Royal Group to buy U.S. wood composites startup (May 01, 2006)
Royal Group Technologies Ltd. in Woodbridge, Ont., has signed a letter of intent to acquire Greenwood, S.C.-based T...
May 1, 2006 by Canadian Plastics
Royal Group Technologies Ltd. in Woodbridge, Ont., has signed a letter of intent to acquire Greenwood, S.C.-based Tech-Wood USA, the owner of a unique technology used for manufacturing wood-plastics composite decking, fencing and railing products.
This material, also dubbed Tech-Wood, is comprised of a high percentage of long-strand wood fibres, making it less dependent on more expensive polymers, and significantly stronger than many other wood-polymer composites, Royal Group said.
Royal Group plans to use Tech-Wood to bolster the look-and-feel, as well as the strength of its own roster of wood-composite products. Tech-Wood USA holds the exclusive rights to the technology in North America, Royal Group said.
“Tech-Wood represents an important continuation of Royal Group’s strategy to develop composite building materials and will provide Royal Group with the opportunity to further penetrate the exterior decking, railing and fencing markets,” Larry Blanford, Royal Group’s CEO said in a statement.
Tech-Wood USA will be run out of Greenwood, S.C., a location chosen due to its proximity to an abundance of raw materials and major markets, as well as its business-friendly environment, Royal Group said.
The facility will be in operation before the end of 2006, and will be in full production by the end of the first quarter of 2007.