Koncor Forest Products: blowing off market losses by diversifying.

• Author: Zerbe, Victoria

blowing off market losses by diversifying

Koncor Forest Products' future - which is tied to the health of the economies of Japan, Korea and China - is facing one of the worst markets in a decade respective to the Pacific Rim countries.

To compensate for the market downslide, the company is delving into the marketing side of business, aggressively buying additional timber, looking at ways to manufacture trees into lumber, and creating other wood-based products. And according to John Sturgeon, president of Koncor, the company's ability to diversify and look for new business connections helps Koncor remain competitive.

"The long-term future is very good for a company like ours," Sturgeon said. "We manage timber, design road systems, do reforestation, let out contracts to loggers and road builders, and actually market the wood ourselves."

Koncor has averaged between $ 70-75 million per year in revenue for the last five years, and earned a 12th place ranking on Alaska Business Monthly's 1997 "Top 49ers" list, which features the largest and most-successful Alaska-based, Alaskan-owned companies. Koncor also made this year's Top 100 list, based on its positive impact on Alaska's economy.

Koncor is also one of Alaska's largest private land owners, and as such owns or controls more than 1 billion board feet of Alaska timber, with more than 20 different types of logs available for marketing. The company has created joint ventures or bought timber from more than 19 Native corporations over the years. It mainly harvests from the lands of its joint venture partners: Ouzinkie Native Corporation; Yak-Tat Kwaan, Inc.; and Natives of Kodiak, Inc.

Currently, Sitka...