Monday, February 07, 2011

To Our Valued Partners:

As you are a valued customer I wanted to update you on the economic circumstances that Quality Steel currently faces in our raw materials market.  Since January 1, 2011 we have received very abnormal increases on the following:

• Steel
• Paint
• Brass
• Transportation (raw materials and finished goods)

Long range forecast for these raw materials is relatively unknown, but the short range impact on our input costs is too great to stand by passively.  We will be increasing our tank prices in order to recuperate these costs. 

It has been a tumultuous ride for tank manufacturers over the last several years.  The housing market crash has had an impact on all of us.  We have observed other tank manufacturers go out of business, declare chapter 11 bankruptcy, and close manufacturing facilities in an effort to consolidate their operations and become more efficient.

Quality Steel however made a pledge to become more efficient by taking a different approach.  We have:

• Continued to keep lead times at 2-3 weeks by investing in raw materials inventory.
• Continued to invest in our employees so they may better serve your needs.
• Reinvested capital to improve our product and efficiencies through the use of advanced technologies.
• Made a commitment to our customers to continue to invest in technologies that will make QSC the best and most stable tank manufacturer in the industry.

Quality Steel price increases will go into effect on March 1, 2011.  All orders placed for current delivery prior to the end of the business day on 2/28/11 will receive our current pricing.  All orders placed for current delivery after normal business hours on 2/28/11 will receive pricing dated 3/1/11.  We will continue to monitor these factors and keep our customers informed via our website www.propanetank.com and with our nationwide network of Regional Managers and Distributors.  Please contact your local sales representative with questions of clarification.

We thank you for your loyalty and continued support of Quality Steel Corporation.  We will continue to work hard in meeting or exceeding your expectations.

Sincerely,

J. Lynn Hardin, Jr.

National Sales Manager

Quality Steel Corp.

Quality Steel Corporation is a privately owned corporation serving the propane industry since 1957.  Quality Steel Corp. reserves the right to change or amend any forward looking statements.  Quality Steel Corp. makes no guarantees (verbal, written, or otherwise) on forward looking statements.