SPOKANE, Wash., April 28, 2009 (GLOBE NEWSWIRE) -- GeoBio Energy, Inc., d/b/a Plastics Conversion Technologies, Inc., (PCT) (Pink Sheets:GBOE) a Washington based plastics cleaning, separation, and recycling company, today announced a strategic agreement with Central Manufacturing, Inc. of Groveland Ill. Under terms of this alliance, Central will provide the design, manufacture, and testing of several high-volume scrap separation processing units for use in PCT's soon-to-be constructed first operating facility.
In addition to the contract for production of this equipment, Central has granted PCT certain intellectual property (IP) rights in the designs contemplated, as well as certain discounts to the manufacturing prices, and the parties intend that these assets will be valued and exchanged for stock in PCT.
"We see tremendous opportunity in working with PCT and its founder Gary De Laurentiis, and are excited about the company's proprietary cleaning and separation processes," said Central CEO Mike McLemore. "And, we want to be a long-term participant in their growth and success. The best way for us to do that was to be true partners with them from the outset, and thus we've come to this agreement today."
The initial project will be comprised of a feed flow regulator, rotary (trommel) screen, foam separator(s), light/heavies separator(s), grinders and various transfer conveyors, representing a total financial requirement of approximately $2,000,000.
Once commenced, production time for these units will be about 24 weeks. Units will be built and tested at Central's Groveland facility, then shipped for installation to PCT's first plant, currently projected to be in Oregon or Wisconsin. Combining the purchase of the equipment and the development of the plant, the total financial outlay and asset value is expected to be $13,000,000.
Said Mr. De Laurentiis: "Working with Central and Mike in the past has convinced me that they are among the best at what they do. They design and build solid units at realistic costs, and have a history of delivering on time and on budget. Mike and his team are the perfect partners for Plastics Conversion Tech, and I'm extremely gratified by their commitment to this new endeavor."
Additional information on Plastics Conversion Technologies Inc. can be found at www.enviroplasticscorp.com.
About Plastics Conversion Technologies
Plastics Conversion Technologies is a plastics recovery, separation, cleaning, and recycling company. It was formed in 2009 via the merger of GeoBio, Inc. and EnviroPlastics, Inc., with the intent to supply recycled commercial plastics to industries such as the automotive and consumer products industries, and it plans to construct large-scale plastics recycling facilities near automotive shredder locations nationwide. Operating in conjunction with large national metal recycling partners (see "Strategic Partners"), the company, using a patent-pending process developed by EnviroPlastics, will produce recycled commercial grade plastics ready to be re-introduced into commerce. Additionally, in conjunction with other Strategic Partners, PCT will convert waste and scrap plastic (both from its own processing and from other sources) into high-value energy products, including synthetic oil.
The EnviroPlastics Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6107
About Central Manufacturing
Central Manufacturing is an independent Illinois company, and is a world-renowned source for heavy, industrial class materials handling systems. Central offers a diverse and skillfully manufactured product line, custom-tailored to enhance existing markets and to create new ones. Resource recovery is the company's primary focus, and their manufacturing methods are thorough and exacting, with attention to detail, safety, and high performance.
Press Release Services: EquityDigest.com and www.SmallCap1.com
Additional information on Central Manufacturing Inc. can be found at http://www.centralmhs.com/
Forward Looking:
Safe Harbor Statement
The contents of this Press Release may contain forward-looking statements which can be generally identified as such because the context of the statement will include the words such as "expects," "should," "believes," "anticipates" or words of similar import. Such forward-looking statements are subject to certain risks and uncertainties including the financial performance of GEOBIO which could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.
This Press Release does not constitute any offer, invitation, or solicitation to purchase securities.
"Forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, may be included in this press release. These statements relate to future events and/or our future financial performance. These statements are only predictions and may differ materially from actual future events or results. GEOBIO disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. Please refer to the documents filed by GEOBIO with the Securities and Exchange Commission, which identify important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with our ability to (i) obtain additional financing, (ii) generate revenues, (iii) obtain profitability, (iv) manage changes in general economic and business conditions (including in the asset management and asset tracking industries), (v) react to actions of our competitors, (vi) develop new services and markets for our services, (vii) properly quantify the time and expense involved in such development activities, (viii) identify and manage risks in connection with acquisitions (ix) evaluate the level of demand and market acceptance of our services and (x) make necessary changes to our business strategies.