Allan, I guess you've seen this.
KFSS 1998-04-09 (provided courtesy of Canadian Corporate News.)
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Kafus Selects Holland as Site for First European CanFibre MDF Facility
VANCOUVER, BRITISH COLUMBIA--(American Stock Exchange, symbol: KS,
Frankfurt and Berlin Stock Exchanges, symbol: KAF and The Canadian
Dealing Network, symbol: KFSS) Kafus is pleased to announce that
its European Project Development Team has successfully negotiated
all the elements required to finance, construct and operate a
CanFibre MDF facility located in The Port of Amsterdam, Holland.
Kafus has expanded the size of Europe's first proposed CanFibre
MDF plant from its standard North American design of 78 million to
120 million square foot, (3/4 inch basis) per annum as a direct
result of the anticipated European demand for MDF offering the
special features of CanFibre MDF.
CanFibre is registering ALLGreen(TM) MDF globally as a trademark
for CanFibre's range of panelboard and related products.
CanFibre's ALLGreen(TM) MDF represents a new generation of
panelboard product. Standard ALLGreen(TM) MDF combines the
advantages of being made from 100 percent post consumer waste wood
fibre, negligible formaldehyde emissions and superior water
resistance. These features offer unique marketing advantages to
CanFibre because of Europe's advanced environmental legislation
and increased demand for external uses of MDF. Additionally,
since CanFibre ALLGreen(TM) MDF can be manufactured as a fire
retardant product, ALLGreen(TM) MDF becomes a high value, lower
cost alternative to meet expanding legislation for fire retardant
material usage throughout Europe. Additionally, CanFibre
ALLGreen(TM) MDF offers the unique advantage of being totally
recyclable, a significant feature for meeting Europe's demanding
recycling legislation.
A key component in the decision to build in Holland was the
availability of a unique site in the centre of The Port of
Amsterdam. The site is 16 hectares (40 acres) and is adjacent to
a City owned waste incineration facility which is capable of
providing the necessary electrical supply to the proposed plant on
a cost-effective basis. The site is close to waste fibre supply
sources and has full barge access enabling the proposed CanFibre
facility to distribute ALLGreen(TM) MDF utilizing the cost
competitive waterways of Europe.
Kafus has reached agreement with Timber Products of Oregon and
their European affiliates whereby 100 percent of the CanFibre
ALLGreen(TM) MDF output of the proposed Dutch CanFibre facility
will be purchased under a long term sales contract. This
agreement will guarantee a 20 year purchase of the complete
production of the plant, thus assisting in project financibility
through the mitigation of market and/or commodity risk. The
current gross value of the sales contract is estimated at a
minimum of US$2 billion US over the life of the contract.
In parallel with current CanFibre developments in Riverside,
California and Lackawanna, New York, Kafus has reached agreement
with Stone & Webster Engineering Corp. ("SWEC") to become EPC
contractor for the Dutch CanFibre project. SWEC has been jointly
involved with Kafus' European development activity and is
currently finalizing design work for permit application in
Holland.
Kafus and SWEC recently selected STORK Engineering, an Amsterdam
based firm, to act as the permitting consultant for the Dutch
project. Permit applications are currently being prepared for
submission in April, and are expected to be issued for
construction purposes in the third quarter of 1998.
Kafus' Dutch CanFibre facility will use 100 percent post consumer
waste wood as its raw material. Fibre will be supplied to the
facility under two separate supply contracts which have been
agreed to in principle and are currently being structured for
project finance purposes. These agreements provide for the twenty
year supply of fibre on two 10-year fixed price terms and also
include conditions for minimum fibre quality to meet ALLGreen
(TM)'s exacting production standards.
Kafus' additional European CanFibre development planned for the
U.K. (as reported on November 6, 1997) still continues in active
development. The U.K. CanFibre development is now scheduled to be
ready for project finance by the last quarter of 1998. The Dutch
development has been prioritized over the U.K. CanFibre project
because of the pro-active nature of local and government
authorities which will allow the Amsterdam-based plant to be
fast-tracked through to construction.
Kafus' European development group is currently conducting
feasibility studies in order to conclude siting on additional
European based CanFibre MDF facilities.
Kafus is rapidly moving towards its corporate objective of
becoming a global low-cost producer of commodity type products
from alternative materials including post consumer and
agricultural waste.
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