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Andersen Corporation: A Profile

BAYPORT, Minn. (July 7, 2008) — From its founding as a lumberyard in a Wisconsin river town, to its rise as the market leader in the window and door industry, Andersen Corporation is a company where “solution” has new meaning.  The Andersen story is one of change and innovation inspired by customer needs, from the company founder’s first solution to improve window assembly, to its most recent breakthroughs in high-performance technology.

Today, the Andersen® brand is the most recognized and most used brand in the fenestration market. Builders, remodelers, architects, retailers and homeowners know it as the brand against which all others are measured.  Its commitment to product excellence and customer satisfaction, combined with commitment to environmental stewardship, employee welfare and corporate citizenship, have built Andersen Corporation into the foremost manufacturer of wood windows and doors.

Facts
The privately-owned business was founded in 1903 by Danish immigrant Hans Andersen and his family in Hudson, Wisconsin, where logs arrived via the St. Croix River. Andersen Corporation, headquartered in Bayport, Minnesota, is now an international enterprise employing more than 14,000 people in locations across North America.  With 16 manufacturing facilities, Andersen annually manufactures more than 12 million wood windows, patio doors and storm doors, with sales worldwide.

Products
Wood-clad products:
Andersen offers two distinct window and patio door portfolios – the Andersen® 400 Series and 200 Series. The 400 Series is the company’s classic product line, offering a broad array of the highest-performing products and accessories.

The 200 Series concentrates on the most popular sizes, styles and options in a more affordable offering. Both lines are built, backed and serviced with the quality and care customers expect from Andersen.  Both lines offer the durability, performance and beauty of the Perma-Shield® system.

Fibrex® material products:
In 1994, Andersen introduced Fibrex® material, the major component of its replacement windows.  Fibrex material is a patented, revolutionary structural composite that blends the very best attributes of thermoplastics and bio-fibers. A bio-fiber is a natural fiber coming from a plant, such as wood. It is noted for its high performance, durability and unlimited custom applications. Fibrex material is featured in the Renewal by Andersen replacement products as well as components of Andersen 400® Series and 200 Series products. Fibrex material has the strength and durability of wood, plus the maintenance ease of vinyl. The Crystal White™ railing product utilizes vinyl and wood fiber, with an acrylic capstock for long-lasting color.

EMCO Storm Doors
In May 2001, Andersen acquired EMCO, now one of the industry-leading manufacturer and distributor of storm doors and related accessories. The addition of the EMCO product line marked Andersen Corporation’s entrance into the storm door product category.  The products are now sold under the Andersen® and EMCO® brands, available at a number of U.S. retailers, including The Home Depot.  EMCO is the first and only manufacturer to offer thermal storm doors with insulated, energy-efficient, double-pane glass.

KML custom architectural windows and doors
In October 2001, Andersen acquired KML Windows Inc. (KML), a London, Ontario-based manufacturer of custom architectural window and door products for the North American residential and light commercial market segments. KML manufactures high quality custom windows and doors in shapes, sizes, under the brand name Andersen Architectural Series.  We design custom products for estate homes and serve the estate and commercial market segments with options and performance features not readily available from most window and door manufacturers.

Eagle Window & Door
In May 2005, Andersen acquired Eagle Window & Door, a Dubuque, Iowa-based manufacturer of aluminum clad wood windows, patio doors and entry doors for high-end residential and commercial construction projects, furthering Andersen’s capability to serve customers in this segment of the market.  With 50 colors and nine different wood species available, Eagle builds custom windows that are made to order.

Silver Line Building Products
In June 2006, Andersen acquired Silver Line Building Products Corporation, the largest manufacturer of vinyl windows and patio doors in North America.  Based in New Jersey, Silver Line has manufacturing facilities in Massachusetts, North Carolina, Georgia, Ohio, Texas and Illinois.  Adding this product line to the company’s portfolio has enabled Andersen to provide windows and doors for virtually any new construction or home improvement project at any price point.

Market Segments and Customers
New-Residential Construction — Builders and Contractors
Andersen is the category leader for clad windows and doors in this market segment.  Products range from custom one-of-a-kind windows to those mass-produced to meet specific builder requirements.  Styles include the flagship casement line, tilt-wash double-hung windows, Frenchwood® patio doors and customized architectural windows or doors.

Home Improvement — Professional Remodelers and Do-It-Yourselfers
Installer-friendly products are building the Andersen position in this market. Replacement of windows in aging houses provides Andersen with an opportunity to bring high quality, high performance (insulated glass and weather-tight construction) and window design integrity to older homes. EMCO storm doors also provide homeowners with a home improvement solution in a thermal storm door with insulated, energy-efficient, double-pane glass.

Replacement Services — Homeowner
Renewal by Andersen targets “do it for me” homeowners seeking simple, reliable solutions for replacing their old, problem windows with low-maintenance, energy-efficient, custom-made windows made from Fibrex® material. Renewal by Andersen® features a start-to-finish replacement process, from measurement and manufacturing of custom windows, to installation and cleanup. The company warranties both its windows and its work and offers complimentary in-home consultation.  Launched in 1995, there are nearly 100 Renewal by Andersen retail locations across the U.S.

