LEXINGTON, Ky., May 25, 2005 (PRIMEZONE) -- Plasticon International Inc. (Pink Sheets:PLNI) today announced that it has signed a letter of intent to acquire Semco, Inc., a Nevada based company that is a pioneer in leading edge resurfacing technology. Pending the completion of due diligence, an acquisition date will be set. The acquisition gives Plasticon a major advantage over its competition because Semco, Inc., which has been profitable for years, is seen as the new industry standard in resurfacing by distributors and construction companies.
"This deal is important to Plasticon not only in terms of the synergy of our products," said Jim Turek, President and CEO of Plasticon International, Inc. "It would also have a major impact on our bottom line. Distribution centers are very interested in carrying these products. Since we just signed an exclusive contract with the largest building materials distribution company in the U.S., this acquisition would give Plasticon another innovative product line which will expand our overall market share in the construction industry. We see Semco's product line becoming a major profit center for Plasticon."
Mr. Turek also mentioned that convenience for his company's customer base was a key factor. "This acquisition makes a lot of sense because we are offering our customers one source to go to for the most innovative construction products in the marketplace. Additionally, this deal made sense to Semco, because our distribution contracts are so attractive. It was a win-win scenario."
One of the major applications for Semco's products is the resurfacing work on bridges. Semco, Inc.'s water based resurfacing products, which cross link chemically to the material they are being bonded to, reinforces the density of the surface. In the case of bridges, their waterproof products maximize the strength of concrete and prolong the life of the structure. Concrete durability is a major issue in the construction industry. Corrosion damage to concrete costs the U.S. billions of dollars annually.
"Corrosion damage is best addressed during the initial construction process, not as a band-aid," Mr. Turek said. "Plasticon's products and Semco's products solve the problem up front. With the signing of the new transportation bill, we believe that there will be a major increase in bridge and road construction work. Plasticon's recycled plastic products, which are the most cutting-edge in the industry, have been the preferred products of construction companies for quite some time. And now we can offer Semco's products to our customers as well, which compliments our product line perfectly."
About Plasticon International, Inc.
Plasticon International (www.plasticonintl.com) designs, produces, and distributes high-quality concrete accessories, transportation signage, plastic lumber, and office supplies which are all produced from recycled and recyclable plastics. Plasticon is a leader, an innovator of cutting edge design, engineering, and production of industrial and commercial products. Plasticon is a green Company, environmentally-friendly, using recycled plastics to produce its line of products.
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