BW)(KAFUS-ENV'L)(KS) Kafus Selects Spain as Primary Site for World's
Largest Kenaf Based Industrial Development
Business Editors
BOSTON--(BUSINESS WIRE)--Feb. 16, 1999--
Up to $500 Million Could be Spent in Creating
Kenaf Based Paper, Panelboard and Automotive Parts Industries
Kafus Environmental Industries (AMEX:KS) is pleased to report that it is currently analyzing
industrial development opportunities received from the regions of Murcia, Castilla La Mancha and
Andalucia in Spain. The opportunities have arisen following meetings between the Commercial Office
of the Spanish Embassy in London and Officials of Kafus International Development Group Ltd.
(KID), a joint venture Company between Kafus Environmental Industries and the Coach House Group
(UK) Ltd., formed to identify global opportunities for the development and application of the Kafus
range of industrial agriculture products and projects.
As a result of these discussions, and consequent upon recommendations received from KID, Spain
was selected by Kafus as its primary potential site for the world's first fully integrated kenaf based
industrial development. The plan calls for up to 50,000 acres of kenaf plantations, feeding fiber to a
range of Kafus controlled industries producing paper, panelboard products and bio-composites for the
automotive, construction and aeronautical industries
"We view the Spanish project as a quantum leap in the creation of global sustainable industries. The
Spanish project has the potential of creating the world's first fully integrated, industrialized agricultural
development, from seed to harvesting to fiberization to the production of commodities through to the
manufacturer of value-added products," stated Mr. Mike McCabe, President of Kafus.
Spain was chosen as Kafus' primary site for its planned five year, multi-million dollar kenaf
industrialization program because of Spain's ideal kenaf growing climate; the significant subsidies
available to growers of non-food crops and acreage that has been forced to be set aside and lie
dormant under current EU mandates; the existing indigenous markets for kenaf based commodities and
products; and the significant economic incentives available from the EU and the Spanish government for
regional development.
KID agricultural experts recently completed site visits to the Regions of Andalucia, Murcia and
Castilla La Mancha. Based on the conclusions arising from these visits and on the results of exhaustive
feasibility studies, Kafus expects to identify the location of its planned Spanish development program
within the near future.
Kafus holds 90 percent of Kenaf Industries Ltd., a company formed to develop commercial use of
kenaf. Kenaf Industries holds the world's largest seed bank of modern kenaf varieties.
The kenaf plant is a fast-growing member of the Hibiscus family, a close relative of the cotton plant
that, starting from seed, can mature at heights up to 14 ft. in less than seven months. Kenaf stalks
provide 2-3 times more fiber per acre per year than Southern Pine, a paper industry staple in the
Southern USA.
Kafus is committed to becoming a world leader in the manufacturing of superior commodity
materials made from sustainable resources. In addition to Kafus' Spanish venture, current Kafus
projects include: the world's first medium density fiberboard plants able to use 100 percent recovered
urban wood waste; the production of tree-free newsprint and other paper products; the production of
natural fiber composites to replace fiberglass and other non-recyclable materials; the manufacturing of a
cement/fiber alternative to wood and metal siding; and the conversion of animal and food processing
waste into feed and organic fertilizer.
Kafus Environmental Industries is led by its chairman and founder, Ken Swaisland. "We are building
a major international company by changing the status quo of commodity production," stated Swaisland.
"Instead of depleting natural resources to produce building materials, Kafus is manufacturing superior
commodities made from sustainable agricultural and recycled resources. We transform major
environmental problems into practical economic solutions for the long-term benefit of our customers
and the public at large."
Independently of the proposed Spanish project, Kafus Environmental Industries currently has more
than $500 million in domestic and international projects under development. The company has strategic
alliances with a number of major corporations including Merrill Lynch, Enron Capital and Trade
Resources, Stone & Webster Engineering, Temple Inland, Timber Products Company and Ford Motor
Co.'s Visteon Automotive Systems.
Kafus is rapidly moving towards its corporate objective of becoming a global low-cost producer of
commodity type products from alternative sustainable materials.
The foregoing contains forward-looking statements, which are subject to contingencies and
uncertainties. Such forward-looking statements are not guarantees of future performance, and are
based on numerous assumptions about future conditions that could prove to be inaccurate. Actual
events, transactions, and results may differ materially from anticipated events, transactions or results
described in such statements. Material uncertainties about the future of the company exist. There can be
no assurance that funding will be obtained for the proposed facilities, or that they will be constructed or
operated as contemplated, or that the market for the products of any facilities will be as assumed.
Kafus is subject to a number of risks and uncertainties, which are set forth in its filing, with the
Securities Exchange Commission. |
