CPI banks on fixed-term contracts for outdoor product stability

The home renovation season is fast approaching and CPI Plastics Group Limited (CPI) wants to make sure its polystyrene (PS)-based eON outdoor living products have a shot a being part of consumers’ plans.
That’s why Mississauga, Ont.-based CPI entered into fixed-term contracts for purchasing PS.
These contracts enable CPI to buy PS at a fixed price for a given amount of time, allowing them to establish and hold distribution channel pricing of the eON products.
“Our established practice of contracting PS raw material inputs an industry first provides CPI with a stable, functioning business model for our eON decking and fencing products,” Peter F. Clark, CPI’s CEO, said.
Eon products provide consumers an alternative to wood for decking, spa cladding and fencing.
CPI recently unveiled its eON line of fencing, which is available in two different wood-effect colours, cedar and redwood. Spa cladding and decking are available in six different colours: Mahogany, redwood, honey teak, pine, cedar and coastal gray. Eon products are available in retail stores like the Home Depot in Canada and Menards in the U.S.
Benefits for the consumer include a 25-year warranty and allow them to forgo painting or staining.
CPI’s eON product line is part of the company’s Outdoor Living Products Group. The firm’s Film Products Group manufactures and markets the Rack Sack household refuse management system plus branded and private label refuse bags for household and industrial use. CPI also provides custom profile solutions to OEMs through its Custom Products Group.
CPI operates 135 extruders over its six plants, which occupy 530,000 square feet of manufacturing space in total, and has more than 800 employees.