To: Ken O'Connor who wrote (57 ) 6/3/1999 10:18:00 AM From: Mike Jubian Respond to of 69
Royal Laser Tech Corporation Announces expansion, hydroforming initiative TORONTO, June 1 /CNW/ - Royal Laser Tech Corporation, a leader in the production of custom metal and wood based products using advanced laser-based, computer integrated manufacturing systems, announced today the purchase of its first hydroforming machine. Initially this machine will be used for prototyping and low volume production runs for the company's automotive/industrial division. Hydroforming machines use high pressure water to form metal parts. Hydroforming results in more uniform dispersion of metal with the resulting significant reduction in the weight of the finished products. It also has the advantage over traditional stamping machines in that the tooling costs are substantially cheaper. The company expects to spend between $5,000,000 and $7,000,000 in fiscal 2000 on hydroforming related costs. It expects the first machine to be installed and operational by the fourth quarter of its fiscal 2000 year. The company also announced that it will be expanding two of its existing plants effective immediately. The Mississauga plant will be expanded by 30,000 square feet to increase the company's ability to service two of its key customer needs during the next year. Also, the Claireville plant will be expanded by 50,000 square feet primarily to house the new hydroforming project. Bill Iannaci, President of Royal Laser, stated ''We have always been a company on the leading edge of technology, as innovative users, and we expect to remain there. Hydroforming is the next level of manufacturing technology for metal and we anticipate many potential applications for the technology. Many of our existing customers have a need for the added service capability we will be able to provide.'' The company's year end is April 30, 1999 and the company expects to release its year end results by mid-July. The shares of Royal Laser trade on The Toronto Stock Exchange under the symbol ''RLT''.