Retailer of plumbing, heating, water, and air innovations, Reliance Worldwide [ASX:RWC] is releasing two new product ranges in the Americas, casting its net over a wider commercial and residential customer base, boosting global growth.
The company also provided an update on the company’s manufacturing operations both in the US and Australia where it’s working to reconfigure its business.
The company’s shares were worth $3.43 at the time of writing, having risen very little after the update.
Year-to-date, RWC shares have increased 16%, despite a short fall of 4.5% in the month:
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Reliance Worldwide product launch
Reliance has announced two new product ranges will be hitting the Americas, SharkBite Max and PEX-a-pipe.
SharkBite Max push-to-connect fittings are to be launched in the Americas today, having been re-engineered to deliver the same reliability as the Relaince’s first-generation fittings with stronger and easier installation enhancements.
SharkBite fittings will be rolled out slowly over the next 15 months in both the US and Canada, and the company has been granted various patents for the range.
RWC will also be launching PEX-a-pipe, which comes with a full range of expansion fittings. This will also be launched in the Americas, and the company believes its portfolio now caters holistically to the professional plumber, with the broadest range of pipe and fitting systems in the Americas.
Reliance believes the expansion fittings will allow RWC to extend its repair and maintenance end-user focus, supply new commercial construction and residential construction markets, and ultimately broaden its scope and cast a wider net over customer base.
Manufacturing update and changes
Taking its SharkBite fittings to the US means Reliance will have to reshuffle its Australian manufacturing operations, which are already being reconfigured to support demand in the Asia-Pacific region.
The company said it will be developing resources and expertise with more focus on chasing growth within the Australian and Asia-Pacific regions.
With Reliance’s main facilities based in Melbourne, the company will continue to boost manufacturing activities to continue supplying the Americas with the new product range.
Certain components for the fittings will be sent to the company’s US facility for final assembly and distribution.
Australia will be continuing its usual business in manufacturing vales and related development for Reliance, with the company planning to be the first to introduce free brass fittings in Australia and New Zealand via a vertically integrated value chain.
RWC’s Chief Executive, Heath Sharp, said today’s announcements are significant milestones for the company. He commented:
‘RWC continues to drive innovation in the plumbing industry by creating products that make installations smoother, quicker, and long-lasting.
‘Our investment in the new PEX-a manufacturing facility in Cullman is an exciting development. We have been able to fully leverage RWC’s global expertise, with our existing PEX-a pipe technology in Spain guiding the development of the manufacturing technology we have installed in the US.
‘The changes to Australia’s manufacturing operations are significant. With all SharkBite Max fitting assembly operations transferring to the US, along with plastic component manufacturing, we have been able to reconfigure our manufacturing operations with a greater focus on the Australian market and the APAC region. Importantly, Australia will remain RWC’s brass manufacturing centre of excellence and will support our global brass product requirements.’
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