Tirex Delivers 2nd Major Component of Scrap Tire Disintegration System
10 March 1998
Tirex Delivers 2nd Major Component of Scrap Tire Disintegration System
MONTREAL, March 10 -- The Tirex Corporation
(OTC Bulletin Board: TXMC) announced today that it has delivered the cryogenic
tire freezing section of its patented scrap tire disintegration system (the
"TCS-1") to its first customer, Oceans Tire Recycling & Processing Co., Inc.,
of Toms River, New Jersey. This follows the January delivery of the fully
automated front-end module of the TCS-1. Delivery of the final section, the
disintegration system will complete the first TCS-1 and is expected to occur
by or before April.
The fully automated front-end of the TCS-1 processes up to five tires per
minute, separating the tread from the potentially more valuable sidewall
sections, cutting them into one-foot segments, and feeding them into the
freezing chamber which produces a compressed stream of air cooled to 240
degrees below zero (Fahrenheit). This cools the tire sections to the point
where Tirex's patented disintegrator can easily fracture them yielding: (i)
rubber crumb suitable for regrinding into rubber powders of varying degrees of
fineness down to -40 mesh; (ii) clean steel wires; and (iii) sections of
intact fiber cord. The TCS-1 uses no chemicals and will not produce any
pollution.
Tirex sells the front-end and freezing sections of the TCS-1 for a price
of $1,225,000 and has already received payments totaling $880,000 for the
components, which have been delivered to Oceans Tire. Tirex leases the
patented disintegration section of the TCS-1 System under a five-year
operating lease and lease payments of $12,500 per month are expected to begin
within one month of the anticipated April delivery of the disintegration
section to Oceans Tire. A Company affiliated with Oceans Tire has ordered an
additional eight TCS-1 Systems for an aggregate contract price of 24 million
dollars (including all 5-year operating lease payments). Tirex has received
$25,000 deposits on five of such Systems. Tirex has also entered into a
contract for, and received a $25,000 deposit on, an additional TCS-1 with
Recycletron Inc. of Montreal, Canada for a total contract price of 2.5 million
dollars. Tirex expects to be able to complete construction and delivery of
two TCS-1 Systems during calendar 1998 and to be able to fill all other orders
presently on hand by the end of 1999.
Last week, Tirex announced that the United States Patent and Trademark
Office has allowed its patent application covering the Tirex scrap tire
disintegration process and that the Bank of Montreal has granted a line of
credit in the amount of $937,000 Canadian dollars (US $659,367) to Tirex
Canada.
Tirex is engaged in designing and developing, and in the early stages of
manufacturing and selling, scrap tire disintegration equipment.
SOURCE Tirex Corporation