- Revenue ramp up exceeding management expectations -
TORONTO, Feb. 1, 2012 /CNW/ - Innovative Composites International Inc. (TSXV: IC) (OTCQX: ICIZF), ("ICI" or the "Company"), a producer of patented protected composite products targeting the multi-billion dollar prefabricated modular housing and transportation markets, reported today that the revenue growth in its non-housing side
of the business is progressing faster than originally anticipated.
"The speed in which our non-housing programs are ramping up and
generating significant revenues is indicative of the demand for our
products in the marketplace," said Terry Ball, President and CEO of
ICI. "Most of these products require little of our engineering
resources which allow us to focus on the housing market and the South
Carolina facility, while making a positive contribution to our bottom
In June 2011, ICI announced its first purchase orders for the supply of
composite panels to a leading North American automotive aftermarket
company. The program was expected to achieve approximately $5 million
in revenue annually within nine months.
As of today, sales of composite panels to this customer have already
reached $4.2 million on an annualized basis and continue to grow each
month. Once at full capacity, the Company expects the program to have a
five to six year life span. ICI panels replace a conventional material
previously used by the customer and offer superior strength to weight
ratio, are impervious to weathering, rot and corrosion and are
Tractor Trailer Market
Through the acquisition of Eleison, LLC, ICI now has the equipment and
patents to produce fiber reinforced thermoplastic skin material at one
of the lowest cost points in the industry. The purchase of Eleison also
created relationships with several new customers in the transportation
industry located in the USA and in Europe. The product is being used to
reinforce interior headliner and load floor applications. ICI has
completed shipments to all of the new customers and is currently in the
quoting process on several additional programs for the same material.
ICI believes there is significant potential to grow revenue for this
product from the $2 million annually, previously recorded by Eleison.
Management believes the product with the highest volume potential is
likely a program to supply ICI's composite panels to a manufacturer of
exterior aerodynamic package for trucks, known in the industry as
"trailer tails". According to ICI's customer, the product provides
fuel savings of up to six percent compared to tractor trailers without
an aerodynamic package. The product is approved by the US Department of
Transportation and is quickly gaining acceptance in the marketplace.
High fuel prices and new legislation in the US and Europe are
significant drivers of demand for transportation efficiency offerings
and ICI believes its products are well suited for this market because
of the superior strength to weight ratios.
About Innovative Composites International Inc.
Headquartered in Toronto, Canada, Innovative Composite International Inc. (TSXV: IC) (OTCQX: ICIZF) 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 prefabricated modular 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
To find out more about ICI please visit our website at: www.innovativecompositesinc.com.
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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 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
SOURCE Innovative Composites International Inc.
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