MONTREAL (Jan. 31, 2000) — Tire recycler Tirex Corp. has improved its patented TCS-1 cryogenic tire grinding system and entered an agreement with a management company to drum up business in Central and South America.
Also, an online investment advisory service has touted Tirex´s stock as "a great buy," particularly in light of possible contracts with Mitsubishi Corp. and other major companies.
Tirex made improvements to the material handling operations of the TCS-1´s freezing tower after a five-month test period to evaluate the recycling system for "100-percent flawless automatic operations," according to a company release.
"It used to be a step system, and we´re changing it to a conveyor belt," said John L. Threshie Jr., Tirex vice president-logistics, regarding the TCS-1´s material handling. "The changes don´t affect the cryogenic operations themselves."
Almost simultaneously with the TCS-1 improvements, Tirex also announced its agreement with Allied International Management & Trading Corp. "to act as its advisors to develop strategic alliances for the company in Central and South America."
Allied International´s part of the agreement is to help Tirex connect with possible purchasers of the TCS-1 system in those areas, particularly large environmental companies.
Allied International will receive a commission for every buyer of a TCS-1, but it will not act as a sales representative for Tirex, Mr. Threshie said.
"We do the selling ourselves," he said. "This (Allied International´s fee) is more of a finder´s fee."
Currently Tirex has back orders for 14 TCS-1 facilities worth $41.75 million.
This backlog and the agreement with Allied International make Tirex a desirable investment, according to TheSubway.com, a daily online market report about "fundamentally sound, undervalued companies" operated by the Capital Research Group Inc.
Furthermore, according to TheSubway, "it is rumored that three multinational companies are in talks with (Tirex) to purchase systems and licensing technology.
9All three companies have money that they have to spend this year, and as for the rumor, Mitsubishi is one of them. If this is the case, other automobile manufacturers such as GM, Chrysler, Ford Motor Co. and others could soon follow."
Mr. Threshie confirmed the talks with Mitsubishi.
``Mitsubishi approached us and asked about purchasing three (TCS-1) machines," he said. "We´ve also showed the technology to possible investors. We´ve had calls from Malaysia, Japan, China and all over Europe."
Besides manufacturing the TCS-1 system, Tirex also produces crumb rubber and its RuCuTherm-brand rubber-thermoplastic blend. In 1999 it sold a rubber floor mat manufacturing operation to concentrate on its core businesses.