BOLOGNA, ITALY--(Marketwire -06/08/12)- Great Wall Builders, Ltd. (GWBU), (operating as "Start Technologies Europe s.r.o" or "Start Technologies") is pleased to provide an update from Company President and CEO, Daniele Brazzi regarding recent business accomplishments along with a view towards upcoming business milestones.
Life has been very hectic these past few months, as we have started the process of moving from a development stage company to an operating company. What follows below will hopefully give our existing shareholders, as well as our new investors yet to come, a snapshot of where we stand today, and where we will be headed in the near future.
The most important factor, of course, is the acquisition of the intellectual property and research and development of additional technology in this sector.
We have been overwhelmed by the positive response to our products from almost every party that has conducted any field tests. There is a lot of 'low-hanging fruit' consisting of fleet operators, both public and private, who are looking to negotiate contracts to install our products in their fleet vehicles.
We are therefore looking for key personnel that can handle business development by Geographic markets, particularly the Caribbean and Latin and South America. We are also looking to put additional resources in place to handle different market sectors, as we expand out of our initial focus strictly related to the automotive sector.
As we enter the commercialization stage of our growth as a Company, we will also be putting a team in place to manage the production process, as we begin to close manufacturing agreements and potential acquisitions with third parties, and expand our own production capacity within the EU.
Sales and Distribution
We are very pleased with the development of our distribution channels within Europe, and now in Africa. There are also quite a number of negotiations taking place in the Carribean after completing our field tests in Latin and South American markets. We have announced a number of significant distribution deals, but there are definitely more to come.
Milestones to date include the following:
-- NESS Tech GmbH, which will be the master distributor within the EU, as well as other selected Eastern European markets. Note: the U.K., Italian and Irish markets are excluded from this agreement. The contract represents a minimum of EUR8 million in the first year, with sales volume ratcheting up by 10% a year over the five year contract.-- Cogedev.RC in France has committed to EUR9,157,650 over the next five years, within the total NESS Tech sales commitment.-- B.U.T.WACTUR Waclaw Mroz has signed on as the exclusive distributor in Poland. The annual sales commitment for the Polish market is EUR600,000 in the first year, and will increase by 10% in each subsequent year of the five year agreement. This volume will also be part of the NESS Tech commitment.-- Our most recent announcement, with Coopsette Soc Coop, provides distribution throughout the African Continent. This substantial contract is valued at EUR120 million over three years.
As mentioned above, we are also making excellent progress in the Carribean, Latin and South American markets. At this point, our limiting factor is the need to travel to so many diverse destinations to finalize contracts.
We are also in continuing discussions with a number of automotive manufacturers regarding the implementation of our Start technology in both the production and aftermarket applications in order to meet Low Emission Zone certification requirements being adopted in the global markets. Further announcements will be made as negotiations are concluded with the automakers.
In addition to acquiring the assets earlier this year, we would like to advise that we are winding down the extensive field testing that has been conducted with a wide variety of outside parties. By and large there is sufficient data to ably demonstrate the benefits of the FEED technology.
We are now focused on commercializing our technology. We will be announcing the development of our next generation of products in the near future, which expands our product capabilities and adds additional benefits and improvements throughout the product line.
It is important to note that we are now in the process of expanding to other markets outside the automotive sector. Essentially, our proprietary technology can be applied to almost any type of internal combustion engine. Therefore, we are also looking at products directed to industrial generators, the agribusiness sector and marine applications. Once again, there will be further announcements made as we accomplish various business milestones in this area.
We have begun to collaborate with potential 3rd party manufacturers to adapt and improve our products to specific factors unique to different markets around the world.
Finally, we are very pleased to announce the opening of our new Research and Development facility in Bologna, Italy. While the recent earthquakes have disrupted commerce in many parts of the region, we remain optimistic that this facility will come online in the near term.
As mentioned above, it is vitally important to finalize some of the production agreements under negotiation with third parties in different markets. We hope to announce firm commitments for the manufacture of our product line under license to serve these varied markets in the coming months.
Also of note is the expansion of our own production capabilities within the EU. Our production capacity within Italy is limited to 5,000 units per month. It is vital that we expand operations to meet the demand represented by the agreements announced to date, never mind the demand generated as we finalize contracts under negotiation within the EU and eastern Europe.
To that end, we are pleased to announce that we are developing production facilities within Slovakia to serve these markets. The Company is currently in discussions with the Slovakian government regarding subsidies to encourage the building of a production facility in Male Bielice, on an industrial property measuring roughly 20,000 m2. In the meantime, the Company has begun renting a 5,000 m2 (over 50,000 ft2) facility in Slovakia, until the factory is completed. An initial timeframe for completion of the facility is approximately 6 months.
The coming months will be exciting and very busy as we continue our progress towards becoming a major player serving the automotive and other internal combustion engine related sectors.
We have a variety of factors driving acceptance of our products, ranging from improved fuel efficiency, particularly for regions with older fleets of vehicles, to reduced emissions, which are a significant factor given the increasingly strict regulations related to Low Emission Zones throughout the EU. Additional benefits stimulating acceptance of our product line includes recent test results indicating that the increased fuel efficiency achieved with our products can deliver a secondary benefit of increased horsepower as well.
About Great Wall Builders, Ltd.
Great Wall Builders, Ltd. (operating as "Start Technologies Europe s.r.o." or "Start Technologies") owns the exclusive manufacturing and distribution rights to the Start Fuel Efficiency and Emission Device (FEED), an aftermarket device for internal combustion engines that enhances performance by causing fuel to combust more efficiently and completely. The technology uses a high-voltage electric current to break long-chain hydrocarbon molecules into shorter, lighter more volatile molecules. The patent-pending device produces a number of important benefits, including; lower emissions; reduced fuel consumption; and improved engine performance. The technology can be applied to a variety of different types of engines, both diesel and gasoline powered, heavy equipment as well as consumer vehicles. For more information, visit www.StartTechnologiesCorp.com.
This press release may contain forward-looking statements with respect to business conducted by Great Wall Builders, Ltd. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Such forward-looking statements include those that express plan, anticipation, intent, contingency, goals, targets, or future developments and/or otherwise are not statements of historical fact. The words "potentially", "anticipate", "could", "calls for", and similar expressions also identify forward-looking statements. The Company does not undertake to update any forward-looking statements. Factors that could affect actual results include, without limitation, risks associated with: the Company's ability to successfully obtain patents for its technology and the adequacy of such patents; the introduction of competitive technology; the Company's ability to develop, manufacture, license, or sell its products or product candidates; the Company's ability to enter into and successfully execute any license and collaborative agreements; the adequacy of the Company's capital resources and cash flow projections, the Company's ability to obtain sufficient financing to maintain the Company's planned operations, or the risk of bankruptcy; other risks that may be described under Certain Risks and Uncertainties Related to the Company's Business, as contained in the forthcoming Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.