Canfibre of Lackawanna Terminates Contract With Stone & Webster Engineering Corporation.Business Editors TORONTO--(BUSINESS WIRE)--May 5, 2000 Kafus Industries (AMEX AMEX See: American Stock Exchange :KS) (BERLIN:KAF KAF Kandahar Airfield (Afghanistan) KAF Kuwait Air Force KAF Kenya Air Force KAF Kyrgyz Air, Kyrgyzstan (ICAO code) )(FRANKFURT:KAF)
* CanFibre Reacts Swiftly to Stone & Webster Financial Problems to
Avoid Repeat of Riverside Delays
* CanFibre Engineering Group Mobilized to Complete Facility on
Time
* Sufficient Funds in Project to Complete Construction
CanFibre of Lackawanna LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control terminated its engineering, construction and procurement contract with Stone & Webster Engineering Corporation relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its ALLGREEN(R) MDF (1) (Main Distribution Frame) A wiring rack that connects outside lines with internal lines. It is used to connect public or private lines coming into the building to internal networks. facility under construction in Lackawanna, New York
CFGL Configuration List .), which is 85.5% owned by Kafus Industries Ltd. (AMEX:KS). The Lackawanna MDF plant is a sister facility, similar in design to the ALLGREEN(R) MDF facility in Riverside, California Riverside is the county seat of Riverside County, California, United States and is also a focus city of the Greater Los Angeles Area. The city is named for the nearby Santa Ana River. As of 2006, Riverside had an estimated population of 293,741. owned by CanFibre of Riverside, another operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. of The CanFibre Group. CanFibre of Riverside recently announced successful completion of the performance tests at the Riverside facility. CanFibre of Lackawanna has taken over completion of the Lackawanna MDF plant. Chris Carl, President of both CanFibre Group and its Lackawanna subsidiary said, "CanFibre believes that it is in the best interests of our Lackawanna subsidiary and our investors in the subsidiary to be pro-active and take control of the construction process given the recent statements by Stone and Webster concerning its liquidity problems. Other problems we have experienced at the job that also appear to be related to Stone and Webster's financial difficulties." Added Mr. Carl, "We have no intention of letting the Lackawanna project languish and cause the delays we experienced at the Riverside facility." CanFibre of Lackawanna had already prepared a detailed contingency plan to complete the facility utilizing the same internal engineering team and outside consultants who recently successfully completed the Riverside facility. In addition, CanFibre of Lackawanna is working closely with all major vendors and subcontractors on the Lackawanna site to ensure completion of the facility with the least disruption to the schedule. "The majority of the equipment is already on-site and installed and most of the work that remains at the facility involves commissioning the equipment and the plant followed by production ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale and performance testing," stated Mr. Chris Carl. As of April 11, 2000, engineering was estimated to be 97% complete, equipment purchasing was 93% complete and construction was 85% complete. "CanFibre of Lackawanna is well prepared to complete the Lackawanna facility within the original schedule." "Given what we just achieved in successfully completing the performance test at Riverside without Stone & Webster Engineering, we are confident that we will do the same at Lackawanna," added Garry Lavold, Senior Vice President of Engineering for The CanFibre Group. "Funding of the now terminated contract with Stone & Webster was done on a percentage completion basis with payment in arrears. This has allowed us to keep sufficient funds on hand to complete the project," added Mr. Carl. CanFibre's Riverside facility is currently shipping its ALLGREEN(R) MDF line of products from its Riverside, California facility, including sales to Home Depot in their Western States Region. Providing Sustainable Solutions to Global Industry Through Advanced Technology and Renewable Resources The foregoing contains forward-looking statements, which are subject to risks and uncertainties. Such risks include, but are not limited to, market acceptance of the CanFibre's MDF products, that the Riverside facility will be able to produce the same results under commercial operations, that Kafus has experienced losses and will continue to experience losses in the near future, and that Kafus is highly leveraged. These risk factors are set forth in the Company's filings with the Securities Exchange Commission. Readers should not place undue reliance on the forward-looking statements, which reflect managements' view only as of the date hereof. Kafus undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. |
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