Capital Goods
Construction Supplies & Fixtures
(OTC: KESN)

Keystone Consolidated Industries, Inc.


Bert Downing
V.P. and Corporate Controller

Interview conducted by:
Walter Banks
Co-Publisher

CEOCFOinterviews.com
October 2002

Company Profile:
Keystone was founded in 1889 when Peter Sommer invented a machine that wove steel wire fence to replace traditional wooden timber fences. This invention made life easier for millions of American farmers, and spawned a Midwestern steel giant. In a display of modern marketing savvy, a Keystone employee dipped the tops of Keystone wire and fence posts in red paint, making the new Red Brand® products instantly recognizable on farms all over America. Today, Keystone still tops off these products with a coat of red paint -- even the barbs on coils of barbedwire.

In March 1988, Keystone fired up its modernized Bartonville rod mill, thereby increasing Keystone's rod-making capacity by 50%. The expansion has enabled Keystone to strengthen its position as a rod and wire products supplier. Today their trademark Red Brand® line of products for farm as well as home, garden and kennel products are sold through distributors and retail stores such as Tractor Supply Co. and Lowe’s Companies, Inc. throughout the United States. They produce fencing for animals such as horses, cattle, swine, goats, ostrich, emu and dogs. In addition, they produce "American Made" nails from Keystone which feature uniform points, centered heads, and clean shanks. By producing its own steel wire for manufacture of nails, Keystone is able to maintain high standards of quality and consistency.

Products include:
Keepsafe® Horse Fence - The fence has a closely spaced 2”x4” diamond-mesh construction which gives it linear strength and springy texture, protecting horses from injury and preventing predators from entering paddocks and pastures. The fence design provides a durable construction but also provides some flex, allowing horses to brush and bump against the fence without damage to their delicate coats. The close spacing prevents hooves and legs from catching on the fence.

King Ranch FenceÔ - This fence is truly the “King” of cattle fencing. At 49” high and built with a sturdy 9 gauge wire the fence is a solid solution to your toughest cattle. The fence also has a Class III coating, giving it extra durability.

Stockade Panels - Create a pen or fence that’s tough enough to withstand the heavy wear and tear of your swine. Keystone Panels provide an easy and effective solution for fencing swine. These panels are economical in cost yet offer stronger weld strength and higher galvanized coated wire, which results in longer life.

Yard, Garden and Kennel Fencing - This product is a strong, yet lightweight fence that is perfect for confining dogs. Yard, Garden & Kennel is an attractive 2”x2” mesh fence constructed with a bright galvanized wire. This product is not welded but rather woven with Keystone’s Square Deal® Knot which prevents buckling and sagging while also providing extra vertical strength. The fence with its Square Deal® Knot is superior to chain link in that its smooth wire and knot design helps prevent scratching to your pets and children.

Red Brand Apron Fence - also called beagle netting in the past, has been used successfully for years to confine dogs and prevent them from digging under the fence. This product has a unique hinged design that creates a 12” apron of fence that prevents animals from digging. The product is very versatile in that it can be turned inside to contain dogs or outside to keep out raccoons, foxes and other predators.

Saltwater Netting - Severe underwater elements and inclement above-ground weather won't break down Red Brand® Saltwater Netting. That's because it's galvanized twice - before and after weaving - to resist corrosion and hold up longer submerged in saltwater, fresh water, or marshes. Use to construct crab pots, live wells and fish traps, or for above-ground fencing that needs to withstand exposure to sea air and other weather extremes.

Construction and home improvement -
Keymesh® galvanized stucco netting resists rust and corrosion. Features self-furring crimps, which allow the mesh to stand away from the surface. When plaster is applied, the mesh becomes surrounded by the plaster, forming an internal support. These crimps make Keymesh® ideal for jobs requiring close work, on flat surfaces over short runs, overhead applications, and in specific isolated areas.

Keydeck® is a woven wire mesh used in monolithic roof decks and interstitial service space applications. Keydeck® used in conjunction with Gypsum or Lightweight Concrete provides a lightweight high strength roof deck that is fire resistant. Keydeck® is specified in several UL listed roof deck designs.

Interview Highlights: