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Page 1: Economic Evaluation_2-Phenoxyethanol (Draft)


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Page 2: Economic Evaluation_2-Phenoxyethanol (Draft)

July 19B)




Contract No. 68-01-6287

Prepared for

Economic and Technology DivisionOffice of pesticides and Toxic Substances



MATRTECR, Inc.1401 Wilson Boulevard

Arlington, Virginia 22209

Page 3: Economic Evaluation_2-Phenoxyethanol (Draft)

!. T'J",I'~TRY CH"RACTE~!~TICS......................••..•

~.• 0.... er·:iew ..........•..•.•...•...•.......•......

13. Product i on process ..•••.•••.••.••••••.•.•.•...




PrOC'Jcers •.••••.•....••....••.••••........••.•

pr~duction and ~r3~e••••••••••••..•.•••..•....

Uses <II .




1. Industrial Grade 2-phenoxyethanl.......... 4a. Latex Paint Systems................... 4b. Paint Removers and Household Cleaners. 5c.. Dye Carrie!" ".................................... "d. Adhesive and Ink Pormulations......... 7e. Miscella~eous uses.................... 7

2. Cosmetic Grade ~Phenoxyethanol........... 7

F. S~bst i tutes ..

1. Industrial Grace 2-Phenoxyethanol •.••••... q

a. Coalescing Agent in Latex Paint Systems 3b. Paint Removers and Household Cleaners. 10c.. Dye Carrier ~ .. .. • • .. .. .. .. .. .. .. .. .. 10d. Adhesives and Inks Formulations .••••.• 11

2. Coametic Grade 2-Phenoxyethanol ••••••••••• 11

II. ECONOMIC EVALUATION •••••••••••••••••••••••••••••••• 12

A .. Tea t f nfJ cos t _ 12

B. Ec~nomic I~pact Anaysis •••••••••••••••••••••••• 13

1. Demand s.nsitivity ••••••••••••••••••••••••• 132. Market Expectations •••••••••••••••••••••••• 153. Industry Cost Characteristic••••••••••••••• 164. Industry Structure ••••••••••••••••••••••••• 17s. Conclusions ••••••••• 111 ••••••••••••••• Ill' •••• , 17

REFERENCES •••••••••••••••••••••••••••••••••••••••••••••• 20

Appendix A. Typical Dye Carrier for Polyester Fiber.... 24


Page 4: Economic Evaluation_2-Phenoxyethanol (Draft)


Table 1. 2-phenoxyethano1 Producers and Plant Location... 3

Table L. Estimated Test Costs........ .•.•.••.. ...••... ... 13


Page 5: Economic Evaluation_2-Phenoxyethanol (Draft)


t\. Ol.;erview

The 12th report of the Interagency Testing Com~i~tee

UTe) (TSCA- ITe 1983) has recommended 2-phenoxyethanol (C~S '':0.

122-99-6) as a candidate for testing. 2-phenoxyethanol is a

colorless liquid with a high boiling point and faint rose-li~e


2-Phenoxyethanol is manufactured in two grades: industrial

and cosmetic. The industrial grade -- the predominant product --

is used mainly as a coalescing agent in latex paint systems, The

cosmetic grade serves as a preservative and is fragrance for

househol~ items. Total produition of 2-phenoxyethanol has been

estimated to be at least five million pounds in recent years.

B. Production Process

2-phenoxyethanol 1s commercially manufactured b\ ~ata­

lytically reacting phenol with ethylene oxide using a batch

process. Based on the amount of raw materials cons t lmed, the

process is rated approximately 90 percent efficient. The remain­

ing ten percent of the phenol and ethylene oxide is con&umed 1n_\~

the formation of a byproduct -- diethylene g.l~col phenyl ether --'" ,-,"-. 4.AJ ../_ <!"t e..;,....

(Dow 1981, Emery n.d., Fujita ~ Nakamura 1969, Fujita 1975, _..... :c--~~

Lebedev et al. 1975, USEPA 1977). The overall production procI;:

Is illu8trated in the following equationl


Page 6: Economic Evaluation_2-Phenoxyethanol (Draft)

In adcition to producing 2-phenoxyethancl, t~e 5a~e pr0cess

e~~ipment may ~e u5e~ to manu~act~re other glyc~l ~·~ers. ~"r

example, Dow Chemical, the major producer of 2-phenoxyethanol,

can a} s~..J>~act'-!E~l-bJ,l~oxyethanol wi tf- the ~ equ ipment by

replacing phenol with butanol and varying process conditions. In

addition, Dow produces other ethers, including propylene glycol

phenyl ether, diethylene glycol ethyl ethgr, and diethylene gly­

col n-butyl ether, which are used mainly in latex paint systems.

C. Producers

The 1977 TSCA Inventory lists five firms as producers of

2-phenoxyethanol -- Dow Chemic~l, Petrolite, Rohm and Haas, Union

Carbide and Haven Chemical (USEPA 1983). No current address or

reference could be found for Haven Chemical in the technical

literature and it apparently has gone out of business. The other

four firms still manufacture this compound. Emery Industries is

also a current producer of 2-phenoxyethanol CUSITC-SOC 1982).

