Envirokare Announces LRM Industries Has Secured Financing for Plant Capacity Expansion
Thursday July 20, 4:19 pm ET
NEW YORK--(BUSINESS WIRE)--July 20, 2006--Envirokare Tech, Inc. (OTCBB:ENVK - News), announced today that LRM Industries, LLC ("LRM"), has secured financing for the installation of a new production line for its Rockledge, Florida facilities. Envirokare, through its joint venture interest in LRM, is developing state-of-the-art TPF ThermoPlastic Flowforming(TM) technology, which produces proprietary long-fiber reinforced and unreinforced thermoplastic products.
This capacity expansion is required to serve the company's current customer base and support its growth, as several new contracts are under negotiation. "The new production line will support growing demand for TPF ThermoPlastic Flowforming(TM) technology," said Dr. Nicholas Pappas, Envirokare's Chairman and CEO. "Today's announcement represents a key step in the evolution of LRM. The acquisition of a state-of the-art production line dedicated to our commercial business provides an opportunity to further demonstrate not only the capabilities of the TPF ThermoPlastic Flowforming(TM) process, but also the very attractive economics that this innovative process brings to the marketplace."
The new production line will be installed and operational by the fourth quarter of this year, with financing for the new production line provided by SunTrust Bank. The financing package includes more than $2 million for the capital expenses associated with the project, as well as in addition, a revolving credit line to provide working capital for initial production activity. The new production line is expected to initially serve demand in the building and construction and materials handling markets as well as other emerging applications. The installation of the new production line will expand existing capacity by more than 10 million pounds per year and is expected to result in the creation of approximately 25 new jobs in the Rockledge, Florida area.
The TPF ThermoPlastic Flowforming(TM) process utilizes a broad range of thermoplastic and thermoset polymers and reinforcing fibers. This process enables the production of large, complex parts at low cost, through the utilization of low-pressure presses and inexpensive molds. Upon commissioning the new production line, more customers will experience the benefits of TPF ThermoPlastic Flowforming(TM) process and technology, including production efficiencies, improved product quality and cost savings.
LRM Industries, LLC was formed to commercialize TPF ThermoPlastic Flowforming(TM) technology through development, manufacturing and licensing. LRM is a joint venture of NOVA Chemicals, Inc. and Envirokare Composite Corporation (a unit of Envirokare Tech, Inc.).
TPF ThermoPlastic Flowforming(TM) is an emerging process technology for the low pressure, fully-automated molding of long-fiber-reinforced ("LFRT") and unreinforced thermoplastic large structural parts providing enhanced mechanical properties through, in the case of LFRT, the randomization and preservation of fiber length in molded parts. LFRT and unreinforced molded products represent two of the fastest growing segments of the worldwide molded plastics market with applications replacing conventional materials such as steel, aluminum, wood, fiberglass and cement, in nearly all major industrial markets. The worldwide market for LFRT and unreinforced products is estimated to be a multi-billion pound opportunity with double-digit growth rates currently and into the future. The enhanced mechanical properties of TPF ThermoPlastic Flowforming(TM) molded products, coupled with low material costs (including the use of recycled polymers) and low conversion costs, make TPF ThermoPlastic Flowforming(TM) patented technology a strong contender for this multi-billion pound opportunity.
Envirokare welcomes inquiries regarding their products and programs. Interested parties are also directed to the SEC's EDGAR informational system to obtain currently filed Envirokare corporate information. |
