JULY/AUGUST 2005 l exchangemagazine.com l 21

Five generations of Chaplins have investedtheir talents, energy and vision in a Cam-bridge company founded in 1869. It’s clearly

an understatement to say that Canadian General-Tower Ltd., supplier of engineered films, is a com-pany with a proud history and a promising future.In fact, CGT is a family business success storystretching across three centuries.

Though best known for its dominance in theNorth American automotive interior market, muchof the privately run business’s revenues are earnedfrom a balanced collection of product offerings suchas swimming pool liners, commercial roofing mem-branes, environmental containment and bookbind-ing. The company is located on the southern tip ofCambridge, adjacent to the Grand River.

Market Driven and Customer Focused

FIFTH-GENERATION FAMILY FIRM LOOKS TO THE FUTURE

COVER STORYBY PHIL WRIGHT

The Canadian General-Tower Ltd. senior management team (front row, left to right): Dave Smith, Ken Williamson, Rick Chaplin, vice presi-dent of corporate affairs, Jan Chaplin CGT president and CEO, Winston Chong and Jim Slattery. (middle row, left to right): Tim Armstrong,Tom Allen, Patrick Diebel, Terry Belmore, Arnie Gerum and Laurie Borg. (back row, left to right): Rick Sawyer, John Roppel, Jay Miller, Dave Yost, John Weaver, Bill Constantine, Michael Spence and Bob LaFrance.

…continued

PH

OTO

: JO

N R

OH

R

PH

OTO

S L

EFT

& F

AR

RIG

HT:

PIR

AK

STU

DIO

S

22 l exchangemagazine.com l JULY/AUGUST 2005

CGT traces its history back to 1869,when William Chaplin acquired the assetsof a tool and wooden wheel manufacturer,the St. Catherine’s-based Welland ValeManufacturing Company. With demand forfarm equipment and implements at a highin the late nineteenth century, Welland

Vale exported to over 50 countries Then,with the advent of the automobile and theaccompanying decline in demand forwooden wheels, William’s son, J.D., pur-chased the assets of both the Transparent& Mechanical Rubber Company of Toron-to and Marathon Rubber Company of St.Catherine’s. Production from these twoplants was moved to the Victoria WheelWorks factory in what was then Galt. Thecompany was renamed Canadian GeneralRubber Company in 1927.

The newly formed company producedrubber-coated fabrics for the automotiveindustry, then in its infancy. The compa-ny’s first auto-top adorned the 1928Chevrolet four-door sedan. To diversifyits product line, the company also manu-factured rubber sheeting for rainwear,baby pants and mattress covers.

The Chaplin family also had an inter-est in a Boston-based manufacturer witha division located in Port Hope, Ont.Tower Canadian Oiled Clothing Ltd. wasthe first commercial manufacturer ofprotective oilskin clothing. Applicationsfor this product included rainwear forfishermen, miners, soldiers, firemen andpolice. A burgeoning market for the oiledcloth saw the material used as canopiesto the carriage trade and for early cars.During the Second World War, with rub-ber in short supply, Gordon Chaplin Sr.purchased Tower Canadian to supple-ment its production of non-rubber prod-ucts. Tower Canadian and CanadianGeneral Rubber amalgamated in 1946,becoming Canadian General-Tower Ltd.

In the post-war period consumer goods

The front entrance of Canadian General-Tower Ltd. in Cambridge.

