Royal Group Inc. anticipates disciplined growth across its building products divisions following the successful debt-for-equity exchange by parent company Georgia Gulf Corporation. The new capital structure reduces Georgia Gulf’s long-term debt by $736 million, also reducing its annual interest expense by $69.7 million.
“We are immediately positioned to be a stronger competitor and to achieve strategic growth,” says Mark J. Orcutt, Georgia Gulf Executive Vice President - Building Products. “We are refocused on what we do best – innovating and providing the highest levels of service to our customers. Royal Group, Inc. has been fortunate that even in the market’s downturn, we have introduced new products that are very well-received and that meet the needs of our customers. It’s an exciting time to move forward, expanding into new markets and growing in existing markets.”
Royal Group has taken steps to maximize the efficiency of its footprint and has brought in managers highly experienced in building products. Royal management teams will develop and execute three-year strategic plans for each of its five divisions.
“Costs are being closely aligned to volume, new processes are being put into place, our marketing is being strengthened and we are increasing our manufacturing utilization and expertise,” Orcutt said. “We have the advantage of talented people and good assets – more than 20 plants in North America. Our goal is to grow faster than the market and leverage the strong Royal brand across divisions.”
Georgia Gulf is unique among vinyl building products manufacturers in that its operations include the manufacturing of its raw material, along with product design and extrusion. Georgia Gulf starts with salt and ends with cutting-edge vinyl building products.