The minimum amount covered by this commitment is approximately $75 million during the first five years of the agreement. The new agreement supersedes existing supply agreements between the two companies. Under this agreement, Globamatrix will be the exclusive, worldwide distributor of these Southwall solar control products for retrofit applications to the automotive and residential and commercial architectural glass markets. Globamatrix will continue to sell these products under its V-Kool trademark.
"This new contract represents a significant increase in anticipated revenues from Globamatrix over the next ten years compared to our previous business with Globamatrix," said Thomas G. Hood, president and CEO of Southwall. "Now that our new production machines, PM 6 in Tempe and PM 8 and PM 9 at our new Dresden plant, have reached commercial production levels, we believe we are in a position to supply increasing amounts of the products that our business partners at Globamatrix require," added Hood.
"This agreement builds upon an already strong and proven relationship between the two companies that dates back to 1993 when the Southwall manufactured V-Kool product was first introduced to the world," noted Andrew Kwan, director of Globamatrix. "Through the years, the demand for this product has grown steadily. V-Kool is now sold exclusively by Globamatrix in more than 500 locations in over 20 countries worldwide."