- Release Date: 29/07/14 17:08
- Summary: GENERAL: TEN: Tenon Increases Market Presence in Australia
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TEN 29/07/2014 17:08 GENERAL REL: 1708 HRS Tenon Limited GENERAL: TEN: Tenon Increases Market Presence in Australia TENON INCREASES MARKET PRESENCE IN AUSTRALIA 29 July 2014 - Tenon announced today that it will be expanding its business in Australia by entering into a new agreement with Masters Home Improvement ("Masters") to supply and service a full range of interior moulding and millwork products to all of Masters' current and future stores, Australia wide. Masters is a joint venture between Woolworths and Lowe's Home improvement ("Lowe's"), currently with 49 large-format home centre stores across the country, and with an aspiration to grow this to 150 stores. To conduct this new business, Tenon has established Empire Mouldings Australia as a new operation (alongside its existing Tenon Australia operation that was established in 2012), to provide Tenon's unique proprietary service model and extensive product range to Masters. Empire Mouldings Australia will replicate the service offering provided to Lowe's in North America by Tenon's 100% US-based subsidiary - The Empire Company. Product will be supplied primarily from Tenon's large clearwood manufacturing site in Taupo (NZ) and from its Tenon Australia manufacturing operation in Victoria, with supplemental product sourced from Tenon's global supply chain as required. Tony Johnston, Tenon's Chief Operating Officer, said, "We are very pleased to be offered the opportunity to support Masters in the Australian home improvement and building materials retailing sector. We are excited by the prospect of growing with Masters, and replicating the successful model we have developed in the US over the past 20 years, as Masters expands its market share in Australia. This is an important step in Tenon's market development, demonstrating the potential of our fully integrated manufacturing and full- service distribution business platform to build long term value for our customers and Tenon." Murray Johnston, Masters Commercial General Manager, commented, "Masters is pleased to bring on Tenon and Empire Mouldings Australia to help us grow our share of the wood products market in Australia. Tenon's proven track record in this regard in the USA gives us confidence that we will enjoy further success as we continue to roll out new stores throughout Australia." Due to the initial establishment and set-up costs associated with this expansion, a break-even result for fiscal 2015 for this new venture is anticipated, with a positive contribution to Tenon's Group results expected thereafter. ENDS End CA:00253237 For:TEN Type:GENERAL Time:2014-07-29 17:08:46
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