Strategic Materials Revenue and Competitors

Strategic Materials provides all of the major glass container manufacturers with substantial amounts of cullet for use in their furnaces. We sell them flint (clear), amber (brown), and green cullet and they predominately take a -5/8 product. Contaminants may cause a defect in the new bottle. Customers rely on Strategic to employ the latest technology to ensure high quality. Annual production of glass containers has consistently averaged approximately 11 million tons since 1995. The glass container market has 55 manufacturing facilities. Beer containers, a very stable end-market, account for over 50% of all glass containers produced annually in the US. Consumers perceive glass to be a premium package and that glass-packaged products taste better than products in cans or plastic containers. As a result, beer manufacturers prefer glass in order to sell their brand as a premium, high-quality beer.