Business
Resin Systems Inc. Outlines 2007 Business Strategy
Resin Systems Inc. Outlines 2007 Business Strategy.
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[{"type":"text","content":"\n\n\n\nCALGARY, Feb. 2 /CNW/ - Resin Systems Inc. (\"RS\") (RS - TSX / RSSYF -\nOTCBB), a composite products innovation company, announced today its business\nstrategy for 2007.\n\n\nHighlights\n\n\nThe key components of RS's 2007 business strategy include:\n- solidifying RStandard(TM) transmission and distribution pole market\n penetration through an exclusive supply and distribution agreement\n with HD Supply Utilities;\n- overcoming production challenges by moving RStandard pole production\n to the North American manufacturing heartland;\n- achieving VRoll(TM) composite tube market introduction and\n penetration through an exclusive global supply and distribution\n agreement with FMC Technologies, Inc.; and\n- reaching financial sustainability through the reduction of monthly\n operating expenditure from $3 million CAD to slightly over\n $1 million CAD, and through the reduction of business and financial\n risk.\n\n\nRStandard Business Line\n\n\nRS made positive strides with its RStandard business line in 2006\nincreasing its RStandard customer base by 78 percent and achieving third\nquarter sales of $2 million CAD. However, production proved to be a major\nchallenge for the company. Production equipment and process deficiencies, and\nthe overheated Alberta labour market contributed to unsustainable cash\nexpenditures to support RStandard production.\n\n\nThe company has met these challenges head on with several significant\nsteps including:\n- entering an exclusive supply and distribution agreement with HD\n Supply Utilities, a division of The Home Depot(R) (\"HDS\");\n- planning to move RStandard production to the North American\n manufacturing heartland;\n- reducing its exposure to production-related capital expenditures; and\n- reducing operating expenditures.\n\n\nExclusive Distribution Agreement with HD Supply Utilities\n\n\nDuring 2006, market acceptance of RStandard poles took root - validated\nfurther by HDS's interest in RS. As announced January 30, 2007, RS has entered\ninto a five-year agreement with HDS establishing them as the exclusive\ndistributor of RStandard transmission and distribution poles in Canada, the\nUnited States, Mexico, Bermuda, the Bahamas and all of the Caribbean Islands.\n\n\nThis agreement includes an initial purchase order in excess of\n$50 million USD. Shipments will begin in June 2007 and...