Complaint Counsel's SECRETARY

-

OralArgument on Appeal
 

August 221 2013
 

In the Matter 
 of McWanel Inc. 

Docket No. 9351 

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Rick Tatman (RTatman@TylerPipe.com)
 

Saturday, December 22, 2007 4:05 AM
 McCullough, Leon (McWane Executive Vice President)
 

Walloll,Thomas (McWane Sr. Vice Pl'esidenl)
 

t: DIWF List Price Change
 

Theie are sûme additiûnal data puints to ieview, büt I shûüld 

o discuss with you in detail during the sales meeting or potentially before if needed. I don't believe with 

tats push announcement that Sigma will hold to their Jan 2nd effectve date so we have some time to get 

ex 1702-001
 4 
yler/Union wil be consistent and follow through with what we've 

naliy communicated. 

ü wii adjust müitipiiers ãS required tö lëmain cõmpetiiive within any 

n market area. (Consistent Job Pricing wil be met with general market actions) 

,pr 

o their now more desperate need for price, I 
 believe that Sigma 

ar wil mimic and verbally follow any program we publish. 

,r~ "1 ,":,' j1,,~i ';-IJ( r ¡~€.(;-,~ r:~¡i,:;
 

Tn I hQin" ....nc.ictont ",iith \Alh!:t uia C-oH t,.r -on ovtonrlon nori".. (-, ~ rn..nthc:\ 

 "'" .."'"1~ ,"VIIVIV...... ""... ."".....v .."" LV' y" v"'..."..v.... 1-"'"'"'" \. v iilv..u,"I, 

,I 2. MM'I: 4&.....11&_..£_._ =S& il :i

 Support from our major customers to abandon the current process of branches
 

callng multiple suppliers to auction for price. (We'll need face to face meetings)
 

The Big 3 not allowing 3rd tier siippliers like Serampore to disrupt the process 

ex 0627-004
 5 
and Star Should Agree to Stay Within
 

wo to Three Points of McWane
 

r. Pais) had a plan that if we -- that we should 

o stay within to two to three pointsi discount 

 of McWanel and if we didi he felt that they 

behave differently and not be so overbearing
 

s us. That if we were goodi then they would be 

 they would treat us better and we could live 

 ever after. 

 said that they would treat us differently and it 

irm up the market and that there was a lot of
 

 to it. 

38 (McCutcheon IHT at 227) 

6 
r We undersnd the nee for this 
 increase and that in general. higher price levels

provide value to the industry. However, we dorlt believe the industry's your best interests are served by publisting incrases at leels that are not supported, 

leading to instabilit and ultirnately erosion of inarkel level pricing. 

 

 \file we acknowledge this incease is significantly lower than what has been 

communicted by another supplier. we don't believe your best interests are 

served by publishing increass that in tum 
 are not supported, leading to instabilty and ultimately erosion of market level pricing. 

ex 0627-006 7
 
 _.. _ 4 ; I ~ Y, Ó ,.'" _, ~ ..~
 

¿~r~l~J 1 l~? ~9j ()\,'/1lG(:?, ¡~ ~i J ¡ J~ j(-:i~ "tø 

..... , In an effort to support Distribution anq stable market
 

 required, . 

wil continue to monitor the competitive environment and wil adjust regional multipliers

cipal bid contracts wil be honored per the terms of the contract, Jbbs quoted prior to 

ment wil be honored up to March 1st, with documentation provided lo your locl 

es representative. 

flationary trends continue as forecsted, we anticipate the need to ¡announce another 

ease within the next 6m9ritls., l-9Vtey~r!we.""ilI9nlyg9$aif - - - ..'.. I ,
 

~..~W_II'~"-'-""c,,,,~"C_'.."..' . . 

ex 0375-001 8
 
"'___.. ~__:.
 

our distribution customers better manage their inventory valuations and 

on a more level playing field, èil",¡,$'Ðl;,It;i¡r!lijmììtiJm'i'0i~!l;;~f~_afil¡:?,tltf:sel~iaH 

only. .off the..newlypubUstne.QJUlJltipliers, We.wi11contiOl.e.lQIl,ønitor. ttl.e 

