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Technology in Australia 1788-1988Australian Academy of Technological Sciences and Engineering
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Table of Contents

Chapter 9

I Introduction

II The Australian Chemical Industry

III Pharmaceuticals

IV Chemists In Other Industries

V The Dawn Of Modern Chemical Industry - High Pressure Synthesis

VI The Growth Of Synthetic Chemicals - Concentration, Rationalisation And International Links

VII Australian Industrial Chemical Research Laboratories

VIII The Plastics Industry
i Plastics processing
ii Phenol - basis of the first plastic
iii Plastics - the first generation
iv Plastics - the second generation - from petrochemicals
v Styrene monomer - the West Footscray petrochemical complex
vi The Botany petrochemical complex
vii The petrochemical complex at Altona
viii CSR - from sugar alcohol to petrochemical OXO alcohol

IX The Paint Industry

X Acknowledgements

References

Index
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The ingredients of successful technology and technology transfer (continued)

The technologies. All of the basic technologies were imported, each from the overseas principal of the local affiliate. This was done under normal contractual licensing arrangements; typically an up-front basic payment for the technology package with a subsequent period (typically 10 years) of royalty payments, usually based on sales revenues of the products sold. The arrangements usually gave each party continuing rights to the technical developments of the other. In addition, in some cases the overseas principal also provided management expertise, including the training of Australians overseas.

In some cases, the Altona company was included as a member of a world-wide technology network, whereby its local facility could be used for the development of advanced technology. In the recent multi-million dollar expansion of ethylene capacity at Altona, for example, the plant was used to develop Exxon's world-wide steam cracking technology further with a revolutionary and successful change in process, giving much higher yields of ethylene. This improvement has been incorporated subsequently in plants in Scotland, the USA and Canada. Experimental development in rotation on various plants of the international network ensured Australia's involvement in the development of new technology, technically and commercially.

The design/construction process. The introduction of new processes and plants at Altona involved the introduction of new skills in the safe design and construction of such facilities. There was a marriage of overseas technical expertise in plant design, project management and construction management with that of local construction companies.

Typically, the plant design (often derived from overseas) was supervised by the principal of the Australian affiliate, using an overseas engineering design company for the task, usually one of the world's major engineering companies. Project management was usually by the principal, or by the principal acting as supervisor of a local agency. Procurement as a rule, was also under the supervision of the principal, either operating directly, or providing overview on some contracted service. These activities usually involved the use of expatriate people in Australia and overseas, with Australians assigned as assistants to be trained; these generally came up to speed quickly and were given increasing levels of responsibility.

The management. During early phases of development of the projects and their management structure, there was a great deal of interaction and negotiation between local managements and their principals, and between the principals. As a result, it was inevitable that the principals would use proven executives whom they knew. As a consequence, the Chief Executive was usually an assignee of the principal

As a rule he was supported by the second level, who were expatriate assignees of the principal. Thus, the principal had confidence in the early management structure although most had plans for the early replacement of expatriates in management. Principals and management recognised that there were good reasons, social, political and philosophical, why executive positions should be occupied by mature Australians, and economic reasons were relevant too; expatriates and their support were expensive. Over the years, this has led to the development of local management, usually indigenous Australians, who have been trained in international business management, international technology, and to a close involvement with the local business scene.


Organisations in Australian Science at Work - Altona Petrochemical Company Ltd; Altona Petrochemical Complex

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© 1988 Print Edition pages 712 - 713, Online Edition 2000
Published by Australian Science and Technology Heritage Centre, using the Web Academic Resource Publisher
http://www.austehc.unimelb.edu.au/tia/677.html