Ocean Bio-Chem (NASDAQ: OBCI)

Posted in Company Profiles

Company Overview

OBCI is a leading manufacturer and distributor of maintenance and appearance products for the marine, automotive, recreational vehicle and home care markets throughout North America. The corporate headquarters is located in Fort Lauderdale, Florida; the company's manufacturing and distribution facility is located in Montgomery, Alabama.

Founded in 1973, the company conducted an IPO in 1981. The corporate name was changed from Star brite to Ocean Bio-Chem, Inc. in 1984, however, the company continues to do business as Star brite. The company's stock is traded on the NASDAQ exchange under the symbol OBCI.

The Company achieved record revenues as it continued to implement a strategic plan of gaining additional market share in the marine sector as well as diversifying into new markets. An important part of this initiative is the introduction of new and improved products.

This past year saw the company presenting a number of innovative and significantly improved products that are being well-received by its core customer base as well as by new customers.

Company History

Peter Dornau co-founded the Company in 1973 around a single product, Star brite® Auto Polish. This polish revolutionized the industry through its advertising programs such as the now famous Star brite® commercials which included the "Junkyard Test" where an automobile selected from a junk yard was transformed into a vehicle of beauty in minutes utilizing Star brite® Polish. Over time a greatly expanded line of products were developed around the polish to maintain the appearance of vehicles.

Despite its early success, in the mid-80's the Company began shifting its product line focus into the wide open boat care and appearance market. Now, nearly twenty years later, the Star brite® brand is the nationally known standard for boat appearance and care. The Company has also established solid niches in the recreational vehicle, aircraft, home care, aviation, outdoor power equipment powersports and motorcycle markets.

Manufacturing Facility

In 1996, Ocean Bio-Chem Inc. acquired the fully automated manufacturing and distribution facility, Kinpak, Inc., located on a 20-acre site in Montgomery, Alabama. In addition to Star brite® products, Kinpak also manufactures numerous items under private label programs for major oil companies and consumer goods retailers. The facility’s 300,000 s.f. manufacturing, blending, packing, and distribution center features a 500,000 gallon tank farm plus an additional 1.2 million gallon off-site tank farm, as well as a fully-equipped R&D laboratory and a quality control center that performs quality audits for each phase of the production process.

The plant has 300,000 gallons of blending capacity plus multiple blow-molding machines that produce custom PVC and HDPE bottles in various colors and shapes. There are ten fully-automated high-speed liquid filling lines, pail lines, one drum filling line, bulk load filling lines, plus grease filling lines capable of filling containers from 4 ounces to 55 gallons in size at speeds up to 120 gallons per minute.

Finished goods are secured by automatic case packers, case sealers and palletizers. In addition to a line of truck loading docks, the facility has a rail spur capable of handling 20 railcars. Kinpak’s off-site facility is a five-acre marine terminal on the Alabama River for accepting shipments of raw materials by barge and rail.

Star brite® products are available at marine, power sports, outdoor power equipment and hardware stores, as well as at sporting goods stores, farm stores and automotive and RV stores worldwide.

To learn more, please visit www.oceanbiochem.com

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