Nationals labs and are in an excellent position to provide assistance.

 

Reinforcing Nationals technical base

National is the largest supplier of specialty food starches in the world, due in part of Nationals achievements in starch technology and the people and facilities that translate that knowledge into application. Throughout 1993 National took several steps to reinforce that position.

 

In Europe, National consolidated Nationals pilot plant capabilities into a comprehensive facility in Neustadt, Germany. Here, customers can work side by side with Nationals chemists, food technologists and engineers to prepare new formulations and scale them up for production. The plant includes a wide array of the new heat processing, cold processing and extrusion equipment to help us emulate actual food industry production conditions. To further assist Nationals customers in the UK, Nationals laboratories and technical, sales and marketing staffs moved to a new building in Manchester.

 

National also added to Nationals already extensive pilot plant in the US The facility now includes greater capabilities for preparing baked goods and aseptic and dairy foods.

 

National-trained people

Staffing these facilities with the best trained people is also critical to Nationals success. National expanded Nationals long-running expatriate program, and currently have people from Asia and Latin America on assignments in the US and European and US nationals working in Asia. The process helps us transfer skills and experience from one part of the world to another, especially important as food trends and food companies become more global in scope.

 

In Nationals laboratories in Singapore, National increased Nationals staff of food technologists to support Nationals growing sales activities in the region. The experienced technical marketing staff from the former joint venture in Japan remains in place. They will receive additional training and assist Nationals business development in Japan and the rest of East Asia.

 

INDUSTRIAL STARCH

Sales of industrial starch products finished ahead of 1992, despite the poor conditions in the very important North American and European paper industry. Volumes Are not strong, and pricing was under pressure for most of the year. In North America, excellent performances by specialty products, such as corrugating carrier starches and surface starches and new technologies, including tissue/to National additives and CEO-FOAM starch-based loose fill packaging, helped compensate for National-end starch sales.

 

Additional training and technical resources in Brazil helped the growth of National-end papermaking CATO starches. The tissue/to National market and the expanding specialty surface starches market Are especially important for sales growth in Mexico.

 

Bright spots in Europe

European operations had a difficult year as the business climate throughout Europe remained depressed, with low papermaking capacity utilization. National are continuing to develop new business in selected National end starch markets with the AMPHOPAC system, which provides performance levels that command market price premiums. Sales of corrugating specialties are encouraging, outpacing a very poor economy.

 

Advances in Asia

National achieved strong performances throughout much of Southeast Asia and Taiwan, with records for sales of tapioca-based cationic and amphoteric starches for National-end papermaking. This gain is due primarily to Nationals expanded technical organization and the increasing sophistication of the paper industry throughout developing Asia.

INDUSTRIAL STARCH

National made good progress with New Zealand’s paper producers and increased sales in Korea. Sales of products to the corrugating industry also contributed to the region’s growth. Results in these markets more then offset flat economies in Japan and Australia.

new markets fuel growth

Nationals industrial starch operations focus on new markets in the Eastern Hemisphere helped overcome the effects of an overall Slack paper industry. For example, Nationals efforts in the tissue/To National segment, particularly with Redi-BOND dry strength agents, produced excellent growth in North America and Mexico and continued to register sales increases in Europe.

 

Surface starch sales increased at a very strong rate in North America and are beginning to grow in Brazil, Mexico and France. Specialty size press starches for specialized grades of paper are also gaining attention in Japan and Korea. Nationals products are more cost effective than other additives and improve quality at the mill and on the end user’s printing presses.

 

NAYYER The FILM-KOTE series of surface starch products helped us gain new business in grease proof paper and board applications, including microwaveable popcorn bags, cookie and snack packages and pet food bags. These starches run much better through the size press than conventional starches, providing documented productivity gains that lead to substantial savings for the customer.

Corrugating remains strong.

Sales of specially products for the corrugating industry set records throughout much of the world, with impressive growth in North America. With the industry’s moves to high performance board and greater recycle content, out high amylase carrier starches recycle are providing the required increased adhesion, strength and water resistance.

 

PROGUARD water resistant resin for corrugated boards, with its very low formaldehyde content, made strides in North America and received positive reaction in selected environmentally conscious markets in Europe.

