SIC 2865 Cyclic Organic Crudes and Intermediates and Organic Dyes and Pigments

Encyclopedia of American Industries | 2005 | Copyright

SIC 2865
CYCLIC ORGANIC CRUDES AND INTERMEDIATES AND ORGANIC DYES AND PIGMENTS

This industry covers establishments primarily engaged in manufacturing cyclic organic crudes and intermediates and organic dyes and pigments. Important products of this industry include (1) aromatic chemicals such as benzene, toluene, mixed xylenes, and naphthalene;(2) synthetic organic dyes; and (3) synthetic organic pigments.

NAICS Code(s)

325110 (Petrochemical Manufacturing)

325132 (Organic Dye and Pigment Manufacturing)

325192 (Cyclic Crude and Intermediate Manufacturing)

Industry Snapshot

Organic chemicals contain carbon, are usually combustible, are mostly insoluble in water, have liquid or solid forms, and have relatively low melting points. Aromatics are included in a group called basic organics, which also includes aliphatics and methanol. These substances are obtained directly from raw materials, primarily crude oil and natural gas. Intermediates are often grouped with solvents and are made from basic chemicals for the purpose of making other chemicals and chemical products.

U.S. companies in the cyclic crudes and intermediates industry employed some 6,771 workers and shipped almost $5.8 billion worth of products in 2001, according to the U.S. Census Bureau's Annual Survey of Manufactures. Almost 93 percent of these shipments consisted of cyclic intermediates, and the remaining 7 percent included tar, tar crudes, and tar pitches. In the dye and pigment manufacturing portion of this product class, firms employed some 9,138 employees in 2001 and shipped an estimated $2.76 billion worth of products. Organic dyes made up 40 percent of these shipments, and pigments and toners accounted for 60 percent. Industry output provided an important supply of base manufacturing material for pharmaceutical, dye, fuel, and agricultural sectors.

One reason for the instability of the industry was the inability to predict the supply and demand for organic materials. For example, benzene, styrene, and mixed xylenes saturated the market from July through December 1996, and cyclohexane and phenol were not being produced rapidly enough to meet demand. Demand for some organic products, such as toluene, fluctuated from year to year, making it difficult to gage production.

Organization and Structure

Industrial organic chemicals are created from substances that contain carbon, such as petroleum, coal, and natural gas. Though inorganic chemicals may also contain carbon, they are found within the earth's crust and derive from materials without animal or plant origins. The aromatics classified in this industry are distinguished from other organics by their closed-ring molecular structure. This structure allows them to be combined with other chemicals, including inorganics, to make a vast array of intermediate compounds. Intermediates are consumed by other industries for the production of plastics, pharmaceuticals, and fertilizers.

The three primary aromatic chemicals used to create intermediates are benzene, xylene, and toluene. These three chemicals represent about 10 percent of U.S. industry output. Intermediates created using these base organics, however, account for an additional 70 percent of total production. Benzene, the simplest and most widely used aromatic, is combined with sulfuric acid and other chemicals to create many intermediates. Benzene intermediates are used to produce plastic resins, epoxy, nylon, polyurethanes, synthetic rubber, and detergents.

The most common derivative of benzene is ethyl benzene/styrene, which accounts for 50 percent of demand for this aromatic. Styrene is a major ingredient in plastics and synthetic rubber. Cumene/phenol and cyclohexane represented 21 and 14 percent, respectively, of benzene-derivative sales. Phenol is used to produce adhesives and high-grade plastics and epoxies. Other...

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