AGR Inc., a global leader in the contract manufacturing & distribution of diamond tools and adhesives, announced today that subsidiary AGR Stone and Tools USA, Inc. (AGR USA) has won its first open bid contract since the acquisition of the company was completed at the end of May.
Rock Rutherford, President and CEO of both AGR and AGR USA, commented, “We are extremely pleased that our name recognition and quality have started to receive the attention of cost bidders,” Mr. Rutherford continued, “This initial customer order consists of $230,000 of asphalt blades which are to be delivered over the next ten months. This one contract is equal to over 40% of our entire annual gross revenue for 2009. We really are beginning to see the results of marketing efforts and expect to be seeing more bid contracts coming our way in the near future.”
Based in Conroe, TX, AGR specializes in producing consumable tools for the natural stone, engineered stone, concrete and masonry industries. AGR has nine contract factories in China that produce over 700 products for the diamond tool and construction industries. Primarily, AGR’s customers are located in Europe and Asia where AGR has maintains a nice size market share. The products were unable to be marketed in the United States due to contractual obligations previously. Recently the contracts that prohibited marketing in North America have expired and this has opened the doors for AGR to aggressively start pursuing North American customers. The North American diamond tool market is estimated to generate over $4 billion annually.
Since AGR began directing marketing efforts in North America in July of 2009, they have expanded their distribution network to service 31 markets across the US and Canada, approximately 25% of the United States. The goal of complete coverage is targeted by AGR over the next two years. With regards to the immediate future of their marketing strategy, Mr. Rutherford stated, “(the) US diamond tool market is extensive and we are now aggressively developing our dealership network focusing on the large key markets of Southern California, New York, and Florida. We expect to have dealers selected for those areas later this year.”
More information on AGR Inc. and their subsidiaries is available on the AGR corporate website at www.agrtools.com.