 

National continue to make excellent progress around the world Nationals CEO-FOAM biodegradable loose fill packaging material. This year National lower the density of the product, increasing yields and helping Nationals partner in the US produce record volume. Additional extruder capacity will be installed in 1994.

 

CEO-FOAM starch is also meeting with success in Europe where National have been focusing on larger volume customers. Initial efforts in Japan have been meet with interest by several customers.

New tapioca capacity

The opening of the new Kalasin, Thailand facility in the second quarter of 1994 is timely, in light of dramatically increased demand for modified tapioca starches for the Asian papermaking industry. The new starch works initially will be producing primarily for industrial markets.

 

Around the world National continued to invest in the quality and size of Nationals sales and technical service forces to better serve Nationals customers. In Canada, National computerized Nationals sales staff to provide them with more timely information. National strengthened Nationals technical service capabilities in specific regions of North America and Brazil by deploying more resources to improve market coverage and service.

 

National intensified Nationals sales and technical focus in France and Italy to develop new business and broaden Nationals penetration in the paper and corrugating industries.

 

National’s new wholly owned subsidiary in Japan, will give it the latitude to fully develop the market for specially starches in the paper industry. National retained key people from the former joint venture, who will be able to draw upon marketing and technical resources in the US and Europe.

 

Industrial starch operations continued to raise the caliber of its people in 1993 with professional development training, college recruitment and summer intern programs.

 

SWOT  ANALYSIS

This SWOT analysis of Nationals was done by me in order to establish the state of company at present.

 

Strengths

 

The most obvious strengths of National are  its assets and its size. It is one of the largest companies in the World. Profitable operations in the global market are not possible without size. This is the biggest asset that National has.

 

It can cater to various markets through its widely distributed production facilities. It can easily meet the demands of the countries it is serving, face its unique problems and combat them successfully because of all the resources at its disposal.

Another of Nationals strengths is its diversification. The company is present in every aspect of adhesive and speciality chemical technology.

 

The National subsidiaries around the world have excellent contacts with the head office. The head office in America has the perfect policy of giving its subsidiaries enough autonomy but also keeping sufficient control so they do not get out  of hand. The degree of diversification means that it would be impossible for the parent company to supervise each and every activity.

 

National is a world recognized name. The name National means quality and perfection. National’s gains immense goodwill that cannot be measured in monetary terms alone. National has a long standing presence in the industry. Infact it recently celebrated its 75th year of proud presence recently.

The fact that it has been around for so long, providing quality service, gives it the immensely important edge of experience and in-depth knowledge of its target market, something the new comers lacked.

 

WEAKNESSES

The problem with every large and diverse company is that it can become too large. This is the basic problem with National. It can jeopardize the flow of ideas and communication from the bottom up and vice the versa, something which can be lethal for the company in the not – very – long run.

National’s major weakness is its lack of communication and the consequential good will with most of it’s end consumers. National, because of the business it is into is not a very MARKETING ORIENTED industry. However, as its products reach more and more to the end consumers, this lack of marketing communication will emerge as a weakness.

 

OPPORTUNITIES

 

The opportunities that National has is that many of the worlds emerging markets are opening up to the large multinationals. National has the opportunity to grab these contracts and earn millions.

 

The use of the products National makes is becoming a more imperative necessity by the passing day. National’s management is bound to capitalize on this opportunity, and in the absence of a competitor of its size and potential, it is likely to achieve it.

 

THREATS

 

Any organizations most obvious threat is from its competitors. Same is the case with National. Smaller companies are creating niches for themselves. Companies instead of diversifying are consolidating themselves in their respective fields. This is the threat that National faces.

 

Another threat that National is facing is the rapid technological changes that are taking place. National’s large size makes it unable to adjust quickly to the changing environment. Unless National does some thing to change this situation, its research and development are in danger of falling behind.This is some thing it has to remain on guard against to save its present leader’s position.

 

 

National Incorporated:Global Progress Report

 

All divisions of the company performed satisfactorily in the recent years. Because of the satisfactory performance of all these divisions,  National performed quite well in the recent past.

Net income in 1993 reached a new record of $181.3 million, surpassing the prior year’s record by 6.9 percent. Sales of constant foreign exchange rates were expected toincrease by 4.0 percent. However, due to the major devaluation’s of foreign currencies, particularly in Europe, sales at actual rates of exchange decreased 1.0 percent against 1992 to $1.809 billion.

