Document 3NNmyBmMRoe4qRKQB82r9onp6

^*w** r -H ^.^u- rM tiN Av. 4-i-** 1 -yuecopV - -^-"*1-- ^ * * WfSAniS 4k.t+ ` OSrffc PMSIiUUGII CORNINC CORTORaDoN January 25, 1971 >WMv,.iA Mr. C. G, Morgan Vice President - General Manager North American Asbestos Corporation 200 South Michigan Avenue Chicago, Illinois 60604 Dear Mr. Morgan: XiW5 fR0 In hopes.of clarifying the situation which exists regarding Aaoslte Fiber availability during 1971, the figures' that Dr. A. A. Hodgson gave to ee during his visit to this country were as follows: These figures convert to short tons: D-ll M DB K-3 850 Metric Tons 1250 " *1 1000 " (I 750 * H D-ll H DB K-3 935 Tons 1375 f 1100 M 825 11 Total 3850 Metric Tona Total 4235 Tons He also indicated at that time that the figures on M and K-3 could reverse as one or the other nay not from tine to tine be available. Therefore, we should consider M and K-3 as a total of 2000 Metric Tons. On several occasions, to elarlfy whether we were talking about ilatric or Short Tons, I had asked the specific question as to what the tons represented. 1 was told these were Metric Tons due to the current changeover of unit weight at the nines. These figures Indicate that we arc chort approximately 700 Metric Tons or 770 Short Tons. Our forecasted requirement is 5000 Short Tons. This provides us with only a 200 Ton cushion for the coning year's anticipated production. I would also like to point out that our projected business for 1971 - high tenperature pipe insulation - looks very, very encouraging. Our current production schedules are filled through March 3th. New orders being received are being proalse< to customers for delivery after March 8th. As you know, a great deal of our buslneos is centered around refinery and power station construction. Both of these industries today are booming and construction is therefore on the up-turn. Ve have currently on the books orders to supply material for eight new power plants. Most of this buolncss is large diameter heavy wall pipe insulation which bulldo up our useage of Amoalte. We are also currently running ahead of our sales forecast which at the time it was made wa thought very optimistic. 1 "P BB* 0009239^^ '"SPhujiiuuimauifB ww m We will need a total of 400 Short Tons per month Co maintain operations at both plants* V.'e normally need to maintain a three month minimum Ar.oslto uscage as a satiety-stuck due to past experience in getting Amoslte fibers from the mines* We will be down to a month and a half to two months safety-stock at the time current releases ore received. The 400 Short Tons per month previously mentioned would indicate that we must have a minimum of 4800 Tons to maintain our oporotion through the year 1971. It is Imperative to us that Cepe Asbestos give us some assurance that we will be able to purchase and they will be sale to supply Amosito fiber in the quantities mentioned - 4COO to 5000 Short Tons. We are very happy obout the business prospects for 1971 due to the * increased construction end building which is going on within the two industries previously mentioned; however, we are vitally concerned with our ability to ruoply our customers due to Cope's apparent inability to supply us with Amoslte fibor. Anything that you can do which will help us to get the fiber which we need to main tain our current position in the high temperature pipe insulation field will be most appreciated. LPH/rb cc: Mr. E. W. Holman Manager of Production Planning i-!CTE:TH!S DOCUMENT DiD hOi CGIviE rROM PPG.FiLES | BB 0009240 | l: C- 1""?^i7w' "^(5 Ns HWIW