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Technology Stocks : Thermo Tech Technologies (TTRIF)

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To: Wayne Umfleet who wrote (38)8/13/1996 9:04:00 PM
From: DDS-OMS   of 6467
 
Wayne: Glad Nick & Paul responded before I did re plant reliability--saved me repeating a lot that they said. Let me add a few thoughts--the Corinth plant was a "test bed" originally designed @ 100 ton cap., raised to 200 ton a day, and I understand that when it is reopened late this year W/B 300 ton. According to Lionel, the 2 main operating plants-Brampton & Hamilton- have had NO down time since opening last fall. These plants have on ocassion run at full capacity, but they have averaged 60-80 tons a day--or about 30-35% of capacity, as potential long term customers have tested the co's technology, reliability, cost etc. before entering into long term contracts. Lionel says that by 15 Aug the Brammpton W/B operating @ 199 tons daily--with long term contracts. HOWEVER, if a plant is operated at 30-35% capacity, there is a lot of "free" time in which to do thorough, exhaustive, preventative maintenance to insure that there is no down time--especially if some long term contracts are predicated on your reliability and that of a brand new technology.

From my understanding, the plant is designed to operate continuously--24 hours a day. There is redundency in all critical equipment such as having 2 hydropulpers (to shred & liquify incoming feedstock) when 1 is sufficient, so if one breaks down the other one takes over with no down time.

A lot is not known about the reliability of a new technology, but to echo Paul, TTRIF seems to be trying to forsee future problems and rectify them early on. Hope we three dont sound like a paid cheer leading section

Good luck,
Gary
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