Trading Symbol: MCV
TORONTO, June 23 /CNW/ - McVicar Industries Inc. ("McVicar") is pleased to announce that its research and development team has successfully developed a new method for the production of 4'-Hydroxyacetophenone ("4HAP"), a key raw material for Zhejiang Hongbo Chemical Co., Ltd.'s ("Hongbo") chemical products used for the DuPont project. Hongbo is a fully owned subsidiary of McVicar.
Hongbo acquired Xiangshui Luyuan Chemical Co. Ltd. ("Luyuan") in 2008 in order to produce 4HAP to ensure that Hongbo could provide the quantity and quality of supplies for the DuPont project. Luyuan's operation was stopped due to unexpected debt claims from previous creditors. Luyuan's production of 4HAP also experienced very low profit margins due to the low productivity (about 60%) of original production process and high amounts of waste. The new technology simplifies the production process and uses a new and recycling catalyst for the production, generating minimum waste resulting in substantially reduced production costs. This new process can generate up to 90% of the final product and is expected to improve profitability of the project.
McVicar is in the process of pilot testing the new process, sourcing and ordering equipment, and searching for an ideal site for final production.
This news release may include certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of McVicar, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Neither the 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 the accuracy of this release.
SOURCE McVicar Industries Inc.
For further information: For further information: Ms. Exavier Peterson or Dr. Gang Chai, CEO, at: 55 University Avenue, Suite 605, Toronto, ON, M5J 2H7, Tel: (416)366-7420, Fax (416)366-7421, www.mcvicar.ca