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Gold/Mining/Energy : Kafus Environmental (KS)
KS 34.950.0%Dec 14 4:00 PM EST

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To: Peter G. Mackey who wrote (140)1/13/1999 9:06:00 AM
From: Abuckatatime  Read Replies (1) of 229
 
Chicago Tribune article providing a bit more info on Kafus - Ford deal:

Ford auto interiors to be partly made from recylable plant similar to bamboo
Ford Motor Co. has teamed with a ''green'' building-products company to
develop recycleable natural-fiber composites to make parts for auto interiors.
The parts will be made in a new plant in Elkhart, Ind., expected to open
in September.

Ford's Visteon Automotive Systems unit and Kafus Environmental
Industries Ltd. will make the parts from a bamboo-like plant called kenaf.
Fibers from kenaf and other plants can be combined, then formed and hardened
to make a material competitive with fiberglass, nylon or plastic, said
David Agneta, president of Kafus Bio-Composites Inc., the Kafus unit that
will build the Elkhart plant.

Agneta said the company had acquired 10 acres in Elkhart and would begin
spadework on a 50,000-square-foot factory once the ground softened. The
plant will employ 24 to 30 people, he said. The company is spending ''in
excess of $5 million'' on the plant, he said.

The plant will make kenaf-based mats, which Visteon will use to make products
for vehicle interiors, such as door panels and seat backs. These products
will be proprietary to Visteon and marketed under that company's trademark.

But Agneta said Kafus sees a broader marketplace for its products, including
other automakers. The company also expects to develop products for motor
homes, furniture and custom packaging, he said.

Kenaf-based products will be lighter than fiberglass counterparts, Agneta
said. While not as strong as fiberglass, kenaf is shatterproof and 100
percent recyclable, he added. Kenaf-based products can be melted and reformed.

Another advantage is that the kenaf plant grows as much as 14 feet in
one season, so fields can be replanted annually.

''Automotive customers are looking for 'green' products,'' said Stephen
M. Delaney, Visteon's vice president of interior systems. ''Natural fiber
composites offer weight savings, performance enhancements and remarkable
recycling capabilities.''

Visteon's European operations have used natural fibers for some time.
The Ford unit sees Kafus as a means to use more environmentally friendly
technology in North America, Agneta said.

Other Kenaf units make a fiber-and-concrete building product and a fiberboard
out of recycled products. Kenaf's other operations

(c) 1999, Chicago Tribune.

chicagotribune.com
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