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ZCL Composites in Supply Agreement with Tank Tech

  • Monday, 6th August 2007
  • Reading time: about 2 minutes

ZCL Composites has signed a seven-year supply agreement under which Tank Tech will sell and install ZCL’s Phoenix System tank liner product across the US.

The new agreement replaces a Florida-only, five-year agreement between ZCL and Tank Tech announced in 2006. The Phoenix System uses three dimensional Parabeam fabric to create an internal lining for the secondary containment of underground petroleum storage tanks, such as those used by gasoline service stations. “We have progressed to a nation-wide agreement because we both recognize the huge opportunity available to us in the US,” said Ven Côté, ZCL’s President and Chief Executive Officer. “This new agreement builds on the excellent partnership we have established in Florida by combining our tank lining and secondary containment technology with Tank Tech’s vast installation and service experience.” Over the past 18 months, under the Florida-only agreement, Tank Tech has successfully installed ZCL’s Phoenix System tank liner in more than 300 underground storage tanks at more than 100 locations. ZCL estimates that between 10,000 and 15,000 underground petroleum storage tanks in Florida will require replacement or upgrading under state legislation that requires single-wall tanks to have secondary containment by December 31, 2009. So far, Florida is the only U.S. state to establish a deadline for secondary containment of existing underground petroleum storage tanks. Over time, ZCL and Tank Tech both expect many other US states may follow Florida’s decision, vastly increasing the demand for ZCL’s tank liners. Under the agreement ZCL and its affiliates retain the right to market and sell Phoenix System tank liners directly to US customers. Tank Tech has non-exclusive marketing rights and has exclusive installation rights for the Phoenix System in the US. “We believe there is a large, long-term global market for an alternative to tank replacement when upgrading existing single wall tanks to secondary containment standards. This alternative to tank replacement can minimize both site disturbance and lost revenue at service stations. With the Phoenix System technology and this new agreement with Tank Tech in place, we are in a unique position to offer our customers the option of the finest in new fibreglass tank products, as well as a proven lining system for their upgrading needs,” said Mr. Côté.

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