November 15, 2021

PFA Fall Meeting Highlights

Polyurethane Foam Association Fall Meeting Provides Forum For
Issues Discussion, Technical Advances

Edge-Sweets Company and James T. McIntyre, Jr. Inducted Into The Flexible Polyurethane
Foam Hall Of Fame

CHARLOTTE, NC (November 12, 2021)—The Polyurethane
Foam Association (PFA) recently concluded its fall meeting,
which spotlighted key regulatory issues and new technical
developments.

PFA’s two-day meeting in early November was attended by
more than 130 executives from foam manufacturers, chemical
suppliers, and other companies supporting the industry. This
marked a return to a full live-meeting format after COVID-19
restrictions required PFA to cancel past meetings or conduct
them primarily online.

Attendees saw presentations on key industry issues including
supply chain challenges, recycling, regulations, and end-user
market forecasting.

Keynote speakers, identical twins Terrence and Lee Resnick of
Resnick Associates, provided attendees with financial advice on
company succession issues and potential tax law changes.
In addition, a Technical Program featured presentations on
innovations and best practices on topics ranging from new mold
release agents and additives to reduce foam compression set, to
plant safety, new equipment, and new additives for improved
foam production.

2021 Flexible Polyurethane Foam Hall
of Fame Inductees, James T. McIntyre
(top right), pictured with PFA President
Chip Holton of NCFI Polyurethanes;

and Edge-Sweets Company (ESCO).
Accepting for ESCO were President
Richard Hungerford, Jr.(holding award)
with (L to R) Kelo Waivio, Stephen
Hoffman, and John Slott.

Mark McBride and Willie Wesley III of BASF won the Dr. Herman Stone Technical Excellence
Award, as their presentation, “Recent Advances In Flexible Foam,” was voted best by those
attending the Technical Program. “After four decades in this industry, I am still impressed by the
level of innovation that continues in flexible polyurethane foam,” noted Bill Gollnitz, Past
President of PFA and Moderator for the Technical Program. “Congratulations to Mark and
Wesley—and to our other presenters—for exceptional work.”

As part of its 40 th Anniversary celebration, PFA also recognized one manufacturer and one
individual for induction into the Flexible Polyurethane Foam Hall Of Fame. The Hall of Fame
was established to honor the leaders and innovators of the industry. It serves as an information
source for future industry members and researchers regarding the contribution of individuals and
companies who have significantly contributed to the growth and betterment of the flexible
polyurethane foam industry in North America.

The two 2021 inductees were Edge-Sweets Company (ESCO) and James T. McIntyre, Jr.
ESCO produces highly specialized machines for cutting and processing polyurethane foams.
With its engineer-to-order approach, ESCO’s is unique in its abilities to meet customers’
requirements using modern manufacturing technologies, 3D modeling software and finite
element analysis. The company is the product of a merger between The Edge Company of Grand
Rapids, MI and the Martin Sweets Company of Louisville, KY.

The company has manufactured products for industries including furniture and upholstery,
bedding, packaging, industrial insulation, oil and gas, building and construction, automotive,
marine, medical, defense, mining, and aerospace.

“ESCO has long been a supporter of PFA and the flexible foam industry,” said Chip Holton of
NCFI Polyurethanes, PFA’s President. “ESCO’s efforts in innovation, customer service, and
education made the company a more-than-worthy candidate to join other great manufacturers in
the Flexible Polyurethane Foam Hall of Fame.”

James McIntyre, Jr. of the McIntyre & Lemon Law Firm in Washington, DC, has served as
PFA’s Legal Counsel from the beginning of the association. Prior to his private law practice, he
served in the Cabinet of President Jimmy Carter as the Director of the Office of Management and
Budget. He also served as Director of the Office of Planning and Budget for the State of Georgia.
President Reagan appointed him to his Commission on Privatization.

McIntyre has helped guide the flexible polyurethane foam industry through a variety of
regulatory challenges through his four decades of service, providing PFA members with
consistent, insightful legal representation. “It is safe to say that the flexible foam industry would
look a lot different today without the efforts of Jim McIntyre,” said Holton.