Emery manufactures both the industrial and cosmetic grades of

this compound (Emery 1983), while the other producers appear to

produce only the industrial grade. These current producers and

their respective plant locations are listed in Table 1.

The TSCA Inventory also lists four importers of 2-phenoxy­

ethanol: BASF wyandotte Corporation, Proprietary Perfumes

Limi ted, Corporation, and V. Mane Files Incorporated

(USEPA 1983).


Page 7: Economic Evaluation_2-Phenoxyethanol (Draft)


Fi nn

Do,", Chemical

Emery Industries, Inc.,Subsidiary of NationalDistillers and ChemicalCorporation

petroli te Corporat ion ~~ t MI'I1\.3Tretol ite Oi v i$on~(A.-~l: \ '1 '/ J

(c:,-t-, 'I f~~"c- >.L _ lJ..

Rohm and Haas, co";-

union Carbide Corp.,Speciality Chemicals andPlastics Division


Midland, ~ichigan

Mauldin, South Carolin~

Institute, West Virginia

Source: SRI 1982, USEPA 1993, USITC-SOC 1982

D. Production and Trade

Annual production data on 2-phenQxyethano1 are not pub­

lished by the USITC. A recent estimate st~ted that total annual

production of 2-phenoxyethanol was at lea$t five million pounds

from 1980 through 1982 (Dynamac 1982). Irl a typical year, the

iPduStriAl grade composes between 96 to 9J percent of this pro­

duction with the remaining one to four per'cent cosmetic grade

(Dynamac 1982).

Dow is believed to be by far the largest domestic producer

of 2-phenoxyethanol. production volu... of other producera are

believed to be very •••U. Por ex••ple, Roh. and Ha•• produc.c3

15,000 pounds of 2-phenoxyeth4~ol in 1981 for u" 801s1r ..

Page 8: Economic Evaluation_2-Phenoxyethanol (Draft)

chemical intermediate in s~r~ace active agents. r~~tr.~r~ore.

Rohm and Haas does not foresee ani signi~icant ~~:~_:ti:~ :~a~;es

in the future (Rohm and Haas lQfl'3).

Data are not available on the annual import and export

levels of 2-phenoxyethanol.

List prices of 2-phenoxyethanol are not reported in the

trade literature. Dow, the apparent price leader. quoted a cur-

rent price of 63 to 71 cents per pound for the industrial grade

(DOW 1983). Another producer stated that the current price of

industrial grade ranged from 70 to 84 cents per pound and cosme-

tic grade ranged from 9q to 114 cents per pound, depending on

purchase volumes and method of.. !lhipment (Emery 198). In gen-

eral, 2-phenoxyethano1 would appear to be closely linked to

the cost of ethylene oxide and phenol (petrochemical raw mater-

ials). Any increases in these costs probably would be followed

by higher 2-phenoxyethanol prices.


I"""1. In~ustrial Grade 2-Phenoxyethanol

Industrial grade 2-phenoxyethanol is used primarily

as a coalescing agent in latex paint systems. It i~ also used as

an ingredient in cleaners, a dye carrier for polyester fibers,

and a solvent in inks. (TSCA-ITC 1983).

a. Latex Paint SX5tems is used chiefly as a coalescing

agent In acrylic and polyvinyl acet& • latex peint ayet... (five

to ten pounds of 2-phenoxyethanol to 100 gallona of ~int) (~w

Page 9: Economic Evaluation_2-Phenoxyethanol (Draft)

n.d. c,f). Addition of t:. coalescing agent lmprC\'es :;1')55. sct"..;~

~esistance, adhesion, anc d~rability of the caat~ng. An unc~n-

firmed industry source l;o:j~.;at:eG tr.dt this ;;l3:" .:::::; :':~=-

-----"- ------......../90 perce~of total dema:1d for the industrial grade COrr.~CL;;'I,:•..--....-.--- ---T~e choice of a coalescing agent for latex paints de~en~s

on: soillellcy for latex polymers; low affinity f~r water~ an~ a

high boiling point (Dow n.d. b,e). High solvency for late)';

particles and low water solubility are necessary so that the

coalescing agent gets into the latex polymer particles and is not

absorbed into porous surfaces on application of the paint. A

high boiling point is desirable in that it allows the coalescing

agent to achieve proper fu~ing:of the latex particles therehy

enabling formation of 3 smooth durable film.

2-Phenoxyethanol meets and frequently exceeds these perfor-

manee standards in many latex paint systems. Since it v9~-

~~ slowlx than most competing compounds, the paint will

exhibit a longer curing time but will have superior film quality

and, in turn, greater durability (Rikales 1970, 1971, Dow n.d.


b. Paint Removers and Household Cleaners

2-phenoxyethanol is used as a penetrant in paint

removers and as a solvent in hpu,ehold gyM cleaners (Dow n.d. b,

c). In paint removers it increases the efficiency of the formula

by aidino in the softening and swelling of the old paint. Due to

~s high ~illing point, 2-phenoxyethanol aleo re~ the 'Y'8i~­

ation of the paint remover, thus preventing crusting and readhe­

aion of the old coating before physical re.oval.

