Joint Venture with Sicut Holding Limited, License Holder of Rutgers University Composite Technology in Europe, Asia and Other Territories, to Significantly Expand Axion’s Market Opportunity
NEW PROVIDENCE, N.J.–(BUSINESS WIRE)–Axion International (OTCBB: AXIH), a leading producer of industrial building products and railroad ties made from 100% recycled plastic, is pleased to announce that it has signed a non-binding Letter of Intent (“LOI”) with Sicut Holding Limited (previously “Micron Inc. Ltd”) to establish a global Joint Venture to capitalize on the world-wide railroad tie market through the manufacture and sale of Recycled Structural Composite (RSC) ties/sleepers utilizing their respective geographic licenses from Rutgers University. The joint venture will be 65% owned by Axion and 35% owned by Sicut.
Axion is the licensee of patents owned by Rutgers University to commercialize and sell products related to its structural composite technology primarily in North America, South America, Australia, the Caribbean, South Korea, Russia and a portion of the Chinese market based on a “contracts-won” basis. Simultaneously, Sicut is the licensee of patents owned by Rutgers University for Europe, India, South Africa, South-East Asia and a portion of the Chinese market, also based on a “contracts-won” basis. The Joint Venture will effectively allow Axion and Sicut to combine their respective licensed territories to sell RSC railroad ties and sleepers on a truly global scale. It is estimated by independent transportation consultancy firm SCI Verkehr that the railroad tie and sleeper market in Europe alone, is worth $3 billion, with the entire global market estimated to be worth approximately $8 billion.
“This Joint Venture will be an enormous acceleration of Axion’s business model with long term benefits to our corporate growth strategy and loyal shareholders,” stated Steve Silverman, Axion’s President and CEO. “We have been working with our partners at Sicut since Axion’s founding. However, instead of dividing our efforts among the world’s different geographic regions, the time has come to take advantage of our synergies and combine forces to sell our innovative products on a truly global basis. Working with Sicut we can deliver quality RSC products to our customers with an expanded geographic offering as Axion penetrates the $3 billion market of Europe and other territories for the first time.”
The new Joint Venture will be called Axion Rail, LLC, and will be established specifically to sell RSC ties to the global rail tie market. The Joint Venture does not relate to other applications of RSC technology, aside from railroad ties and sleepers. The Joint Venture will be targeting railroad sleeper opportunities using its combined relationships around the world, including those in the large European markets, such as the UK, which replaces approximately 1 million sleepers annually, France, at 1.2 million sleepers annually, and Germany, at roughly 1 million sleepers annually.
“With this Joint Venture, Axion and Sicut will have a truly global footprint when it comes to the sale, marketing and manufacturing of railroad ties,” continued Mr. Silverman. “Axion Rail will expand our economies of scale, so we can more effectively leverage our worldwide recycling pipeline to generate efficiencies in sourcing recycled plastic streams, enhance our supply chain management, and ultimately lower our manufacturing costs. We look forward to working with Sicut to expand and strengthen our presence in markets around the world and realize much greater revenue opportunities in the process.”
Anil Aggarwal, President of Sicut Holding Limited, commented, “We are excited to partner with Axion as we combine our management teams and leverage Axion’s capital markets experience. Together, this Joint Venture will be more powerful than the sum of its parts, both in terms of the size of the overall market, as well as manufacturing and sales opportunities. There is tremendous opportunity in France, the UK and Germany to name a few of our prime European markets, as well as exciting opportunities in India, South-East Asia and Africa. Our future looks bright as the rail tie industry begins to increasingly employ eco-friendly RSC technology.”
Axion’s proprietary RSC material is inert and contains no toxic materials. It is impervious to insect infestation, will never leach toxic chemicals nor warp. Because it is lighter than traditional materials, transporting RSC is less expensive and reduces energy costs. In addition, Axion’s products are completely recyclable at the end of their functional life.
About Sicut Holding Limited
Sicut Holding Limited is a multi-faceted company with interests in recycled technology from Rutgers and infrastructure development in India. Based in Europe via offices in United Kingdom, it is introducing revolutionary 100% recycled plastic sheets via its brand Vertech and RSC products to European markets. In India, Sicut shareholders provide manufacturing of steel related products to Indian Railways employing over two hundred people and are involved with energy and infrastructure related projects via partnerships with Chinese state owned firms. Sicut continually strives to develop new technologies and patents with Rutgers University, to meet client requirements for future needs.
About Axion International
Axion International is a leading structural solution provider of cost-effective alternative infrastructure and building products. The Company’s “green” proprietary technologies allow for the development and manufacture of innovative structural products made from 100% recycled consumer and industrial plastics. Axion’s up-cycled products are an economic and sustainable alternative to traditional building materials such as wood, steel or concrete. Developed in collaboration with scientists at Rutgers University, Axion’s patented technologies allow for products that are extremely strong, durable, flexible in design, and low maintenance.
For additional information, please visit Axion’s corporate website: www.axionintl.com.
This release contains “forward-looking statements” for purposes of the Securities and Exchange Commission’s “safe harbor” provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Axion’s actual results to differ materially from those currently anticipated, including the risk factors identified in Axion’s filings with the Securities and Exchange Commission.
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- Recycled Structural Railroad Ties To Be Installed in Mexico (compositology.com) 05/11/2011
- Axion International To Be Showcased at Bright Lights Conference (compositology.com) 04/21/2011
- Axion International Expanding Operation (compositology.com) 04/14/2011
- Axion International Co-founder Named One of the Nation´s Top Mechanical Engineers (compositology.com) 04/12/2011
- Marc Solda New Executive Vice President of Axion International (compositology.com) 04/05/2011
- Rutgers University receives patent on unique FR coating (compositology.com) 03/22/2011
- Alcoa Australia to purchase RSC railroad sleepers from Axion International (compositology.com) 03/18/2011
- Axion International to provide railroad ties for Colorado Light Rail (compositology.com) 02/24/2011
- Axion International wins $15M contract to supply railroad ties to Major National Railway (compositology.com) 02/02/2011
Tags: Axion International, composite, Composite material, Composites, Joint venture, New Building Products, Railroad tie, Recycled Structural Composite, Research and development, Rutgers University, Sicut Holding Limited, Technology
This entry was posted on Saturday, July 9th, 2011 at 12:38
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