Opinion ID: 394087
Heading Depth: 3
Heading Rank: 1

Heading: General Housewares

Text: 18 General Housewares manufactures pots and pans. In 1966 Ferro convinced General Housewares to discontinue being a self-smelter of frit. Between 1973 and 1977 Ferro's frit sales to General Housewares declined about 40%, from 5,660,000 pounds to 3,650,000 pounds. As Ferro's marketing manager explained, in order to sell to a firm that was a self-smelter, as General Housewares had been, prices had to be very close to direct manufacturing costs. Although General Housewares had discontinued its production of frit, it could reestablish its smelting operation for less than $500,000. (III App. at 618). General Housewares was also very resistant to high frit prices because the domestic pot and pan business faced tremendous foreign competition. (III App. at 617). Several American companies in the field including at least one former Ferro customer had gone out of business. Hommel had never sold any frit to General Housewares.