Production.

In recent years Germany’s production of synthetic resins has increased rapidly, each succeeding year registering the attainment of a new record. In 1933 production totaled 17,500,000 pounds and by 1935 had increased to 55,000,000 pounds. A further expansion of about 30 percent to 70,000,000 pounds in 1936 and present production trends indicate a gain of about 40 percent more in 1937, to an estimated total of 100,000,000 pounds.

Although tar-acid resins comprise the bulk of the German output, considerable gains are shown for other types, notably injection molding resins of the polystyrene and vinyl types. The development of completely automatic injection molding machinery has given an impetus to these types. While technical progress, including improvement of molding equipment, has contributed to the expanded production, the use of synthetic resins in Germany has had a strong stimulus because they are made almost wholly of domestic materials. Under the “Four-Year Plan” for the greatest possible national economic independence, synthetic resins are replacing imported materials, such as the heavier nonferrous metals, iron, hardwoods, cork, and natural gums and resins in many uses. This displacement of materials has also affected such domestic products as glass and porcelain, which caused the Government to intervene and impose restrictions upon the use of resins for purposes adequately served by other materials of German origin.

Germany’s expanding production of synthetic resin has also been aided by a sharp increase in exports, which have increased well over 100 percent since 1932.

Tar-acid resins.—German output of tar-acid resins has been estimated at 35 million pounds in 1934, at 49 million pounds in 1935, and at 63 million pounds in 1936. Such resins comprise the bulk of the German production of molding resins.

There are at least seven producers of tar-acid resins in Germany and nine producers of molding powders and pellets. Tar-acid resins for surface coatings are produced by a number of these concerns. Among the important makers in Germany are The Bakelite Gesellschaft (organized in 1910 to operate under the Baekeland patents); the explosives and munitions firm of Dynamit A.G.; Dr. Kurt Albert G.m.b.H.; the I.G. Farbenindustrie; Beckacite Kunstharzfabrik G.m.b.H.; and Rohm & Haas A.G. The Beckacite firm has associates in the United States and in the United Kingdom, and Rohm & Haas, an associate in the United States.

Alkyd resins.—The manufacture of alkyd resins has developed in Germany in the past few years. Demand for these resins has been given a marked impetus by the development of a new standardized substitute for linseed-oil varnish known as El Varnish, the use of which is required by the Control Board for Industrial Fats for certain interior and exterior painting.

There are five makers of resins for paints, varnishes, and lacquers. The output of alkyd resins has increased sharply since 1934, probably reaching 10 million pounds in 1936.

Urea resins.—The output of urea resins in Germany is relatively small; two of the more important types are known as Locron and Pollopas.

Polystyrene and vinyl resins.—In 1936 Germany’s production of thermoplastic resins exceeded 1 million pounds, principally of the polystyrene and vinyl types. Among the vinyl resins are Acronal and Mowilith, both of which are manufactured by the I.G. Farbenindustrie. This combine also produces several types of polystyrene resins known as Mollit and Metastyrol. Dynamit A.G. produces a polystyrene resin known as Trolitul.

Uses of synthetic resins.

The original and most important use of synthetic resins in Germany was for electrical insulation. This use was so extensive that the industry was organized in 1924 into an association known as non-rubber insulation materials industry. Materials were standardized and classified into 14 types, of which 5 were tar-acid resins and 1 was a urea resin. Every type must meet certain specifications in order to be recognized by the Reich Testing Institute. More than 100 firms produce insulating materials meeting the institute’s specifications.

Radio panels of the popular sets sponsored by the Government are made of synthetic resins. Consumption in the automobile industry is increasing for such parts as instrument panels, electrical equipment, steering wheels, gear-shift knobs, and numerous others. The latest airplanes show increased use of synthetic resins, where they contribute light weight, great strength, and resistance to corrosion.

In cameras and moving-picture equipment, wood and metal have been in part replaced by synthetic resins. Other applications of resins in Germany include bearings for rolling mills, goggles and spectacles (including the lens), and perfume and medicine bottles.

