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years of a concerted federal effort aind an initial $54 million private investment, the 

 modem Ketchikan economy began. 



KPC has met its end of the bargain with the federal government to provide a 

 stable job base for the Ketchikan area. We are now asking you to ensure that the 

 government meets its part of the bargain, and makes available the economic timber 

 supply necessary for us to continue to provide the employment which is the cornerstone 

 of our economy. 



KPC Products and the Ketchiktm Economy 



In the years since the pulp mill began operating, KPC has expanded its job base 

 by operating sawmills in addition to the pulp operation. The original contract 

 anticipated that sawmills would be added after the pulp mill was running. Sawmills 

 allow better use of the resource by recovering high- quality logs for uses other than 

 pulp. KPC currently operates two sawmills, Ketchikan Sawmill (KSM) at Ward Cove, 

 and Annette Hemlock Mill (AHM) on Annette Islcuid, which we run pursuant to a lease 

 with the Metlakatla Indicin Community. Assuming an adequate supply of raw 

 materials, the sawmills have the capacity to process 130 million board feet of lumber 

 annually on a two-shift basis. Both mills could run three-shift operations, if there 

 existed a sufHcient timber supply. 



AHM produces rough-sawn spruce emd hemlock cants and flitches which are sold 

 and subsequently processed to form such Items as decorative doors, window frames. 



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