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Dffi) Manville June 12, 1970
R. Cran C. Eggleston A. Sells E. Volwller E. DeLong Harris J. Riley
Manville Denison Waukegan Stockton Green Cove Long Beach Marrero
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COST INCREASE ON CANADIAN ASBESTOS FIBERS
The attached memo, prepared by Dan Nowlin, estimates the effect of change in Canadian dollar exchange rate on the cost of Canadian Asbestos fiber purchased by the Pipe Division. It is estimated that this will increase our cost, F.O.B. the mines, by $368,000 for the balance of this year.
Dan Nowlin's memo calculates the added cost for each of your Plants. Will you please check the calculation for your own Plant, compute it on an annual basis, and report it as a cost Increase in your next monthly Cost Reduction Report.
Let me know if you have any question as to the amount of. cost Increase or method of calculation..
jio.
K. J. WHALEN
/sb
cc: M. Harris J. E. Hesse R. W. Sherburne D. Nowlin
Attachment
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MTC 013235
K. J. Whalen
MEMORANDUM
Effective June 1, 1970, the exchange rate of the American and Canadian Dollar was no longer fixed. It Is estimated that this will have an adverse effect on the cost of all Canadian-goods imported to the United States, most notable of which will be. for fiber where a 4% increase on the base price is expected. Effective June 2, 1970, the mines advised they were to start shipping all fibers freight collect. This will avoid some of the plus freight cost; exactly how much is not known.
On the basis of a 4Z cost increase on the FOB price of all Canadian Fiber to be received by each plant between June 1, and December 31, 1970, the estimated cost increase by plant is shown below:
Base Prices - FOB Mine - u.s. Dollars
Advocate A-25 Jeffrey 4T Reeves R.-25 Clinton CP Clinton CT Cassiar AK Cassiar AX
$178.00 $180.44 $181.07 $207.00 $186.88
$220.11
$171.14
,
Plant Manville Waukegan Marrero Green Cove Denison
Long Beach
Tons Involved Freight
Type Fiber June.-Dec. 1970 Per Ton
Reeves
3,220
$23.89
Jeffrey
6,300
16.59
Reeves Jeffrey
2,730 3,800
$20.42 20.90
Advocate Reeves Jeffrey Advocate Jeffrey
0 280
0 4,200
750
-- $28.56
--
$21.28 28.40
Advocate Reeves Jeffrey
10,800 1,470 2,100
$30.30 32.34 32.55
Cassiar Reeves Jeffrey
3,700 700
2,000
$28.14 32.34 32.55
Estimated Cost Increases
(Excludes Freight) $ 23,300
45.500 $ 68.S00 $ 19.S00
27.400 $ 47.200
--
$ 2,000 --
$ 33,500 5,400
$ 38.900 $ 90,000
10,600 ' 15.200' $115,800 $ 32,000
5,100 14,400 $51,500
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CONTINUES
MTC 013236
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Plant Stockton
TOTAL DIVISION
Tons Involved
Type Fiber June-Dee. 1970
Cassiar
3,650
Reeves
1,400
Jeffrey
450
Advocate Cassiar Reeves Jeffrey
15,000 7,350 9,800
15,400
Freight Per Ton $21.20
32.34 32.55
--
-- a
TOTAL
Estimated Cost Increases (Excludes Freight) $ 31,000
10,100 3.200
$ 44.300 $123,500
63,000 70,900 111.100 $368,500
*
$ y? D. Nowlin
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MTC 013237
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MTC 013238
