Genesis Surpasses its Goal with the Commissioning of a Fourth Plant
MISSISSAUGA, ON, Jan. 11 /CNW/ - Genesis Worldwide Inc. ("Genesis" or the
"Company"), (TSX/AIM: GWI), an industry leader in "green" structural building
technologies using light steel in the residential, commercial and
institutional construction markets, announces the commissioning, in December
2007, of the new production facility of its licensee, Manazil Steel Framing
Factory ("Manazil") in Abu Dhabi.
Manazil is a subsidiary of Khalifa Al Fahad Company of Abu Dhabi, United
Arab Emirates ("UAE"), an Emirates construction company established in 1980.
The Company previously announced the signing of the License & Services
Agreement (the "Agreement") on July 10, 2007. Under the terms of the
Agreement, Manazil will be the exclusive provider of Genesis building systems
in the United Arab Emirates and Qatar. Manazil will remain the exclusive
provider of Genesis building systems as long as annual minimum targets are
achieved. The term of the Agreement is for a five-year period, with an option
to renew for a further five-year period.
The Manazil manufacturing plant, located in the industrial zone of Abu
Dhabi, will produce light steel paneled structures using the Genesis turn-key
solution, which includes leading-edge software, industrial equipment,
hardware, processes and engineering services ("Genesis Solution").
As part of the Genesis Solution, Manazil also benefits from the
implementation services provided through the Genesis project management
program. Genesis experts were recently on site to support and guide the plant
staff from the initial planning through to the installation and commissioning
of the production facility, as well as offering all training necessary for
plant operations. The use of implementation services ensures that Manazil will
have their plant up and running quickly, efficiently and successfully in order
to take advantage of the growing building market in the UAE.
Genesis President and CEO, Vince Mifsud, recognizes that the construction
and overall economic market in the UAE creates significant opportunities for
Manazil and Genesis. With strong growth in the real estate and construction
sectors in the UAE, both emirates of Dubai and Abu Dhabi are seeing a
substantial rise in new buildings, from hotels and office towers to family
homes. The Environment Agency-Abu Dhabi (EAD) recently announced that the
implementation of sustainable building practices is vital as the emirate is
expecting a 25% yearly increase in construction over the next three years. "It
is a very exciting time to be involved in the building industry in the UAE.
New housing is in great demand and Manazil is poised to provide an exceptional
product," said Mifsud.
Mohamed Khalifa Ahmed Mohamed Al-Fahed, owner of Manazil Steel Framing,
added, "Through the strong working relationship that exists between Manazil
and Genesis, we will be able to achieve our mutual goals. We will offer a new,
fully integrated and smart turn-key approach that will provide a more
simplified construction solution to the region."
Genesis light steel structural technology, an energy efficient,
environmentally friendly building alternative, is well suited to the hot
climates of the UAE. The Genesis Solution utilizes a cavity wall design that
incorporates air barriers, vapour barriers and insulation materials in order
for its structures to improve energy efficiency, as opposed to the use of a
single material, such as concrete, which does not conserve energy as well as
buildings with a cavity wall design. By using light steel, less energy is
consumed in order to bring the temperature down to a comfortable level.
Manazil is contracted to build large family style villas which can be
constructed with speed, cost-effectiveness and efficiency, an improvement on
the traditional concrete building methods often used in the UAE.
Manazil, already in the early stages of planning for its first building
projects utilizing Genesis technology, is poised to address the growing market
opportunities created by the construction growth in the UAE, particularly in
Dubai and Abu Dhabi. Manazil's Project Manager, Ali Muhsin, remarked, "We
believe that by building with light gauge steel and using the Genesis
Solution, Manazil will change the local building industry and bring
substantial benefits to the market by providing high quality housing at
reduced building costs and with less construction time. We see this as a
Genesis is pleased to have exceeded its goal of three plant
commissionings in 2007 by completing the opening of a fourth plant prior to
the end of 2007. In addition to the upfront licensing and equipment fees
already received from Manazil, Genesis will also receive ongoing quarterly
royalty fees. Genesis may also receive fees for additional implementation
services, training, engineering, and ongoing support.
About Genesis Worldwide Inc.
Genesis develops and licenses structural building technology aimed at the
residential, commercial and institutional building markets. Genesis offers
licensees a turn-key solution enabling them to custom design, manufacture and
install complete light steel building structures. The Genesis Solution
encompasses engineered processes and materials that are environmentally
sustainable or "green". Genesis is headquartered in Mississauga, Ontario,
Canada and currently has seven licensees worldwide. For additional information
about the Company, visit www.genesisworldwide.com.
Certain statements contained in this press release constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to the Company's future outlook and
anticipated events or results and, in some cases, can be identified by
terminology such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "intend", "estimate", "predict", "potential", "continue" or other
similar expressions concerning matters that are not historical facts. These
statements are based on certain factors and assumptions including expected
growth, results of operations, performance and business prospects and
opportunities. While the Company considers these assumptions to be reasonable
based on information currently available to us, they may prove to be
incorrect. Forward-looking information is also subject to certain factors,
including risks and uncertainties that could cause actual results to differ
materially from what we currently expect. These factors include changes in
market and competition, governmental or regulatory developments and general
economic conditions. Additional information identifying risks and
uncertainties relating to the Company, its business and prospects are
contained in Genesis' prospectus filed with the Canadian securities regulatory
authorities, available at www.sedar.com.
For further information:
For further information: Genesis Worldwide Inc., Catherine Smyth,
Manager, Investor Relations, Tel: (905) 285-9909, ext. 302; or Canaccord
Adams, Robert Finlay, Erin Needra, Tel: +44 020 7050 6500