EDMONTON, Aug. 1 /CNW/ - ZCL Composites Inc. (TSX:ZCL) announced today
that it signed a seven-year supply agreement under which the tank service
company Tank Tech Inc. ("Tank Tech") of Blodgett, Missouri will sell and
install ZCL's PHOENIX SYSTEM(R) tank liner product across the U.S. Financial
terms of the agreement were not disclosed.
The new agreement replaces a Florida-only, five-year agreement between
ZCL and Tank Tech announced in 2006. The PHOENIX SYSTEM(R) uses ZCL's patented
three dimensional glass fabric known as Parabeam(R) to create an internal
lining for the secondary containment of underground petroleum storage tanks,
such as those used by gasoline service stations.
"We have progressed to a nation-wide agreement because we both recognize
the huge opportunity available to us in the U.S.," said Ven Côté, ZCL's
President and Chief Executive Officer. "This new agreement builds on the
excellent partnership we have established in Florida by combining our tank
lining and secondary containment technology with Tank Tech's vast installation
and service experience."
Over the past 18 months, under the Florida-only agreement, Tank Tech has
successfully installed ZCL's PHOENIX SYSTEM(R) tank liner in more than 300
underground storage tanks at more than 100 locations. ZCL estimates that
between 10,000 and 15,000 underground petroleum storage tanks in Florida will
require replacement or upgrading under state legislation that requires
single-wall tanks to have secondary containment by December 31, 2009.
So far, Florida is the only U.S. state to establish a deadline for
secondary containment of existing underground petroleum storage tanks. Over
time, ZCL and Tank Tech both expect many other U.S. states may follow
Florida's decision, vastly increasing the demand for ZCL's tank liners.
Under the agreement ZCL and its affiliates retain the right to market and
sell PHOENIX SYSTEM(R) tank liners directly to U.S. customers. Tank Tech has
non-exclusive marketing rights and has exclusive installation rights for the
PHOENIX SYSTEM(R) in the U.S.
"We believe there is a large, long-term global market for an alternative
to tank replacement when upgrading existing single wall tanks to secondary
containment standards. This alternative to tank replacement can minimize both
site disturbance and lost revenue at service stations. With the PHOENIX
SYSTEM(R) technology and this new agreement with Tank Tech in place, we are in
a unique position to offer our customers the option of the finest in new
fibreglass tank products, as well as a proven lining system for their
upgrading needs," said Mr. Côté.
ZCL Composites Inc. is North America's largest underground fibreglass
tank manufacturer. ZCL's complete fuel storage systems marketed under the
"Prezerver" trademark carry a $2 million warranty against pollution. More
information about ZCL is available on its website at www.zcl.com
About Tank Tech
Tank Tech Inc. provides a full range of storage tank services including
inspections, repairs, upgrading and linings of both above and below ground
storage tanks. Tank Tech is based in Missouri and has offices in Florida,
Delaware and Texas. With more than 20 years experience and a staff of fully
trained professionals, it offers its services throughout the United States.
More information about Tank Tech is available on its website at
This news release contains forward-looking information concerning future
events or ZCL's future performance. Actual events or results could differ
materially from a conclusion, forecast or projection in such forward-looking
statements due to a number of known and unknown risks, uncertainties and other
factors affecting ZCL's business, the industries ZCL serves and the economy
generally. Certain material factors or assumptions have been applied in
drawing conclusions or making forecasts or projections as reflected in the
forward-looking statements. ZCL believes that the expectations reflected in
these forward-looking statements are reasonable, but no assurance can be given
that these expectations will prove to be correct and such forward-looking
statements should not be unduly relied upon.
For further information:
For further information: Ven Côté, President & CEO, ZCL Composites Inc.,
(780) 466-6648, firstname.lastname@example.org; Bernie Lafferty, Vice President Finance &
CFO, ZCL Composites Inc., (780) 466-6648, email@example.com