MONTREAL—Several international deals are "in the works" for tire recycler Tirex Corp. after demonstrating its patented TCS-1 cryogenic tire grinding system to several potential buyers, according to Tirex President John L. Threshie.
Tirex won't publicize specifics of the deals "until we have signed contracts," Mr. Threshie said, but added the company has signed one memorandum of understanding (MOU) with an outfit in China. That company, the Shandong Hongli Group from Dezhou, China, has an MOU with Tirex to buy "the major proprietary portion" of a TCS-1 system for $2.25 million, according to a company overview downloaded from Tirex's Web site.
Representatives of the Chinese Embassy in Ottawa and the Canadian Board of Trade and Industry with China recently visited Tirex for a TCS-1 demonstration. Others who have seen the system in action recently, on that date or others, include representatives of Mexican, Russian, Italian and local Canadian entities, according to Tirex.
The company publicly released letters from its Chinese visitors praising the TCS-1 system. "TCS-1 is the right one we are looking for," it quoted James Ma, president of the Canadian Board of Trade and Industry with China, as saying. "I will strongly recommend our members in China to promote this technology."
The praise of Li Xiaofu, science counselor for the Chinese Embassy, was more ambiguous. "Tirex is something new and energetic," Mr. Li wrote. "As we discussed that as long as it is an environmentally sound technology, as long as it is making money, we believe its future is bright."
According to its most recent financial statement, Tirex had a net loss of $1.3 million for the six months ended June 30, 2000. However, the company projects a profit of $943,000 for the year ended June 30, 2001; of $5.1 million for the year ended June 30, 2002; and of $11.7 million for the year ended June 30, 2003.