A meeting of the Board of Directors of Consarc Corporation was held at the offices of corporation, 100 Indel Avenue, Rancocas, New Jersey, on Friday April 15,1983 commencing at 4 PM.
All of the Directors were present.
The minutes of the Directors Meeting held on February 8,1983, were reviewed and unanimously approved.
Metcalf reported the receipt, by Consarc's U. K. subsidiary Consarc Engineering, of an order from V/O Machinoimport, Moscow, USSR, for nine induction hot zones and two isostatic presses in the amount of 7,674,200 Pounds Sterling. The equipment is for production of graphite by pitch impregnation, bake out and graphitization.
Rowan and Ruble questioned whether it is appropriate for Consarc to supply such equipment to the Soviet Union in light of efforts by the U. S. Administration to reduce the flow of technology to the Soviet Union.
Roberts indicated that he felt Consarc should proceed with the performance of this contract for the following reasons:
1. We have a legally binding contract.
2. None of the equipment is on the British or American embargo list.
3. Consarc Engineering has informed the British Government of the nature of the equipment and has official approval to export it.
4. There is no secret technology involved:
A Carbonization /graphitization of pitch is an old process.
B Induction heating is old, well publicized technology.
C The miniseptor used to heat the hot zones is old, publicized technology (published 1971 in Transactions of the American Vacuum Society)
5. We are supplying NO process technology. Soviets are specifying all process parameters.
6. If we do not execute this contract the Soviets will simply buy from our
German, Japanese or Swedish competitors.
7. If we do not complete this contract we will almost certainly lose all future possibilities of doing business in the Soviet Union.
Rowan questioned Metcalf on whether the graphite products to be made in this equipment have a military end use. Metcalf stated that he had no knowledge of the types of products or their end use. Metcalf pointed out that graphite components are widely used in industry for such applications as graphite containers, pipe liners, valve bodies, valve liners and pump housings in the chemical industry as well as graphite bearings and structural components for general industrial use. Metcalf pointed out that the only equipment associated with graphite production which is subject to export restrictions is equipment for production of pyrolytic graphite. Metcalf noted that this equipment has been designed specifically to prevent its use for pyrolytic graphite by designing the induction coils to operate at a high voltage which will arc over if the equipment were to be operated at high temperatures under the vacuum conditions associated with the production of pyrolytic graphite.
Ruble stated that the miniseptor itself also precludes the use of this equipment for production of pyrolytic graphite since the miniseptor has an open construction and would allow carbon deposition on the thermal insulation if an attempt were made to use the equipment for pyrolytic graphite. This would degrade the thermal insulation and cause the coil to couple to the insulation instead of to the miniseptor, both of which would cause severe overheating problems. Ruble also confirmed that the induction power supply would not have a wide enough control range to couple satisfactorily to the solid susceptor that would be necessary to overcome these problems.
After detailed discussions of the above points, upon motion by Rubble, seconded by Rowan, it was unanimously
RESOLVED that Consarc Engineering shall proceed with the performance of this contract and that Consarc Corporation shall provide the guarantee of Consarc Engineering performance as required by the contract.
In closing Rowan expressed his appreciation of Metcalf's work in successfully closing the USSR contract previously discussed.
There being no further business, the meeting adjourned.