Business
Zedcor Achieves Manufacturing Milestone of 25 Towers Per Week and Provides Update on U.S. Expansion and Limited Exposure to Tariffs
Calgary, Alberta--(Newsfile Corp. - March 11, 2025) - Zedcor Inc. (TSXV: ZDC) (the " Company " or...
About this update from Zedcor Inc
[{"type":"text","content":"Zedcor Achieves Manufacturing Milestone of 25 Towers Per Week and Provides Update on U.S. Expansion and Limited Exposure to TariffsCalgary, Alberta--(Newsfile Corp. - March 11, 2025) - Zedcor Inc. (TSXV: ZDC) (the \"Company\" or \"Zedcor\") is pleased to announce that it has achieved a significant milestone, manufacturing 25 towers per week ahead of the budgeted timeline, with a further expansion expected to 30 towers per week in the second quarter of 2025, as component suppliers match the Company's capacity. The manufacturing target for 2025 is now 1,200-1,400 towers, with most of the growth in the fleet to be deployed in the U.S. market.Sales continue to be robust, with the fleet near full utilization in the U.S. as expansion to new States has been met with latent demand. The fleet is now comprised of more than 1,500 towers, with approximately 500 in the U.S. The fleet in Texas has grown to approximately 400 towers after only 12 months of dedicated sales in the State, while Denver is already approaching 100 towers. Zedcor has hired sales people in Phoenix and Atlanta and is targeting Las Vegas and California for further expansion by the third quarter of 2025. Discussions with enterprise customers are advancing as the Company has been able to showcase its distinct competitive advantages relative to competitors. A new state-of-the-art monitoring center in Houston is expected to be operational in the second quarter of 2025 and will service the U.S. market. The Company has assessed the impact of tariffs and does not anticipate a material impact to its financial results. Cameras for its 2025 fleet expansion were ordered late in 2024 and the supplier does not intend to adjust prices, while approximately 35% of steel components were also procured prior to tariffs being imposed. Raw steel components comprise less than 10% of total capital costs of each MobileyeZTM Security Tower. The Company also highlights that exposure to components from China are immaterial and will not impact tower capital costs going forward as none of the Company's steel, camera and communication equipment is sourced from there. The Company will aim to offset any future impact to tower capital costs by pricing adjustments with customers to maintain internal ROI targets. Todd Ziniuk, President and CEO of Zedcor, commented: \"We continue to execute on our corporat...