Alcar Chemicals Group Progressing Towards Licensing Agreement in India
MONTREAL, Feb 05, 2007 (MARKET WIRE via COMTEX) -- Alcar Chemical Group Inc. (PINKSHEETS: ACMG) announces today that it is working with Bajaj Hindusthan Ltd. towards a licensing agreement of its technology for the production of ethanol.
According to the company, ACMG and BHL have begun work to optimise the process for ethanol production from by-products of the sugar manufacturing process to progress towards a multi-year and multi-site licensing agreement. The company expects to close this licensing agreement, estimated to increase ACMG annual revenues by $30 million US, on or before June 15, 2007.
With an annual production rate of 1.8M metric tons of sugar, Bajaj Hindusthan Ltd. is one of the most prominent sugar manufacturers in the world, a company with a strong environmental consciousness that is already valorizing its molasses using conventional technologies to produce 180K metric tons of ethanol per annum. BHL has ambitious plans to become the world leader in sugar, ethanol and bio-chemicals manufacturing using eco-friendly technologies. The company stated that an economically viable solution will be achieved within 4 to 6 months.
"This is an exciting and welcome development," stated Dr. Cavasin. "To be able to work with such an environmentally conscious company towards a licensing agreement of our technology is everything I could have hoped for as this truly demonstrates that economically viable ecological solutions are quickly becoming a reality even among the biggest corporations. The great potential deal for ACMG is a great step towards a clean planet for our children," further added Dr Cavasin.
It should also be noted that ACMG has received a competing bid from a South East Asia Consortium for the acquisition of the majority controlling interest of ACMG, the competing bid was set at a premium from the USSE offer, which represented approximately $2.00 per share. The company expects to disclose the name of the consortium and the offer once all terms and conditions have been established and a letter of intent signed. The letter of intent is expected to be executed on or before February 15, 2007.
About The Alcar Group
The Alcar Chemicals Group (PINKSHEETS: ACMG) represents a significant market opportunity due to a serious worldwide supply shortage of raw materials for polymers as well as an increased requirement for ethanol and biodiesel. ACMG has been concentrating on innovative methods for biomass (forestry waste, agricultural waste and non-food crop) valorization for the past decade, specifically petroleum-independent fuel and plastics resin production. Its proprietary technology represents today's most economical and advanced manufacturing process for plastic raw materials, ethanol and bio-diesel, allowing production at cost savings of up to 40% when compared to current production methods. |
