The company manufactures products using raw materials including steel, aluminum, polystyrene, and other plastic resins, with steel being the primary input sourced almost entirely from large domestic suppliers. Contracts with metal fabrication customers incorporate steel cost pass-through provisions to address price volatility. Scrap material generated during manufacturing is sold in the scrap market, although declines in scrap prices can affect profitability.
The Plastics segment produces PVC pipe at facilities in North Dakota and Arizona through Northern Pipe Products, Inc. and Vinyltech Corporation, both acquired by Otter Tail Corporation. The PVC pipe is manufactured by extruding a blend of PVC resin compound and other materials. This PVC pipe primarily serves municipal water infrastructure markets, with smaller portions supplied for residential, commercial, and rural water applications.
Otter Tail's Comment on Supply Chain
The company manufactures products using raw materials including steel, aluminum, polystyrene, and other plastic resins, with steel being the primary input sourced almost entirely from large domestic suppliers. Contracts with metal fabrication customers incorporate steel cost pass-through provisions to address price volatility. Scrap material generated during manufacturing is sold in the scrap market, although declines in scrap prices can affect profitability.
The Plastics segment produces PVC pipe at facilities in North Dakota and Arizona through Northern Pipe Products, Inc. and Vinyltech Corporation, both acquired by Otter Tail Corporation. The PVC pipe is manufactured by extruding a blend of PVC resin compound and other materials. This PVC pipe primarily serves municipal water infrastructure markets, with smaller portions supplied for residential, commercial, and rural water applications.
Sources:
Otter Tail Corporation's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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