Resins for surface coatings are undergoing rapid development in Germany, owing to the shortage of linseed oil. Alkyd resins in coatings are being promoted by the Government, which prohibits or limits the use of the older oil-type coatings for certain uses so as to decrease the use of linseed oil and other paint oils that must be imported and hence require outlays of foreign exchange. Penalties have been imposed for violating the regulations.[13]

Organization.

The synthetic-resin industry in Germany is a unit within the national industrial organization. It is a subdivision of the industrial chemical group, called Fachgruppe Kunststoffe, or Group 13 of the 19 trade groups in the chemical division. This subdivision controls casein and cellulose plastics as well as synthetic resins, and is further divided as follows: (1) Casein plastics, (2) cast phenolic resins, (3) molding compositions, (4) resins for lacquers, (5) celluloid and zellon, (6) transparent sheeting, (7) linoleum, and (8) miscellaneous (such as vulcanized fiber, bottle caps, and die-casting resins).

There are two cartels distinct from the national organization, which expressly excludes all functions and activities of cartels. One cartel represents the firms interested in molding compositions and the other those interested in synthetic resins for other purposes. Some of the producers are members of both cartels.

Foreign trade.

Imports of synthetic resins are negligible, although the duty of 4.6 cents per pound (25 marks per 100 kilograms) on imports into Germany is not prohibitive. Exports have increased practically every year since 1930, when they were first recorded separately.

Table [23] shows the quantity and value of exports in recent years.

Table 23.—Synthetic resins: German exports, 1930-37

Year	Hardening resins			Nonhardening resins
	1,000 pounds	Value		1,000 pounds	Value
	1,000 pounds	1,000 marks	1,000 dollars	1,000 pounds	1,000 marks	1,000 dollars
1930	2,549	1,973	472
1931	3,775	2,757	651
1932	3,162	2,112	501
1933	4,009	2,625	801	6,628	3,566	1,088
1934	4,924	3,162	1,246	7,076	3,415	1,346
1935	4,948	2,993	1,206	6,921	3,445	1,388
1936	6,392	3,501	1,411	7,764	3,820	1,539
1937¹	8,706	4,402	1,770	10,866	5,389	2,117

¹ Preliminary.

Source: Consular reports.

German exports of synthetic resins are, for the most part, destined to European countries, most of which have increased their purchases considerably in recent years. Exports to Latin American countries have increased recently, especially to Brazil. Table [24] shows the distribution of exports in recent years.

Table 24.—Synthetic resins: German exports, by countries, 1934-37

[Thousands of marks]
Destination	1934	1935	1936	1937¹
Austria	259	352	446	593
Belgium	215	259	297	420
Czechoslovakia	347	345	604	825
Denmark	316	391	473	540
France	626	651	680	734
Great Britain	1,247	563	596	844
Hungary	240	135	182	(²)
Italy	252	359	523	615
Netherlands	530	572	645	1,031
Spain	225	302	178	57
Sweden	415	457	463	691
Switzerland	721	705	714	749
Other European countries	370	618	706	(²)
Argentina	250	207	194	(²)
Brazil	46	77	109	(²)
Other Latin American countries	17	18	75	(²)
All other countries	501	427	436	2,692
Total	6,577	6,438	7,321	9,791

¹ Preliminary.

² Included in all other countries.

Source: Official German statistics.

GREAT BRITAIN[14]

As in most other countries, the history of the synthetic-resin industry in Great Britain begins with the acquisition of rights by a British concern to manufacture under the original Bakelite patents. The Damard Lacquer Co., Ltd. was probably the pioneer maker of phenolic resins in England. The principal product was a baking lacquer sold under the trade name Damarda, marketed for and used principally as a coating to prevent corrosion on brass. The outbreak of the World War created such an urgent demand for laminated materials that this firm started production of them for the British Government. In 1926 this concern was merged with Mouldesite, Ltd. and Redmanol, Ltd., under the name of Bakelite, Ltd.