CORPORATIONS: The Plywood Prince

• Share

(2 of 2)

Cautious competitors in the industry, eying the recent slump of the plywood market, say that Cheatham may be riding for a fall again. They think the productive capacity of the plywood industry is overexpanded. Cheatham isn't worried. The recent glut, says he, was just a temporary condition caused by a Government promise last fall to buy 30% of the industry's production for defense. Plywood makers went on a seven-day week, and when no Government orders developed, inventories piled up. Prices dropped 15% and production was cut in half. Last week production was climbing back to normal again (sales were 50% above output), and Cheatham expects Georgia-Pacific to set new records next year.

One reason for this optimism is the company's new plastic-coated plywood, "GPX," which already accounts for 10% of sales. President Cheatham thinks that his GPX, which can be used for everything from outside walls of houses to concrete pouring forms, will capture a big chunk of the market. Says Cheatham: "People are lining up to buy plywood now. We just want to make sure they stay in our line."