Commercial — Architects and Building Owners
Andersen wood-clad windows and doors have great application in light commercial building such as multi-family projects, senior housing and educational facilities. Andersen provides architects, specifiers and contractors access to local representatives and corporate staff who offer project consultation and expert technical assistance as well as unique design tools.

International — Large Building Project Architects and Building Owners
Direct sales of Andersen products to large projects abroad is a growing business. Andersen has built market successes in the United Kingdom, Ireland, Portugal, Spain, Malaysia, Philippines, Russia, Azerbaijan, Turkey, Japan, Korea, China, Taiwan, Mexico, Brazil, Honduras, Guatemala and the Caribbean.

Research and Technology
In conjunction with its wholly owned subsidiary, Aspen Research Corporation, the company’s research and technology activities have three primary areas of focus:  1) Product life cycle management; 2) Composite materials development, and 3) Elimination and reclamation of waste.

Manufacturing
The Andersen manufacturing facility in Bayport, Minn., is a recognized world-class leader. Andersen has been on the leading edge of mass production and customization technologies since it first began mass producing back in 1904, nine years before Henry Ford put the automobile on an assembly line. A new facility opened in Menomonie, Wis., in 2000 to assemble and distribute Andersen products. Andersen’s assemble-to-order facility that makes windows with Fibrex® material opened in Cottage Grove, Minn., in 1999 and in 2004 a Fibrex® extrusion plant was opened in North Branch, Minn., to supply components for many of Andersen’s product lines. EMCO has manufacturing facilities in Des Moines, Iowa, and Luray, Virginia. KML manufactures specialty windows in Strathroy and London, Ontario. Dashwood Industries has the company’s manufacturing plant for roof window products in Centralia, Ontario. Eagle Window & Door manufactures its products in Dubuque, Iowa. Silver Line has manufacturing facilities in Massachusetts, North Carolina, Georgia, Ohio, Texas and Illinois.

Distribution
In 1999, Andersen acquired Morgan Products Ltd., one of the largest distributors of millwork products in the U.S. and the largest distributor of Andersen windows. Today, company-owned distribution under the name Andersen Logistics, Inc., is an integrated part of Andersen’s customer-focused operations. The company continues its commitment to operate with a combination of company-owned and independent distributors. More than 1,400 dealers have substantial commitments of sales and services for Andersen products.

Commitment to the Environment
Andersen is the only manufacturer in the industry to receive certification (1995, 1997 and 2000) from Green Seal, the independent U.S. environmental labeling organization. It was one of the first window manufacturers in the Energy Star® Program, a public/private initiative spearheaded by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE). Honors include the 1999 Energy Star®  National Window Manufacturer Partner of the Year award from DOE and the prestigious Stars of Energy Efficiency award from the Alliance to Save Energy in 1997.

Andersen won the Minnesota Governor’s Award for Excellence in Waste and Pollution Prevention in 1997. In 2000, Andersen was accepted into the EPA's National Environmental Achievement Track program for companies that exhibit superior environmental accomplishments and commitments to future environmental improvement. After completing the three-year program in 2003, Andersen renewed its commitment for another three years through 2006.

In 2006 Andersen Corporation was awarded an XL Permit (which stand for eXcellence in Leadership) by the Minnesota Pollution Control Agency.  This permit is granted to manufacturers that demonstrate superior environmental performance and allows for greater regulatory flexibility.  Andersen is the first company in Minnesota to be granted this permit and the 13th in the United States.  Ultimately the process for being granted the permit ensures improved environmental performance, greater public understanding of the manufacturing facility; the removal of pollution prevention barriers; and the ability to simplify the reporting to regulators.

In 2007 Andersen won the Minnesota Environmental Award for their new steam generating facility at the Bayport, Minnesota manufacturing plant.  The award is given for outstanding partnerships between business, government and environmental groups.  The steam generating facility was commissioned by the company in 2007 and uses wood byproducts from Andersen’s manufacturing process as the plant’s energy source.  It is a state-of-the-art facility that has captured attention for its innovative approaches to heat and cool the 3 million square foot manufacturing plant.

Corporate Citizenship
Dedicated to giving back to the communities where Andersen people live, work and do business, the company has a long history of philanthropy. Today’s corporate citizenship programs focus on supporting shelter, architecture and design, the building industry and community. In 2007 Andersen completed its 100th home in partnership with Habitat for Humanity.  Launched in 2003, Andersen committed to fund and build 100 Habitat homes to commemorate the company’s 100-year milestone in the building industry.  Over the next five years, Andersen would build Habitat homes in 25 communities across North America.  The Andersen-related foundations donated the $5 million to fund the homes and Andersen employees logged more than 50,000 volunteer hours building them.  The final home was completed in November of 2007 in the company’s headquarters in Bayport, MN. 

The Andersen Corporate Foundation make donations to hundreds of non-profit organizations that provide affordable housing, health and safety, education and youth development, human services and civic activities in the communities in which we do business.

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“Andersen” is a registered trademark of Andersen Corporation. ©2008 Andersen Corporation. All rights reserved.

“Energy Star” is a registered trademark of the U.S. Environmental Protection Agency.


July, 2008

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