A Reach Too Far

Abstract

SD’s laboratory had, for several years, been developing a new technology to make ethylene glycol directly. Based on the success of Oxirane, Landau convinces Arco Chemical to join in building a large new plant based on the new process. However, no large scale pilot plant work had been done to prove out the rather complex technology nor the construction materials needed for the highly corrosive parts of the process. After a year of fruitless attempts to solve various problems, the plant is scrapped. Halcon, saddled with very high debt for financing its share of Oxirane, is forced to abandon its partnership in the Oxirane venture and sells the technology and its Oxirane partnership to Arco, receiving several hundred million dollars in the transaction. After some money was paid to other Halcon shareholders, Landau and Rehnberg’s estate receive a payout allegedly amounting to several hundred million dollars.