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RKR/Hesse Coatings Ltd. is a manufacturer and distributor of high quality, high technology wood finishes for use by wood product manufacturers. The company has an active new product development process which yields innovative products, and works closely with its customers to design custom formulations to meet their requirements. The product line is composed of a long list of formulations unique to the Company. RKR Coatings Ltd. is able to satisfy its customer's needs through its active new product development processes, its consultative selling approach, and high level of quality control. It focuses technological competence on providing quality wood finishing products for a number of industries. RKR/Hesse has a dominant market position throughout Canada after many years of sales growth. It has a second actively growing market in northern U.S., which it entered in 1996. The management team has many years of experience in the coatings industry. An Important trend in the coatings industry has been the emergence of public concerns and North American legislations to reduce emmissions of Volatile Organic Compounds (VOCs), that results from the application process of all solventborne products. RKR/Hesse welcomes the changes that this increased environmental awareness has brought forth in the sector, as their current leadership and proven technologies is setting the pace in this self regulated industry, thus increasing the demand for environmentally friendly products. RKR/Hesse believes that everyone, including industry, must do their part to preserve a safe and healthy environment. Our "green" products exceed federal and provincial guidelines for acceptable levels of hazardous air pollutants. Our companies products have a definite competitive advantage in this capacity, due to the timely initiatives undertaken by our technical personnel over the last several years. RKR/Hesse voluntarily, during that period, assumed responsibility for the environmental impact of our products. One of these projects is our ongoing development of HAPS compliant coatings such as waterborne and high solids (lower solvent ratio) coatings. In the former case, waterborne products offer several advantages to their users over traditional solventborne products. In addition to low VOC emissions, these include safer workplaces, minimized fire hazards, the ability to use plain water as a reducing or cleaning agent, in addition to more convenient disposal of waste materials. As for the latter, RKR/Hesse's formulations are typically of higher solid content and thus emit fewer VOCs when applied.