PH

OTO

S:

PIR

AK

STU

DIO

S

PROFESSIONAL JANITORIALSERVICES FOR BUSINESS

Specializing in Commercial, Industrial and Institutional facilities

Call us for all your cleaning needs:▼ General Janitorial & Office Cleaning▼ Carpet Cleaning▼ Floor Stripping & Waxing▼ Interior/Exterior Window Cleaning▼ Ultrasonic Blind Cleaning▼ Construction Cleanup ▼ Factory Cleaning ▼ Computer Cleaning

We will help protect your Real Estate investment

Tel: (519) 884-9600Waterloo, Ontario

Fax: (519) 884-8699Toll Free: 1-800-983-6661

www.jdicleaning.comBONDED & INSURED

Member of the Canadian Franchise Association and Better Business Bureau

The Saab way

2005 Saab

9-3 Sport Sedan$35,495

9-3 Convertable$56,300

1.9%Lease Rate

Saturn Saabof Kitchener Waterloo

744-5811663 Victoria St. N.,Kitchener

www.sskw.com

Startingfrom

Startingfrom

Convertable93

SunBathing

JULY/AUGUST 2005 l exchangemagazine.com l 23

were experiencing unparalleled demand,explains Rick Chaplin, Canadian General-Tower’s vice president of corporateaffairs, from his office atop the company’ssprawling facility on Middleton Street.“We started manufacturing rain coats,baby pants, shower curtains, kitchen cur-tains, table covers and aprons, all fromthe vinyl we produced,” recalls Chaplin.“Eatons, Woolworth, Sears and The Baywere customers for these products acrossthe country.” From that point on, thecompany focused its production on vinyl,a product that began as a rubber substi-tute during the war years. Since then thedemand for vinyl has skyrocketed andapplications for the versatile product havesimilarly broadened. “It has been upwardsince then, with the company now domi-nating the North American automotiveseating market with its leather-like vinylcover stock,” explains Chaplin. The com-pany has become dominant in the poolliner market as well.

Today, Canadian-General Tower isthe leading supplier of engineered filmsand coated fabrics for the automotiveand industrial markets. “Seventy percent [of our revenue] is with the auto-motive industry,” says Rick Chaplin.“We’re in other markets that help tosmooth the ups and the downs.” Thecompany has captured a sizable portionof the market in the production of vinylpool liners for both above- and in-ground pools. “We have 50% of theNorth American pool liner market,”explains Chaplin. Enhancing liners withCGT’s unique three- and four-colourprinting process and pattern designcapabilities has increased the popularityof the company’s liner product.

In an application related to pool liners,CGT produces aquaculture non-toxicgeo-membranes. These membranes areused to line water areas ranging fromsmall ponds and fish farms, to reservoirsthat cover hundreds of square miles.CGT’s largest such containment projectwill stretch ten years in length and spansan area in excess of 6000 square kilome-ters in the high-mountain desert of Chile.“The project has been ongoing for thepast five years,” says Rick Chaplin. “Weare currently through four phases and itmay go for some time yet.” Another sig-nificant application for CGT products is inthe construction industry. The companymanufactures single-ply roofing mem-branes. Principally such applications arefor the commercial market, but can beapplied to the higher-end residential

market in the form of decking materialsthat can be used on concrete and woodsurfaces. And although the product is notas high profile as the automotive or con-struction industries, CGT also manufac-tures covers for loose-leaf binders. Whilethe amount of material per binder is con-siderably less than that of an automobileinterior or roof membrane, binder ordersare often sizable and CGT is the secondlargest supplier in North America.

With this diversified product line, it’seasy to see why CGT sells to a global mar-ket. “Roughly 90% of CGT’s customer baseis in NAFTA region, both on the industrialand automotive sides. The remaining 10%

of sales are exported throughout theworld,” explains Rick Chaplin. The majori-ty of cars and light trucks produced inNorth America have soft interior trimproducts with CGT materials in them. “Wecurrently have product in 85% of NorthAmerican vehicle platforms,” says Chap-lin. “If it has leather seats, chances arethey are trimmed with our vinyl.”

Aside from the sprawling, 600-employee facility in Cambridge, CGTowns and operates Textileather Corpora-tion, a 400-employee plant in Toledo,Ohio, largely devoted to the auto seatingindustry. Textileather has been producingcoated fabrics on that site for 100 years.A sales office is located in Detroit – notsurprising given the company’s focus on

serving the auto industry. “Annual pro-duction is 100,000,000 yards of vinylmaterial,” says Rick Chaplin. “It’s enoughto circle the globe twice.” With a globalreputation in the automotive interiormarket, the company exports its productsand technology to five continents. Thecompany is currently expanding exportsto China as demand has increased in thatenormous, developing country.