The Polyurethane Foam Association is a trade association founded in 1980 to help educate foam
users, allied industries and other stakeholders. PFA provides facts on environmental, health and
safety issues and technical information on the performance of FPF in consumer and industrial
products. FPF is used as a key comfort component in most upholstered furniture and mattress products, along with automotive seating, carpet cushion, packaging, and numerous other
applications.

#

www.pfa.org

November 15, 2021

PFA Fall Meeting Highlights

Polyurethane Foam Association Fall Meeting Provides Forum For
Issues Discussion, Technical Advances

Edge-Sweets Company and James T. McIntyre, Jr. Inducted Into The Flexible Polyurethane
Foam Hall Of Fame

CHARLOTTE, NC (November 12, 2021)—The Polyurethane
Foam Association (PFA) recently concluded its fall meeting,
which spotlighted key regulatory issues and new technical
developments.

PFA’s two-day meeting in early November was attended by
more than 130 executives from foam manufacturers, chemical
suppliers, and other companies supporting the industry. This
marked a return to a full live-meeting format after COVID-19
restrictions required PFA to cancel past meetings or conduct
them primarily online.

Attendees saw presentations on key industry issues including
supply chain challenges, recycling, regulations, and end-user
market forecasting.

Keynote speakers, identical twins Terrence and Lee Resnick of
Resnick Associates, provided attendees with financial advice on
company succession issues and potential tax law changes.
In addition, a Technical Program featured presentations on
innovations and best practices on topics ranging from new mold
release agents and additives to reduce foam compression set, to
plant safety, new equipment, and new additives for improved
foam production.

2021 Flexible Polyurethane Foam Hall
of Fame Inductees, James T. McIntyre
(top right), pictured with PFA President
Chip Holton of NCFI Polyurethanes;

and Edge-Sweets Company (ESCO).
Accepting for ESCO were President
Richard Hungerford, Jr.(holding award)
with (L to R) Kelo Waivio, Stephen
Hoffman, and John Slott.

Mark McBride and Willie Wesley III of BASF won the Dr. Herman Stone Technical Excellence
Award, as their presentation, “Recent Advances In Flexible Foam,” was voted best by those
attending the Technical Program. “After four decades in this industry, I am still impressed by the
level of innovation that continues in flexible polyurethane foam,” noted Bill Gollnitz, Past
President of PFA and Moderator for the Technical Program. “Congratulations to Mark and
Wesley—and to our other presenters—for exceptional work.”

As part of its 40 th Anniversary celebration, PFA also recognized one manufacturer and one
individual for induction into the Flexible Polyurethane Foam Hall Of Fame. The Hall of Fame
was established to honor the leaders and innovators of the industry. It serves as an information
source for future industry members and researchers regarding the contribution of individuals and
companies who have significantly contributed to the growth and betterment of the flexible
polyurethane foam industry in North America.

The two 2021 inductees were Edge-Sweets Company (ESCO) and James T. McIntyre, Jr.
ESCO produces highly specialized machines for cutting and processing polyurethane foams.
With its engineer-to-order approach, ESCO’s is unique in its abilities to meet customers’
requirements using modern manufacturing technologies, 3D modeling software and finite
element analysis. The company is the product of a merger between The Edge Company of Grand
Rapids, MI and the Martin Sweets Company of Louisville, KY.

The company has manufactured products for industries including furniture and upholstery,
bedding, packaging, industrial insulation, oil and gas, building and construction, automotive,
marine, medical, defense, mining, and aerospace.

“ESCO has long been a supporter of PFA and the flexible foam industry,” said Chip Holton of
NCFI Polyurethanes, PFA’s President. “ESCO’s efforts in innovation, customer service, and
education made the company a more-than-worthy candidate to join other great manufacturers in
the Flexible Polyurethane Foam Hall of Fame.”

James McIntyre, Jr. of the McIntyre & Lemon Law Firm in Washington, DC, has served as
PFA’s Legal Counsel from the beginning of the association. Prior to his private law practice, he
served in the Cabinet of President Jimmy Carter as the Director of the Office of Management and
Budget. He also served as Director of the Office of Planning and Budget for the State of Georgia.
President Reagan appointed him to his Commission on Privatization.