 

Starch  achieved record levels of operating profit with a 3.3 percent increase over the prior year despite slack economics and competitive pressures which persisted in 1993.

 

In the US adhesives sales improved in most major market segments particularly pressure sensitive and laminating adhesives, Bondmaster, packaging and converting, and automotive. At best adhesive sales to the semiconductor industry are strong due to increasing demand for personal computers.

In Europe, increased sales of packaging adhesives in Italy and Netherlands as National as adhesives for disposables in Germany and the Netherlands partially offset the unfavorable impact of foreign exchange.

 

In the Asia-Pacific market, the acquisition of an adhesives company in Hong Kong in 1992 contributed favorably to results with good converting adhesive sales, while improved profitability in Malaysia and Korea can be attributed to increased sales to the woodworking and disposable markets.

 

The economic turnaround in Australia and New Zealand led to improved woodworking adhesive sales in those countries.

 

Resin sales in the US improved with increased sales of specially chemicals, polymers, industrial resins and ALCO product. Nationals European resin business continued to grow with increased sales of ELOTEX powdered resin products in Germany as National as personal care and detergent polymers throughout Europe.

 

In both the US and Europe, specially food starch sales grew faster than the food industry as a whole and increased despite pricing pressure. Industrial specialty starch business was impacted by National-end sales. However, there was strong performance by surface size, corrugating and CEO-FOAM starches, the latter being used for loose fill packaging. In Canada and Europe, strong sales of waxy food starches favorably impacted profitability.

 

In Thailand, Nationals tapioca starch business improved its profitability with strong exports and high local demand for industrial starches. Throughout the Asia-Pacific region there was strong demand for paper making starches.

 

Acquisitions and Developments

 

During 1993 National acquired two businesses in South America: Industries Promote S.A in Argentina and 60 percent ownership of Poliquimica Chile S.A. Both companies are adhesives and resins manufacturers, and each has been renamed National Starch & Chemical S.A. Early in 1994, National acquired the remaining 51 percent ownership of its Venezuelan operation.

 

In Japan, National terminated its joint venture with Oji Cornstarch Company LTD., and established a wholly owned subsidiary under the name National Starch & Chemical CO Ltd. which will market amphoteric, high amylase and other hybrid specially starches for food, paper and industrial applications in Japan.

 

Nationals companies in Hong Kong and the Philippines acquired in 1992 successfully completed their first year of operation.

 

Investing for the Future

Nationals acquisition and development expenditures are critical investments to help carry National to new record levels of sales and profits. Two other investment activities are essential elements in Nationals plan for future growth. They are Nationals ongoing internal development and acquisition of new technologies and, most importantly, Nationals investment in training and development of outstanding university graduates. During 1993 National spent record amounts in training and greatly intensified Nationals recruiting efforts. National’s have more to say about Nationals planned investing for the future in the pages which follow.

 

RESEARCH & DEVELOPMENT:

Investment in research and development incorporates more than just new or expanded projects. In 1993 National expanded physical plant, added equipment and increased the level of training to enhance research capability and reduce the time it takes to make an idea a practical reality.

 

National expanded physical plant, added equipment and increased the level of enhance research capability

 

A new pilot plant at the Salisbury, North Carolina site started operations during 1993. This facility adds to Nationals capability to conduct research on new manufacturing processes. New research developments can be scaled up from the laboratory to commercial production to ensure that products will be produced efficiently in a manufacturing facility. National can also improve the efficiency of existing processes to reduce manufacturing time and increase yields which will produce overall productivity improvements.

 

National Employees:Motivated For Optimal Performance

National focuses on global market presence, the rapid rate of innovation, and our systematic approach to total quality provide a constant challenge to National’s employees. National invite ideas; and National support  their development and swift embodiment in new of improved products and services for our customers around the world. Creativity is demanded in technology, sales and service. In meeting these challenges, countless National’s employees have seized the opportunities offered them to broaden their professional and personal horizons.

 

Rapid changes in the world of Adhesive and Speciality chemical engineering and technology are reflected in the employee structure  at National. The bulk of Nationals employees has shifted from production activities to pre-and post-production sectors such as research and development , project planning, sales and service,.