 :--.~' "-,' .:,: ': . --::,.:" .,: .:: ~'.:c: ,,: __ . '.- ,': ,,' : ", -. .- __,' ,,' .'.'.";'. . c" .. '..-.' . '. -- :. . . . ,'. " _ ::, .-: "-. '.,,':' .: :.:' ,i.. -- " ,:",..c"".",~,_ i..' .:, 'C.' :,:.. .'. , ,"'- '.-. , " ; .'....,.. " _.' .. '.__ , :..- ': '.' "c.: ,,:: c, . 'C '..' '. ___, .,.,. . " 

ent inflationary trends continue as forecasted, 

,. 

ex 1178-001
 

9 
Project Pricing: A Head Fake
 

was McWane's intention as announced in this letter? 

if you go back to what we really wanted to do, you go back to
 

ocuments, we talked about I think ad nauseam about how we 

o compress pricing, okay, so we could get better visibility. 

l very clear. And then the other thing we wanted to do is we 

o create, quite frankly, the perception that that's the only 

were going to compete. Thats a head fake. So that we'd like 

ess that and if we got it compressed and we need to offer job 

o get volume growth, I'll go in and offer job pricing.... 

he core of what we want to do. We want to compress 

we want to put out a fair price out there, and then we are 

react as we see it to meet our competitive objectives. 

an, Tr, 386 

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IV 
 TM's need to start cleaning up their exiing projec priing, ThlTy/i,let, stes that they Will hoor their
 

prec pricing only untl March "st. We will do the same If we go past that íi will 
 cause disruptions and ult in the inceases to be soft or not hold at al. 

 start prepari yourslv and your TM's to hold strong and get their project ordered ane Shipped before
 

March 1st.
 

 

now ttat we are strong in revenue and prfit. We wiD haw 00 problems weathering any price wars, even if they 

. \Net we are doing is what is Iiht for the indusry. $0, dont think we need the price increases, as that is not the 

il)re;ise wilbe gQO~ f()ftI 0- ". - _.. . .
 

ex 0752-001 13 
.-.~- ~,---- ~--_.--, 

 URGED LARRY TO INITTE A NEW COM~"lIITED AND SERIOUS EFFORT
 

lf AT T'7n ALT pnT""Tl.Tri DAn T.Irrl.Trici ,0.. '" 1\ ii,rn T Ti1:T!T ci nlAT A'" 'UTDY L 

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nn rlnT1T.nc. 'Trl T.T T1\n'T'TT Arp 'TTTT. nrl'TTT:TTClTrl"'T ""TT
 

 .t&M" JL1~L¡ll".Ll.i;~.t.. 1:. .l.nn..; L'4\LNl'.L!MlYl~. .V)'.,r 

 Tyleris N~vVmu1tip1iers are discouraging,!, ,.


. -- ------- - _. .. - - .... . - - - .... .. - - .. -.
 

'i'his is the ;leadership capitali we created when we 

ex 1145-001 14
 
'--­

~
 

nsentyler@aol.com (mailto:jansentyler@aol.coml 

ry 
 09, 20096:08 PM 

Tatman 

Fw: Rick
 

ing Actions: 

ence = Lost market share due to competUors playing pricing games and having distributors keep tt 

 front 
 and/or backside. 

mer Reaction = Customers had large scale reduction in inventory which is what we were getting and 

 more on regional distribution yards to supply jobs and support inventory, 

ences = started to get some support from customers that wondered where we had been, Too litle 

the jobs were few and far between, 

r Reaction = Numbers are dropping rapidly and they had been long before we started to move. 

's ugly but they are in suivivai mode and have very litle loyalty. They would like to work with us but 

w we wil support them. 

ex 1223-002 15
 
Mat Mioamyer
 

turdav, February 02, 200S 6:11 AM
 

ck Fairbnks'
 

 Multiplier Increa 

, 

oke, I walled to make slIe you and your members are COmfortable with the cureii effort to 


adjut fiting multipliers
 

he country. 

Municpal contracts wiD be honored ttrOugll the length of the contract. 

