Entrepreneur develops low-cost housing solution for Haiti

TORONTO (Reuters) - A million Haitians remain homeless after last year's devastating earthquake, but entrepreneur Terry Ball has a solution to help put roofs over their heads faster.

When the quake hit Haiti 18 months ago, Ball's company, Innovative Composites International (here), was developing lighter, more affordable and air-tight shipping containers. He and his team of engineers quickly saw the opportunity to use the same technology to construct low-cost homes.

Ball thought ICI's storage units could be used to build continuous wall sections that were well-sealed, energy-efficient and could withstand climate conditions in Haiti, particularly hurricanes and earthquakes.

"Our engineering team went to take a look at what would be the best way to provide a house with attributes that would satisfy the international community," said Ball, 46, who started his Toronto, Canada-based company in 2006 following a 25-year career in the automotive industry, including 18 with Magna International Inc (MG.TO).

"Our intention is that when we ship a kit to an offshore location 2 to 4 unskilled people, in less than two days, would be able to put the house up," he said.

The skins for the walls are made with a composite material - a patented mixture of fiberglass and recycled plastics - that was originally intended to be used in cars. A foam material sits in between the outer skins, which provides some insulation and makes the walls strong enough to stand up to flying debris.

Ball said aluminum framing is incorporated to reinforce the structures, and because there is no wood used, the houses are resistant to mold, rotting and insects - all dangers in areas susceptible to heavy rains and floods. The units are easily disassembled, so they can be used for a couple years and then moved to wherever else they are needed, Ball said.

Prices for the houses run between $20 to $40 per square foot, said Ball, which would make a typical 400-square foot unit cost about $8,000 to $16,000, depending on "what the customer is looking to have," he added.

ICI's road has not been easy. Their first product launch happened just as the market collapsed in 2008.

"We started this company in terrible economic times," said Ball, who initially sought to raise $3 million from private investors, but then was forced to take the company public when seed funding dried up after the financial crisis hit. ICI (IC.V) has had two public offerings, the latest, in November 2010, raised $4.7 million.

THE PITCH

There is currently a demand for about 5 million houses internationally, as developing countries are looking to move away from primitive shelters, said Ball, who believes ICI has the ability to become a "flagship in this industry."

ICI's manufacturing plant is located in Sault Ste Marie, Michigan and Ball said it's capable of producing 5,000 houses annually, at approximately 800 square feet.

The company, which employs 24 workers, just secured its first international contract to build an 880-square foot unit in Antigua as a show home for a large-scale government housing program that could lead to more orders.

ICI's homes were also showcased last month during the launch of an international housing competition in Haiti that will ultimately dole out $4 billion in aid money to help with reconstruction efforts.

"When we get the release of funds from the World Bank, we'll initiate the manufacturing immediately," said a confident Ball, who has partnered with international contractor Barclays Gedi Group to make sure the homes get erected in a timely manner. They are also looking at building a new plant in Charleston, South Carolina, which would be closer for shipping to Haiti and other Caribbean destinations.

"We'll try to never be the hold up," said Ball, whose major challenge right now is overcoming bureaucracies in places like Haiti. "It's a couple years cycle from the initial concept to get the go-ahead to move forward with these housing projects."

Ball noted the North American market will take more development time, adding it's approximately an 18-month cycle to complete all of the testing. He said that by 2012 and beyond, ICI should have a portfolio of products for North America, which would likely include vacation homes, military barracks and commercial buildings.

ICI has also developed a line of non-toxic fire retardants, which Ball said are currently being tested by the U.S. Department of Agriculture to combat forest fires. Ball said applications like this and other projects in the ballistics field, such as bullet-proofing police cars, have longer lead times, but "have a good margin and strong potential in the future."

(Editing by Jon Cook)