By Liz White, UT editor
Calgary, Alberta-Composite products maker Resin Systems Inc. announced 18 Dec 2006 that is has signed a multi-year exclusive supply agreement regarding its VRoll business division.
At the same time, the cash-strapped Canadian firm also announced the resignation of its chairman, president and ceo Greg Pendura.
Under the agreement referred to, RSI said it will sell VRoll tubing to an un-named "leading original equipment manufacturer" in material handling systems and conveyor rollers for the mining industry. This OEM also supplies operators of bulk material-handling systems, said an 18 Dec RSI statememt.
The large diameter VRoll tubing, made from RSI's proprietary Version polyurethane resin, will be used by the customer to make complete conveyor roller assemblies.
RSI says composite tubes are "stronger, lighter and more durable," than the steel tubing currently used in such roller assemblies. As a result, users will see lower overall replacement costs as a result of high durability, coupled with energy savings from "a significantly lighter roller," RSI claims.
Additionally, RSI's statement explained that the company is taking immediate steps to reduce its use of cash in business operations by strategically repositioning its business focus.
The group said it "incurred significant cash expenditures throughout 2006 during the ramp-up of production of its RStandard modular composite utility poles." Despite production improvements, the company said "ongoing production deficiencies" continue to have drain its cash reserves. RSI said it plans to provide detailed information on its overall 2007 strategic business plan as well as more information on the VRoll business line, in a web cast in mid-January 2007.
Meanwhile, Paul Giannelia has been appointed ceo and president of the company, replacing Greg Pendura, the former chairman, ceo and president. William Demcoe has also resigned from the board of directors.
Pendura commented that, "My optimism and enthusiasm in the future success of RS remains unwavering … but stakeholder concern over the length of time to deliver our game plan had to be addressed."
Giannelia said he looks forward to "leading RSI and implementing our strategic plan," to achieve financial stability and profitability.
PIC: One of RSI's composite utility poles being installed in Texas. "