QI bein sending "Muliplir letters" to all of our cuomers beginnill Monday. Feb. 4th aM ouroUlside and inide sales 

 are cuently talking to our cuomers to explain the effort. 

ve any member contact me, their Star DMslonal Manager, or Territory Manager 


if they haw any quetions or requests. 

for your support. 

ex 2300-001 16 
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Tyler/Union
 

utive Report for 1 st Quarter 2008
 

 ... · ....- ...... -. .i 

SJMarKeTJi;Ompetltlve t:nviron m ent
 

on our competitive feedback 109, the level of multiplier discounting by 

and Sigma appears to have died down significantly, As we understand it, 

 removed pricing authority from the front line sales team and pushed it up 

 - - - . - .. -". ..1 ... a. . . . . 

n an eTTort to anve some voiume, tney aiso 

tively honored prior job pricing beyond their published March 1 st cut-off 

hard stance on that date certainly appears to have cost us some short 

age, 

ex 1564-004 18
 
~;; 

Factor: High Level Communications
 

'12/2S:Tàtman. 1/6: Tatman Plan 1/1t:JvltWane

emails.Plan(.to ' incorporating I.etter :ìlplÍ0te pr~jectpriçing; drive stable "Desired Message fûture'intrease .as 

. pricing to his. to;..Collpetitors," conditions Jegui re l.böss'es;.(JPFB20l ~..lIØ . ...(lDF6aS'l... " '". "', ,'"'", ':.:"/~:;::;,:,G","::,:,~,;",
"'";)j.!i,~á',::;~ :~. ",~:',;":~¡:::.'¡;,:,~'~..~,,: 

.iÙ4::SigRia: .i':èJkÎVÄLIZEALL 

.PR1CfNGFOR. 

FIr;INGS" (I DF663~ 

...664) 

January 

2007 2008 

19 
:.--.-'_ 

Factor: High Level Communications
 

12/22'-1/10: 1/11: McWane 2/1: MèWane 

Wane does not McWane develops letter: no more McWaneQ1 Report: ITatman.Plan" to offers to sellto 

Star list price project pricing; Sigma to show low discounting. by Star 

stabilie prices (I OF future increase as and Sigma has "died 

631) cost (eX 1117.; ex 617,620,625-626, conditionsrèquire 1570 at 001-002; eX down signifcantly" 637-(38) (I OF 645) 1~71qt()01l (IOF868) 

,'.,,:,j,è,;,'::''-:¡'"" "..--,.',:'2::;::"i '""":~'--:;.-. ;j 

12/20~ZI: SiRfiëi. . 

and Star:postpøne ..... .~~~~;~il;~ALL .
 

Iistpritétnâhges ..PRleINGFOR
 

. .. ilrrif1Gs'':(i'DF 663­ (IOF 615;6:19) ..6:64)... . 

December January February 

2007 I 2008
 

20 
_.. .." 

to me ieaciersip and initiative of LR and a yeoman efiort oy 

arious meetings in person and conference call, byelaws and articles of 

 were dred and approved, al under the watchf ey'"s and expedited
 

 BradleYJ Arant, Rose and \r'hle, a reputed law fi. They also have been
 

 successfu nIPRA for the 4 DI Pipe manufacters. 

ge step by SIG:M and Star, in beip..able to deinonstate our willgness and 

 our industry 
 and signal our willingness to grow in an 

 manner. Though uiosl ofiheliili~l1)eneûlisinlangible suçbas lncreased
 

ex 1092-001 21
 
o 1"" 0.1\ C..""si¡: ..,.,..pif;C.rrem M.p.1 14 ~.pt; il
 

pp;M.p N~ Alj';.1'1
 ~~t;;¡ 

~~==~wiøDnWh~UaaIOO. AJ,øsi1re~O!lhll,i1tR1he., To:
 

.llh1l""of.. unllCl.RlIioawllltbofl -'* JlPlR_ Rt; Fnni' va!\ flf1 il1 Al&_ 

Ul..(fwl4tJ~loøn_""1_lO_(, 

tteh: _doc;si~a incrase.pdf;Current Map 4 14 08.ppt;Map #4
 

ggCSS1VC. ppt
 

on, 

r your request. attached is the draft letter I was working on when you called. Also, as a reference I have attached the
 

ma lettr as well as several multiplier maps.
 

