ITec Environmental Group Expected to Move into Riverbank Industrial Facility in Fall 2004.
With funds from private investors, public grants and through partnerships with government organizations and environmental groups, ITec has developed a new cost-effective, environmentally sensitive technology, Eco2, for cleaning plastic contaminated by substances that make most types of plastic ineligible or simply uneconomic for conventional recycling programs.
ITec has developed what it believes will be the next generation of plastics recycling technology that is cost effective, profitable and, more importantly, environmentally friendly. Its proprietary closed-loop recycling system does not exchange one contaminate for another, but rather eliminates this problem prevalent in most existing technology.
The Eco2 System has demonstrated the ability to produce clean, 100% recyclable High Density Polyethylene (HDPE) flake from used motor-oil containers and other HDPE containers used to transport used oil and to recover the residual oil attached to the plastic, with no waste by-products. Although first focused on recycling used motor oil containers, further research and development (R&D) has now made it possible to expand its application to three additional usages: (i) pesticide containers of HDPE, (ii) mixed HDPE color containers (detergent, shampoo, and Clorox containers), and (iii) Polyethylene Terephthalate (PET soft drink containers).
"Over the past 18 months we have been testing our Eco2 System technology which uses an environmentally friendly co-solvent and carbon dioxide to clean post-consumer plastics, instead of water, to remove dirt, labels, glue and contaminates from the containers of certain plastics," stated Gary De Laurentiis, President of ITec Environmental Group. "We've been focusing on recovering very high quality food grade flake from recyclable plastic containers that existing systems either avoid or must ship overseas. The test results proved that this state of the art Eco2 System will produce a finished, odor free product for 30% less than other systems. The fact that the Eco2 System uses absolutely no water, and discharges nothing into the environment, is of great significance when one considers that this is an industry that exists to reduce damage to the environment, not simply substitute one source of pollution with another."
ITec has been conducting this R&D in a small plant in Oakdale, CA.
"We believe ITec is now ready to take the Eco2 System to the next step and our needs for space have increased," stated De Laurentiis. "ITec would not be moving forward at our current pace were not for the efforts of the individuals at NI Industries (the operating contractor at the Riverbank Army Ammunition Plant for the U.S. Army). NI Representatives were flexible and creative with issues including rent and tenant improvements. A huge factor in our decision to locate at Riverbank was the fact that we were able to put down a significantly smaller deposit -- we were able to save almost $1 million. NI Industries also offered a graduated rent scale that will result in a 51% savings on the rent for the first year."
NI Industries has made all the necessary capital improvements including installing heating/cooling and improving electrical using ARMS program money to meet the facility needs of ITec.
"Usually one of the biggest costs in securing a location for a company like this is finding a facility with ample power," stated De Laurentiis. "The Riverbank facility came equipped with more than enough power. Also, we were able to get a much better electrical rate through the Riverbank AAP. Our electrical rate is almost a third less than the rate at other facilities in California. That's a major cost savings. Another attractive feature of the Riverbank AAP was the fact that they already had rail service. Most facilities don't have this and it helps us cut down on the shipping costs of our final product."
ITec believes, at full capacity, this new plant will produce approximately 6,000 pounds per hour of post-consumer PET beverage containers and HDPE used oil containers and employ approximately 48 production personnel. We believe the plant will reach capacity early in its second year of operation. Further, we anticipate revenues for the plant will be approximately $15,000,000 per year.
ITec expects to start ordering equipment for the plant in mid-September, with installation of the equipment taking approximately four months. ITec is making every effort to ensure testing of the Eco2 System will commence in December 2004.
About the Company
ITec Environmental Group offers many solutions to pressing environmental problems associated with recycling of plastics. Municipal, governmental and both public and private companies throughout the world face these problems.
Please visit our web site at http://www.iteceg.com. Any interested parties wishing to be included in ITec Environmental Group's mailing list, please email your request to email@example.com.
Cautionary Warning Regarding Forward-Looking Statements
This press release may contain "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: the ability of the Company's vendors to manufacture and deliver a successful commercial version of the Eco2 System, the company's ability to generate customer demand, to achieve acceptable pricing, to respond to competition, to manage growth, to make timely payment on it outstanding obligations, to manage regulatory and legislative developments that affect its system, and to obtain the necessary working capital to finance business operations.
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|Date:||Oct 5, 2004|
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