Page 10: Economic Evaluation_2-Phenoxyethanol (Draft)

In oven cleaners, 2-phenoxyethanol aids in the remova~ of

bak~d-on grease and foods through its excellant solvent power a~~

low evaporation rate that keeps food residues in a softened

state. further, because it posesses both "polar and nonpolar

characterist ics (b<?~h an a] Cpb£ll and an e..l.!lt!: group), 2-phenoxye­

th",nol can forTn elltu.lEiol15 of cleaning grease (a nonpolar com­

pound) witl) water (a polar solvent) (Do'", n.d. b,e).

In other cleaners, 2-phenoxyethanol is used to impart anti­

septic qualities to the formulation.

e. Dye Carrier

Industrial grade 2-phenoxyethanol is used in

textile applications as a dye l:arrier for polyester fibers,

polyamide fabrics and textile printing i~ks. It may be used by

itself or in combination with other carriers.

When used in combination with chlorinated hydrocarbons 2­

phenoxyethanol provides for rapid solvent dying of polyester

fabrics. Its lunetion in the dye bath is to aid in the transfer

C2f. dye to the fabric and imp~o,!e flow and .leve~ i ~ propert ies.

This results in d~, rLcher cglQrs in the dyed fabric. A

typical carrier formulation for polyester fibers using 2-phenoxy­

ethanol is given in Appendix A. 2-phenoxyethanol is also~ as

a carrier for ~isperse dyes used for polyamide fabrics.

Another textile use of 2-phenoxyethanol is in the manufac­

ture of. ink paste. used to print cellulose acetate and polyester

fabrics. In this application, it also functions as a carrier,

aiding in the penetration of the dye into the fabric (DOw n.d.

a. c) •


Page 11: Economic Evaluation_2-Phenoxyethanol (Draft)

2-phenoxyethanol is also used in various dC­

hesive and ink formulations. In adhesives it is desirable f~r

its .9.~_~lvent(l£.t_ionand~l?w rate of evaporation. Recause it

is a high boiling dye solvent, 2-phenoxyethanol also is used i~

?tamp ~d, ball point, pen and speciality inks. When used in

these inks, it promotes the free flow of resin, pigment, and dye

materials without clogging or drying out (Dow n.d. b,c, ~iellan


e. Miscellaneous Uses

Since it has ~ §tructure of benzene and ethanol,

2-phdnoxyethanol can work as a solvent for many industrial mater­

ials such as cellulose nitrate, cellulose acetate, ethyl cellu­

lose, vinyl resin, ester gum, dewaxed dammar, rosin, linseed oil,

phenolic and alkyd resins (Mellan 1977).

2-Phenoxyeth3nol is also used as: an intermediate for the

production of plasticizers used in vinyl, phenolic and alkyd

ester resins: an emulsifier adjuvant in oil-water emulsions: a

solvent for photographic processing: an anti-corrosion ingredient

in slurrying compounds ~nd !nsecticidal formulations (Dynamac

1982, DOw n.d. c,d, Mellan 1977, TSCA-ITC 1983).

2. Cosmetic Gra~e 2-Phenoxyethanol

As an in~redient in cosmetics, 2-phenoxyethanol

offers good humectancy, emolliency, solvency, and bact~ricidal

characteristics. It al.o haa a low toxicity and no objectionable


Page 12: Economic Evaluation_2-Phenoxyethanol (Draft)


od~r wr.ich further enhances its value in cosmetic for~ulati0n~

Tn perf~mes 2-phenoxyethanol acts to ~~l~~ilize t~e este~

responsible for the scent and as a ti~a.tive after the perf"'-l~e is

applied to the skin. Due to its low rate of evaporation, 2-

~.J phenoxyethanol acts to "hold" the scent on the body ~reventi~~

~ V-~- the scent producing compound from evaporating too quickly. Tn-

,'"sect repellants also use these solvency and fixing properties to

prevent premature loss of the active ingredients from the surface

of the skin. In each case 2-phenoxyethanol prolongs the active

period of the formulation (Akiyama et al. 1977, Jellinek 1970,

Katayama and Umikawa 1979).

Similarly nail polish remQve~smake use of the solvency and

high boiling point characteristics of 2-phenoxyethanol. It pre-

vents rapid evaporation of the laquer remover, thereby enabling

complete and easy removal of the polish (Emery, n.d.).