~"",¡ ru.f~S5&& 

ex 0137-001 CX0137.(02 

22 
Rick Tatman (rtatman@tyerunion.com)
 

Saturday, May 24, 2008 1 :50 PM
 Mcullough, Leo (McWane Exectie Vic President); Walton,Thomas (McWane Sr, Vice
 President)


Agree on Waiting until Data is available: DIFRA Data not available
 

resented was just for a reference point. 

Cllough, Leon (McWane Extive Viæ Presient) (mailto:lmccuUough@doVNalve.comJ
 

urday, May 24, 2008 1:14 PM 

@tlerunion,co; Walton,Thomas (MC'/ane Sr. Vlæ President)
 

E: DIFR Data not available 

ex 1186-001 23 
From: Dan McCutcheon Idanm@strpipeprOdu~t$,comJ 

Sent: Thursday, June 05, 2008 12:48:43 PM 

To: Tom Brakefield 

te: Iryb446150@aol.com Subject: DIFRA numbers 

~t~ 

~~~M¡¡_ 

~I JI.Fflli 

24 
.................-.........._........,...,..................-.._.........._..........._.._................-........_.........................._._.....................................................,...............-._................._....._..................1..........._........
 

8ree Holland
 

rtatman@tylerunion.com: tb2@sigmaco,com; gcrwford@uspipe.c:om: Dan McCutcheon Herren, K. Wood; Long, Thad G.; Margaret Powell; Rick Haley
 

nts:
 

know if 
 you have any 
 questions, 

land, CPA
 

ardson, Watson, Haley & Dunn, LL 

ex 0052-001 25 
¡¡ .­ . ..-. .
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 --. ... .
 

nt:_ ". ·
 

k Tatman (mailto:rttmn@tlerunion.cOf)


II. ....ii - ·
 I "II.. . _.. .-._
 .. .
 . .
 

lough, Leon (McWane Executive VIce Presldent); Walton,Thomas (McWane Sr, Viæ Presdent); 'Jer Jansen'
 

c: maw, ææ:a 7 7
 

 ~,c;:i;fl\í¡-:~ 

arger than expected- share-loss will make the task of getting it back more difficult, but of course will make 

tory all the more sweater in terms of the incremental financial benefits, 

ex 2068-001 26 
:L ~__,_.__L. 

Rick iatman -(rtatman@tylerunion.com?
 

butch.doane@fergu~on. com
 Bil, TheeS@fergusol1,com
 TylerlUniun July 14th Price annuucement
 

Uti! Mult Map-BLENDED-7-14-08.pdf~ TylerUnion price announcement July 14­FEl.doc; Util Mult Map-ACCESSORIES-7-14-08.pdt
 

ters are being sent to the branches, but I wanted to provide you with an overall view for the entire market. 

e is significantly smaller than what I believe others have proposed, but we believe this leval is rational given all 

dered. 

omorrow to address any questions, 

Rid) 7~ 

!!Jnion 

terworks Fitngs Division 

40 

runion,com 

on.com 

ex 1576-001
 27 
Price Fixing Event 2:
 

RA Participation And Price Increase
 

4/ZS': -Sigma announcès . 

multiplier inc.raase (IPF
 

.8il2~$04J-(Star foÏlòws 

s/ni DF '803, 808H 

April 

28 
- -

~.-.'~ 

at Mína
 

d Leider; 1-JicbaJ Berry; l\eü MtGiJlvray; Pete Lisw'l~ Raon Prad; Shaun Smith
 

usan Sch~ DaD ~.flItceo~ Plm Gore)'
 

'~y) ~"cmbc 25~ 2(XJ 01:42(X PM 

 t"jH ;l_i~;~ \~t- 'ii,-;~, "' JJI'L1t:;_I, 

GH
 

So much so that we have earn 

 of our compeition has nol peinned as admirably nor ar we now certain that it was eve par of their 

th, we nee to change our plan in ho we are seing our multipliers, We have many Instnces
 

ocumented the competitin being irespoble (Mostly Sigm) and selling under our multipliers in 

rket with varying strateies, we have lost too much reveue to tolerate it any longer. 

your teams to be sure we are al clear on the foloin plan.
 

