March 09, 2010: 10:53 AM ET
SNRG Corporation (PINKSHEETS: SNRG) announced this morning that the Company has completed the set up of small scale production of devulcanized rubber at its facility in Bay City Texas. A short video of the initial production sample coming out of the cooler will be available for viewing on our website www.snrg.net.
"The objective of the current production capacity is to establish the first step toward generating revenues," stated Mr. Fimrite. "Potential customers typically need a volume of sample material to process as they modify their product recipes to substitute devulcanized rubber for more expensive virgin rubber."
Current production is achieved with manual operation of the materials preparation and mixing process and is not intended to produce marketable quantities of devulcanized rubber. However, based on indicated customer response to our first sample product the company has decided to accelerate its development of marketable production by permanently installing its pilot plant equipment in a fully automated production line capable of producing 10 million pounds a year of devulcanized rubber.
According to Chief Executive officer of SNRG Corp. D Elroy Fimrite, "The rapid escalation of natural rubber prices, 115% in the past year and 30% in the past three months to a record $1.40 per pound has prompted us to increase our intended capacity from 80 million pounds to 90 million pounds, and accelerate the timing of producing marketable quantities by the automation and reinstallation of the pilot plant equipment. We now anticipate an ability to commence sales in the second quarter of this year."
Devulcanized rubber is not a new commodity, low quality devulcanized "reclaim rubber" has been produced and sold for over 100 years and even with its very poor chemical and physical properties constitutes around 5% of the global rubber supply, a volume in excess of 5 million tonnes a year. The devulcanized rubber the company will produce will have vastly superior properties to "reclaim rubber," will warrant a significantly higher market price and will have access to a much larger market than reclaim rubber.
The company's devulcanized rubber has excellent properties and can be used as a substitute for virgin materials in the manufacture of numerous rubber products. The technology acquired by the company is unique, proven and ready for commercial production. The global virgin rubber demand is in excess of 22 million metric tons per year or in excess of 60 million tons of compounds and consists of thousands of manufacturers that can substitute devulcanized rubber in their products and achieve substantial savings.
FORWARD-LOOKING STATEMENTS AND SAFE HARBOR STATEMENT:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "plans," "hopes," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the Company's business focus; the Company's ability to acquire its target facilities and raise needed funding; the potential productivity of our proposed properties; changes in the operating costs and changes in economic conditions and conditions in the recycling and de-manufacturing industry and the unproven nature of such technologies and its commercial viability. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. SNRG Corporation takes no obligation to update or correct forward-looking statements, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.
(money.cnn.com)
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