Plasticon Builds Foundation in 2005, Now Positioned for Dramatic Growth in 2006
12/30/2005 8:30:01 AM
LEXINGTON, KY, Dec 30, 2005 (MARKET WIRE via COMTEX) -- Plasticon International Inc. (PLNI) is pleased to announce that the company achieved many important milestones in 2005 and is now poised for dramatic growth in 2006.
"In 2005, we focused on fundamentally positioning the company for long term growth," said Jim Turek, President and CEO of Plasticon International. "First, we continued to strengthen our exclusive relationship with the largest distributor of building materials in the U.S. This contract gives us a tremendous advantage over our competition, with a network of over 63 strategically located warehouses nationwide. To give you a sense of our competitive advantage, our closest competitor has the equivalent of only 4 warehouses. Our distribution network, which is unparalleled in our industry, will continue to be a major advantage as we move forward.
Secondly, for the first time in the history of Plasticon International, we will control the manufacturing process from start to finish which will allow us to control our own destiny through the Pro Mold, Inc. production facility. From this point forward, we will no longer rely on contract manufacturing. The acquisition of Pro Mold, Inc. is significant because Plasticon will now be able to meet increased demand, offer our customers faster turnaround times on orders, and the new plant will give Plasticon more direct supervision of quality control issues. As a result of this acquisition, we will be receiving plant equipment and current contracts valued at close to $5 Million. Pro Mold, Inc. is currently profitable and generates revenues of approximately $5 million annually. We are proud to be acquiring one of the premiere injection molding companies in the Midwest. The acquisition was completed in November and is now awaiting SEC approval.
Third, Plasticon continued a tradition of product innovation with our patented line of rebar support products, including the new PAC Chair III the most versatile individual rebar support available in the market today, which represents a quantum leap in recycled plastics manufacturing technology, for the construction industry. Production capacity for all of our patented rebar support products is increasing exponentially as we replace the older generation of molds with the latest generation, most advanced, state of the art injection mold technology. This new generation of molds allows us to improve output costs, increase production capacity and improve efficiencies greatly. Additionally, our recently patented PAC Chair III product continues to exceed expectations and potentially may become our number one selling rebar support product We will continue to strive to be the most innovative force in recycled plastics in 2006.
Fourth, Plasticon is in the process of completing the acquisition of SEMCO Manufacturing, Inc., a cutting-edge surfacing technology company, which will allow us to synergistically offer SEMCO's surfacing products, which completely waterproof the surface they are bonding to, with Plasticon's existing rebar support product lines. SEMCO Manufacturing, based in Las Vegas, Nevada, since 1981, has provided their innovative surfacing products to many of the city's most impressive showcase projects, including the world-famous fountains at the Bellagio, Las Vegas's premier hotel-casino, the MGM Grand and The Venetian Hotel-Casino. Their eclectic customer base also includes high-profile commercial, public and private clientele. SEMCO is currently located in Japan, Hong Kong, Singapore and Australia, as well as the US. Due to the uniqueness of its product, which chemically cross links to the surface it's being applied to and the versatility of its applications, SEMCO could become the highest sales and revenue producing division of Plasticon International Inc. The market place for SEMCO's products is virtually unlimited, thus setting the stage for SEMCO to become the most profitable aspect to Plasticon business in the years ahead. The acquisition of SEMCO is nearly completed and should be finalizes in January, or early February of 2006. We look forward to sharing some exciting new developments regarding SEMCO in 2006.
Fifth, industry trends continue to favor the adoption of our recycled plastic products. There are four major industry trends that we believe are very advantageous to Plasticon over the next several years.
-- Environmental law is becoming stricter, so government regulation is
actually driving business to us. Compliance is a very serious issue in our
industry and increased environmental regulation helps our bottom line.
-- Our business is built on recycling so we have an incredibly abundant
supply of raw materials for our products. We work with one of the largest
suppliers of recycled resin products in the country. These resources are
not only plentiful; they are also cost-effective for us and our end-users
as well. In 2005, we contracted with 7 new suppliers of recycled resins,
broadening our base of supply, as well as increasing the availability of
resin which will enable us to achieve a major increase in our projected
rate of growth.
-- The price of steel is skyrocketing, which gives distributors and
construction companies yet another reason to use our recycled plastic rebar
supports rather than steel. This is true both domestically and
internationally.
-- There are industry indicators that show that there will be increased
domestic construction over the next several years. For example, the Senate
recently passed the $285 billion Transportation Bill, which we believe will
have a major impact on our business. Plasticon is the only company in our
sector that is DOT approved or accepted in all 50 states and territories.
International construction is increasing as well, and we are looking
forward to expanding our opportunities abroad.
Sixth and finally, Plasticon retired 200 million shares in 2005 as the first step in a share restructuring program. In addition to this the Company will be initiating a share buyback program starting early in 2006, designed to significantly reduce the number of issued and outstanding shares and to better reflect the earnings per share. As well we are completing our audit in order to up-list to the OTC: Bulletin Board. There will be announcements regarding the share buyback program and the audit coming in January of 2006.These events will drive growth and profitability for the Company and should be reflected in the value of our stock as we move forward into an exciting new year," concluded Jim Turek, President and CEO of Plasticon International, Inc.
For more information about Plasticon International, please visit the Plasticon International web site at plasticonintl.com.
About Plasticon International, Inc.
Plasticon International (www.plasticonintl.com) designs, produces, and distributes high-quality concrete accessories, transportation signage, plastic lumber, and office supplies which are all produced from recycled and recyclable plastics. Plasticon is a leader, an innovator of cutting edge design, engineering, and production of industrial and commercial products. Plasticon is a green Company, environmentally friendly, using recycled plastics to produce its line of products.
Contact:
Investor Relations:
Ph: 866-843-2775
SOURCE: Plasticon International Inc.
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