Mexico's Largest Steel Manufacturers Place Order for Abakan’s PComP Coatings

Abakan Inc., an emerging leader in the advanced coatings and metal formulations markets, today announced that Abakan, along with its Central American partner, Metallurgic Solutions, SA de CV, has secured initial sales and test orders for PComP™ coatings from some of Mexico's largest steel manufacturers.

Abakan and MetalSol have also made significant progress in driving the oil and gas industry in Mexico towards early commercial adoption of Abakan's CermaClad™ pipe cladding products. Mexico's energy sector is currently in the process of expanding its offshore developments to greater depths in the Gulf of Mexico. Expansion in the Gulf of Mexico and around the world is exacerbating the acute need for superior cladding products. Abakan expects that if an accelerated qualification process can be determined and met, that Mexico may well prove to be the commercial entry point for CermaClad™ pipe cladding products worldwide.

"Abakan initially announced its partnership with MetalSol in September of 2013," stated Abakan CEO, Mr. Robert Miller. "Since that time, we have been working with two of the largest steel producers in Mexico providing them with what we believe is the best available corrosion and wear protection for their production equipment. Our anti-corrosion and wear resistant products lead to longer component life, which would result in very significant savings, due to a decrease in downtime, maintenance and replacement costs, while increasing operational efficiency and profits."

Mr. Miller continued, "Mexico is one of the ten largest oil producers in the world. Pending energy reforms, which are expected to be fully legislated by the end of 2014, coupled with abundant oil and gas reserves, Mexico will be one of the most sought after regions for companies working in the oil and gas industry. MetalSol has provided incredible value and credibility for us in the Mexican market over the past 8 months. Their hard work and commitment, coupled with their reputation and relationships, have enabled us to open doors at some of Mexico's largest companies. Then we let our products do the talking."

MetalSol CEO, Jose Maria Ribot Barroso added, "The value proposition offered by PComP™ coatings makes it extremely easy to sell, especially since companies can save millions of dollars every year by merely substituting the coatings that they currently use with Abakan's longer-life PComP™ coatings. Our conversations with oil and gas and steel companies about PComP™ and CermaClad™ products have been extremely encouraging. The traction gained and the orders that have been secured over the past few months are a testament to the outstanding performance of these products. We are highly confident that we should be able to acquire a sizeable portion of the Mexican coatings market over the next 2 to 3 years."

Mr. Ribot Barroso continued. "We have been working on establishing large scale operations in Mexico to provide locally produced products of the highest quality while creating skilled employment opportunities. We are currently in discussions with several regional economic development departments in order to finalize the best location for building PComP™ and CermaClad™ operating facilities in Mexico. We expect to finalize the plant location shortly. We are working with the top audit, tax, and business consultancy firm in Mexico, Crowe Howarth Gossler, as well as with a host of legal, professional services and industry experts to make a deep and lasting impact in the Mexican oil and gas market. Our goal is to be the number one metal protection firm in Mexico, and with Abakan's products this goal is definitely attainable."



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