Mr. Martin Perez reports

MATTR COMMENCES PRODUCTION AT TWO NEW COMPOSITE TECHNOLOGIES FACILITIES, ON TIME AND ON BUDGET

Mattr Corp. has completed the establishment of two new state-of-the-art Composite Technologies manufacturing sites.

In April, 2023, the company announced its intent to direct approximately $60-million of growth capital to establish an additional production facility for its Flexpipe business, located in Rockwall, Tex., and an additional production facility for its Xerxes business, located in Blythewood, S.C. Each of these new sites was substantially completed during the first half of 2024, with both locations commencing production early in July, consistent with original budget and schedule.

These facilities will be initially populated with approximately 50 per cent of the production equipment that their footprints are ultimately capable of accommodating and are expected to approach normalized levels of production in 2026. In combination, the company continues to believe that these facilities, with initial equipment installations, have the potential to enable over $100-million of incremental annual revenue-generating capacity as they approach efficient utilization levels. The company retains the option of adding further production equipment to each site in a phased manner in future years.

"I am pleased by our teams' ability to execute these major growth capital programs on time and on budget, all while continuing to meet existing production commitments," said Martin Perez, group president of Mattr's Composite Technologies segment. "These new facilities will enable us to keep up with the growing demand for our products and to serve our customers even more efficiently. The added scale and modernized footprint is expected to contribute to margin expansion for the Composite Technologies segment over time."

In addition to these two new facilities, the company's total capital spend in 2023 and guidance for 2024 included a variety of incremental modernization, expansion and optimization initiatives. Within the Composites Technologies segment, among these investments is a dedicated, fully automated stormwater chamber production line, co-located within the Rockwall, Tex., facility; expansion of Xerxes production capacity within the company's existing Edmonton site; and modernization of the company's existing Xerxes production site in Seguin, Tex. Collectively, these additional enhancements to the segment's production footprint are expected to further improve total output, elevate efficiency and contribute to higher segment margins over time.

The company continues to progress on the relocation, bifurcation and modernization of its Connection Technologies segment North American production footprint, with two new production sites in Fairfield, Ohio, and Vaughan, Ont., still expected to be completed by mid-2025.

About Mattr Corp.

Mattr is a growth-oriented, global material technology company broadly serving critical infrastructure markets, including transportation, communication, water management, energy and electrification. The company operates through a network of fixed manufacturing acilities. Its two business segments, Composite Technologies and Connection Technologies, enable responsible renewal and enhancement of critical infrastructure while lowering risk.

The Composite Technologies segment comprises two businesses: Flexpipe and Xerxes. The Flexpipe business manufactures premium flexible fibreglass reinforced composite pipe used for oil and gas gathering and water disposal lines, carbon dioxide injection lines and other applications requiring corrosion resistance and high-pressure capabilities. The Xerxes business manufactures market-leading fibreglass reinforced plastic underground storage tanks, primarily used within the retail fuel, stormwater and waste water markets.

The Connection Technologies segment comprises two businesses: DSG-Canusa and Shawflex. The DSG-Canusa business manufactures high-quality heat and cold shrink tubing products and accessories for automotive, communications, electrical utility, electronic and energy markets. The Shawflex business manufactures highly specified custom wire and cable products and assemblies for complex applications and extreme environments.