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WTA Signs $900 Million China Automobile Contract
WEDNESDAY, SEPTEMBER 13, 2000 11:45 AM
- BusinessWire
Business Editors
EL CAJON, Calif.--BUSINESS WIRE--Sept. 13, 2000--World Transport Authority, Inc. (OTCBB:WTAI) (POH: Frankfurt Stock exchange) World Transport Authority Inc. (WTA) Wednesday announced that it has entered into a definitive Master License agreement with WorldStar Auto Utility Inc. (WSA) of the Peoples Republic of China.
Lyle Wardrop, President and CEO, signed the agreement representing WTA and Dr. Jerry He on behalf of WorldStar Auto Utility, Inc. WSA is representing several major Chinese investment groups and state owned companies. It has the full support of a number of government authorities including the state Ethnic Affairs Commission of the Peoples Republic of China, China National Automotive Industry Corporation, Industrial and Transportation Divisions of the Chinese Military Forces and the Agricultural Mechanical Department of Agricultural Ministry as well as several Beijing Urban City Governments. Master License agreement terms include a licensing fee of US $40 Million Dollars with installment payments to WTA as factories are built and production of the WorldStar vehicles commences.
Terms of the agreement call for 358 factories to be built over a three-year period. Each factory will initially be set up to build one WorldStar vehicle per day with the capacity to increase production to three vehicles per day upon completion of on site training.
The 358 factories producing one WorldStar(TM) vehicle per day will use a straight-line distribution of start up over three years. Based on this rollout, WTA estimates that gross revenues from the sales of factories, and components to build the vehicles will exceed US$900 Million Dollars. It is projected that approximately 175,000 vehicles will be produced, again based on production of one car per day per factory.
WTA's new corporate office in Beijing, China will manage the China project with assistance from the WTA Operations Office in Manila, Philippines. The company's head office in El Cajon, Calif. will provide logistical support. WTA recently announced that the factory-to-build-factories plant at the former Clark Air Force base in the Philippines was expanded. This expansion is necessary to service the China Project.
WTA Company President and CEO Lyle Wardrop is quoted as saying: "We are obviously very excited that operations are about to commence in China. WTA has invested more than four years in R&D and just recently moved into the production and marketing phase of our business plan. We are pleased to enter our largest target market this early in the plan. We owe a tremendous debt of gratitude to WTA company director David Yue for his diligent efforts in making this deal a reality. Through his vast business and political connections in China, WTA executed the agreement in a minimal amount of time. This project, in my opinion will have a significant impact for our company and will be extremely beneficial for our shareholders."
Upon the signing of the agreement WSA company representative Jerry He commented: "Of all the vehicles made in the world today, the WorldStar(TM) vehicle and unique manufacturing system is very well suited for the mainstream Chinese fleet and individual consumer market. The vehicle will be entirely manufactured and assembled in numerous locations throughout China, providing automotive industry jobs, where the vehicles are actually produced."
World Transport Authority Inc. serves the emerging world's transportation needs through in country manufacturing facilities, utilizing local semi-skilled labor to produce the WorldStar(TM)line of utility vehicles.
This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended and such section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision. Refer to the WTA Web site WWW.WTAWorldstar.com and other sources for more detailed information. Investor Relations is at 619/387-8888.
CONTACT: World Transport Authority Inc.
Lyle A. Wardrop, President & CEO, 619/444-7254
Fax: 619/444-9026
or
Renmark Financial Communications
514/939-3989
Fax: 514/939-3717
E-mail: info@renmarkfinancial.com
Web: renmarkfinancial.com
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