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Company Description

Contact Info

1800 West Loop South

Suite 1500

Houston, TX 77027

United States

Phone: 713-961-4600

Fax:

Quanex Building Products Corporation, together with its subsidiaries, provides engineered materials and aluminum sheet products worldwide. Strategy The company’s strategy is to focus on organic growth with its customer base and expand its market share with national and regional customers; offer logistic solutions; and pursue targeted business acquisitions. Segments The company operates in two segments, Engineered Products and Aluminum Sheet Products. Engineered Products The Engineered Products segment produces window and door components for original equipment manufacturers that primarily serve the residential new construction, and residential remodeling and replacement markets. The company manufactures vinyl window and door profiles, insulating glass (IG) spacer systems, window and patio door screens, aluminum cladding and other roll formed metal window components, door components, such as thresholds and astragals, patio screen doors and custom window grilles, trim and architectural moldings in various woods, thin film solar panel sealants, and engineered wood flooring. Within the Engineered Products segment the company operates four polyvinyl chloride extrusion facilities, four fabricated metal components operations, two facilities producing wood fenestration (door and window) components, one facility producing engineered wood flooring, three flexible IG spacer facilities and nine facilities producing window and door screens. The company’s extrusion facilities use automated production processes to manufacture vinyl and composite profiles, which constitute the framing material used in the assembly of vinyl windows and patio doors. The IG systems business uses compound-extrusion and laminating technology to produce highly engineered window spacer products that are produced from butyl, EPDM, composite and silicone-based raw materials. Aluminum Sheet Products The Aluminum Sheet Products segment produces mill finished and coated aluminum sheet serving the broader residential building products markets and transportation sector. This segment consists of an aluminum mini-mill operation and three aluminum sheet finishing operations. Aluminum sheet finishing capabilities include reducing reroll coil (hot-rolled aluminum sheet) to specific gauge, annealing, slitting and custom coating. Customer end-use applications of the finished sheet include residential window screens, patio doors, exterior home trim, siding, fascias, roof edgings, soffits, downspouts, and gutters. A secondary market includes transportation (truck trailer, RV and mobile home). The company’s aluminum mini-mill can produce approximately 360 million annualized finished pounds using an in-line casting process. The mini-mill converts aluminum scrap to reroll through melting, continuous casting, and in-line hot rolling processes. It also has scrap shredding and blending capabilities, as well as specialized equipment, such as two rotary barrel melting furnaces, a delacquering furnace and a dross recovery system that allows the mini-mill to utilize a range of scrap while improving raw material yields. Acquisitions In December 2012, the company acquired the assets of Alumco Inc. and its subsidiaries, an aluminum screen manufacturer, which allows the company to expand the scope of its fenestration business to include screens for vinyl window and door manufacturers and to expand its geographic reach throughout the United States. Sales, Marketing, and Distribution The company sells its products to customers in various countries. It has sales representatives whose territories essentially cover the United States, Canada, Europe, and to a lesser extent, the Middle East, Latin and South America, Australia, and Asia. The company serves a primary customer base in North America, and also serves customers in international markets through its operating plants in the United Kingdom and Germany, as well as through sales and marketing efforts in other countries. Seasonal Nature of Business The company’s business is impacted by seasonality. Its operating income tends to decline during this period of lower sales because a high percentage of its operating expenses are fixed overhead. The company typically experiences more favorable results in the third and fourth quarters of the fiscal year ended October 31, 2013. Service Marks, Trademarks, Trade Names, and Patents The company’s federally registered trademarks or service marks include QUANEX, QUANEX and design, Q design, TRUSEAL TECHNOLOGIES, DURASEAL, DURALITE, SOLARGAIN EDGE TAPE, ENVIROSEALED WINDOWS, EDGETHERM, COLONIAL CRAFT, EDGETECH, ECOBLEND, SUPER SPACER, TSS, TRUE WARM, E & Design, QUIET EDGE, HEALTH SMART WINDOWS, ENERGY WISE WINDOWS, DESI-ROPE, 360 and design, INTELLICLIP, SUSTAINAVIEW, MIKRON, MIKRONWOOD, MIKRONBLEND, MIKRON BLEND and design, ENERGYCORE, FUSION INSULATED SYSTEM, AIRCELL, SUPERCOAT, SUPERCAP, STYLELOCK, STYLELOCK and design, K2 MIKRON and design, HOMESHIELD, HOMESHIELD and design, and STORM SEAL. The trade name Nichols Aluminum is used in connection with the sale of the company’s aluminum mill sheet products. The company considers the following marks, design marks and associated trade names to be valuable in the conduct of its business: HOMESHIELD, COLONIAL CRAFT, TRUSEAL TECHNOLOGIES, EDGETECH, MIKRON, and QUANEX. Competition Primary competitors of the company’s Engineered Products business include Royal Group; Veka; Deceuninck; Vision Extrusions; GED Integrated Solutions; Technoform; Swiss Spacer; Thermix; Rite Screen; Allmetal; and Endura. Its Aluminum Sheet Products business competes with small to large aluminum sheet manufacturers, such as Alcoa, Aleris, Jupiter, and JW Aluminum.

 

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