CGT’s business philosophy includesfostering relationships and workingcooperatively with suppliers in meetingautomotive manufacturers’ colourdesires. By being the “preferred colour-master source” for the North Americanautomotive interior industry, the compa-ny, in cooperation with a design team, isable to produce a manufacturer’s exact-ing colour specifications and work withsuppliers to quickly meet the request.Such valued “colour harmonizing” hasled to CGT being the colour mastersource for DaimlerChysler, Ford, GeneralMotors, Mazda, Mitsubishi, Nissan,Suzuki and Toyota. “We spend a lot oftime with designers in developing prod-ucts,” says Rick Chaplin. “It gets us intight with material suppliers.”

CGT’s latest innovation, aimed to pro-vide a luxurious compliment to leather, iscalled Protein Leather. This durable, syn-thetic leather is ultra soft and dry. “It’s thefusion of nature and science,” says Chap-lin. It has been adopted at General Motorsin a major initiative to upgrade their interi-ors. Other OEMs are eager to follow withsimilar products designed for their needs.

“Constant innovation has been andwill continue to be the key to CGT’s suc-cess,” according to Jim Chaplin, CGTchairman. Innovations in material formu-lations, product construction and manu-facturing technologies all receive a highpriority at CGT, while product and processengineers strive to bring value to cus-tomers. Global relationships and techni-cal licensing arrangements have giventhe company an advantage in many ofCGT’s markets. Continuous reinvestmenthas enhanced CGT’s diversity and its mar-ket mix has meant sustainable growth forthe company and opportunities for itsemployees. CGT has the capability ofsourcing innovation around the worldand convert it to advanced product appli-cations for its many customers.

Jim Chaplin is particularly product ofthe efforts CGT has undertaken to beenvironmentally responsible. CGT con-tinually strives to align its operationalprocedures with the expectations of its

COVER STORY

CGT is a leader in custom color formulationand product design.

With this diversified

product line, it’s easy

to see why CGT sells

to a global market.

PH

OTO

S:

PIR

AK

STU

DIO

S

24 l exchangemagazine.com l JULY/AUGUST 2005

families and surrounding community. Thecompany is committed to meeting allapplicable environmental legislation anddemonstrating environmental compli-ance in all it does. Five years ago thecompany received an ISO 14001 environ-mental management system certification.In prior years CGT was awarded theFinancial Post Canadian Business Awardfor Environmental Management in 1997and the Recycling Council of Ontario’swaste minimization award for both 1998and 1999. Two recent additions — twothree-storey “regenerative thermal oxidiz-ers” to reduce emissions— are visualexamples of CGT’s commitment to envi-ronmental responsibility. “The oxidizersincinerate the solvent used in produc-tion,” says Jim Chaplin. “It’s an environ-mentally friendly process.”

Although one of Cambridge’s largestand most storied employers, CGT, like theChaplin family, strives to maintain a rela-tively low profile in the community. Thecompany prefers to perform philanthropicdeeds without a great deal of fanfare. Thenearly 11,000-member Chaplin FamilyYMCA in Cambridge is one prime exam-ple of the family’s philanthropy. The GaltYMCA was experiencing financial difficul-ties in the 1970s and was in need offinancial assistance in order to continueoperations. “The Galt YMCA was virtuallybankrupt 30 years ago,” remembers JimChaplin, who provided the leadershipnecessary for the Y to survive those diffi-cult times. Years later, he and his brotherGord provided the lead gift when theYMCA relocated to a state-of-the-art facil-ity on Hespeler Road in Cambridge. Thefamily’s support is recognized in the nam-ing of the facility. The concept of invest-ing in the community is deeply ingrainedin the Chaplins. Gord Chaplin, vice-chair-

Jan Chaplin, president and CEO and RickChaplin, vice president of corporate affairs.