e hi doume so much under marke priing thst we ha to iud to prct OUt 

r own mlt .hare. Do It wit a combniton of buy plans, .ho tél buJ', and prOjêt
 

~~N~~-"¡¡~__..-",,~,,,".,,~~,~",,,",,".~~..,,,,,,~____...._.,
 

ex 0831-001 

29 
L._~___". 

mdi'JI.aiillOw 

...:~:..~:: .
 

~-'.~:;.~.~.:;":... I
 

", . ,,'.w,.... ....
 

::::t~~1w~~
 

YLER UNION~ Profits 

1111 

:~::::::::~¡~:;:::~

¡~~¡¡i!¡:¡¡~I¡:¡~l 

:::::~:~:~;:::~:I 

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:~~:::::;~:?::;:¡:::: 

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05
 

We'll Continue to Prudently
 

Manage Price vs Share for the
 

I Long-term Health of our Business
 

...;.~.~.Ti".'r.-..
 ~~ ~~~~~~;~i~~; ~;~ê~~~'
 

M¡¡:i~¡;n~¡j¡¡
 

i~!~i: ~~¡;!~~~i *~~~~~
 ,~,~"'.' .~.~. .~~,:.. .~~.~: 

r ::::::~;::::*:~::*::;: 

v 

:¡¡~:~!Wf~¡¡¡¡: IF¡iiøJi¡¡.i ~j¡¡~,i Staying above water 

I.~i~i¡i~i~~!i!i~i fj¡~~:¡:~¡~~:@¡:l in '09 wil require a 

tremendous effort 

.................,.....,.J
 1~I¡¡lill¡!I!rl¡!11 t;:;:;::~::::::::~::::::;:::~ IIIIII ~~'II ..,.....-.....-.......-......
 'a:4:...:.:~':.:.:.:':.:~.:. 

2006 2007 2008 est 2009 I 

RST 1/19/091 

ex 0622-005 i 30
 
ane/sl SigmaJsl and Star's Fittings
 

Prices Increased in 2008
 

-McWane 2008 

non-Domestic Fittings sales 

prices, in dollars per ton 

un Jul Aug Sep Oct
 

McWane Blue Book for year end 2008). 

-Average Sigma
 

2008 actual 

transactional 

multiplier for all 

Group-A (standard) Fittings across all 

regions 

:c-s bOQ.~
 

~~ c:Vl 

o ~~ ~ WOU


camera (providing monthly figures for each of five regions, the 

eflected in the above chart); see also Rybacki, Tr. 3601-3603, 

 

-Star 2008 per
 

pound realization 

for Fittings
 

Feb Mar Apr May Jun Jul Aug Sep Oct
 

Source: McCutcheon, Tr. 2656-2657, in camera; CX 2470 at 004, in camera. 

31 
FRA Helps Maintain The Pricing
 

Discipline
 

ould see that, once DIFRA reporting commenced, 

ket share stabilized, despite declining volume 

 

LV Sl\li ~STREND _ ZOOS f
 

'------~--~_V___A___ 

n Feb Mar Apr May .lun ..lul Aug Sep Oct Nov Dec Sep Oct Nov Dec 

ex 0319 

32 
e advantages we e~oy iii our competitive environment is what we had achieved in the 

ears - a consolidation in each of the product ranges, In Fittings, there are effectively 

ne, SIGMA and Stt:r - t:nrl an suffer from the same chail1enges ~ind there seems to be a 

re to improve the pricing and each one has demonstrated thoi a reasonable amount of 

',r"" h ~,IT 1 ..t "ti TQ nf n 1 ~ Q ti TQ marlrQt i;I ~rQ T. .1. 's ... ""Tli.e. t"i: tIie moiitliih1 

 e, ,..I. ~e.i." ¡irv.e. .\. v vur res¡J.c..\. ......... ..1..... .n. 1... .... .. . . 'I ',.
 

e data produced by DIFRA, an industry association that SlGM.i:. helped to form, with. 

 members fm Fittings (one, US Pipe, actually is not a produeer anymore, hut a small! 

ing almost all their needs from SIGJ\1i\), helps maintain the prlcing discipline, as the 

 market share dataJ)()i1'ttø ,(1 re1ativcIyç,onsist(~)1t,i:m:d Qt.,i.i~ _.._1"..... - - _. ,
 

- Our GMs have coniinued to be slrong, ihi'Olighoullhe year,
 

e volumes have been weak. In fact, the rece,nt reduction in our GMs Is more due to 

e in the raw material priees whieh finally caught IIp 'V:ith OUT' hlended inventoiy cost 

Q4, rather than the pricing swings! 

