Innovative Composites International Inc. to Provide Highway Sound Barrier Panels
Toronto, Ontario (PRWEB) October 05, 2011
Innovative Composites International Inc. (IC:TSX-V) (“ICI” the “Company”), is pleased to announce that it has signed a Product Supply Agreement (the “Agreement”) with Fence-Crete Holdings Inc. (“Fence-Crete”) a privately held Canadian company, whereby Fence-Crete would use ICI’s Structure LiteTM panels in highway fencing applications in Canada on an exclusive basis.
Fence-Crete principals have over 30 years experience in the highway noise barrier industry and are currently supplying commercial fencing products across Canada utilizing an extensive dealer network. Fence-Crete recently presented a prototype sound barrier engineered by ICI to the Ministry of Transportation of Ontario (“MTO”) and received a very encouraging response. The parties will focus on jointly finalizing product design that meets all MTO certification criteria and offers a lightweight, durable system to replace current materials and technologies utilized in this application.
According to Fence-Crete market research, 87% of all highway sound barriers installed in North America utilize concrete. ICI StructureLiteTM panels offer a number of important advantages including significantly lower installation and maintenance costs, faster assembly, improved durability and complete versatility of appearance.
In addition, ICI has the technology to utilize recycled PET (the material commonly used in pop and water bottles) as well as other plastics to manufacture the highway noise barriers. According to the U.S. Government Accountability Office millions of tons of PET and other plastics are currently land filled throughout North America, creating an environmental issue for municipalities. Fence-Crete and ICI can therefore offer a value-add preposition for municipalities by cleaning up existing landfills and manufacturing higher quality and less expensive highway noise barriers.
According to the terms of the Agreement, Fence-Crete shall maintain exclusivity in Canada for a period of 8 years provided that revenue milestones for the developed products are met on an annual basis. Fence-Crete anticipates procuring annual volumes of about $10 million worth of panels after final product design and production ramp-up has been completed.
“The highway sound barrier market is growing quickly and having a superior product is imperative to maintain and gain market share,” said Fence-Crete President Tony Marra. “ICI’s panels offer significant cost and quality advantages compared to concrete barriers and we are excited about the sales potential in Canada and beyond.”
“Highway noise barriers is another natural application for our StructureLiteTM panels and the ability to utilize recycled plastics allows ICI to offer a superior product for this market,” said ICI President Terry Ball. “We previously successfully replaced concrete in other applications and anticipate a smooth roll-out of this product in the near future.”
About Fence-Crete Holdings Inc.
The principals of Fence-Crete have been involved in fence contracting and installation since the early 1970’s. Our commitment is to deliver the best products, using the best methods, in a timely manner at a reasonable price. We stand behind all the products we sell with a full year guarantee on both materials and labour.
Fence-Crete has extensive experience in highway guiderail and related highway safety products along with professional installation and repair. We are fully equipped with a wide range of tools and heavy equipment which enables us to supply and install virtually any kind of commercial, industrial and highway fencing. Our experienced staff includes Estimators, Layout Experts, Field Supervisors, as well as a pool of experienced professional installers.
About Innovative Composites International Inc.
Headquartered in Toronto, Canada Innovative Composite International (“IC”: TSX-V) is a high tech engineering and manufacturing company that is successfully commercializing a patent protected line of state-of-the-art composite products targeted at the multi-billion dollar transportation and affordable housing markets.
Led by a team of commercialization experts ICI has adopted a tier two business model: it designs and manufactures game-changing products and partners with established companies in its target markets to utilize their sales channels for faster product roll-out.
This strategy and the superior characteristics of the products have resulted in rapidly growing sales in both markets and opened up opportunities that could lead to large scale contracts on an ongoing basis.
To find out more about ICI please visit our website at: http://www.innovativecompositesinc.com
Chief Financial Officer
(416) 646 0754
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
“Statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for ICI’s products and the availability of funding. These forward-looking statements are made as of the date hereof and ICI does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from ICI’s expectations and projections."
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