SOURCE: Synalloy Corporation

March 07, 2006 12:49 ET

USCPSC Approves New Flammability Standards for July 2007

SPARTANBURG, SC -- (MARKET WIRE) -- March 7, 2006 -- Synalloy Corporation (NASDAQ: SYNL), a producer of specialty chemicals, pigments, stainless steel pipe, vessels and process equipment, announced that on February 16, 2006, the U.S. Consumer Products Safety Commission ("CPSC") released its final approval for new flammability standards for mattresses. These standards will be implemented on July 1, 2007. The CPSC concluded that 240-270 deaths and 1150-1330 injuries will be prevented annually. Their in-depth study of Fire Retardant chemicals, including components used in the Synalloy products, indicates no appreciable risk of health effects and they project that the benefits will substantially outweigh the costs of implementation.

In April of 2004, Synalloy Corporation announced a Joint Development Agreement (the "Agreement") between The Felters Group of Spartanburg, SC, and the Company to produce Fire Retardants aimed at meeting new proposed Federal requirements for the flammability of mattresses and bedding. The Agreement with Felters also includes applications for anticipated new regulations for upholstery, appliances and transportation applications.

Since that time, the Company has been actively engaged in the development and promotion of these products. The products employ Synalloy's chemistry in various forms with a variety of substrates including woven, knitted and non-woven fabrics designed for virtually all components of bedding.

On February 22, 2006, Leggett & Platt and The Felters Group announced that they have entered into a Strategic Alliance to manufacture and distribute the Fire Retardant products. These products were jointly developed by the Felters/Synalloy Partnership as the Sleep-Safe™ chemistries. Leggett & Platt will market the products under the Sleep-Safe High Loft® and Sleep-Safe Duplex® product lines. Either product can be used as a top panel or a border panel.

Leggett & Platt has a preeminent position as a supplier of components for mattress manufacture. Its distribution system and reputation within the industry is highly respected. Felters and Synalloy personnel showed the Sleep-Safe High Loft® and Sleep-Safe Duplex® products at The Felters' booth during the IPSA Show directed at the mattress and bedding industry in San Antonio, Texas, in the first week in March. Over 20 companies are now engaged in testing the products.

It is expected that mattress manufacturers will begin to ramp up their production late in 2006 to assure compliance with the implementation date of July 1, 2007.

For more information about Synalloy Corporation, please visit our web site at www.synalloy.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The statements contained in this release that are not historical facts may be forward looking statements. The forward-looking statements are subject to certain risks and uncertainties, including without limitation those identified below, which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The following factors could cause actual results to differ materially from historical results or those anticipated: adverse economic conditions, the impact of competitive products and pricing, product demand and acceptance risks, raw material and other increased costs, customer delays or difficulties in the production of products, and other risks detailed from time to time in Synalloy's Securities and Exchange Commission filings. The preliminary earnings shown herein are forward-looking statements and are subject to change for any adjustments resulting from the auditing process. Synalloy Corporation assumes no obligation to update the information included in this release.

Contact Information

  • Contact:
    Greg Bowie
    (864) 596-1535