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October 28, 1998
CPI PLASTICS GROUP LIMITED
TORONTO, ONTARIO - CPI Plastics Group Limited ("CPI") announced today that it has entered into a new North American joint venture, royalty and licence agreement with Extrudawood International PLC of Great Britain ("Extrudawood International") on the basis that CPI will continue to produce a plastic product exclusively for the North American market which, when extruded, exhibits the appearance and colouration of a simulated natural or stained wood surface finish.
Of greater significance, CPI has entered into a new international marketing agreement with Extrudawood International pursuant to which each party has contributed its Extrudawood technology on the basis that CPI has been given the exclusive right to enter into agreements with manufacturers in countries beyond North America to produce, licence, manufacture or otherwise exploit the Extrudawood product in global markets. Peter F. Clark, CPI’s President believes that the new global marketing arrangement will enable CPI to diversify its product base and to expand its opportunities for future growth beyond North America.
CPI will have in effect an 80% economic interest in the North American joint venture and a 75% interest in the international marketing agreement. Both agreements are for an initial period of 25 years, subject to automatic renewals for successive 10 year periods.
The properties of "Extrudawood" are such that it has many applications and benefits which wood does not share. At the same time, it fabricates and machines like wood. It is water resistant, rot proof, will not warp and is environmentally friendly. It is insect and fungus resistant. In most applications Extrudawood is maintenance free and with the use of additives is protected against ultra violet light exposure.
Peter F. Clark indicated that "CPI started producing Extrudawood product in August from its 711 Gana Court plant where it has installed 15 new extrusion lines dedicated to this new product line".
Extrudawood International developed the Extrudawood technology and maintains facilities on the Isle of Wight where it manufactures products including windows, doors, roofline and other consumer plastic products based on the Extrudawood technology.
CPI is a North American leader in designing, engineering and manufacturing thermoplastic extrusions such as decorative trim and functional parts for a variety of industries including automotive OEM and appliance manufacturers.