Southridge Announces Plan to Construct Ethanol Facility in El Salvador
Business Wire "US Press Releases "
DALLAS--(BUSINESS WIRE)--
Southridge Enterprises, Inc. (OTCBB:SORD) (the "Company") today announced plans to construct an ethanol plant in El Salvador with a capacity of 5 million gallons per year (GPY). This follows an approval from the Government of El Salvador for Southridge to acquire a lease with purchase option of a 25,000 mz parcel land. This new plant will serve as a bridge for the company's ethanol drying facility for dehydration of ethanol imported from Brazil en route to United States.
Southridge plans to export ethanol from Brazil and import it into the United States via its facility in El Salvador where the company can take advantage of the Caribbean Basins Initiative (CBI), a trade agreement signed in 2000 that allows Caribbean and Central American countries to export ethanol into the United States duty-free.
The new site in El Salvador is located in close proximity to a river, making it easily accessible to transport product to an ocean port for transport to the United States. The site has 25,000 mz (approx. 4,500 acres) of land and access to abundant sugar cane production capacity. With an average yield of 30 to 40 tons per acre grown on site, the location will be more than capable of supplying the proposed 5 million gallon per year production plant.
CEO, Ken Milken, commented, "Our initial plans are to build a facility that will have the capacity to dry up to 15MMGY of hydrous ethanol to be imported into the United States. The second phase would be to build the plant capable of producing 5MMGY of ethanol using sugar cane as feedstock. Having the capability to use feedstock grown and cut straight out of our backyard gives us a huge advantage. Bagasse, the fibrous material that remains from sugar cane, will be burned as fuel and cut down our energy costs by 75%. Lower energy and feedstock costs will bring our profits to record highs in the industry."
"Southridge is very encouraged by this strategic new facility in El Salvador as it will allow the Company to become one of the lowest cost producers in the industry through the benefits of export incentives and supply of its own raw materials. This comparative advantage of vertical integration and production diversification will act as a hedge against rising costs and will ensure the stability of future production levels," said Milken.
About Southridge Enterprises, Inc.
Southridge Enterprises is a renewable energy company with a mission to become the ethanol producer of choice in the southeastern region of the United States. The Company is focusing its efforts in an area which offers abundant supplies of corn, superior transportation infrastructure and expedited permitting processes. The Company is actively acquiring and developing ethanol production facilities and anticipates start-up of the first phase of these operations in 2007. Southridge Enterprises is headquartered in Dallas, Texas. For more information, please visit our website: www.southridgeethanol.com
Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, successfully equipping the Quitman County plant for the production of ethanol, and the startup of production of in 2008, if at all.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage company in the alternative energy industry, its products, and the entry into new markets for such products. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's current and periodic reports filed from time to time with the Securities and Exchange Commission.
Source: Southridge Enterprises, Inc.
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