NEW RELEASE:
Waste Recycler Eyes $37 Billion U.S. Market
Total Recycling System could reduce garbage going to U.S. landfills by 80%
NIAGARA FALLS, N.Y.--(BUSINESS WIRE)--Sept. 13, 1999--Bach-Hauser Inc. (OTC BB: BHAS - news) announced
last week that it had signed an exclusive 25-year licensing agreement with TCR Environmental Corp. of Ontario, Canada, for the worldwide rights (excluding Canada) to its proprietary Total Recycling System©.
According to Gord Carless, International Project Manager for Bach-Hauser, ``Our system can practically solve the gargantuan waste disposal problem in the United States by reducing landfill usage by up to 80%. The system is already used in several communities across Canada, including Tillson, Alymer, Strathroy, Bayham, Dutton-Dunwich and several other municipalities. TCR has been developing and refining its the system for seven years. Even though the concept may be new to the United States, it has a proven track record in Canada.'
Bach-Hauser owns the rights to the technology in every country except Canada. Initially, its primary focus will be on the U.S. and China. The United States is the greatest waste producer in the world, but China, through its rapid economic growth, is catching up quickly. The United States produces approximately 500,000,000 tons of solid waste annually. Each Bach-Hauser facility can process up to 40,000 tons per year, thus creating a potential market for 12,500 facilities. The company is already receiving growing interest for its system in both countries.
Bach-Hauser has found that funding its facilities is easy because they can be backed by local and municipal service contracts. Once the facilities are built, the company has three revenue options. It can choose to own and operate the facility itself. It can securitize it, selling shares in the new facility to investors. Or, Bach-Hauser can sell them as turnkey operations to local municipalities, states and waste management companies. In any case, Bach-Hauser makes a profit of at least $2.5 to $3 million per plant. Bach-Hauser has 15 million outstanding shares. Each additional plant should therefore increase the company's EPS by $.20.
``Selling of turnkey operations or securitizing plants represents a profit potential of $37 billion for Bach-Hauser in the U.S. alone. Our realistic goal is to reach at least a 10% market share (1,250 plants) in the long run. Based on TCR's experience in Canada, after the first pilot projects were completed, the word started to get out. Municipalities communicate with each other. Talk of new technologies that actually save the communities money and help reduce landfill usage has already started to spread like wildfire. It doesn't hurt that our system has received the Solid Waste Association of North America's award for the highest waste diversion rate in the industry either,' explains Carless.
Bach-Hauser, however, is basing its budgets on significantly lower sales volumes. Its conservative estimates include building only two plants per year.
There is a growing need for environmentally responsible solutions to waste disposal. In the U.S., government mandates to handle waste in a more responsible and efficient manner have created a $70 billion North America environmental industry. Waste Management Inc. (NYSE:WMI - news) alone has over a $13 billion market capitalization. Internationally, the market potential is probably even greater.
Other major players in the waste management services industry include Allied Waste Industries (NYSE:AW - news), Republic Services (NYSE:RSG - news), Safety-Kleen Corp. (NYSE:SK - news) and Tetra Tech (Nasdaq:WATR - news).
The statements made by Bach-Hauser Inc. (Bach-Hauser) may be forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Bach-Hauser believes that its primary risk factors include, but are not limited to: the need for substantial financial requirements; the need to develop effective internal processes and systems; changes in the overall economy; changes in technology; the number and size of competitors in its markets; continued and future strategic alliances; changes in the law and regulatory policy; and the mix of product and services offered in Bach-Hauser's target markets. Merger Communications (Merger) is a media relations firm employed by Bach-Hauser. The statements and opinions presented here represent the views of Bach-Hauser, not Merger, as the release is based on information provided by Bach-Hauser. Merger's compensation for its media relations services, including preparation of press releases, consists of a monthly retainer and stock. Merger and its employees may have a long position in the securities of the companies in which it distributes information to the media, and Merger may be buying or selling securities in the course of its regular business.
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