Markets

Since 1980 asbestos markets have suf-
fered a decline in consumption and prices,
forcing a reduction in world production.
Recently two major producers terminated
production and another has announced
shut down of operations in 1988.

In 1986 the Company was able to
maintain its market share but could not
sell its production capacity. More
recently, as market trends became more
apparent and stability in certain
segments could be foreseen, the
Company adopted a policy to
concentrate marketing its products into
higher growth areas. This involved a
gradual shift from historic markets,
where consumption is declining, and a
move into the non-traditional markets in
which continued use and future growth
is evident.

The success of this policy became
apparent in 1987 when the Company

Asia

Europe

North America

Australia

South America

Middle East

increased its sales volume by
approximately 20 percent over 1986.

The graph below compares geographic
distribution of fibre sales between 1980
and 1987.

1987 saw a slight improvement in
consumption in Europe and Asia.

The Company, being well established in
these markets, was able to take
advantage of this upturn.

The Company will continue its effort to
penetrate and stabilize its position in
new market areas.

This market diversification will provide
a firmer base for the introduction of the
high quality asbestos fibre from the
McDame deposit.

The development of the wet process will
further enhance Cassiar’s position as a
leading supplier of high quality asbestos
fibre.