Innovative Composites Signs Long Term Agreement to Supply EcoScape™ Modular Housing to Brazil
November 07 2011 - 12:57PM
PR Newswire (Canada)
Agreement represents approximately US$160 million of revenue over
three years TORONTO, Nov. 10, 2011 /CNW/ - Innovative Composites
International Inc. ("ICI" or the "Company"), announced today that
it has signed a Cooperation Agreement (the "Agreement") with
Millenium Brasil Limitada ("Millenium"), a Brazilian general
contractor, and Green Intelligence Corporation ("Greenco"), a
consulting company dedicated to the development of sustainable
projects, to supply EcoScape(TM) modular homes for large housing
projects in Brazil. According to the Agreement, approximately
US$160 million worth of EcoScape(TM) homes would be shipped to
Brazil from ICI's South Carolina facility ("SC facility") over the
next three years. After such time, ICI would establish a
manufacturing facility in Brazil in cooperation with Millenium and
Greenco, subject to a minimum local demand for 10,000,000 square
feet of housing annually. ICI will ship a model home to Brazil in
early 2012 and begin regular shipments from the SC facility once
commercial production begins, expected in the first quarter of
calendar 2012. The Agreement contemplates a ramp up of 30 homes per
week for the first 1,000 homes increasing to 50 homes per week
thereafter. "EcoScape(TM) modular housing has all the attributes we
were looking to service large scale demand in Brazil quickly," said
Gustavo Cortês, legal representative of Greenco in Brazil.
"Its cost, speed of assembly, energy efficiency and versatility of
appearance make it a great choice for the Brazilian market. We look
forward to a long term relationship with ICI and applaud their long
term commitment to establishing a manufacturing facility in Brazil
in partnership with us." "ICI continues to establish EcoScape(TM)
as the modular home system of choice for large scale low cost
housing projects worldwide," said ICI President and CEO Terry Ball.
"There is strong demand in the Brazilian housing market and we
believe we have found the right partners to take advantage of this
opportunity. ICI continues to win contracts and grow our project
pipeline as we get closer to the start-up of the SC facility in the
first quarter of next year." Chosen to host both the 2014 FIFA
World Cup and the 2016 Summer Olympics, Brazil boasts one of the
world's most robust economies, with 7.5% growth in 2010 and a
rapidly expanding middle class. Under an ambitious
accelerated-growth program (Programa de Aceleração do Crescimento,
or PAC) Brazil has laid down investment plans of more than
US$800 billion for infrastructure, including approximately US$72
billion for "Minha Casa, Minha Vida", which aims to build two
million new homes for low-income families before 2014. About
Millenium Brasil Limitada. In business since 2002, Millenium Brazil
(MBRA) implements large scale construction projects as well as
engineering projects with national market leaders, mainly in the
steel and petrochemical industries. The result of a continuous
process of evaluation of our people' skills, is an MBRA team of
professionals having the highest technical and managerial
competence. Our team's deep knowledge and experience in the market
segments in which we operate differentiates us from competitors,
allows for smooth business processes and reflects the requirements
of the market and its customers. To find out more about MBRA please
visit our website at: http://www.mbra.com.br/ About Innovative
Composites International Inc. Headquartered in Toronto,
Canada Innovative Composite International 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: www.innovativecompositesinc.com 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,
the ability of ICI's clients to carry out their contract
obligations 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." Innovative Composites
International Inc. CONTACT: Ilja Troitschanski or Philip DaleChief
Financial Officer TMX Equicom(416) 6460754 (416) 815 0700 ext
253ilja@innovativecompositesinc.com pdale@equicomgroup.com
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