Hair care products, cleansing creams, antiperspirants, de-

tergents, and oral hygiene preducts use 2-phenoxyethanol for its

bactericidal properties (Brenner et al. 1975, Chakrabarti 1~77,

Gritz et al. 1976, 1978, Hashimoto and Tokihara 1979, Hashimoto

et al. 1979, McArdle 1969). Its functions are to act as a pre-

servative preven~ing microbial degr~ation of the product after

opening and to impart an antiseptic quality to the product. 2-

PhenoxyethanQl is unj que in that it also contributes to the

moisture retentive and w_teninQ acti_?_n~~~.inble in hair care

products and creams _(Lancant and Cambard Saintonge 1969, societe

princeB~ 1973, Tucker and Schwartz 1972, Zviak and Ghilardi

1970) •


Page 13: Economic Evaluation_2-Phenoxyethanol (Draft)

F. ;;;U(\5tltutes

1. Industrial Gr-a ',:, 2-phenoxyethano:

a. Coalescing Agent in Latex Paint Systems

Coalescing agents can be separatec into two'2 1\.\ l . ) ~ I.:.

typf'!s: (ll water' soluble; and (2) those not mi£'.::ible lNith lNzter

(such as 2-phenoxyethanol). Generally, there is a higher degree

of coalescing efficiency associated with the second type although

more care must be taken in formulating the paint (Gaynes et al.

1967) •

Two other glycol ethers offer similar performance ~haracter-

istics ir. this use (Dow n.d. c). O;,ethylene glycol n-butyl ether

and propylene glycol phenyl ether have been found to work equally

as well as 2-phanoxyethanol. Also, the use of propylene glycol

phenyl ether reduc~s the problem of emulsion breakup (i.e. paint

separation) as~ociated with addition of large quantities ~f 2-

phenoxyethanol. Further, these glycol ethers have a slight price

advantage, with propylene glycol phenyl ether and diethylene gly­

col n-butyl ether currently selling for 62 to 70 c~nts per ~und

and 57 to 62 cents per pound respect i vely compared to '.3 to 71

cents per pound for 2-phenoxyethanol (CMR-Price 19P 3, ::0\', 1983).

other glycol ethers such as d1propylene glycol methyl ether,

diethylene glycol methyl ether and diethylene glycol ethyl ether

have been identified as possible substitutes for 2-phenoxyethanol

in this application (Dow n.d. c). Indications are, however, that

there is considerable 10•• of coalescing performance when the••

compounds are eXClusively used for thia application.

Page 14: Economic Evaluation_2-Phenoxyethanol (Draft)

b. Paint Removers and Hous~hold Cleaners

As explained in section i.Ll.b., 2-phenoxy-

ethanol is also used as 3 ~~net rant in pa j:1": r",l11("'!vers a~ ~ 3

solvent in houshold cleaners. Other penetrarlts corn~C":J' ~se~ ._

paint removers arp- petroleum sulfonates, amines and ot~er glycG:

ethers (Kirk-()thmer lOOlb\. Glycol ethers other 2-~henoxy-

ethanol m3Y be used in household cleaners. Use of these compoumdz

as substitutes do not appear to reduce the performance of either

~roduct. since most of th~ ~~~~~itutes in these applications

also have a price advantage over .2~o~ethanol. the latter

c. Dye Carrier

An effective dye carrier provides complete pene-

t rat i on of the dye into the fiber and/or a 110'018 the use of non-

water soluble dyes in the dye bath. Many organic solvents are

used as dye carriers with most compounds being aromatic in char-

acter (such as 0- and p-phenylphenol, biphenyl and dimethyl and

diethyl phtna1ate (Kirk-Othmer 1979).

The choice of a dye carrier can be influenced by type of

fiber, type of dye, process equipment, availability and price of

competing carriers and-proprietary considerations (Kirk-Othmer

1979). In terms of price, 2-phenoxyethanol is intermediate in

relation to competing dye carriers. ~Since 2-phenoxy.thanol is

considered to be a 'trong.r_~ carrier, it Ula:t--be.ltu. vul.nU'~_

able to substitution.


Page 15: Economic Evaluation_2-Phenoxyethanol (Draft) for resins, ~ig~ents anrl other components ~f tr.e for~~-

In both pro~uct5 thes~

prope~ti~~ allow good disperson and fluidity of for~ula compo-

nents throughout the mixture and prevent premature drying of the

ethers appear to offer comparable properties in ink formulations .::.. t; !_;..... "- .l.rc......~ --t-.,... ,

-7'-"'-,,,-, .


.". .~~ ..... ~'-f .

Several other glycolbetter ~e~etration of substrate material.

applied compound. In inks, slower drying time also results in

appear to substitute well in these applications without loss of

desirable properties.

and are less expensive. Diethylene glycol methyl ether, dieth- ~

ylene glycol ethyl ether, and diethylene glycol n-butyl ether

2. Cosmet ie Grade 2-Phenoxyetha~ol_ \.

Cosmetic grade 2-phenoxyethanol finds use as a fixa­

tive in perfurmes and as a bactericide in cosmetic products.

Incorporation of 2-phenoxyethanol into such compounds has the

added benefit of increasing the moisture retentiveness and

softening abilities of the product.

