SSPC Leases An 80,000 Square Foot Building For Vehicle Manufacturing
28 July 1999
SSPC Leases An 80,000 Square Foot Building For Mining & Composite Vehicle Manufacturing
SHREVEPORT, La., July 28 -- Southern States Power Co.
(OTC Bulletin Board: SSPC) has signed a lease agreement for an
80,000 square foot building in the former Norton Air Force Base in Riverside,
California to initiate manufacturing of a specialty vehicle for underground
mining markets. The "Free Trade Zone" status of the former military base
allows SSPC to import goods from overseas without paying duties unless the
vehicle is sold in the U.S. This will allow SSPC to source parts from all
over the world, export vehicles without paying duties on imported parts and
consolidate auto operations in Mexico and the US. This press release contains
forward-looking statements that should not be used to make an investment
decision. Please refer to the SSPC web site (http://www.sspowerco.com) and other
sources for detailed information, or call Michael Sealey at 318-221-5703 or
sspowerco@usa.net.
Southern States Power Co. will be producing mining vehicles at the
facility as it ramps up from initial production to large-scale manufacturing
of vehicles. The first mining truck will be delivered in the second week of
August to mining customers in Utah and will be followed up by delivery of
14 other vehicles under an existing purchase agreement. To move from small
volume production to the level necessary to capture even a small percentage of
the total mining vehicle market, it was necessary to lease a large
manufacturing plant for mass production of vehicles. Over 15,000 mining
vehicles must be out of the mines on 11/25/99 if they don't have certified
diesel engines and other safety and emission equipment.
The initial review of the first mining vehicle by a contingent of buyers
and Genco Mine Service on 7/23/99 resulted in a very positive response. The
buyers noted that the vehicle met and exceeded all of their expectations and
they were very enthusiastic about test driving the vehicle when delivered.
There are no major OEM manufacturers now selling vehicles specifically
designed for use by the mining industry. The vehicle SSPC has designed and
developed uses a proprietary frame and body design that allows it to meet all
height restrictions, safety requirements and other design limitations placed
on vehicles used in underground mining operations. It is also built to
withstand an extremely rugged environment including roads into the mines
covered with salt, rocks falling on the vehicle, scraping of the vehicle sides
along rock walls and loading of heavy equipment. Mines must now convert a new
or used pickup truck and put in a certified diesel engine. It is very
expensive to purchase a diesel engine, make modifications to the body to meet
height restrictions and make changes to the transmission and driver controls
to accommodate diesel engines. The extremely corrosive and damaging work
environment results in brand new trucks being rust buckets within 2-3 years.
SSPC's vehicle, which uses a combination of steel and composite materials, is
designed to withstand this extreme work environment and last at least
15 years. Vehicle pricing will be comparable to the current cost of
converting a new pickup truck, thereby providing a much lower life cycle cost.
Strong interest in the mining trucks is expected once the first vehicle is
delivered. Managers of transportation systems in mines must now invest a
large amount of money and management time to convert gasoline pickup trucks to
run on diesel and meet height limitations and safety requirements. SSPC is
now able to offer a turn-key solution to the mining market that includes a
long lasting mining vehicle with low maintenance and upkeep costs that is
already fully approved for use in the mines at the same price target as new
vehicle conversions.
With the lease of the 80,000 square foot building in a "Free Trade Zone",
SSPC will be able to ship complete vehicles via rail to mining sites all over
the U.S. Inquiries have also come in from mining customers or potential
partners from all over the world.
SSPC is also sub-leasing space to Electrobike, a subsidiary of BAT
International, Inc. (OTC Bulletin Board: BAAT), for warehousing of electric
bicycles made in China for international and US markets.
This press release contains forward-looking statements that should not be
used to make an investment decision. Please refer to SSPC web site
(http://www.sspowerco.com) and other sources for detailed information, or call Mike
Sealey at 318-221-5703.