Feb 9 2011
The new powder additive, that is manufactured by Flame Seal (Pink Sheets: FLMP) and marketed / distributed by Buckman, has proven to be a suitable and cost effective replacement for antimony and decabrome products.
Intense activity with Buckman clients during the later part of 2010 led to several important business opportunities to replace these widely used fire retardant products in several industries. These changes are driven by the escalating cost of antimony and the required replacement of decabromes, due to environmental regulations, in many manufactured goods.
During the last two months, the use of this new powder fire retardant has been successfully evaluated by one of Buckman’s major clients. Other companies are in the process of similar evaluations. Due to the size and scope of this market in plastics and similar industries, Flame Seal and Buckman have negotiated a financial agreement that provides major funding by Buckman for Flame Seal to accelerate the build-out plans at their new powder production facility in Texas.
It is anticipated that the current build-out stage will require another 30 days to complete, and will result in the first large scale production line for the powder products. The build-out of the entire facility will take several more months. Upon the completion of this expansion project, Flame Seal’s first fully automated powder manufacturing facility will be added to its existing liquid capability in support of an ever-expanding fire retardant business. In the interim, Flame Seal will continue to produce the FR powder for Buckman clients at their existing facility in Houston.
“These are very exciting times,” says Mike Kiser, President of Flame Seal. “We are working on several fronts to support our ongoing businesses. We are truly excited to be working with Buckman as they expand our business into several new, sustainable, high volume markets. They continue to discover new and innovative applications for our technology.”
“While many stockholders have expressed concern over the apparent delay getting this powder business up and running, I believe everyone will see that the time spent creating the best foundation possible was worth a few minor delays. We expect to receive sales projections as each new client begins to use this product, and we will provide that information in upcoming reports and news.”
Source: http://www.flameseal.com/