Most suitable sUbstitutes for 2-phenoxyethanol in cosmetic

applicdtions are diethylene glycol ethyl ether and dipropylene

glyccl methyl ether, (both glycol ethers) (Dow n.~.c). Neither

of these compounds embody all of the desirable characteristics of

2-phenoxyethanol. Because of this, 2-phenoxyethanol i. deeme~_~~

be Ie•• vulnerable to substitution In the ca-••tic .ark.t.

Page 16: Economic Evaluation_2-Phenoxyethanol (Draft)

r:. Econcmic Evalt.:ation

A. Testing Costs

The estimated test costs for 2-phenoxyethanol are based

on t~e health effects tests recommended by the Interagency Test­

ing Committee (-:-SCA-ITC 19B3). The costs of these teste:: are

presented in Table 2. The cost range reflects possible varia­

tions in testing protocol and cost differences among laborato­

ries. These costs may be re~ls~d when the proposed test rule is


To permit consistency of comparison, the total costs are

annualized. This is done using a cost of capital of 25 percent

over a period of 15 years, which is believed to be r.epresentative

of the chemical industry (Dupont 1980). These values also may be

revised if additional information suggests more appropriate fig­

ures. Thus, the annualized test costs for this compound r3nge

from 543,000 to S129,300.

These annualized costs are then divided by the estimated

total dcmestic production (i.e., imports are not reported) of the

test substance to derive unit test costs. As noted in Section

1.0., estimated domestic production of 2-phenoxyethanol was at

least five million pounds in 1982. The unit test costs then

range from 0.9 to 2.6 ~ per pound. In relation to current

price of 63 cents per pound for this compound, these costs are

equivalent to 1.4 - 4.1 percent of price.

Page 17: Economic Evaluation_2-Phenoxyethanol (Draft)

Table 2. Est imated Test Costs

Test Cost Range(19!l2 dollars)

Health effects

Terntogenicity S 18,000 - 54,000

Short-term genotoxicity 50,000 - 150,000

Reproductive effects- 1. i''-'·~'_t..u~-' 53,000 - 160,000

Subchronic tuxicity 45,000 - 135,000

$166,000 - 499,000

Source: Borriston 1982

B. Economic Impact Analysis

1. Demand Sensitivity

The sensitivity of demand to change in price influ-

ences the ability of firms to pass on cost increases to buyers.

Price elasticity typically indicates a high potential for substi-

tution and/or inability to pass along cost increases: price

inelasticity implies the opposite.

The major use for industrial grade 2-phenoxyethanol is as a

coalescing agent in latex paint systems. In general, a coales-

cing agent is used to enhance the 0101s. scrub

sian and durability of a p~ Several performance characteris­

tics ('.0., bigh solvency. high boUiAg point. low water 101ubil­

~of 2-phenoxyethanol are particularly u••ful 1n acrylic and


Page 18: Economic Evaluation_2-Phenoxyethanol (Draft)

polyvinyl acetate latex paints, enabling proper fus\on and film


While these properties of 2-phenoxyechanol are highly desi­

!:"able in this use, they generally can be matched by two sut'sti-

tutes propylene glycol phenyl and diethylene glycol n-butyl

ether. In addition, these compounds currently have a slight

price advantage (or one and six cents per pound for propylene

glycol phenyl ether and diethylene glycol n-butyl, ~espectively)

over 2-phenoxyeth~nol. Furthermore, assuming the unit test costs

(Le., almost three cents per pound in the upper pound case) are

fully passed on to the price of 2-phenoxyethanol, this advantage

would be widened.

At this time, sufficient information is not available to

compare the performance features of 2-phenoxyethanol vis-a-vis

these two substitutes in specific blends of latex paints. If the

effectiveness of a coalescing agent varies considerably by speci­

fic paint formulations, opportunities for substitution may be

restricted and performance considerations probably would precede

small price changes. If 2-phenoxyethanol and its two substitutes

are comparably effective in the same paint systems, however,

product deliland may be highly sensitive to price changes.

Industrial grade 2-phenoxyethanol also has minor uses in

paint removers, household cleaners, dyes and adhesive and ink

formulations. As a dye carrier, 2-phenoxyethanol is used mainly

on polyester fabrics, offers certain performance and price advan­

tages, .r~ does not appear bighly vulnerable to substitution. In

the.e other applications, however, the perforaanee fe.ture. of 2-

Page 19: Economic Evaluation_2-Phenoxyethanol (Draft)

phenoxyethanol generally can be matched by other, lower-pr-ice"l

glycol ethers. fhis situation, in turn, peinaniy account:s [')1:

its I il i ted usage in these markets.

Pinally, 2-phenoxyethanol is also available in a cos~etic

grade for use in perfumes and personal care products. Whl1e ~his

overall market is small (Le., one to four percent of total

product ion ina given year), it is relat i vfJly secure due to the

performance qual i ties (e.g., moisture retent iveness, softening

ability) of 2-phenoxyethanol.