McIntyre has helped guide the flexible polyurethane foam industry through a variety of
regulatory challenges through his four decades of service, providing PFA members with
consistent, insightful legal representation. “It is safe to say that the flexible foam industry would
look a lot different today without the efforts of Jim McIntyre,” said Holton.

The Polyurethane Foam Association is a trade association founded in 1980 to help educate foam
users, allied industries and other stakeholders. PFA provides facts on environmental, health and
safety issues and technical information on the performance of FPF in consumer and industrial
products. FPF is used as a key comfort component in most upholstered furniture and mattress products, along with automotive seating, carpet cushion, packaging, and numerous other
applications.

#

www.pfa.org

November 15, 2021

Casper Q3 Results, Announces Sale to Durational Capital Management

Casper Reports Third Quarter Results

Nov. 15, 2021 8:16 AM ETCasper Sleep Inc. (CSPR)

Emilie Arel Appointed Chief Executive Officer

NEW YORK–(BUSINESS WIRE)– Casper Sleep Inc. (CSPR) (“Casper” or the “Company”) (NYSE: CSPR) today announced financial results for the quarter ended September 30, 2021 (the “third quarter 2021”). The Company also announced that Emilie Arel, who serves as President and Chief Commercial Officer at Casper, has been appointed Chief Executive Officer, assuming the role from Casper Co-Founder, Philip Krim, effective November 15, 2021. Separately, the Company announced that it has entered into a definitive agreement to be acquired by Durational Capital Management LP (“Durational”) for $6.90 per share in an all-cash transaction expected to close in the first quarter of 2022.

Third Quarter 2021 Financial Highlights (as compared to the quarter ended September 30, 2020)

• Revenue increased 26.8% to an all-time quarterly record of $156.5 million;
  • Direct-to-Consumer revenue, inclusive of Casper’s 72 retail stores and e-commerce channel, increased 6.7% to $96.5 million;
  • Retail Partnership revenue increased 78.6% to $60.0 million;
• Gross Profit decreased $4.6 million, or 6.7%, to $63.9 million;
• Net Loss increased by $9.4 million, or 59.4%, to $25.3 million, inclusive of a $2.4 million one-time lease write-off charge;
• Adjusted EBITDA loss of $12.1 million, compared to a loss of $7.5 million; and
• Cash and cash equivalents were $43.1 million on September 30, 2021.

Commenting on the third quarter 2021 results and proposed transaction, Casper’s Chief Executive Officer, Philip Krim, said, “Our strong top-line growth of 26.8% and ability to onboard additional world-class retail partners, such as Sleep Country, continues to underscore the strength of our brand and value proposition of our award-winning mattresses and sleep products. However, ongoing industry-wide supply chain challenges are resulting in sustained inflationary pressures across the industry impacting our ability to meet demand effectively and efficiently and impairing the Company’s liquidity position.

“Casper’s Board of Directors in consultation with outside advisors, has evaluated a range of strategic and financial alternatives over several months and determined after careful consideration that the transaction proposed by Durational is superior to all other alternatives available. The proposed acquisition offers shareholders immediate and substantial value, and ensures the business has the financial flexibility required to support continued growth. In addition, Durational is committed to building on the strength of the Casper brand, products, omni-channel platform, and employees, to further improve the customer experience and create new opportunities for Casper.”

Mr. Krim added, “I am pleased to announce Emilie Arel’s appointment as Chief Executive Officer. Emilie and I have worked together toward this goal for a long time and her new responsibilities reflect our focus on prioritizing talent development across the company. Emilie’s background and experience at world-class brands including Quidsi, Gap and Target will be of great benefit to Casper – she is a leader who will take bold steps and work across departments to advance our strategic initiatives by leveraging the resources she has available and motivating those around her.”

