Kelso Technologies Inc. Field Service Trials For New Pressure Car Angle Valve
September 29 2020 - 9:00AM
Kelso Technologies Inc. (“Kelso” or the “Company”), (TSX: KLS),
(NYSE American: KIQ) reports that a key customer has started the
installation of Kelso’s new 2” pressure car angle valve (K2AV) for
commercial field service trial testing as required by the
Association of American Railroads (AAR).
The K2AV is a high-value specialized valve
specifically designed for pressure tank cars. The service trial
will test a total of thirty K2AV units on ten tank cars. Currently,
there are approximately 85,000 pressure tank cars in the rail fleet
today according to AAR statistics. The K2AV represents a
significant opportunity for Kelso to expand the Company’s product
footprint in rail tank car equipment.
The K2AV joins the Company’s Kelso Top Ball
Valve (KTBV), the Standard Profile Bottom Outlet Valve (KBOV) and
the Pressure Car Pressure Relief Valve (KPCH) in field service
trial testing as a prerequisite for final commercial AAR approvals.
These advancements in service field trial activities by rail
stakeholders are a direct result of Kelso’s focus on
customer-driven product development initiatives that are expected
to fuel the growth of rail related revenues from a larger rail
product pipeline. The design objectives are to significantly
diminish the expensive chronic performance and supply problems that
are persistent with the current angle valves widely used today.
The K2AV is utilized on pressurized rail tank
cars for the primary purpose of loading and unloading the contents
of the tank. It is positioned on top of pressure service tank cars
with a standard configuration consisting of either three or four
angle valves per tank car. Pressure tank cars are loaded through
the angle valves located inside the top protective housing assembly
and are used to transport flammable and non-flammable gases.
The key proprietary design elements for the K2AV
include the use of single piece, high quality machined parts to
eliminate any porosity weakness - no casted parts are used. The
K2AV is designed for inspection, repairs and maintenance as the
outlet face plate flange and gasket can be easily removed for
service. The K2AV contains a self-draining, self-cleaning seat,
thus extending the life of the seats and the valve by preventing
puddling of commodity in the seat area. The K2AV meets or exceeds
AAR Standards and Regulations and it comes with a standard AAR
tongue and groove mounting, which is required for pressure car
applications.
Like all Kelso rail tank car products, the
Company’s K2AV is completely manufactured in the USA and fully
machined from virgin material which is a significant improvement
over the imported cast components used by competitors. The
Company’s well-established supply chain management system allows
Kelso to provide customers with the shortest and most reliable lead
times in the industry – a key benefit to customers with dynamic
production systems.
The Company’s K2AV development associates have
agreed to meet all the requirements of the AAR field service trial
testing. Their participation will assist in the completion of
regulatory processes necessary to gain full AAR approvals. An AAR
approved K2AV is expected to improve the potential of market
adoption by numerous customers.
James R. Bond, CEO and President of the Company
states that “We continue to strengthen the Company’s rail business
with Kelso’s investments in co-engineered rail tank car equipment
development with motivated customers. This more effective approach
to R&D along with an improved collaborative relationship with
the AAR including the Company’s long standing M1003 manufacturing
qualifications improves the longer-term potential for additional
revenues from newly developed products. Given stringent rail
regulations and testing guidelines the Company’s R&D projects
like the K2AV, KTBV, KPCH and KBOV including final AAR approvals
will remain complex, time consuming and expensive. The generation
of new revenue streams from any of the Company’s new products
remains unpredictable with no guarantee that meaningful commercial
revenues will occur. During the K2AV field service trial Management
anticipates that the Company will be allowed to legally sell an AAR
specified number of K2AV units commercially to support customers’
needs. If and when fully adopted by the rail industry the Company’s
K2AV along with the Company’s new KTBV, KPCH and KBOV are expected
to contribute to the improvement of Kelso’s financial performance
from rail related products.”
About Kelso Technologies
Kelso is a diverse product development company
that specializes in the design, production and distribution of
proprietary service equipment used in transportation applications.
The Company’s reputation has been earned as a designer and reliable
supplier of unique high-quality rail tank car valve equipment that
provides for the safe handling and containment of hazardous and
non-hazardous commodities during transport. All Kelso products are
specifically designed to provide economic and operational
advantages to customers while reducing the potential effects of
human error and environmental harm.
For a more complete business and financial
profile of the Company, please view the Company's website at
www.kelsotech.com and public documents posted under the Company’s
profile on www.sedar.com in Canada and on EDGAR at www.sec.gov in
the United States.
On behalf of the Board of
Directors,
James R. Bond, CEO and President
Legal Notice Regarding Forward-Looking
Statements: This news release contains “forward-looking
statements” within the meaning of applicable securities
legislation. Forward-looking statements are indicated expectations
or intentions. Forward-looking statements in this news release
include that our K2AV can significantly diminish the expensive
chronic performance problems that are persistent in the angle
valves in wide use today; that our K2AV development associates will
meet all requirements of the AAR field trial testing for the K2AV;
that an AAR approved K2AV is expected to improve the potential of
market adoption by numerous customers; that during the field
service trial the Company will be allowed to legally sell a small
number of K2AV units to support customers; and that Kelso may
improve its financial performance with sales of the K2AV, KTBV,
KPCH and KBOV in future periods. Although Kelso believes its
anticipated future results, performance or achievements expressed
or implied by the forward-looking statements and information are
based upon reasonable assumptions and expectations, they can give
no assurance that such expectations will prove to be correct. The
reader should not place undue reliance on forward-looking
statements and information as such statements and information
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
Kelso to differ materially from anticipated future results,
performance or achievement expressed or implied by such
forward-looking statements and information, including without
limitation that our K2AV may not significantly diminish the
expensive chronic performance problems that are persistent in angle
valves in wide use today; that we may be unable to complete the
regulatory processes to gain full AAR approval for our K2AV; that
the risk that railroad safety regulations and other regulatory
approvals may change, be delayed or cancelled; the Company’s
products may not provide the intended economic or operational
advantages; we may be unable to grow and sustain anticipated
revenue streams because of competition or decreased interest in our
products; orders may be cancelled and competitors may enter the
market with new product offerings which could capture some of our
market share; costs of production may increase affecting our
EBITDA; we may have to incur debt to keep up with costs and/or
technological or product development expenses; and our new
equipment offerings may not capture market share as well as
expected. Except as required by law, the Company does not intend to
update the forward-looking information and forward-looking
statements contained in this news release.
For further information, please
contact:
James R. Bond, CEO and President |
Richard Lee, Chief Financial Officer |
Corporate Address: |
Email: bond@kelsotech.com |
Email: lee@kelsotech.com |
13966 -
18B Avenue South Surrey, BC V4A 8J1www.kelsotech.com |
Kelso Technologies (AMEX:KIQ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kelso Technologies (AMEX:KIQ)
Historical Stock Chart
From Apr 2023 to Apr 2024