2. Market Expectations

Market expectat~?ns are an important factor in the

evaluation of economic impact. High market expectations tend to

reduce the potential for adverse economic effects from the test

requirements, while low expectations tend to raise it.

~ublished demand projections are not availabl~_ for 2~pn~n~_

oxyethanal. Future demand growth for this compound, however,

probably will be linked primarily to trends in its major market,

latex paint systems. overall, the usage of paint additives (like

2-phenoxyethanol) is expected to expand a~~nnual rate

through 1985 (Chern Bus 1982). Furtherluore, there is a strong

trend in the coatings industry towards latex paints due to both

emission restrictions and increasing costs of solvents in oi1­

based paints. Thus, demand expectations for additives in latex

paints systems appea~ to be very favorable.

Page 20: Economic Evaluation_2-Phenoxyethanol (Draft)

3. Industry Cost Characterisitics

The behavior of production costs at the plant

anafor firm level can be a key indicator of the probability of

impact. Many factors, su~h as a proprietary process, captive

supply of raw materials, geographical locations and the prese~ce

of co- and/or by-products, may place a producer(s) in ~n advan-

tageous position within a industry. If such factors cause varia-

tions in production costs among firms, 50~e producers may be in a

better position to absorb regulatory costs.

While five firms currently produce industrial grade 2-phen-

oxyethanol, Dow apparently is th~ predominant producer. Further­

more, at least several of th&;~maller producers -- Rohm and Haas,

Pe;za~-Emery Industries -- captively use this compound to..-..-make various low volume, speciality items (e.g., surfactants).

Thus, competition among producers may be limited by these usage


Dow captively produces the two raw materials, phenol and

ethylene oxide, used in 2-phenoxythanol production. These mater-

ia18. however. are manufactured at plants in Texas and Louisiana

and then transported to Dow's glycol facilities in Midland.

MJ~~}~n. Related transportation costs may reduce any advantages

associated with captive supplies of raw materials.

Any advantages associated with 2-phenoxyethanol production,

however, may be linked to the flexibility of process equipment.

By varying process conditions and switching raw materials, Dow

produce. a variety of glycol ethers at its Midland, Michigan

complex. In ~rticular, Dow also produce. propylene gylcol

Page 21: Economic Evaluation_2-Phenoxyethanol (Draft)

phenyl ethe', diethylene glycol n-butyl ether, and di'?t:,yle:l'"

in the latex paint additive applications. Consequently, if the

imposition of the unit test casts caused a drop in 2-phe~cxy~th3-

nol demand, Dow might be able to compensate for these loss~3

through minor adjustments in process operations and/or marketing

larger quantities of substitute products.

4. Industry Structure

Industry structure, or the number and size of fir~s

that compose the industry, often reflects degree of competition.

In a competitive industry, fir~s typically cannot manipulate

price. Alternatively, a small number of firms may imply monopo-

listie pricing, whera price exceeds marginal cost.

While five firms compose the 2-p~enoxyethanol industry,

these firms gene~ally serve different end marketSta~d do not~IP(') -+ (:: M.t. Il..> -;>~~'-' b-;;" ...6-"-"""--'- ' ,,,,-

appear to compete dire~tl~ among themselves. At the same time,

the high availability of substitutes for 2-phenoxyethanol tendS

to place external competitition on these producers. Entry into

this industry does not appear restricted by process technology (a

standard batch operation) or raw material availability (ethylene

oxide and phenol), although limited product demand probably would

discourage prospective firms.

5. Conclusions

At this time, sufficient information i& not avail­

able to determine if the estimated costs would impose ad­

ver.e .cono~lc effects on the 2-phenoxyeth.nol induatry.

Page 22: Economic Evaluation_2-Phenoxyethanol (Draft)

Reproduced frombest available copy

verse effects. These are:

o the availability of lower priced substitutes f~r thISsubstance; and

o the magnitude of the unit test cost (almost thr~~ ce~t5

per pound under worst case assumptions).

Alternatively, other factors suggest this potential can be

minimized or absorbed within existing industry ~onditions. These


o the relatively favorable market expectations for paintadditives, the main use for 2-phenoxyethanol; and

-o the flexibility of the batch process technology

allowing Dow, the leading producer, to manufactureother glycol ethers on this same equipment.

To complete this evaluation, additional economic information

is needed on production levels and specific product advantages of

2-phenoxyethanol. When this information becomes available, a

recommendation on a Level II analysis will be made.

Page 23: Economic Evaluation_2-Phenoxyethanol (Draft)

Akiyama T,(Aug. 26).7,733,177.


Fujita M, Saeki Y, Veno Y, Ogawa and Co., Ltd., 1977Telephone disinfectant composition. Japan patent(As reported in :hem Abstr 88:55112k).

sorristan. 1982. Sarristan Laboratories, Inc. Cost AnalysisMethodology and Protocol Estimates. TSCA Health Standards andPIPPA Guidelines. Washington, DC: Office of RegulatoryAnalysis, U.S. Environmental Protection Agency.

