Document LKyK3mxpzo1jKn7RQqen2veag

cc for A. J. Costantin L. G. Krauskopf REPORT OF CALL PLAINTIFF'S EXHIBIT UC-3872 OBJECTIVE Discuss price increases, short-term availability of SG-102 and future volume potentia I. DISCUSSION We currently limit Kentile'to 2 CL's (130 T) of SG-102 per month, letting them choose whether to ship to Chicago or Torrance. When running at capacity they would like to have at least 300 TPM of our product. They also use Atlas and Canadian asbestos. Overall they are running at about 2/3 of their capacity due to resin shortages and will require only I CL of SG-102 per month until the resin situation eases, probably 4-6 months. He was not surprised when we advised him of a price increase from S48/T to a maximum of $54/T, if cost-j'usti f ied and approved. He indicated he was now paying S52-54/T for Canadian asbestos. They had just begun to buy small quantities from JM-CoaIinga because they needed a "brighter" product at Brooklyn for a particular tile line. He was surprised to hear that Calidria is brightest and would Iika a sample for lab evaluation. They apparently use about 12,000 tons of asbestos per year with 1/2 from Canada and 1/2 from California. They have never signed requirements contracts but he has no reticence about discussing with his management our interest in supplying all their asbestos needs in the future. Miller feels we could easily have all the California portion as long as we are price competitive. They prefer our pelletized asbestos. Miller expects vinyl asbestos floor tile to maintain its "steady state," no particular growth and no serious recession. UCC 013333