With over 20 years of leadership experience across retail, merchandising, customer experience, and marketing, Emilie Arel has led Casper’s commercial and brand strategy. Previously, Emilie was the CEO of FULLBEAUTY Brands, a plus-size apparel company, where she led the company through a debt restructuring and put the company on the path to a digital transformation. Prior to that, she served as the CEO of Quidsi, an Amazon company with 10 brands, including Diapers.com and Soap.com. Earlier in her career, Emilie spent seven years with Gap Inc. where she held multiple positions and led a team of 12,000+ employees and 220+ stores. Before joining Gap, Emilie held various roles at Target Corporation. Emilie earned MBAs from Columbia University Business School and the University of California, Berkeley.

Mr. Krim concluded, “I could not be more excited about Casper’s future under Emilie’s leadership and with Durational’s partnership. Durational is committed to building on the strength of the Casper brand by leveraging our accomplishments, unparalleled customer experience, omni-channel platform and market position to further improve the customer experience and create new opportunities for the Casper family of employees. In summary, Emilie’s leadership and our agreement with Durational creates immediate and substantial value for our shareholders and charts a clear path forward to deliver value for all stakeholders as we continue to bring better sleep to more people.”

Commenting on her appointment, Emilie Arel, President and Chief Commercial Officer stated, “I am excited to take on the Chief Executive role at this time of change at Casper. Philip and the founding team disrupted the mattress industry by introducing a new type of shopping experience and built a beloved brand with award-winning products and approximately $500 million in annual sales. Under Durational, Casper will have financial flexibility to accelerate our growth plans, and I look forward to working closely with Durational and with all of Casper’s talented team members to deliver on the tremendous potential of this business in the months and years ahead.”

Withdrawal of Outlook for Certain Financial Metrics

In light of the pending transaction, the Company today withdrew all of its financial guidance for the year ending December 31, 2021.

Cancellation of Third Quarter 2021 Conference Call

The Company will not be conducting its third quarter 2021 conference call and webcast, previously scheduled for today, November 15, 2021 at 5:00 p.m. Eastern Time. The Company plans to file its quarterly report on Form 10-Q with the Securities and Exchange Commission (the “SEC”) on November 15, 2021.

Casper periodically provides information for investors on its corporate website, casper.com, and its investor relations website, ir.casper.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC and information on corporate governance.

About Casper

Casper believes everyone should sleep better. The Sleep Company has a full portfolio of obsessively engineered sleep products—including mattresses, pillows, bedding, and furniture designed in-house by the Company’s award-winning R&D team at Casper Labs. In addition to its e-commerce business, Casper owns and operates Sleep Shops across North America and its products are available at a growing list of retailers.

Important Information and Where to Find It

In connection with the proposed transaction between the Company and Durational Capital Management LP, a special stockholder meeting will be announced soon to obtain stockholder approval in connection with the proposed transaction. The Company expects to file with the SEC a proxy statement (the “Proxy Statement”), the definitive version of which will be sent or provided to the Company stockholders. The Company may also file other documents with the SEC regarding the proposed transaction. This document is not a substitute for the Proxy Statement or any other document which the Company may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the Proxy Statement (when it is available) and other documents that are filed or will be filed with the SEC by the Company through the website maintained by the SEC at www.sec.gov, the Company’s investor relations website at https://ir.casper.com or by contacting the Company investor relations department at cspr@jcir.com.

Participants in the Solicitation

The Company and certain of its directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of the Company’s stockholders will be set forth in the Proxy Statement for its special stockholder meeting. The Company’s stockholders may obtain additional information regarding the direct and indirect interests of the participants in the solicitation of proxies in connection with the proposed transaction, including the interests of the Company directors and executive officers in the transaction, which may be different than those of the Company stockholders generally, by reading the Proxy Statement and any other relevant documents that are filed or will be filed with the SEC relating to the transaction. You may obtain free copies of these documents using the sources indicated above.

https://seekingalpha.com/pr/18561032-casper-reports-third-quarter-results

November 15, 2021

Casper Q3 Results, Announces Sale to Durational Capital Management

Casper Reports Third Quarter Results

Nov. 15, 2021 8:16 AM ETCasper Sleep Inc. (CSPR)

Emilie Arel Appointed Chief Executive Officer

NEW YORK–(BUSINESS WIRE)– Casper Sleep Inc. (CSPR) (“Casper” or the “Company”) (NYSE: CSPR) today announced financial results for the quarter ended September 30, 2021 (the “third quarter 2021”). The Company also announced that Emilie Arel, who serves as President and Chief Commercial Officer at Casper, has been appointed Chief Executive Officer, assuming the role from Casper Co-Founder, Philip Krim, effective November 15, 2021. Separately, the Company announced that it has entered into a definitive agreement to be acquired by Durational Capital Management LP (“Durational”) for $6.90 per share in an all-cash transaction expected to close in the first quarter of 2022.