Rrenner w, Erlemann G, Horst P, Hoffman - La Roche. F., and Co.,A-G. 1975 (Aug 28). Antiperspirants. GermanOffenlegungsschrift 2,507, 532. (As reported in Chern Abstr84:2l989d).

Chakrabarti PM, GAF Corp., 1977 (Feb. 24). Composition fordissolving dirt. German Offenlegungsschrift 2,635,034. (Asreported in Chern Abstr 86: 142007g).

Chem Bus. 1982. will chemical specialities measure up?Chemical Business. pp. 9-11. April 5, 1982.


-1983. current prices of chemicals and relatedChemical Marketing Reporter. May 30, 1983. pp. 30-

Cos & Tol. 1981. phenoxyethanol - a cosmeticaily acceptablepreservative. Cosmetics & Tolietries. pp. 83-85. March 1981.

Dow. n.d.a. Product literature. Dowanol EPk glycol ether in thetextile industry. Dow Che~ical USA., Midland, MI. Form No. 110­365-B1R.

Dow. n.d.b. Common end uses for DOWANCL glycol ethers. DowChemical USA., Midland, MI. Form No. 110-375-81R.

Dow. n.d.c.Midland, MI.

The glycol ethers handbook.Form No. llC-363-Bl.

Dow Chemical USA.,

Dow. n.d.d. DOWANOL EPh ethylene glycol phenyl ether. DowChemical USA, Midland MI. Form No. 110-371-81R.

Dow. n.d.e. Coalexcing aid performance studies in an interiorgloss RHOPLEX Ac-64 latex paint. Dow Chemical USA, Midland. MI.

Dow. 1981. Material ~afety data sheet.ether. Dow Chemical C.,S.A., Midland, MI.1981.

Downanol EPh glycolMSD. 0065. November

Dow. 1983. Letter to MATHTECR, Arli'ngton VA, reoardinginformation on DOWANOL PPh and Dalpad A., from Tony Butler ofthe Dow Chemical USA, Rlch-end VA. June IS, 1983.

Page 24: Economic Evaluation_2-Phenoxyethanol (Draft)

DuPont. 1980. E.!. du Pont de Nemour~ & Company. comments onproposed chemical specific testing rules. Washington, DC: nf­fiee of Pesticides a:ld Tcxic S~t:stances, t:.~. ~::\<r:J::~?:-::3: 7':-::­teet ion Agency. October 31, 1980. Docket NOS. 80T-125 and 80T­126.

Dynamac. 1982. Letter to TSCA-ITC, Washington, DC., regardin;;;2-phenoxyethanol fr0m t. Borghe of Dynamac Corporation,RocKville, ~D. June 24, 1982.

Emery. n.d. Product Ii terature. Emeressence 1160- Rose Ethers.Emergy Industries, Inc., Cincinnati OH.

Emery. 1983. Price information. Emeressence 1160-Rose Etherand Emery 6705. Emery Industries, Inc., Mauldin, SC. May 17,1983.

FUjita, Yasuhiro, Nakamura Isao, Mitsui Petrochemical Industris1,Ltd. 1969 (Nov. 15,. Phenol glycol ethers. Japan Patent6,927,570. (As reported in Chern Abstr 72: 90052g).

FUjita yasuhiro, Mitsui Petrochemical Industries Ltd. 1975 (June25). Glycol ethers of phenol. Japan Patent 7,517,976. (ASreported in Chern Abstr 84: 465~y).

Gaynes NI et al. 1967. Danziger GN. Trade-sales coatings,water-based. In: Formulation of rrganic Coatings. PrincetonNJ: D. Vannostrand Company Inc. pp. 204-205.

Gritz HA, Hofman E, ~lazak 0, Beecham Group Ltd., 197E (Feb.25). Composition fo~ mouth care. German Offenlegungsschrift2,534,034. (AS reported in Chem Abstr 84:155690h).

Gritz HA, Rofmann E, Vlazak 0, Beechman Group Ltd., 1978 (June14). Oral hygiene compositions. British patent 1,514,469. (ASreported in Chern Abstr 89:1R6081f).

Hashimoto M, Ichihara H, Sans I, Kanebo Ltd., 1979 (Oct. 20).Nail lacquer removers. Japan Kokai Tokkyo Koho 79,135,235. (Asreported in Chern Abstr 92:135141s).

Hashimoto M, Ichihara H, Kaneb~ Ltd., 1979 (Nov. 1). Improvednail lacquer remover composition. Japan Kokai Tokkyo 79,140,741.(As reported in Chern Abstr 92: IS2904k).

Jel1inek J5. 1970. Formulation and Function of Cosmetics. NewYork: Wi1ey-Interscience. p. 345.