ex 0313-004 33
 
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Vince Napoli .
 Monday, August 16, 20105:20 PM 

Sheila Sullvan 

Greg Fuilei RE: WILSON MILLS JOHNSTON COUNTY 

Sheila Sullvan 

Monday, August 16, 2010 10:19 AM 

ce Napoli
 

g Fuller 

: FW: WILSûN MILL JûHNSiûN CûUNTY
 

Wall, LOrettTHDS) Iin/l~lQ.egU.@iJi_l2gf
 

ûnday, Aügüst 16, 20107:45 Ai.j 

a Sullvan
 

WILSON MILLS JOHNSTON COUNT 

please quote the following asapex 2199-001 

35 
~:,1 ¡U\~l; ;t.:' ijJ~ This applies whr these produc are purchased through Tyler Union, 

ClowWater or through Sigma. Excetions are wher Tyler Union or Clow Waer 

products are not reily available within noral 
 lead times or where domestic fittings and accsones are purchse fr anoter domestic pipe 
 and fiting marUacture alo with that marúaclure's ducile iron pipe.
 

ex 1190-001 36
 
i 

nxNNo

W ,oo

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.. 
.~ 

Rick Tatman -(rttman@tylenmon.com).
 

Wednesday, June 24,2009 10:56 PM
 

Walton,Thomas (Mc\Vane Sf. Vice President) -(twalton@MH-Valve.com).
 RE: Competition
 

ex 0074-001 

38 
ay, June 24, 2009 3:41 PM
 

an 

h, Leon (McWane Executive Vice President) 

ompetition
 

d up with Star as a complete or incomplete domestic supplier 

~..,,-._-~-,-_.._­

fect our profit potentiaL. Further, I have a sense there is a slim to none posibility that we would ever be rrm'PMzær=rrT""""". I nat wou

.estic product at this point, one I do not think they would ever 
 trust us and, two they seem to be so far 

thet! do not think they wi! be wi!ing to turn back, ! do agree whole heertedly tl'et we need t09va!uate our 

t a comprehensive strategy going forward_ 

o your thoughts. 

ex 0074-001 

39 
',-,.: 

;',.-" 

'.: ','" -,,-:.') ", ':':.'-,-." 

p.:o.. .n: :se.... .,0..... :..p.:t.I'O~S' ' 

 ',:':--.",.v.: :;-':.,? ,':::-:~:' '.:.,':;:': .'d,'..:.ê_/:~,,_',:_,.i~:!~:J\,d.:,!...:/., :,:

.it a. :n... .d. ,. :..S.....:e: .e. .
 ann:"o., a.. :.C. ~: 

AllQ~~ltime t~m:~~:~y asse stiiror Sigma's g¡¡mac plll & true .. .. ''--:.'' ,,:___- .' ::",-:""d ". : .." .. ,." .. .... .. ,', .',..
 

competitive,strengths;:aridw,eøknesses 

ives them time 
 to continue .building their tDusinessmodel 

", .':-, '_.dC:'_:._~:'~J:_.;d:-.:: ;::/:';_..;::' '::'.:. " "" . .
 

Handte on a JobbV Jofi bHis 

 AU pàrtieswill understandtheother1s.price floor 

ds the job by job auction scenario within a particular distributor 

ntially raises the level of supply concern among contractors 

Qljjbii.,-.'$~.m~:~..~""'''=C''"",,''__~..__~_._._..__ .... 

ging relationship issues-with customers-- Old Loyalty Program 

tial collateral damage to N D product line sales
 

ey indeed have the fortitude to invest this would force them to speed
 

 process up 

40 
ec.....ti.ng.......Jl".e....Bran€l'~....lJia:......e~cl..uS.i.VJrt..v¡i
 

......'.. ....,... .' '" .. '..... ".- .. " .
 

.....,;... 

oft Ap,roach -ReÐa ~1'Øl)%~0% 

D Domesticfebate wouläraquireexcluSivity 

.0 Rebates 
 would be earnedanctpaid annualJy 

o Applied ana .corporate not branch 
 by branch basis 

D McWanerebatecouldalso belied to 
 exclusivity? 

cess to Tyler/Union's Domestic product line requires exclusivity 

omestic fitting items we manufacture 

plied on a corporate not branch by branch basis 

