Poly-Pacific Signs a Joint Venture Agreement With Major Chinese Plastics Company
EDMONTON, ALBERTA, Apr 22, 2008 (Marketwire via COMTEX) -- Poly-Pacific International Inc. ("Poly-Pacific" or the "Company") (TSX VENTURE:PMB)(OTCBB:PLYPF) (BERLIN:A0LGDN)(FRANKFURT:POZ) is pleased to announce that it has signed a definitive Joint Venture Agreement with Zhejiang Siecheng Plastic Company Ltd. ("ZSPC"). For several months, Poly-Pacific has been searching for a strong strategic Asian partner to assist the Company with the importation of the nylon fibre into China, in accordance with the applicable laws of that country. This partner would also assist the Company in cleaning, processing (pelletization) and sales throughout Asia.
Located in Baixiang Town, Yueqing City, near Wenzhou, China, ZSPC specializes in the production, processing, recycling and sales of nylon throughout China. With gross annual sales exceeding $110 million Canadian, ZSPC is ISO9001 certified and has been awarded numerous certificates of merit, including "Enterprise of the Year" and "The Top 50 Enterprises" by the Chinese Government.
Under the terms of the Joint Venture Agreement, the Company will be responsible for the reclamation, preliminary cleaning, containerization, export into China and remediation of all landfill sites under contract in accordance with the applicable environmental laws.
ZSPC will be responsible for the purchasing and importation of the nylon in accordance with all applicable laws of China, the processing of the nylon into marketable products for sale or resale. ZSPC will also provide an irrevocable letter of credit from a reputable financial institution acceptable to Poly-Pacific in the face amount of not less than $1,000,000 Canadian that may be drawn by Poly-Pacific to secure payment from third party purchasers.
The Company and ZSCP shall share equally all net profits earned by the Joint Venture Agreement. The business of the Joint Venture will be controlled by a management committee with one or two representatives from each of the Company and ZSCP.
The Joint Venture also stipulates that both the Company and ZSCP will vigorously pursue additional reclamation opportunities on a world-wide basis.
"We sincerely appreciate the trust and opportunity that Poly-Pacific and its management team have given to us," stated Mr. Daoxin Huang, President of Zhejiang Xiecheng Plastics Company Ltd. "A shortage of recycled nylon has placed great pressure on our company. However, by applying our policy and strategy, our management team has achieved excellent progress on all aspects of this business. We are very proud to have been awarded one of the 50 top companies by the Chinese government during the previous three years. I am confident that working with Poly-Pacific will be a win/win for both companies' in the years to follow."
"The Joint Venture Agreement with ZSCP, one of China's largest and most successful polymer processing companies, is a significant achievement for Poly-Pacific," stated Randy Hayward, President of Poly-Pacific. "It provides the Company with a total solution for reclaiming nylon and other polymer waste. Our combined knowledge and financial strength will greatly enhance our ability to pursue and obtain additional landfill reclamation sites throughout the world."
Poly-Pacific is an innovator in eco-friendly solutions to Industrial Waste by-products. We are actively and successfully pursuing the reclamation of industrial polymers throughout the world. The significance and importance of recycling and reclaiming industrial waste has become an important global issue. At Poly-Pacific, we are focused on benefiting our planet by exploring and pursuing new environmentally sound methods and technologies in recycling, while creating significant value for our shareholders as the leading company in the reclamation sector.
This release may contain forward looking statements within the meaning of the "safe harbor" provisions of US laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. Poly-Pacific does not assume any obligation to update any forward looking information contained in this news release.
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Earl Nightingale Posts: 3 | From: New York | Registered: Mar 2008
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