SALT LAKE CITY, UT--(Marketwire -06/06/12)- Today, the President of Green Star Products, Inc. (GSPI), Joseph LaStella, announced factors concerning the 2012 Business Outlook for the Company. The outlook falls into various categories because the Company is integrated across several fields of engineering and science.
In April 2012, the Company submitted under the US Department of Energy (DOE) ARPA-E Request for Proposals (RFP) for advanced game changing projects. Under this RFP, Green Star Products and its associated Consortium companies collectively submitted three proposals totaling $11 million dollars in the fields of algae production, cellulosic ethanol production, and extracting energy from the ocean. It should be noted that under this RFP the DOE is specifically asking for game changing, high risk projects, which have established some significant research data to prove their viability in these areas. There should be an announcement from the DOE soon as to the status of this program.
Large transportation companies (i.e., trucking and airlines) in the United States are only involved in the algae business for production of transportation fuels (e.g., jet fuel and biodiesel). However, Green Star and its Consortium partners have long researched the viability of developing high tech, closed reactor techniques to produce algae oil containing large amounts of omega-3 DHA oils. Green Star has been negotiating with potential partners both in the United States and the European Union to construct an omega-3 DHA facility. Construction of this facility will start in the fourth quarter this year or earlier.
Omega-3 oils with DHA are featured in the retail food industry not only in baby formulas but also in a variety of foods including omega-3 milk. The next time you visit your local supermarket, just read the milk carton which reveals some of the important advantages of DHA oil.
Green Star has maintained an office in Beijing, China, for over one year with our import partner Zhao Mei Shun. Our industrial coatings and TVT Green products in China have successfully achieved important testing results in certain categories; and, we are continuing testing in other industries. This successful effort has not yet materialized with any orders from China. The reason for this is very simple. We have customers in China that are eager to purchase our coatings and TVT Green products, however, doing business in China proves very difficult because the government imposes a 30% import tax (tariff) on all finished goods entering the country. This tariff substantially increases the cost of our products shipped to China and we are investigating two possibilities: the first is to send unfinished product (raw materials) to be shipped and blended into finished products in China; and secondly, to establish manufacturing facilities with a joint venture partner in China. This second prospect will avoid all import taxes and, further, labor costs will be reduced substantially. Both strategies are currently being pursued.
As for Green Star's TVT Green products in the United States, Italian Gun Grease (IGG), sold by Eco Solutions Group, has been a shining star. Recently, at several NRA and other Gun Shows in 2012, our IGG products were displayed by Eco Solutions Group in five different booths and have materialized in some orders that continue to grow. Eco Solutions Group continues to expand with new products being developed by Green Star, which include Italian Gun Grease, Italian Gun Grease Tactical Formula, Reel Slick, True Grease, etc.
Mr. LaStella further stated, "All of the above businesses in these four areas described display the broad spectrum of Green Star's products, engineering and research. We are confident that the fourth quarter of this year will produce our first significant profits since 2008, when the current worldwide economic crisis began. Green Star has adapted, with the development of these listed technologies and products, to the new business climate that has emerged from this economic downturn."
About Green Star Products
Green Star Products, Inc. (GSPI) is an environmentally friendly public company dedicated to creating innovative, cost-effective products to improve the quality of life and clean up the environment. GSPI and its Consortium are involved in the production of green sustainable goods including renewable resources like algae biodiesel and clean-burning biofuels, cellulosic ethanol and other green products, as well as lubricants, additives and devices that reduce emissions and improve fuel economy in vehicles, machinery and power plants. For more information visit http://www.GreenStarUSA.com, or call 1-800-741-7648 and 1-800-340-9784, fax 619-789-4743, or email info@GreenStarUSA.com.
Forward-looking statements in the release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the company's products, increased levels of competition, new products and technological changes, dependence on third-party suppliers, and other risks detailed from time to time in the company's periodic filings.