AXION Ships First Purchase Order for Construction Mats Through New Distribution Agreement With Superior Energy Resources
NEW PROVIDENCE, NJ -- (Marketwired) -- 04/10/13 -- AXION International Holdings, Inc (AXIH.OB) . (OTCQB: AXIH), a leader in recycled plastic and plastic composite technologies used to produce ECOTRAX" rail ties and STRUXURE" building products, announced today it has signed a distribution agreement for its STRUXURE" construction mats with Superior Energy Resources, LLC (SUPERIOR) a provider of products and services to the oil and gas drilling and pipeline industry. AXION has shipped the first order through SER just weeks after the product's trial with this new distributor.
STRUXURE" construction mats are built to serve contractors in the oil and gas pipeline industry, as well as infrastructure contractors that build and repair utilities, highways, bridges, roads and marine projects.
Construction mats, which have traditionally been made from wood, are used at a variety of construction sites to support heavy equipment with tracks and treads on temporary, soft, unpaved surfaces in wet conditions. AXION's STRUXURE" construction mats offer a unique value proposition to customers including a higher return on investment over the total product lifecycle.
The first STRUXURE" construction mats were used at a construction site in New Jersey in October 2012. Since then, AXION has received a high level of interest from potential customers. Based on discussions with industry participants including distributors, an estimated $500 million worth of construction mats are sold in the U.S. annually. This is a subset of the $147* billion U.S. non-building construction market.
SER has been manufacturing and selling construction mats made of wood with steel frames to the oil and gas construction industry. With this agreement, SER will now also assemble and sell STRUXURE" mats. AXION is currently increasing production of these boards at its manufacturing facility to meet demand.
"Today the construction industry uses mixed hardwood mats. However, purchasing these mats comes with growing challenges including the mats' declining quality, shorter lifecycles and rising prices. We estimate our mats will last more than 5 times longer than hardwood alternatives in harsh wet conditions," stated AXION's Executive Vice President of Building Products, Dave Crane. "The fact that we have moved from product trial to purchase orders in a short period is a testament to the value our customers see in our product. With oil and gas pipeline construction booming in the North America, we believe we are launching our mats into a very strong market. Based on our discussions with SER, we have visibility for more orders on the immediate horizon."
According to Pipeline and Gas Journal , the U.S. and Canada will need between 28,900 to 61,600 miles of additional natural gas pipelines through 2030. AXION's mats can be used for oil pipelines.
"We are currently focused on serving the natural gas pipeline market along the Marcellus Shale formation as well as infrastructure contractors in the northeastern U.S. There is tremendous demand for more miles of pipelines, and we need construction mats laid down along the length of this construction. Having tested STRUXURE" construction mats, we believe its longer lifecycle will save us and our customers a significant amount of expense while also reducing down time on projects. We are very excited to have an alternative product to offer which displays clear performance advantages over traditional materials," added Stan Foster, Sales Manager for Superior Energy Resources.
STRUXURE" construction mats' durability and long lifecycle create a new business model for rentals in the mat business. Traditional wood mats are purchased, used and then discarded at the end of their useful life. STRUXURE" mats have a much longer life cycle that exceeds single-project use. Construction mat users may now benefit from the economics of renting a STRUXURE" mat instead of purchasing a traditional wood mat.
AXION also offers a buy-back program for STRUXURE" boards that reach the end of their useful life. Under the program AXION purchases the boards and recycles them again into new STRUXURE" construction mats. In exchange for the used mats, AXION issues a credit to customers towards future STRUXURE" construction mat purchases. In contrast, traditional wood mats are either left to rot or need to be transported to landfills at the end of their useful life.
A key raw material used in producing AXION's 100% recycled STRUXURE" construction mats is HDPE liners that are used at oil and gas drilling sites. The liners are typically disposed of in landfills. In collaboration with SER, AXION can purchase these liners to produce construction mats for use by the oil and gas industry, creating a closed loop for industry and reducing waste.
Product performance capabilities displayed by STRUXURE" construction mats may serve to further prove the advantages of STRUXURE" I-beams, tongue & groove boards, and pilings that are currently used in other applications including bridges, boardwalks, walls, shoring, curbing, and structural supports.
*2013 Dodge Construction Outlook by McGraw-Hill Construction
About Superior Energy Resources
Superior Energy Resources, a subsidiary of Varischetti Holdings, LP is focused on the Marcellus Shale formation, provides innovative, practical and top-quality products that save time and improve the way its customers meet their objectives. Key industries served by Superior Energy Resources include: Oil & Gas Production, Construction, Transportation, Manufacturing, Mining, Processing/Water/Waste, Chemical, Agriculture and Fire.
About STRUXURE" Construction Mats
STRUXURE" Construction Mats are engineered using AXION's patented recycled structural composite formula -- produced from 100% post-consumer and -industrial plastics -- making them extremely strong and durable. Since AXION's products are inert, they are impervious to rot, fungus, insects, and moisture. STRUXURE" Construction Mats are ideal in wet or harsh-temperature environments and are resistant to abrasion and tread-wear. Because of their durability, they are an excellent cost-effective, long-term solution. STRUXURE" Construction Mats will not gain weight, warp, or lose strength when wet -- yielding consistent, reliable performance in the harshest conditions. Through AXION's buyback program the Company purchases STRUXURE" mats at the end of their useful life, recycles them into new mats and provides a credit the customer towards new purchases. STRUXURE" mats are engineered for use in: gas and oil drilling & completion rig sites; access roads; work platforms; swamp access; wet job sites; staging & laydown sites; difficult terrain; remote work camps & job sites. For more information about STRUXURE" mats, click here or visit http://axionintl.com/products-composite-mats-supports.html.
About AXION International Holdings, Inc.
AXION (OTCQB: AXIH) is green technology company, transforming waste plastics into structural building materials. Using 100%-recycled consumer and industrial plastics, AXION develops, markets and sells its recycled structural composite products through its ECOTRAX" composite railtie and STRUXURE" building material lines. From the railroading industry to the military to global engineering firms, AXION delivers tested, proven and superior green solutions to infrastructure needs around the world.
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause AXION's actual results to differ materially from those currently anticipated, including the availability of materials at favorable pricing, sufficient manufacturing capability and the risk factors identified in AXION's filings with the Securities and Exchange Commission.
Contacts AXION Investor and Media Relations Andrew Haag Managing Partner IRTH Communications Email Contact 1-866-976-IRTH (4784)
Source: AXION International Holdings, Inc.