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Sale of Hedwin Division Blow Molding Operations

To: All Hedwin Division Customers

From: The Hedwin Division of Zacros America

Subject: Sale of Hedwin Division Blow Molding Operations

Dear Valued Customer,

Today, the Hedwin Division of Zacros America sold its blow molding operation to Anchor Plastics Limited located in Montreal, Canada and has ceased manufacturing blow molded products.

Anchor Plastics Limited is an established blow molder of containers for use in the consumer, food and industrial markets that has been serving Canada and North America for over 30 years. They have a reputation for being customer centric and quality orientated which is why they have been able to continuously grow their business year-over-year.

The Hedwin Division searched for a blow molder with capabilities to manufacture our Hedpak® and WinPak® products with better efficiency, improved product quality and with responsive customer service regarding order fulfillment. Anchor Plastics is this company.

Anchor Plastics will relocate the blow molding assets acquired from the Hedwin Division into their Montreal, Canada facility by early December 2015. Relocation of these assets will begin this week in Baltimore, Maryland.

Prior to ceasing our blow molding operation, the Hedwin Division worked closely with Anchor Plastics to produce increased inventory of high turnover Hedpak® and Winpak® products so Anchor Plastics would be able to quickly fulfill orders.

For the foreseeable future, Anchor Plastics will warehouse Hedpak® and Winpak® products, as well as, other products it manufactures in the Baltimore, Maryland area. Their goal is to earn your business with fast order fulfillment and very responsive customer service.

Effective immediately, all orders for Hedpak® and Winpak® products are to be sent to:

Anchor Plastics Ltd
730 St-Etienne
L’Assomption, Quebec Canada J5W 1Z1
Email: [email protected]
Telephone Number 800-964-9771
Contact: Mr. Angy Potvin – CEO/President

Upon receipt, orders received by the Hedwin Division from our customers for HedPak® and WinPak® products will be forwarded to Anchor Plastics for fulfillment.

On behalf of all Hedwin Division of Zacros America employees, I thank you for your continued support to purchase our CUBITAINER®, Fujitainer® and Liner product lines. We will earn your business … every day!

Thank You,
Richard Broo
President/CEO

*CUBITAINER® is a registered trademark of Zacros America
*Fujitainer® is a registered trademark of Zacros America
*HedPak® is a registered trademark of Anchor Plastics Ltd
*WinPak® is a registered trademark of Anchor Plastics Ltd


New Contact Information for Zacros Hedwin Division Customer Service Group!

Hedwin Newark, Delaware FacilityDear Valued Customer:

The Hedwin Division of Zacros America is thrilled to be moving into a larger, more modern production facility in Newark, Delaware!

Our location in Baltimore, Maryland has served us well for almost seventy years, but we have far outgrown the space and infrastructure.

Currently our move plans include upgrades and refurbishment to production lines as they are taken out of service and moved. The complete move plan will be communicated in the coming weeks, however at this time we will continue to ship out of our Baltimore, Maryland facility until further notice.

As of December 1st, our Customer Service Team will be the first internal group that will be fully operational out of our Newark offices. An updated listing of their NEW phone numbers is below for your convenience. A full team directory with photos and full contact information is attached.

Our NEW toll free number in Delaware is 1-800-890-1183 (extension noted below, last 4 digits), or dial direct.

David Hill: 302.391.2246
Pat Lemanis: 302.391.2233
Teresa Rampersad: 302.391.2224 (replacing Nadege Shepherd )
Shea Watson: 302.391.2218 (replacing Brandon Neal )
Ken Snell: 302.391.2223
Valerie Brown: 775.677.4647 x10 (number unchanged)

Please look for additional information about our move in our upcoming quarterly newsletter and on our website at www.hedwin.com/latest-news. As always, you are welcome to contact your Customer Service Representative for more information.

All the Best,

Kenneth Snell
Customer Service Manager | Zacros America, Hedwin Division

p: 302.391.2223 | [email protected] | www.hedwin.com


October 1st 2015 Price Decrease Letter

Due to a decrease in the price of polyethylene raw materials, the Hedwin Division of Zacros America will implement a price decrease of five cents per pound for our CUBITAINER®, Liner and Blow Molded product lines, effective October 1, 2015.

All Hedwin Division of Zacros America customers that are not under a sales agreement will receive this price decrease effective October 1, 2015. If you have a quarterly or bi-annual sales agreement with the Hedwin Division of Zacros America this particular price decrease will be implemented per the terms of our negotiated agreement.

Orders placed upon us prior to October 1, 2015 will be honored at pricing in effect the day the order was received. Orders placed upon us on October 1, 2015 or thereafter will be priced per this announced price decrease.

Please contact your Hedwin Division Customer Service Representative at 800.638.1012 should you have any questions regarding this price decrease announcement.

On behalf of everyone at the Hedwin Division, I thank you for your continued business and for the right to earn it …. every day.

Sincerely,

Richard F. Broo

President/CEO


$100 Charge for Non-Distributor Drop Shipment Requests

Valued Customer,

Effective July 30, 2015, the Hedwin Division of Zacros America will implement a $100 charge for all drop-shipments on orders placed after this date. All drop-shipments must be for at least minimum order quantity (MOQ) associated with each product to be drop-shipped.

Over the past two years the number of customer requests for drop shipments has significantly increased. As such, the resources devoted to fulfilling these requests by the Hedwin Division logistics team have increased as well.

Should you request the Hedwin Division to drop ship product(s) to your customer, a $100 fee will be charged as a separate line item on your invoice. The fee will be incurred once for each sales order with a unique drop-ship address, regardless of the number of items ordered.

If the Hedwin Division is unable to drop-ship your full order and you request drop shipment of the remaining partial order, we will still bill you $100. However, the Hedwin Division will absorb the drop shipment cost for the balance of the order when it is shipped to your customer.

We understand that drop shipments are a required part of doing business with our customers. However, there is a cost associated with executing drop shipments whether these costs are generated from your or our facility.

On behalf of every employee of the Hedwin Division of Zacros America…Thank you for your business. We pledge to earn it …… every day!

Sincerely
Richard F. Broo
President/CEO


July 30, 2015 Price Increase Announcement

Valued Customer,

Effective July 30, 2015, The Hedwin Division of Zacros America will implement a $0.05 per pound price increase for our CUBITAINER®, Liner and Blow Molded product lines. This price increase is driven by increases in polyethylene raw materials purchased from our raw material suppliers.

If you under a current Sales Agreement with the Hedwin Division of Zacros America this particular price increase will be implemented per the terms of our negotiated agreement. In that case, this letter is being sent to you for informational purposes only. All other Hedwin Division of Zacros America customers that are not under a Sales Agreement will receive this price increase effective July 30, 2015.

Orders placed upon us prior to July 30, 2015 and that will ship on or before that date, will be honored at pre-July 30th price increase prices. Orders placed upon us on July 30th and thereafter will be priced per the July 30th price increase.

Please contact your Hedwin Division Customer Service Representative for details regarding particular product pricing related to this price increase announcement.

Should our polyethylene raw material suppliers rescind their price increase, we will do the same for you.

On behalf of everyone at the Hedwin Division, I thank you for your continued business and for the right to earn it …. every day.

Sincerely,
Richard F. Broo
President/CEO