Anthony:
Yeah, there does seem of late to be an increased use of national security
to support higher pricing from non-competitive suppliers. But this too will
pass.
You may know better than I but the last time I looked the St. George plant
was only operating four days per month; which excerise included completely
requallifying the process at each restart. Given that they may be able to
block lower cost international competitors, one wonders about a domestic
“right-sized” plant to undercut their pricing....
Bill
On Sun, Aug 5, 2018 at 12:23 PM Anthony Cesaroni <acesaroni@xxxxxxxxxxx>
wrote:
Ah yes, security issue grounds. Those are the same grounds brought to you
by American Pacific Chemical’s lobbyists that are trying to legislate “Buy
America” AP from the monopoly at $23.00/lb. AMPAC shareholders are getting
anxious. Chinese AP is also on the embargo list, but I know of at least one
group (outside of the government) that has imported it domestically. It
doesn’t appear to show up on the radar for some reason. Our Canadian plant
has purchased Chinese AP in the past for various NATO ally and commercial
products where “ITAR free” has been specified. In 15K~30K pound lots, it
can be landed for around $7.00 or less per pound. Interestingly enough, it
is a finer cut and has better ballistics than most of the AMPAC variety.
You can also order it from SMPE France and AEQ in Brazil, although getting
either company to return a phone call can be a challenge. Obtaining export
documentation from France is also a bit of a nightmare. Bristol Aerospace
has also qualified a some of its products using Chinese and Brazilian AP.
Canada has a surplus of electrolytic capacity and is the worlds largest
producer of AP precursor. The majority of it for that application goes to
Utah IIRC. In 2006 I commissioned a university study to design a 100,000
pound per year ammonium perchlorate plant and to conduct a feasibility
study. At that time, it could produce AP in the $7~$10/lb. range. My last
quote from AMPAC, which they stipulate is confidential, was much higher
than that. They base the price on the customer and the program apparently.
Anthony J. Cesaroni
President/CEO
Cesaroni Technology/Cesaroni Aerospace
http://www.cesaronitech.com/
(941) 360-3100 x101 Sarasota
(905) 887-2370 x222 Toronto
*From:* arocket-bounce@xxxxxxxxxxxxx <arocket-bounce@xxxxxxxxxxxxx> *On
Behalf Of *William Claybaugh
*Sent:* Sunday, August 5, 2018 10:08 AM
*To:* arocket@xxxxxxxxxxxxx
*Subject:* [AR] Re: Trimodal AP
Jim:
Thanks, that is a very interesting post.
Just FYI, some solid rocket makers have tried purchasing foreign AP, the
incumbent manufacturer has gone to DOD and the Hill to stop it on the
grounds that it is a national security issue....
Bill