EDMONTON, Oct. 19 /CNW/ - Resin Systems Inc. (RS - TSX Venture / RSSYF -
OTCBB), a composite material products technology company, through its
operating division, RS Technologies (collectively "RS"), is pleased to
announce that it has entered into a cooperation and initial purchase agreement
with Jiangsu Far-East Group Co., Ltd. ("Far-East") and Shenzhen Chamber of
Commerce for Electric Power Service ("SCCEPS"). Pursuant to the agreement,
Far-East and SCCEPS will purchase RS's RStandard(TM) modular composite
transmission utility poles for use in China's expanding power grid.
RS will start monthly shipments of RStandard modular composite
transmission utility poles in Q1 2006, once product approval is received from
Chinese authorities. Approvals are expected to be completed by year-end. The
shipments will be a minimum $2 million USD per month and will continue for a
minimum 18 months.
During 2006, Far East, SCCEPS and RS will establish a joint venture
company ("FERSTGRID") to manufacture and distribute RStandard modular
composite utility poles in China under a standard RS license agreement. RS
will be responsible for providing all technology input for the complete
implementation of RStandard production facilities in China, training the
FERSTGRID personnel to ensure an efficient start up of production and
providing all ongoing technical support as required.
The initial China plant will be based on the new Calgary, Alberta
production facility and will consist of twin production cells capable of an
annual production of approximately 10,000 metric tons of finished RStandard
products. RS will grant FERSTGRID on an ongoing basis, additional standard
licenses to meet future RStandard demand in China. RS's Alberta production
facilities will produce all RStandard requirements for China until the new
plant is operational.
China power grid requirements are forecasted to continue to grow at rates
in excess of seven percent annually including constructing in excess of
100,000 kilometres of new transmission lines over the next five year period to
meet current electrical demand requirements.
About Jiangsu Far-East Group Co., Ltd.
Jiangsu Far-East Group Co., Ltd. ("Far-East") is an industry leader in
providing transmission, distribution and industrial cable products to the
Chinese electric utility industry and is a preferred supplier to State Grid
Corporation of China ("China State Grid") and China Southern Power Grid Co.,
Ltd. ("China Southern Grid"). Since its inception in 1990, Far-East has
maintained an average annual growth in excess of 35% per year, with projected
sales of $860 million USD in 2005. For more information about Far-East, please
contact Leon Wan at vanjulia1(at)126.com or 011 86 510 7242500.
About Shenzhen Chamber of Commerce for Electric Power Service
Shenzhen Chamber of Commerce for Electric Power Service ("SCCEPS") is an
affiliate of China Electric Power Industry Association and the only
professional and industrial organization of its kind in China. SCCEPS was
formed to act as the principal liaison between government agencies, the newly
privatized electric utility industry and suppliers to the electric utility
industry in China. In addition to its other activities, SCCEPS has been
authorized to make direct investments in the electric power utility industry.
SCCEPS's executives and advisory board is comprised of senior government
officials, and senior managers and engineers from the China electric utility
industry, including China State Grid and China Southern Grid. Its primary
customers will include China Southern Grid and China State Grid. For more
information about SCCEPS, please contact Haixiang Zhang at
John_Zhang(at)yahoo.com.cn or 011 86 755 88931529.
About RS
RS operates in the composite material products marketplace and provides
engineered solutions that are developed with its proprietary input materials,
equipment and processes. The foundation of these solutions is based on the
company's patented polyurethane Version(TM) resin system. RS is continuously
building on this foundation through additional patent pending and trade secret
knowledge. The company's engineered solutions are developed and implemented in
three distinct technology platforms, one of which is filament winding, which
has resulted in the development and production of the RStandard(TM) modular
composite utility pole. RS is in the process of commercializing the RStandard
for sale to power utility companies both domestically and internationally. The
RStandard modular composite utility pole application is winner of the 2005 ACE
award from the American Composites Manufacturers Association for the most
creative application and innovative use of composites material. For the latest
on the company's developments, click on 'Latest News' on www.grouprsi.com.
"Version" and "RStandard" are trademarks of Resin Systems Inc.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements. The forward-
looking statements are not guarantees of future performance and undue reliance
should not be placed on them. Actual results may differ materially as a result
of any number of factors and uncertainties, many of which factors are beyond
RS's control. Many of these risks and uncertainties are described in RS's
revised annual information form dated June 29, 2005, RS's management's
discussion and analysis and other documents RS files with the Canadian
securities authorities.
This release is available on the KCSA Public Relations Worldwide Web site
at www.kcsa.com.
