DFW AIRPORT, Texas--(BUSINESS WIRE)--American Locker Group Incorporated (OTCQB: ALGI), the worldwide leader in secure storage solutions, today announced it has taken another step in its recently announced strategy to aggressively grow its contract manufacturing business by acquiring a new Amada laser cutting system.
In its core locker and mailbox markets, American Locker has long been known for quality products backed by industry leading customer service. This new cutting system, a 4000 watt Amada FOM2 NT laser, is a high precision tool that will help American Locker bring its long-standing commitment to quality and reliability to ALGI’s contract manufacturing customers. At the same time, American Locker’s management believes this laser cutting system will enable ALGI to reduce lead time, material waste and tooling costs, and increase manufacturing flexibility – all of which should result in improved contract manufacturing economics for the Company. The laser cutting system was financed via a lease from Bank of America.
This is American Locker’s latest investment in its manufacturing capabilities since the start of 2011. Previous investments include moving to a new facility; installing a state-of-the-art powder coat line; adding depth to its contract manufacturing expertise; and streamlining its organizational structure. These changes have facilitated the Company’s ability to take advantage of contract manufacturing opportunities and have enhanced its leadership in its core markets.
American Locker first started offering contract manufacturing services in 2009 and has recently experienced accelerated growth in this market segment. Given the Company’s initial success, management believes this market segment offers the Company an excellent opportunity for continued revenue growth, as well as product and market diversification.
Management believes that the growth experienced by the Company in this market is consistent with the growth trends being experienced by the precision sheet metal fabrication industry as a whole. The Boston Consulting Group, in its publication, The U.S. Manufacturing Renaissance: Which Industries?, states that fabricated metal products are one of seven manufacturing sectors poised to return to the U.S. from China. Combined with U.S. exports, these seven industries could create 2 to 3 million jobs over the next five years. In the most recent Economic Census, the US Census Bureau estimated the annual value of shipments from US based sheet metal work manufacturers to be approximately $22 billion.
“We believe this new laser cutting system will help accelerate our growth in contract manufacturing,” said Paul M. Zaidins, American Locker’s President and Chief Executive Officer. He added that “At American Locker, our goal is to increase stockholder value, and we strive to do this, in contract manufacturing and in our other markets, by offering the highest quality products at competitive prices. The addition of this advanced cutting system to our manufacturing capabilities is another significant step in our pursuit of that goal.”
Forward - Looking Statements
In the interest of providing Company stockholders and potential investors with information regarding the Company, including the Company’s assessment of its future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, “forward-looking statements”). All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate”, “believe”, “expect”, “estimate” and similar expressions are generally intended to identify forward-looking statements. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements made as of the date hereof disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company stockholders and potential investors should carefully consider the information contained in the Company’s filings with United States securities administrators at www.sec.gov before making investment decisions with regard to the Company.
About American Locker Group Incorporated
American Locker is a premier metal fabricator of secure storage solutions under the American Locker and Canadian Locker brands. The Company is best known for manufacturing and servicing the widely-utilized key and lock system with the iconic plastic orange cap. The Company also has a growing precision sheet metal fabrication business. Its Security Manufacturing Corporation subsidiary is a leading provider of multi-tenant mailboxes.
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