Third Quarter 2021 Financial Highlights (as compared to the quarter ended September 30, 2020)

• Revenue increased 26.8% to an all-time quarterly record of $156.5 million;
  • Direct-to-Consumer revenue, inclusive of Casper’s 72 retail stores and e-commerce channel, increased 6.7% to $96.5 million;
  • Retail Partnership revenue increased 78.6% to $60.0 million;
• Gross Profit decreased $4.6 million, or 6.7%, to $63.9 million;
• Net Loss increased by $9.4 million, or 59.4%, to $25.3 million, inclusive of a $2.4 million one-time lease write-off charge;
• Adjusted EBITDA loss of $12.1 million, compared to a loss of $7.5 million; and
• Cash and cash equivalents were $43.1 million on September 30, 2021.

Commenting on the third quarter 2021 results and proposed transaction, Casper’s Chief Executive Officer, Philip Krim, said, “Our strong top-line growth of 26.8% and ability to onboard additional world-class retail partners, such as Sleep Country, continues to underscore the strength of our brand and value proposition of our award-winning mattresses and sleep products. However, ongoing industry-wide supply chain challenges are resulting in sustained inflationary pressures across the industry impacting our ability to meet demand effectively and efficiently and impairing the Company’s liquidity position.

“Casper’s Board of Directors in consultation with outside advisors, has evaluated a range of strategic and financial alternatives over several months and determined after careful consideration that the transaction proposed by Durational is superior to all other alternatives available. The proposed acquisition offers shareholders immediate and substantial value, and ensures the business has the financial flexibility required to support continued growth. In addition, Durational is committed to building on the strength of the Casper brand, products, omni-channel platform, and employees, to further improve the customer experience and create new opportunities for Casper.”

Mr. Krim added, “I am pleased to announce Emilie Arel’s appointment as Chief Executive Officer. Emilie and I have worked together toward this goal for a long time and her new responsibilities reflect our focus on prioritizing talent development across the company. Emilie’s background and experience at world-class brands including Quidsi, Gap and Target will be of great benefit to Casper – she is a leader who will take bold steps and work across departments to advance our strategic initiatives by leveraging the resources she has available and motivating those around her.”

With over 20 years of leadership experience across retail, merchandising, customer experience, and marketing, Emilie Arel has led Casper’s commercial and brand strategy. Previously, Emilie was the CEO of FULLBEAUTY Brands, a plus-size apparel company, where she led the company through a debt restructuring and put the company on the path to a digital transformation. Prior to that, she served as the CEO of Quidsi, an Amazon company with 10 brands, including Diapers.com and Soap.com. Earlier in her career, Emilie spent seven years with Gap Inc. where she held multiple positions and led a team of 12,000+ employees and 220+ stores. Before joining Gap, Emilie held various roles at Target Corporation. Emilie earned MBAs from Columbia University Business School and the University of California, Berkeley.

Mr. Krim concluded, “I could not be more excited about Casper’s future under Emilie’s leadership and with Durational’s partnership. Durational is committed to building on the strength of the Casper brand by leveraging our accomplishments, unparalleled customer experience, omni-channel platform and market position to further improve the customer experience and create new opportunities for the Casper family of employees. In summary, Emilie’s leadership and our agreement with Durational creates immediate and substantial value for our shareholders and charts a clear path forward to deliver value for all stakeholders as we continue to bring better sleep to more people.”

Commenting on her appointment, Emilie Arel, President and Chief Commercial Officer stated, “I am excited to take on the Chief Executive role at this time of change at Casper. Philip and the founding team disrupted the mattress industry by introducing a new type of shopping experience and built a beloved brand with award-winning products and approximately $500 million in annual sales. Under Durational, Casper will have financial flexibility to accelerate our growth plans, and I look forward to working closely with Durational and with all of Casper’s talented team members to deliver on the tremendous potential of this business in the months and years ahead.”

