Success Story
Five
Far-Sighted Programs Prepare Companies For War
Far-sighted planning enhanced the ability of
Sinclair companies to continue their
growth
through World War II. Almost as though the
management possessed a crystal ball, it set in
motion five programs in anticipation of the
conflict which, by the system's twenty-fifth
birthday year in 1941, had proven eminently
correct. The sequence began with Hitler's rise
to power in Germany.
What
Sinclair Did:
- Sold its European marketing
subsidiaries for cash and barter
goods at a profit of about $1
million. So Sinclair lost
nothing to Hitler during World
War II.
- Anticipated the need for
100-octane gasoline by
experiments with alkylation and
polymerization processes
beginning in 1937. When war
came, Sinclair was able to
expand quickly its production of
aviation gasoline, the
critically-needed polymers and
codimer.
-
From 1937 stepped up oil
exploration in Venezuela, with
the result that the Santa
Barbara field was discovered
before U.S. entry into the war.
By 1945 this new crude oil
source contributed 27,000
barrels daily to U.S.
operations, helping to offset
acute shortages at home.
- Augmented its obsolete tankers
with ten fast new vessels which
were delivered in 1941 and 1942.
Of these, eight survived
the war, giving Sinclair
economical ocean transport
during the post-war
readjustment.
- Built a new products pipeline
linking the eastern seaboard
with the Ohio River, serving the
huge
industrial cities of the
Allegheny region and Washington,
D.C. This line served Sinclair
marketing when other transport
was preempted for military uses.
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