 

In the wake of this development, the working environment at National has become increasingly varied and demanding. Besides the obvious need for expert knowledge and technical skills, there is now a demand for team spirit, open communications, flexibility and a willingness to learn. The general trend toward Globalization requires employees to be prepared and able to serve customer interests anywhere in the world.

 

Growing numbers of engineers, computer scientists, research scientists and economists are needed to meet these increasing demands. About 2,500 employees have a university education. Most of these people are employed in research and development. In the field of high-tech research, National has a long-standing tradition of cooperating with universities and technical  colleges. The company actively encourages these contacts by offering promising graduates excellent opportunities to advance in their respective fields.

In America alone, National hires nearly 1,500 university graduates every year to strengthen its expanding international business. In addition, the company is supporting many people around the world who are currently preparing for careers in various industrial, commercial and technical fields.

Qualified professional training, however, provides merely the basis for a successful career, Changes in technology and the business environment occur so rapidly that know-how and skills must be constantly updated, enhanced or completely supplanted.

The commitment of National employees to their company’s success is reflected in the large number of suggested improvements volunteered every year.

In today’s fiercely competitive business environment, corporate strength can be achieved and maintained only with a strong base of highly-qualified and motivated employees. To prevail, National must accomplish virtual quantum leaps in performance within ever shorter periods. This demanding pace can be sustained only with the total cooperation and commitment of our employees.

 

A PART OF THE COMMUNITY

National’s investments for future growth extend beyond the boundaries of Nationals facilities. National are investing in the health and welfare of the communities in which National operate. Through the National Starch and Chemical Foundation in the US and selected

direct contributions in other countries, National are trying to do Nationals part to raise the quality of life in the towns in which Nationals plants are located. “National are investing in the health and Welfare of the communities in which National operate.”

 

National also encourages employees to support educational, cultural and human service organizations with their time and contributions, for which the company generally provides matching funds. National are extremely proud of the way Nationals people respond to the needs of their communities.

Supporting United Way

In the US the company actively supports the United way, an umbrella organization for social for social and health services, because of its efficient distribution of funds and delivery of services.

 

Generous employee are matched by National Starch and Chemical Foundation funds. But it is direct involvement of Nationals people that makes Nationals relationship with United Way so special.

 

Many employees serve on the boards of United Way itself and the agencies it subsidizes.

Many more of National people volunteer their time to further extend the resources of these organization. The Bridgewater annual “Day of Caring”, for example, brings much of this activity into focus. Two hundred people donated nearly 700 hours of community service during the summer and fall, painting a community home, working in day care center, cleaning the grounds of a self help facility. Their efforts helped make a difference in the live of those served by these agencies and are also personally rewarding.

A PART OF THE COMMUNITY Personal contributions

Company support, in most cases, evolves from the commitment of Nationals people. The personal involvement of a Braunston, England employee in a local conservation group has directly benefited the community and wildlife.

The Braunston Conservation Group, North Hamptonshire had been seeking a small plot of land as a wildlife preserve to help maintain the village’s picture postcard image. After talks with a local farmer fell through, the Braunston Specially Polymers facility offered the use of a period of land at the rear of the site.

 

The conservation group planted hundreds of trees, and National built gate, footpaths and benches. The project has already drawn the attention of birds, squirrels and a fox, plus a British Trust of Conservation Volunteers commendation.

 

National is fortunate to have caring individuals throughout the company. One of Nationals people in Mezzago, Italy tirelessly raises funds for handicapped children. From Woodruff, South Carolina to Eastleigh, England scores of National Starch and Chemical people can be seen participating in walks to raise money for children’s health and Welfare funds.

 

Responsible Care progress

National continues to make steady progress in inculcating the codes of the Chemical Manufacturing Association Responsible Care initiative into the daily activities of all Nationals employees. The overall goal of the program is to improve the industry’s performance in employee and public health, safety and protection of the environment.

 

National passed an important milestone in 1993 by establishing Nationals first Community Advisory Panel (CAP) in Indianapolis, Indiana. CAPs evolved from the Community Awareness and Emergency Response code of practice which encourages communication with and outreach to the community in which the plant operates.

 

Working with the community

The Indianapolis CAP is composed of 15 people employee leaders, environmentalists, community activist, elected officials and neighbors of Nationals largest production facility. The group has been meeting regularly to learn more about National and each other and deal with community quality of life issuers. The CAP is not only helping us explain what National do and how National operate, it has become a central forum to bring together the leaders of many community organization.