Withdrawal of Outlook for Certain Financial Metrics

In light of the pending transaction, the Company today withdrew all of its financial guidance for the year ending December 31, 2021.

Cancellation of Third Quarter 2021 Conference Call

The Company will not be conducting its third quarter 2021 conference call and webcast, previously scheduled for today, November 15, 2021 at 5:00 p.m. Eastern Time. The Company plans to file its quarterly report on Form 10-Q with the Securities and Exchange Commission (the “SEC”) on November 15, 2021.

Casper periodically provides information for investors on its corporate website, casper.com, and its investor relations website, ir.casper.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC and information on corporate governance.

About Casper

Casper believes everyone should sleep better. The Sleep Company has a full portfolio of obsessively engineered sleep products—including mattresses, pillows, bedding, and furniture designed in-house by the Company’s award-winning R&D team at Casper Labs. In addition to its e-commerce business, Casper owns and operates Sleep Shops across North America and its products are available at a growing list of retailers.

Important Information and Where to Find It

In connection with the proposed transaction between the Company and Durational Capital Management LP, a special stockholder meeting will be announced soon to obtain stockholder approval in connection with the proposed transaction. The Company expects to file with the SEC a proxy statement (the “Proxy Statement”), the definitive version of which will be sent or provided to the Company stockholders. The Company may also file other documents with the SEC regarding the proposed transaction. This document is not a substitute for the Proxy Statement or any other document which the Company may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders may obtain free copies of the Proxy Statement (when it is available) and other documents that are filed or will be filed with the SEC by the Company through the website maintained by the SEC at www.sec.gov, the Company’s investor relations website at https://ir.casper.com or by contacting the Company investor relations department at cspr@jcir.com.

Participants in the Solicitation

The Company and certain of its directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of the Company’s stockholders will be set forth in the Proxy Statement for its special stockholder meeting. The Company’s stockholders may obtain additional information regarding the direct and indirect interests of the participants in the solicitation of proxies in connection with the proposed transaction, including the interests of the Company directors and executive officers in the transaction, which may be different than those of the Company stockholders generally, by reading the Proxy Statement and any other relevant documents that are filed or will be filed with the SEC relating to the transaction. You may obtain free copies of these documents using the sources indicated above.

https://seekingalpha.com/pr/18561032-casper-reports-third-quarter-results

November 12, 2021

Back to the Future

Plastics Industry Hurt by Lack Of Raw Materials Made of Oil

By Gerd Wilcke

• Nov. 30, 1973

About the ArchiveThis is a digitized version of an article from The Times’s print archive, before the start of online publication in 1996. To preserve these articles as they originally appeared, The Times does not alter, edit or update them.Occasionally the digitization process introduces transcription errors or other problems; we are continuing to work to improve these archived versions.

Randel Plastics, Inc., of Long Island City used to have 95 persons on its payroll. Last week there were only 48.

In Leominster, Mass., the Tucker Manufacturing Company has reduced its labor force by 15 per cent and has cut back from a three‐shift six‐day work week to 2.5 shifts five days a week.

What these two companies and hundreds of others have in common is that they cannot get enough raw materials made from oil to make their products. The products are plastics—in their multitude of variations that go into toys, automobiles, furniture, doorknobs or packaging materials.

The dramatic impact of the shortage was illustrated yesterday when the Chrysler Corporation announced a brief shutdown of four plants that manufacture compact cars. Chrysler said that the plants had experienced a shortage of plastic parts.

According to industry estimates, the average 1973‐model car used 138 pounds of plastics, and each 1974 model is using about 153 pounds.

In the New York area, the Plastics and Metal Producers Manufacturers Association said that its 174 member companies that normally employ 14,000 workers had to put 4,000 of them on short work weeks or on furlough.

PPG Industries, Inc., which is a joint venture partner in the Puerto Olefins Company at Penuelas, Puerto Rico, said it was being forced to shut down the plant for two weeks beginning Monday because of shortages of petrochemical raw materials.

