MONTREAL, June 10, 2015 /CNW Telbec/ - PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSXV: PYR), a TSX Venture 50® clean-tech company (the "Company" or "PyroGenesis") that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, announced today that it has received a purchase order for the supply of its first commercial DROSRITE™ Furnace System (the "System") from a North American automobile parts manufacturer (the "Client") for $600,000, which will be delivered by year-end. The contract calls for a 50% down payment and a 10% holdback. The name of the Client will remain confidential for competitive reasons.
DROSRITE™ is a salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the metallurgical industry. DROSRITE™ avoids costly loss of metal, while reducing a smelter's carbon footprint and energy consumption, providing an impressive return on investment. PyroGenesis filed a patent for DROSRITE™ in 2012.
PyroGenesis' patented DROSRITE™ process increases aluminum alloy recovery from dross and reduces operating costs while at the same time producing no hazardous byproducts. In comparison, competing processes have significantly higher operating costs and produce a hazardous waste that has to be disposed of at additional cost.
The Client engaged PyroGenesis earlier this year to perform a two-week pilot demonstration of the DROSRITE™ process at one of its manufacturing facilities in North America. It is on the successful results of this pilot demonstration that this purchase order is based. Once the system is operational, it is expected that the Client will purchase two additional DROSRITE™ systems to be installed at its other manufacturing facilities.
"With over 53 million metric tonnes of aluminum produced in 2014 by primary smelters alone, and recognizing that dross is being produced at all steps of aluminum production/transformation, the opportunity to deploy our DROSRITE™ technology is vast," said Pierre Carabin, PyroGenesis' Director of Engineering. "When one factors in rising electrical costs, the DROSRITE™ process provides a quick return on investment while ensuring no hazardous residue legacies which have plagued this industry for years."
"This contract provides PyroGenesis with the crucial reference plant it has been seeking," said Tom Whitton, a PyroGenesis' Business Development Leader. "We have a long list of potential customers who were waiting for such a reference plant before placing an order with PyroGenesis. Primary and secondary aluminum smelters, as well as parts manufacturers, can now all benefit from this environmentally-sound, cost effective solution."
"DROSRITE™ successfully addresses a serious need within the aluminum industry, and underscores the success of our strategic plan to target high value niche problems," said P. Peter Pascali, President & CEO of PyroGenesis. "The market for our patented DROSRITE™ process is in the hundreds of units, representing over $300 Million in potential demand from primary aluminum plants alone. This does not include any revenues arising from secondary and tertiary markets which could easily double this number."
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a TSX Venture 50® clean-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2008 certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian company on the TSX Venture Exchange (Ticker Symbol: PYR). For more information, please visit www.pyrogenesis.com
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
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SOURCE PyroGenesis Canada Inc.
For further information: P. Peter Pascali, Chief Executive Officer, Phone: (514) 937-0002, E-mail: [email protected]