Katayanla 5, Umekava 0, Katayama Kagaku Kotyo Kenkyusho CompanyLtd., and Y Oshitom! pharrnceutical Industries Ltd., 1979 (Oct.18). Microbiocide composition for industrial us.. GermanOffenlegungs8chrift 2,913,593. (As reported in Chem Abstr92:135480b) •


Page 25: Economic Evaluation_2-Phenoxyethanol (Draft)

Kirk-othmer. 1979. DeMaria A. and Wan"'lemacher. Dye carriers.In: Kirk-()thmer Encyclopedia of Chemical Technology, 3rd ed.,"Ie':. s. ~ew yC'=-~: ~viley-!:;t~~sci~~r:-~. ~p. !~!-15q

Kirk-Othmer. 1981a. Burachinsky et a1. Inks. In: Kirk-Othme~

Encyclopedia of Chemical Technology, 3rd ed., vol. 13. New York:,liley-Interscience. pp. 394-395.

Kirk-Othmer. 1981b. Mallarnee RW. paint and varnish removers.In: Ki rk-Othmer Encyclopedia of Chemica 1 Technology, 3 rd ed.,vo!. 16. New York: Wiley-Inter-science. pp.762-768.

Lancant, Gregoire; Gombaud-Santonge, Rene. 1969 (Oct. 3). Anti­septic solution for hair brushes. French patent 1,582,696. (Asreported in Chern Abstr 73:46912).

tebedev NN, Shrets VF, Makhlin VA, Bondarev NA, Romanov VM,Shkuro AG, Mendeleev, 01, Chemical Technological Institute,Moscow 1975 (Aug. 25). USSR patent 481,950. (As reported ~n ChernAbstr 83: 1472972.

Martens RC. 1968. paint and varnish removers. In: Technologyof paints, varnishes and lacquers. Reinhold Book Corporation.New York.

McArdle MG, Richardson - Merrell Ltd., 1969 (June 18). Skin­cleaning phenoxyethanol compos i t ion. Sri t ish pa tent 1,115,789.(As reported in Chern Abstr 71:53477h).

~ellan I. 1977. Industrial Solvents Handbook, 2nd ed. ParkRidge, NJ: Noyes Data Corporation. pp. 75-77.

Rohm and Haas. 1983. Letter to MATIiTECH, Arlington, VA.,regarding 2-phenoxyethan01 from Dr. R. L. Keener of Rohm and HaasCompany, Philadelphia, PA. May 20, 1983.

Schack P, Farbwerke Hoeschst Akt. Ges. Vorm. Meister Lucius &Bruning, 1957 (Feb. 7). Dyeing and printing of textiles fromhigh-melting linear polyesters. Germann Offenlegungsschrift1,001,366. (As reported in Chem Abstr 53:22973f).

Societe Princess et Continental, 1973 (June 1). Compositionsfor cleaning and maintaining natural hair and wigs made ofnatural or synthetic hairs. French Demande 2,152,371. (Asreported in Chern Abstr ~O:74262k).

SRI. 1982. SRI International. Directory of Chemical Producers,United States, 1982. Menlo Park, CA.

TSCA-ITC. 1983. TSCA Interagency Te.tin9 Committee. TwelfthReport of the TSCA Interagency Testing Committee to theAdministrator. Environmental Protection Agency. washington. DC:u.s. Enviror~ental Protection Agency. May 1983.


Page 26: Economic Evaluation_2-Phenoxyethanol (Draft)

Tucker HH, Schwartz I, LOlolenstein Dyes and Cosmetics, Tnc., ~Q-;2

(Jan. 04). Dyeing hu:nan hair using ethylene glycol etr.0rs. ':.5."3~~"': 3,'::32,2 on • lag r",:'0r-+:-=d irl Ch!"'" lI,h~tr "~:~9Q5hf\.

USEPA.processorgan ic6-383.

1977. U.S. Env:ronTJ1ental Protec':ion Agency. r:>dc:s':r-i31profiles for environmental use: Chapter 6, the industrialchemical industry. Washington, DC: USE?"'. pp. 6-3R:~ .. ~PB 281-478.

us EPA. 1983. U.S. Environmental Protection Agp.ncy, Office 01'Pest. icides and Toxic Substances. Computer pt"intout: prOG1,ce:-sand i:nparters of chemical in the nonconfidential initial TSCAinventory. Retrieved 1981. washington, DC: USEPA.

USITC-SOC. 1982. U.S. International Trade Commission. Synthe­tic organic chemicals, United States production and sales, 1981.washington, DC: Government printing Office. USITC pub. 1183.

zviak Charles, Ghilardi Guiliana, Oreal S.A., 1970 (Jan. 02),Hair dye compositions. German Offenligungssdchrift 1,930,953.(As reported in Chem Abstr 72:82905X).


Page 27: Economic Evaluation_2-Phenoxyethanol (Draft)

Appendix A. Typical Dye - Carrier for Polyester fibers(Basis: 100 ;al1~ns tctal l~~~e~~~\


uisodi~~ phosphate

sodium Gleoylmethyltamine


Sodium Chloride


Source: Schack 1957

O. e





Page 28: Economic Evaluation_2-Phenoxyethanol (Draft)


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