Simplex Building Products North America Inc. has signed a supply agreement with an undisclosed window manufacturer that company officials say will generate about $5 million annually.
It is the company's first vinyl window and door profile supply contract in North America. It will not be the last, said Bill McCaughey, Simplex's executive chairman, in a March 7 telephone interview.
Simplex imports its proprietary products as well as supplies specified products of its customers from Hefei, China-based Anhi GuoFeng Plastic Industry Co., which is certified by the American Architectural Manufacturers Association.
Houston-based Simplex is a subsidiary of National City, Calif.-based Health Environmental Research Co. Products Inc., which acquired the company on Dec. 31.
Simplex is in the midst of building the tooling required to make the vinyl profiles for its new customer. Product delivery will likely begin around the end of the third quarter, McCaughey said.
GuoFeng has built a new manufacturing plant in Hefei specifically to serve Simplex, he said. This overseas relationship will provide Simplex's current and future customers with the best possible pricing, he said.
AAMA certification and 100 percent in-plant inspection are being touted to alleviate quality concerns.
Simplex started two years ago and to date has been focused on product design. In addition to vinyl window and door profiles, the company also sells PolyTimber-brand fence, deck and railing products, which includes a new line of composites made with PVC.
``We believe some of the vinyl fencing that's out there is not very attractive,'' McCaughey said. ``Our PolyTimber PVC fence, we believe, will be more competitive, price-wise, and dramatically better in appearance.''
Distribution of PolyTimber will commence in the next 60-90 days, he said.
McCaughey said Simplex officials are looking at the downtrodden economy as an advantage.
``When times are hard, people are more interested in cost savings, and that's something we do very well,'' he said.
Simplex will win the battle on price, he said.
``We'll be able to provide certified offshore products at significant savings, which they cannot get now,'' he said.
Company officials anticipate more of these supply agreements. They are targeting deals in the $5 million range.
HERC, which is publicly traded over the counter on Pink Sheets, serves the infrastructure industry for several sectors - both water and gas distribution as well as storm water and sewer water collection, by providing maintenance and rehabilitation services.