State-of-the-Art Capabilities Enhance Competitive Positioning
PHOENIX, AZ, Feb. 09, 2021 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today announced that the Company has completed a new, fully automated industrial gas fill plant at its Tyler, TX retail distribution facility. This is a state-of-the-art facility that gives the Company a significantly improved capability to compete in the Texas and Louisiana markets, including the ultra-high purity gas market.
The upgraded facilities represent the largest single capital investment in infrastructure in Company history, costing approximately $2.1 million to complete. The investment is projected to generate a meaningful impact on the profitability of the region’s operating profits, as the facility will immediately enable the Company to reduce labor costs, improve industrial gas margins, and support higher volume gas clients. The Company estimates that the facility should generate in excess of a 50% annual return on invested capital before factoring in any additional sales growth the facility may enable.
The Company is in the process of refurbishing the original fill plant assets that were previously located at the Tyler facility. Those assets are slated for redeployment in Oxnard, CA in the second quarter of 2021. The Company estimates the total cost to redeploy the refurbished assets will be approximately $0.2 million. The expanded Oxnard facility will enable the Company to relocate two other existing industrial gas locations in the Los Angeles market simultaneously. The combined financial impact of these changes is expected to generate approximately $0.6 million in annual savings in the Los Angeles market.
“Our new fill plant in Tyler represents a significant next step in the growth of our MagneGas Welding Supply retail operations,” commented Scott Mahoney, CEO of Taronis Fuels. “The upgrade to a state-of-the-art fill plant has been in process for over a year, and we are eager to see the financial impact of our investment. We believe this is a clear example of the operational advantages we are unlocking through the combined scale and scope of our US operations.”
“The Tyler capital equipment investment, together with the operational improvements we have undertaken in the Los Angeles market are estimated to improve the Company’s operating income by approximately $1.5 million annually. On a combined $2.3 million capital deployed, this represents a very compelling return on capital invested. We expect to realize the majority of the monthly benefit beginning immediately, with the balance of the savings to be realized starting early in the second quarter once we complete the optimization process across our retail locations in the Los Angeles market,” concluded Mr. Mahoney.
About Taronis Fuels, Inc.
Taronis Fuels, Inc. is a global producer of renewable and socially responsible fuel products. Our goal is to deliver environmentally sustainable, technology driven alternatives to traditional fossil fuel and carbon-based economy products. We believe our products offer a vastly cleaner solution to legacy acetylene and propane alternatives.
Taronis is also dedicated to providing fundamentally safer solutions to meet the industrial, commercial and residential needs of tomorrow’s global economy. Our products have been rigorously tested and independently validated by global gas authorities as vastly safer than acetylene, the most dangerous industrial gas in use today.
Lastly, we strive to deliver products that offer significant function superiority at a reduced cost to the end consumer. Through these efforts, we support 9 of the 17 United Nations Sustainable Development Goals. For more information, please visit our website at www.taronisfuels.com/
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.
Investor Contacts:
Michael Khorassani
IR@Taronisfuels.com