- Larger plant will accommodate increased production and enable
consolidation of manufacturing and head office
- New plant will result in savings of nearly $100,000 per year and
provide better production environment
TORONTO, Oct. 16 /CNW/ - Forterra Environmental Corp. (TSX-V: FTE-V), an
emerging leader in the production and sale of premium organic soil-enrichment
products based on worm castings, today announced that it is moving its
manufacturing to a newly leased facility in the Township of Puslinch, Ontario,
just south of Guelph.
"The new facility will enable us to expand our manufacturing capacity in
a more favorable production environment and to relocate our head office into
the plant. We will be paying lower rent for more space and realize other
efficiencies that will result in annualized cost savings to Forterra of nearly
$100,000," said Richard Denyes as president and chief operating officer. "We
expect to complete our move into the new facility and be into production at
the beginning of November."
The new facility is 51,000 square feet, about 24 percent larger than the
41,000-square-foot plant that the company currently is leasing in Downsview,
Ontario. The lease for the new facility is for five years with an additional
five-year leasing option and first right of refusal to purchase.
"The move to the new plant will enable us to double the current number of
active worm beds from 800 to our planned 1,600 in January 2009. Additionally,
the new facility offers improved air quality and non-chlorinated water that
should be favorable for our production, and more space for our worm breeding
operations, as well as improved loading and storage capacity," said Mr.
The company is in the process of sub-leasing its current space in
Downsview, Ontario and its current head office location.
"Two other advantages of the new Puslinch location are that it is located
nearer to what we view as major customer opportunities in the southwestern
Ontario agricultural region and to the University of Guelph with which we have
developed an important relationship in our development programs," Mr. Denyes
About Forterra Environmental Corp.
Forterra manufactures and markets environmentally friendly soil
enhancers, using worm castings, which boost fertility while restoring the soil
with organic matter for sustainable, longer-term benefits, including stronger
root growth, and drought and pest resistance. Forterra products contain only
organic material. They are ideal for golf courses, sports fields, lawn care,
parks, nurseries, orchards, and vineyards. Essentially, Forterra uses red
wriggler worms to convert organic waste into vermicompost or worm castings.
Worm castings contain micronutrients, which are required for healthy plant
development. Worm castings also contain microbes, which increase the rate at
which plants take up available macronutrients and micronutrients. Further
information is available on the company's website at www.forterra.com.
This news release contains forward-looking statements based on current
expectations. These forward-looking statements entail various risks and
uncertainties that could cause actual results to differ materially from those
reflected in these forward-looking statements. Such statements are based on
current expectations, are subject to a number of uncertainties and risks, and
actual results may differ materially from those contained in such statements.
These uncertainties and risks include, but are not limited to, availability of
resources, competitive pressures, changes in market activity, the ability to
sign contracts with customers, the development of markets for worm castings,
its ability to breed and maintain a sufficiently large worm population, and
regulatory requirements. Risks and uncertainties about Forterra's business are
more fully discussed in the company's disclosure materials, including its
annual information form and MD&A, filed with the securities regulatory
authorities in Canada. Forterra assumes no obligation to update any
forward-looking statement or to update the reasons why actual results could
differ from such statements.
The TSX Venture Exchange Inc. has neither approved nor disapproved of the
contents of this news release.
For further information:
For further information: Investor and Media Relations, Richard W.
Wertheim, Wertheim + Company Inc., Email: firstname.lastname@example.org, (416)
594-1600, (416) 518-8479 (cell)