tribution would not be allowed to back door product to non 

ipating entities 

We'df\eed GlowWaterloPlay bytheSa~eRuJe$ 

6/29/09R.ST 

41 
TYLER UNiON. Key Market Communications 

Sept 22, 2009 

McWane has made significant investments in its domestic manufacturing facilities to maintain an 

extensive fitting and accessory product line, produced in safe and environmentally compliant 

foundries. Weare continuing to invest in our domestic business and wil soon be announcing additional fitting and accessory items in the 36" - 48" size range, 

In .Iight of this investment, effecive October 1, 2009 McWane will adopt a program whereby our 

domestic fittings and accssories wil be available to customers who elect to fully support McWane 

branded products for their domestic fitting and accessry requirements. This applies whether these products are purchased through Tyler Union, Clow Water or through Sigma. Exceptions are where 

Tyler Union or Clow Water products are not readily available within normal 
 lead times or where domestic fittings and accssories are purchased from another domestic pipe and fitting manufacturer along with that manufacture's ductile iron pipe. 

Customers who elect not to support this program _forgo participation in 

any unpaid rebates for domestic fittings and accessories .shipment of their 

domestic fitting and accessory orders of Tyler Union or Clow Water products 

for up to 12 weeks, 

ex 0119-002 

 

TU-FTC-0255189 

CX 0119-002 42 
Rick Tatman o(Rick.Tatman@tylerunion.com)o 

Monday, November 23,20093:19 PM 

Leon G. McCullough o(Leon.McCullough@c1owvalve.com)o; Thomas Walton 

o(Thomas.Walton@mh-valve.com? 

nd Scott Frank have also been advised 

S7~ 

er/Union 

erunion.com 

com 

ex 1800-001 43
 
 of you are aware Union-Tyler issued a Jetter this week outlining their affliation with 

as an effortto provide two sourçes for their American manufacturedproducts,~m~~81itltlij 

 ":.:j..'.",'.,:.,,::'.:::',.:,'.':_,_ ..... .,...:.':.,.,:.:',;,,:/,:....:..:.:_.-,.,....,.c:-....:...,....:.,.,,;...:......,: ..._'...,.,........ ...... '.
 

he iay Amerlcarlt requirements in the ARRA funded jobs and with the expectation that 

 of money to these projects wil pick up the latter part of 2009 through 2010; 

i\'¡~;r;iI-" 

his wil 
 ensure that we have a full line of product to service our customers as well as 

d compliance with the Federal requirements, This does not affect your source for Import 

ake the necessary action to ensure compliance in your Distrct/Branch. If you need 

nformation contact your Regional Vice President. 

ou for your prompt attention to this matter, 

ex 0552-001 

44 
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the most part, Yes. Within certain restrictions, Sigma has the ability to 

our domestic product to their customers, While we understand your concerns, 

ly that distributor you:re concerned about would have obtained some level of 

 ore


c product either from Star or from Sigma. We believe that ultimately the market 

ore stable, and your business will be better off, if distributors like the one in 

 purchase their domestic requirements either through TylerUnion or through 

nder our MDA. 

ex 1179-002
 

47 
.. 

Rick Tatman 

Tuesday, July 21,200910:08 PM Charlie Nowlin -:cnowlin@mcwane.com:: 

Proforma Sigma Offer July 2009.x1s 