American consumers facing the prospect of a cold winter may, at the moment, be more concerned over a cold home, school or an empty gasoline tank. But if Randel Plastics, Tucker Manufacturing and other fabricators are forced out of business the ripple effect could be enormous.

This is the third of a series of articles on the impact of the energy crisis on United States industries, which will appear at intervals.

Not only would thousands of products become scarce, but many thousands of people would lose their jobs.

Like the rest of the petrochemical industry, makers of plastics have to rely on oil for the hydrocarbons that go into building blocks for their products.

There are large companies such as E. I. du Pont de Nemours & Co., the Dow Chemical Company, the Monsanto Company, the Union Carbide Corporation, the Allied Chemical Corporation, or the Celanese Corporation that are major suppliers of building blocks such as ethylene, styrene, butadiene or phenol.

Although many of the major companies make their own end products, they are at the same time the key supply sources for companies such as Randel and Tucker Manufacturing.

Is the source drying up?

Executives of major companies do not deny that there is a shortage of key materials that has forced them to use an allocation system, However, they insist that they are attempting to be evenhanded in supplying domestic customers and are not ignoring them in order to make higher profits overseas.

Edward R. Kane, president of du Pont, and Werner C. Braun, the chief executive of Hercules, Inc., said in interviews the other day that there was no overt effort to ship more plastic resins overseas because of price controls in the United States. “The incidence of people taking advantage of the situation is small,” Mr. Kane said.

Mr. Braun said that there was no sudden upsurge in exports during the year and, although the dollar export volume was higher in reflection of monetary realignments, the physical volume of goods shipped showed a “normal” trade growth that was in line with domestic sales growth.

Plastics makers and fabricators, through the Society of the Plastics Industry, have argued for the lifting of price controls and, for the short term, a raw materials allocation plan patterned exactly on the basis of the 1972 distribution of oil and gas and all their derivatives.

Recent Study Cited

Ralph L. Harding Jr., president of the society, in this context cited a recent study by the Arthur D. Little Organization that pointed out that a 15 per cent cutback in feedstocks of raw materials to the petrochemical industry would mean the loss of 1.6 million jobs and a production loss of $65‐billion. The plastics industry accounts for about 25 per cent of the petrochemical industry and employs about 225,000 work ers. A 15 per cent cutback in feedstocks would, because of the domino effect, result in a $22‐billion curtailment in end products and in a loss of employment to 550,000 workers in both the plastic industry and the industries it supplies.

Theodore Riky, the president of Randel Plastics, does not think in these dimensions. He wants enough raw materials so he does not have to lay off more workers. He stressed that major resin suppliers had cut him off completely and that secondary suppliers were doing so little by little.

Can he afford going to the “open market,” a polite term used for the gray, or black. market?

‘45 Cents a Pound’

“If I pay cash on the line or by certified check before the supplier unloads a shipment, and paid 45 cents a pound for polypropylene and 53 cents for styrene, I might get the matesaid.

With the list price for both plastics standing at 17 cents a pound, Mr. Riky implied strongly that he could not afford to buy at such prices.

Sheldon Edelman is the president of the Plastics and Metal Producers Association, a group of fabricators in the plastics and metal fields. He complained bitterly that price controls came at a time when plastic resin prices were at a nine‐year low.

He said that companies buying directly from major suppliers were on allocation anywhere” in the 60 to 80 per cent area but that, as of last week, not even these reduced amounts reached the fabricators.

90 Per Cent of Capacity

In a recent study, Mr. Harding’s group said that, although production of plastic resins would increase this year by 10 to 15 per cent, to about 27 billion pounds, industry was operating at only 90 per cent of capacity.

As a result of the underutilization of capacity, the society said that most resin sales were on strict allocation by suppliers, there were significant shortages of formerly plentiful resin formulations, and there were severe shortages of certam formulations where intermediate, chemicals were not available, such as styrene monomer for polyester resin.

Mr. Harding has noted in this context that the plastics industry was facing a paradox. “Having reached the status of full membership in the industrial community,” he said, “the plastics industry finds itself threatened by limitations on its vitally needed raw material feedstocks.”