Atlas Engineered Products Announces New Lumber Supply Agreement
Atlas Engineered Products (“AEP” or the “Company”) 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 Atlas Engineered Products’ strategic plan to capitalize on the efficiencies of consolidating the engineered wood products industry,” said Atlas Engineered Products 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.
Source: Atlas Engineered Products Ltd.