Sale of a Denver building material distribution center by Kaibab Industries is likely to strengthen the position of Garfield County's largest year-round employer, the company's timber milling operation in Panguitch, according to manager Jack Voris.

Kaibab, with headquarters in Phoenix, recently signed a letter of intent for the sale of the distribution center to All-Coast Forest Products Inc. of Chino, Calif. The transaction could be completed by late October. Details were not announced.Voris noted that sales to Japan have been opened through the Panguitch office. He predicted further timber sales if the product continues to be available on the public lands. A $100,000 sale of spruce to an Osaka-based company was arranged in August.

Representatives of a Japanese lumber broker visited the Panguitch facility in September, resulting in another $34,000 sale.

Sales by Kaibab Industries in 1989 exceeded $200 million through its lumber production, metal fabricating and petroleum marketing, it was reported.

The Panguitch facility has 74 year-round employees. Kaibab also has mills in Flagstaff and Payson, Ariz.