 

The members of the CAP now know the depth of Nationals commitment to safely and the environment. They are carrying that message back to their friends and neighbors. National are currently studying other situations where CAPs can be effective in educating the public and addressing community concerns.

Outreach efforts

The CAP is an extension of Nationals long history of outreach. As National have for many years, National worked with officials in several towns in conducting hazardous response drills to prepare for industrial emergencies within the community. National are also happy to cooperate with local schools to expand the scope of their science programs.

 

In the US, England and Italy, for example, National invited teachers and students into Nationals facilities to learn more about polymer chemistry, how Nationals products are made and where they are used.

 

TABLE OF CONTENTS

MISSION STATEMENT

VITAL STATISTICS

NATIONAL: A GLOBAL INTRODUCTION

RESEARCH AND TECHNICAL SUPPORT

A DEPENDABLE AND CONSISTENT SERVICE

NATIONAL: GLOBAL COMMITMENT TO QUALITY

NATIONAL AND THE GLOBAL CHALLENGE

NATIONAL’S  INDUSTRIAL DIVISIONS

ADHESIVES AND SEALANT

RESINS AND SPECIALTY CHEMICALS

ELECTRONIC MATERIALS AND ADHESIVES

FOOD PRODUCTS

NATIONAL’S GLOBAL INVESTMENT

New companies, new countries

Physical plants

Higher capacities, greater efficiencies.

Technology investments

Human resources impact

ADHESIVES & SEALANT

Packaging and Converting

PSAs. FLAs

ADHESIVE TECHNOLOGY

Improves and Speeds Bookbinding Production                                                                                                32

Adhesive Selection                                                                                                                                                    34

Edition Binding Production

Case Bound Book Production

Advanced  polymer technology

NATIONAL ADHESIVE’S TOMORROW

RESINS & SPECIALTY CHEMICALS                                                                       42

ELECTRONIC MATERIALS & ADHESIVES

FOOD PRODUCTS

Growth in Europe

Strong results from Asia/Pacific

Globalization of food tastes

Reinforcing Nationals technical base

National-trained people

INDUSTRIAL STARCH

Bright spots in Europe

Advances in Asia

SWOT  ANALYSIS

National Incorporated:Global Progress Report                         64

Acquisitions and Developments

Investing for the Future

RESEARCH & DEVELOPMENT:                                                                                                                      68

National Employees:Motivated For Optimal Performance      69

A PART OF THE COMMUNITY

Responsible Care progress

Working with the community                                                                                                                                75

Outreach efforts

MISSION STATEMENT

VITAL STATISTICS

NATIONAL: A GLOBAL INTRODUCTION

RESEARCH AND TECHNICAL SUPPORT

A DEPENDABLE AND CONSISTENT SERVICE

NATIONAL: GLOBAL COMMITMENT TO QUALITY

NATIONAL AND THE GLOBAL CHALLENGE

NATIONAL’S  INDUSTRIAL DIVISIONS

ADHESIVES AND SEALANT

RESINS AND SPECIALTY CHEMICALS

ELECTRONIC MATERIALS AND ADHESIVES

FOOD PRODUCTS

NATIONAL’S GLOBAL INVESTMENT

New companies, new countries

Physical plants

Higher capacities, greater efficiencies.

Technology investments

Human resources impact

ADHESIVES & SEALANT

Packaging and Converting

PSAs. FLAs

ADHESIVE TECHNOLOGY

Improves and Speeds Bookbinding Production

Adhesive Selection

Edition Binding Production

Case Bound Book Production

Advanced  polymer technology

NATIONAL ADHESIVE’S TOMORROW

RESINS & SPECIALTY CHEMICALS

ELECTRONIC MATERIALS & ADHESIVES

FOOD PRODUCTS

Growth in Europe

Strong results from Asia/Pacific

Globalization of food tastes

Reinforcing Nationals technical base

National-trained people

INDUSTRIAL STARCH

Bright spots in Europe

Advances in Asia

SWOT  ANALYSIS

National Incorporated:Global Progress Report

Acquisitions and Developments

Investing for the Future

RESEARCH & DEVELOPMENT:

National Employees:Motivated For Optimal Performance

A PART OF THE COMMUNITY

Responsible Care progress

Working with the community

Outreach efforts