CALGARY, Nov. 17 /CNW/ - Resin Systems Inc. ("RS") (RS - TSX), a technology innovator and manufacturer of advanced composite products for infrastructure markets, has entered into a distribution agreement with HD Supply Utilities, North America's largest electric utilities distributor.
Under the agreement, HD Supply Utilities is appointed as the exclusive distributor of RStandard(R) poles within the United States, Canada, Mexico, Bermuda, the Bahamas and all of the Caribbean Islands. The agreement is for an initial term of five years and may be renewed for additional terms.
"The RStandard composite pole meets an increasing need of our utility customers for poles that are light weight and offer ease of transportation and installation, long life, safety and low environmental impact," said Rick McClure, president, HD Supply Utilities. "Together, our companies offer an innovative solution that will meet growing demand for utility poles, especially in light of new transmission and distribution infrastructure projects funded through the stimulus plan."
"This multiyear agreement includes a volume commitment by HD Supply Utilities that meets our current plant capacity," said Paul Giannelia, president and chief executive officer, RS. "This achievement creates a stable foundation for our manufacturing team and allows us to turn our attention to new plant capacity increases required for our growth."
The agreement includes an initial purchase order for RStandard poles with a value exceeding $100 million USD over the first half of the initial term, subject to applicable terms and conditions. Other terms of the deal were not disclosed.
About HD Supply Utilities
As North America's largest electric utilities distributor, HD Supply Utilities (www.hdsupply.com/utilities) is a business of HD Supply (www.hdsupply.com), a leading wholesale distribution company, providing a broad range of products and services to professional customers in the infrastructure & energy, maintenance, repair & improvement and specialty construction markets. With a diverse portfolio of market-leading businesses, HD Supply is one of the largest diversified wholesale distributors in North America, with approximately 900 locations.
RS is an ISO 9001:2008 certified technology innovator that develops advanced composite material products for infrastructure markets. The composite products manufactured using the company's proprietary resins and processes are typically lighter, more durable and longer-lasting than competing products made from the traditional building blocks of wood, steel or concrete. RS's flagship product is its award-winning RStandard(R) composite pole. The pole is used as transmission and distribution poles to carry electric grids and as communication structures for various uses including wireless networks and microwave communications systems.
For the latest on RS's developments, go to the company's website at www.grouprsi.com.
"RStandard" is a registered trademark of RS.
Forward Looking Statements
Certain information set forth in this news release, including management's assessment of RS's future plans, operations, financial guidance and long-term growth prospects, contains forward-looking statements which are based on RS's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "plans" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause RS's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, RS's lack of revenues and unpredictability of future revenues; the uncertainty of the profitability of existing and contemplated products of RS; RS's ability to raise capital on acceptable terms when needed; RS's ability to attract and retain key employees; competition from established competitors with greater resources; the uncertainty of the developing markets in which RS operates; the risks associated with rapidly changing technology; RS's reliance on third parties to supply raw materials and the cost of such raw materials; intellectual property risks, foreign exchange rate fluctuations and changes in general economic, market and business conditions. Many of these risks and uncertainties are described in RS's 2008 annual information form and other documents RS files with the Canadian securities authorities. The forward-looking statements are made as of the date hereof and RS assumes no obligation to update or revise such statements to reflect new events or circumstances except as required by applicable securities laws.
SOURCE RESIN SYSTEMS INC.
For further information: For further information: Laurien Abel, Investor Relations and Communications, Tel: (403) 219-8000, Fax: (403) 219-8001, Email: email@example.com