Royal Group resumes shipments of Royal Building System globally, with exception of USA
August 11 2005 - 8:00AM
PR Newswire (US)
TORONTO, Aug. 11 /PRNewswire-FirstCall/ -- Royal Group Technologies
Limited (RYG-TSX; RYG-NYSE) today announced that it has resumed
shipments of the Royal Building System globally, with the exception
of the United States. On July 28th Royal Group issued a news
release stating that recent testing of the Royal Building System
identified potential technical compliance issues with US Building
Codes smoke development standards. The Company advised today that
it would continue to follow the Canadian Building Code with respect
to the resumption of shipments in Canada. For international
locations Royal Group will apply Canadian Building Code guidelines,
as well as local building code requirements. Due to the unique test
requirements of the US Building Codes, Royal Group will maintain
its current policy not to ship projects into the US market and
international locations applying those standards, other than
qualified utility applications. "Our policy going forward is to
conduct our international business in conformance with the Canadian
Building Code and the foreign country's building code. The Canadian
Building Code is generally respected and widely adopted
internationally, giving us assurance that resuming certain
shipments of the System is appropriate. The Royal Building System
product was specifically reviewed for its fire safety
characteristics under a master format application process and
certification review since its introduction in Canada," confirmed
Lawrence J. Blanford, Royal Group's President and Chief Executive
Officer. Royal Group Technologies Limited is a manufacturer of
innovative, polymer-based home improvement, consumer and
construction products. The company has extensive vertical
integration, with operations dedicated to provision of materials,
machinery, tooling, real estate and transportation services to its
plants producing finished products. Royal Group's manufacturing
facilities are primarily located throughout North America, with
international operations in South America, Europe and Asia.
Additional investment information is available on Royal Group's web
site at http://www.royalgrouptech.com/ under the "Investor
Relations" section. The information in this document contains
certain forward-looking statements with respect to Royal Group
Technologies Limited, its subsidiaries and affiliates. These
statements are often, but not always made through the use of words
or phrases such as "expect", "should continue", "continue",
"believe", "anticipate", "estimate", "contemplate", "target",
"plan", "budget", "may", "will", "schedule" and "intend" or similar
formulations. By their nature, these forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant, known and unknown, business, economic, competitive
and other risks, uncertainties and other factors affecting Royal
specifically or its industry generally that could cause actual
performance, achievements and financial results to differ
materially from those contemplated by the forward-looking
statements. These risks and uncertainties include the ongoing
shareholder value maximization process and its outcome; the outcome
of the ongoing internal review and investigations by the Special
Committee of the Board of Directors; the outcome of the ongoing
assessment and review of the Royal Building System's compliance
with the smoke generated elements of the US building code and the
safety of buildings constructed with the Royal Building System;
fluctuations in the level of renovation, remodeling and
construction activity; changes in product costs and pricing; an
inability to achieve or delays in achieving savings related to the
cost reductions or increases in revenues related to sales price
increases; the sufficiency of our restructuring activities,
including the potential for higher actual costs to be incurred in
connection with restructuring activities compared to the estimated
costs of such actions; the ability to recruit and retain qualified
employees; the level of outstanding debt and our current debt
ratings; the ability to meet the financial covenants in our credit
facilities; changes in product mix; the growth rate of the markets
into which Royal's products are sold; market acceptance and demand
for Royal's products; changes in availability or prices for raw
materials; pricing pressures resulting from competition; difficulty
in developing and introducing new products; failure to penetrate
new markets effectively; the effect on foreign operations of
currency fluctuations, tariffs, nationalization, exchange controls,
limitations on foreign investment in local business and other
political, economic and regulatory risks; difficulty in preserving
proprietary technology; adverse resolution of any litigation,
investigations, administrative and regulatory matters, intellectual
property disputes, or similar matters; changes in securities or
environmental laws, rules and regulations; currency risk exposure
and other risks described from time to time in publicly filed
disclosure documents and securities commission reports of Royal
Group Technologies Limited and its subsidiaries and affiliates. In
view of these uncertainties we caution readers not to place undue
reliance on these forward-looking statements. Statements made in
this document are made as of August 11, 2005 and Royal disclaims
any intention or obligation to update or revise any statements made
herein, whether as a result of new information, future events or
otherwise. DATASOURCE: Royal Group Technologies Limited CONTACT:
Mark Badger, Vice President, Marketing and Corporate
Communications, Phone: (905) 264-0701, Fax: (905) 264-0702
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