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DALLAS, Feb. 12 /PRNewswire/ -- Vimonta AG, a Swiss based company of which Cabec (OTC Bulletin Board: CBNR - news) holds 20% ownership, announces Project 4 franchise package to wood pallet manufacturers for the production of plastic pallets in Europe.
The European community has passed a law that from the year 2000 onwards, certain products like fresh food and medical products must be shipped on plastic pallets. Therefore, several companies are putting great effort into the development and production of plastic pallets. However, all of these companies are facing the same problems: production costs with conventional molding machines are much too high and bringing production quantities up to the level needed will take several years. Also, the low friction of plastic pallets in relation to the load of the pallet or empty pallets stacked onto each other is another big concern. PPP and its patent or patent pending pallet design, rubber inserts and molding machine system is the ideal if not the only solution to this European and worldwide problem.
In Europe there are approximately 2800 manufacturers of wood pallets and these companies are facing the threat of losing a significant amount of business. Vimonta AG has put together a franchise package in which the wood pallet manufacturers are able to make the transition from wood to plastic. Vimonta is offering to the manufacturers a complete set of PPP's newly developed molding machine systems, molds and a supply of the raw materials training and product quality inspections. Vimonta is offering with this package a complete financing solution for the entire investment. Packages will cost from just under $1 million up to $16 million depending on production quantity needs. Instead of setting up new manufacturing plants, Vimonta is certain that it is more beneficial to combine forces with the already existing manufacturers of wood pallets, give them the support to stay in business and use their infrastructure of distributing the pallets and already existing customer relations. With the PPP (Cabec owns 100% of PPP) system the production cost of plastic pallets in comparison to wood pallets is nearly the same.
Vimonta AG expects positive acceptance of this package from the wood pallet manufacturers. For each plastic pallet produced Vimonta receives a royalty fee. Vimonta plans to set up a demonstration unit and training center in Germany. All molding machines and molds sold by Vimonta will be manufactured by PPP. Vimonta stated if only 10% of the wood pallet manufacturers buy the franchise package the company will have approximately 280 customers which will need molding machines and molds, which will significantly increase the sale of machines and molds of PPP.
Subject Radio Frequency Chips (RFC)
A taskforce in Europe has estimated that there will be 400 million RFC needed in the industry to equip pallets and other containers used for the material handling. This taskforce has set guidelines to standardize the RFC. Vimonta and PPP recognized over 2 years ago the need for standardization, the great potential of RFC for the tracing of material handling platforms and containers and the advantage of RFC in logistic management of movements.
PPP and Vimonta got their vision confirmed by the parameters of the European taskforces and are already ahead of their competition in design and development of hard- and software for this application. All of the PPP pallets will be equipped with RFC for tracing purposes.
Subject Environmental Impact
In a telephone conversation between the principals of PPP and Vimonta it was clear that in Europe and the U.S. there are government sponsored programs helping the development of products and the growth of companies which can provide significant impact to protect the environment. The molding machine system can be used by every injection molding company, but not only for the production of plastic pallets, which are especially environmentally friendly.
This subject will be addressed in more detail in a later press release.
For more information, contact Michael John, Cabec's current President, by telephone at 214-698-8330. Additional information about Cabec may be obtained by accessing Cabec's Internet web site at cabec.com. Information on Plastic Pallet Production, Inc., Cabec's principal subsidiary, may be obtained by accessing its Internet web site at ppplastic.com.
SOURCE: Cabec Energy Corporation |