PH

OTO

: V. T

ON

Y H

AU

SE

R Consider Walkerton for business expansion

opportunities.

■■■■ Loyal workforce

■■■■ Serviced industrial land

■■■■ Within 200 km of the Southern Ontario urban centres

Contact the Muncipality of Brockton at

(519) 881-2223or visit our website at http://town.walkerton.on.ca.

Consider

✔

✔

✔

Saturday, September 17, 2005

Open new doorways intolocal heritage and architecture

For information call (519) 747-5139 or email info@photomemory.on.ca

GET INSIDE!

FREE ADMISSION to more than 25 sites 10:00 a.m. to 4:00 p.m.

Join us for our 2005 theme: PLACES OF LEARNING

www.doorsopenontario.on.ca

WATERLOOREGION

JULY/AUGUST 2005 l exchangemagazine.com l 25

man of CGT, resurrected the CambridgeHornets of the Senior A Hockey League afew years ago, combining his passion forhockey with a keen community spirit.From an environmental perspective, Gordchaired the Grand River ConservationFoundation and is a past president of theNature Conservancy of Canada.

Jan Chaplin, CGT president and CEO,who is responsible for the day-to-dayoperations of CGT, was instrumentalalongside her husband, Mark Fretwurst,in the creation of the Cruickston Charita-ble Research Reserve, now simplyknown as “rare”. The 900-acre propertyadjacent to the confluence of the Grandand Speed rivers provides the residentsof Waterloo region with a natural jewelthe size of New York City’s Central Park.

Although boasting over 1,100 employ-ees in its two plants, and with marketsworldwide, CGT remains a privately heldcompany. “Private ownership gives usthe flexibility to take a longer strategicview and risks that are not available topublicly owned companies who have tokeep one eye on their share price toplease stockholders,” explains Jan Chap-lin. The long-term controlling position ofthe Chaplin family has provided continu-

ity of leadership since the 1860s. “Theenterprise continues to evolve over timeand adapt to its changing markets,” saysJim Chaplin. “Innovation is really thebusiness we are in.”

Despite its agility, being a companywith a global presence is not without itschallenges. The rapid rise in oil prices isreflected in higher material prices, whichare difficult to pass on. The prolongedstrengthening of the Canadian dollar rel-ative to the American greenback has putpressure on CGT’s productivity in Cam-bridge. “The playing field shifted quitedramatically,” explains Jan Chaplin. “CGTis not alone in this regard, but hasweathered the storm and faces the futureon steady ground.”

The company is quick to recognize thelong-term contributions of its employeesto the successes of CGT. “People are thefoundation of any business; ours is no dif-ferent,” says Rick Chaplin. As he touredthe plant floor Rick Chaplin was greetedthroughout by a number of employees. Hewelcomes such familiarity and cama-raderie and attributes that to the compa-ny’s private ownership. The company isproud of its history of reinvesting in peoplethrough continuing education, relevant

professional training and career develop-ment. Relatively low employee turnoverresults in the retention of skills and experi-ence. Employees are also encouraged tofind a balance between work and familyand to find job satisfaction, which hasresulted in many long-service employeeswho enjoy competitive compensation andthe possibility of advancement based onperformance. “A healthy and safe work-place is the highest priority at CGT. It’s fun-damental,” says Rick Chaplin. The compa-ny adheres to the highest standards for thesafe operation of its facility.

As a fifth-generation family-run busi-ness, CGT acknowledges its foundationsin the past. And with its emphasis onproduct development and innovation,CGT is focused on the future. From wagonwheels to rubber rain slickers to syntheticleather and advanced roofing mem-branes, the company has demonstratedan uncanny ability to change with thetimes and adapt to modern-day technolo-gies. “CGT is market driven and customerfocused, a global leader providing innova-tive premium polymeric surface solu-tions,” says Jan Chaplin. “Our reputationopens doors around the world and ourperformance keeps them open to us.”

COVER STORY