AFPC jumps 'i into hardwoods in a big way

such a short period of time? Recent studies show that the United States has a declining raw material base as compared to an increasing demand for wood fibre products. McGee maintains that American Forest Products cannot exPect future sales growth based solelY upon the company's domestic raw materials base.

This knowledge, combined with an anticipated cost/price squeeze in U.S. timber, led to the conclusion that immediate internationalization of AFPC would be necessary in order to maintain a continuing Supply of forest products at prices competitive to possible non-wood substitutes.

Hardwoods presently imported originate principally in South America or South East Asia. Locating foreign wood converters sizeable enough to meet the division's three major prerequisites, quality, quantity and reliable delivery, consumed many many months and thousands of miles of travel. Because of his expertise and background in international trading, Gunter Silmar, manager of international procurement, spearheaded these efforts. His success in meeting these criteria means that buying commercially acceptable species in the quality and quantity demanded by AFPC will continue to be an ongoing project for the division as it expands its position in the imported woods market place.

To support its procurement program, the division recentlY hired Mogens Silleman as assistant manager. Silleman is a veteran of the hardwood industry having recently served as U.S. hardwood sales manager for the East Asiatic Co.

While AFPC at this time recognizes the need and value offoreign investments to maintain a secure source of supply, risks involved in overseas investments are usuallY greater than those made domestically. For these reasons' emphasis now is being Placed on long-term sales agreements, both to maintain a steadY flow of imported products .and to develoP overseas operatrng experrence. This posture is of a temPorarY nature, however, for long-range plans definitely include manufacturing operations in other countries in joint-venture with local partners.

American Forest Products' imported hardwood lumber currentlY enters the U.S. at Alameda, Ca.; Wilmington, N.C. and Houston, Tx. Green lumber is kiln dried at these ports before delivery either to one of the company's wholesale distribution centers or directly to the customer. Plans are to broaden these ports of entry and processing sites as required by increased volume.

In addition to hardwood lumber, the company also imPorts hardwood plywood, millwork and mouldings in such exotic species as teak, Philippine mahogany, meranti, ramin and virola to name but a few. Softwoods, too, are imPorted from South AmericaParana pinefor domestic use.

A large user of imported hardwood plywood is AFPC's fence