25 July 2011
25 July 2011
Innovative Composites International (ICI) has signed a contract to supply approximately USD $68,000,000 in EcoScape housing for large scale projects in Haiti and Ghana.
According to ICI, the contract with Barclays Gedi Group (BGG), a US based construction conglomerate, follows 16 months of joint efforts attempting to secure large scale construction projects in Haiti and other jurisdictions. In order to service this contract ICI will establish a second manufacturing facility in South Carolina, US (SC Facility).
ICI say the 2,000,000 square feet of housing represent approximately 40% of the planned output capacity of the SC Facility. They estimate the projects to be worth $68 million dollars based on the current $34 per square foot price of ICI's 880 square foot house design. ICI has committed to start supplying homes as soon as the SC facility is up and running. Management will provide more details on the SC Facility in the near future, but it is expected that first EcoScape houses will be shipped in the first quarter of next year.
Under the terms of the Contract, ICI has granted BGG the Right of First Refusal to purchase up to 75% of the product output of the SC Facility for a period of 5 years. If the ROFR is exercised, ICI sales to BGG could reach approximately $112 million per annum.
ICI is currently involved in the development of several other housing projects and is working to secure purchase orders for the balance of the capacity of the SC Facility for 2012 and beyond. Projects in the pipeline include the $4 Billion Building Back Better Communities initiative in Haiti, the recently announced initiative in Antigua and a number of other ventures worldwide.
""ICI's EcoScape house is the perfect solution for large scale housing projects we have underway in various parts of the world because they are not only weather impervious but are easily and quickly assembled by local labour,"" said Wayne Gerl, President of BGG. ""We believe this product has the potential to significantly grow our business and look forward to a continuous, long term relationship with ICI,"" he added.
""This is a game changer for ICI. One we have been working on for the last two years. I have to congratulate the entire ICI team that has persevered through long, frustrating delays and has worked very hard to establish EcoScape as the product of choice for large scale affordable housing contracts,"" said ICI President and CEO Terry Ball. ""We have a lot of hard work ahead of us, but I believe we haven't even scratched the surface in terms of market penetration and will be able to accelerate project roll out once the SC facility is up and running,"" he said.
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