NANAIMO, BC, June 11, 2019 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSX-V: AEP; OTC Markets: APEUF) is pleased to announce completion of a new, guaranteed lumber supply agreement (the "Agreement") for five of its operating facilities. The Agreement is expected to result in cost savings of up to 14.7% per facility depending on plant location, and potentially result in between $750,000 and $1,000,000 in additional cash flow for the Company due to the favourable consignment terms.
"This agreement, with an experienced private company with operations across Canada and the Western US, is part of AEP's strategic plan to capitalize on the efficiencies of consolidating the engineered wood products industry," said AEP CEO Dirk Maritz. "All of our current facilities in BC, Manitoba and Ontario will benefit from this supply certainty and cost savings."
In addition to the immediate bottom line benefits, the guaranteed lead times, re-order and delivery elements of the Agreement will make a significant impact on client satisfaction and project schedules.
"The seasonality of the lumber business and construction industry has, in the past, resulted in supply and delivery challenges for all manufacturers of roof and floor trusses, wall panels, windows and doors," explained Executive VP Hadi Abassi. "This comprehensive approach to lumber supply will ensure we receive full load deliveries throughout the busy summer building season, a competitive advantage for our clients."
About Atlas Engineered Products Ltd.
AEP is a newly listed growth company, as of November 2017, that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry. AEP has a well-defined and disciplined acquisition and operating strategy enabling it to scale aggressively, giving AEP a unique opportunity to consolidate a fragmented industry of independent operators.
Forward Looking Information
Information set forth in this news release contains forward-looking statements. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: Risks and uncertainties relating to the Company, including those to be described in the Management's Discussion and Analysis ("MD&A") for the Company's seven-month year ended December 31, 2018 and the interim period ended March 31, 2019. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Atlas Engineered Products Ltd.
For further information: Atlas Engineered Products Ltd.: Dirk Maritz, CEO & President, Phone: 1-250-754-1400, Email: [email protected], Unit 102, 6551 Aulds Road Nanaimo, BC V9S 5X9, www.atlasengineeredproducts.com; For investor relations please contact: Rob Gamley, Phone: 1-604-689-7422, Email: [email protected], Contact Financial Corp., 810 - 609 Granville St., Vancouver, BC V7Y 1G5