Proforma Sigma Offer July 2009,xIs 

homas left your a v.mall. 

ving some discussions with Sigma as to providing them with Domestic fittngs as an alternative to them 

eir own source option such as Star has done, 

say No, would Sigma really spend the $ required to execute 
 a domestic product option 

d providing Sigma with access to TylerlUnion domestic protect help us either better protect our 

d/share against Star or promote more stable market prices 

ex 0729-001 

48 
ma .would 'rnO$tli~f3ly'pur$ue.êårn()re.sttategic'.partnerapprQach.',..usingalimited 

of foundriesforsu.PPlY. .. ........ .... . ....i .................. .....
 

ba. will most .'ike'y..take..a'.bardn.'iiiflapø£øa~hpn.testtaints..
 

eappropriate"fesp:onseto .anY..$lgrnai'prog£arnSh01.Idbe.rel.ati'lely...the"s~me 

\1l'eresponsetC).Stat'spro.sram
 

wouJd not..l).e'a.~eSP()flsible~O'petilø.ts$YIC)ngasil1Gremeøtsls~1es, .... ......,,\... 

...... ...... ..... . ..¡¡.'y':....:.'p.. ,.;i:;.... .........'" ....;...."......,..,,;.(2,, ".:".'.iY.if .,....+\,.).;~:...., :.:':" \;"""'0;,\,;:+\:. '\":'ji.\j'i'" "';;V"i'.;"C';.Y;i;;'~
 

g multiple Domestic suppliers wil not significantly increase the overall 

c . sp~c m~~et,~~~~:.. ..~~t !gn!,~~~ ll~in. ~cenari.o ,~r, ~~ l~ ,~nlikel~ 

s 
 yet to fUIIY:çOmmitfinanCiaJlyt()xtheirl.0mesticstrategy 

~ 49 
,--­

: Walton,Thomas (McWane Sr. Vice President) 

 Friday, August 14, 200 1 :24 PM
 

McCullough, Len (McWane Executive Vice President)
 

ec:
 

Agreement with SIGMA to allow the to sell domesic fittings~ 

As I understand where we are at now we are going to give SIGMA a 20% discount off of our 

ublished domestic multipliers, Since we would not pay them a 10% rebate on this sale, as we would our 

stri bution custonie%. :tnenWe.afe...QflIY9iyjng;themiO?lo.of:ourcurrentJ,grQSJ¡n~r,gjn;;í9Lgamesg§ 

~-- "'M . ¡,¡r;iI!!'Jlllfl!lf n rrir_ So for every 1000 tons of domesc
 

ey sell, that WWF would have sold, WWF will los 
 approimatey $350,00 in gro margin, this was 

e from WWF sales and gros July 09, It is probly a fair asumpton that we will Jo some non

 tons as well as domesic when SIGMA tries to package deals, etc. So if we assme tht for every 1000 

tons they sell thy wil sel an additional 500 tons of non-domesc that would have been WWF's that 

anslate into a los of approximately $210,000 in gross margin for a combined totl of approximately 

 los in gross margin, If I remember from one of our conference calis it was estimated that Sigma might 

nd 3000 domestic tons per year, if so this would produce a gros profit los for WWF of approximately 

00 per year from the current numbers, 

ex 0111-002 50 
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roduct ! 

ough not accurately quantifable. ~aving Sigma sell McWane branded

Should strengthen our brand image a$ a Domestic manufcturer 

Should help drive 8cmeaditional lev.'. of price stabilty 

dtm"ijVêmtftll'lQnØi":nät~lI",RJ~Ortøi'rnäimlsUD1 

mroilenitobejfl;~'$aRplte~øft)rnJ$til.:'ll~lt. 

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coiitinujng.l()idialQ9 .SilJrnaone,.paSS~Il;'lllationship....al;lø.ng;"s:they
 

al,so,eGCpttheie)(eJlJSiVebran~requirementfordiStt~nøît.. '.
 

rc;iireafns...øuen;PUbJici\\Jdle,Plal1t,al'd¡l1k),rectcti'~".lI~f~ommf9 COts
 

7m($M 

~
 53