Energy Composites Corporation Signs Agreement to Develop WindFiber Blade Production Facility

Thu Nov 5, 2009 11:38am EST
 
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WISCONSIN RAPIDS, Wis.--(Business Wire)--
Energy Composites Corporation (OTCBB:ENCC) announced that the Company has
reached agreement with the City of Wisconsin Rapids, WI to develop two parcels
totaling 93 acres into the world`s most advanced wind blade facility. The
announcement represents the next major milestone in the accelerating deployment
of ECC`s WindFiber strategy, following ECC`s recent appointment of Adrian
Williams to head its WindFiber division. 

Under the developers agreement between the City of Wisconsin Rapids and ECC, the
City has agreed to sell a 39 acre parcel and a 54 acre parcel in the Rapids East
Commerce Center to ECC for $500/acre for the development of a major
utility-scale wind blade production facility and associated logistics center.
The agreement provides for at least $7.5 million in development incentives from
the City, including site improvements, job creation cash credits, and additional
cash payments. The minimum incentive threshold was calculated based on ECC`s
original plans for a facility that would produce enough blades to equip wind
energy systems producing 750 megawatts of power per year. Since ECC`s final
design will provide blades for more than 1,200 megawatts of power annually -- a
60% increase in output -- the Company anticipates that the final level of
developers incentives from the City will grow significantly as the size of the
total tax increment grows. Closing on the land acquisition will occur before the
end of December. 

Sam Fairchild, ECC`s CEO, stated that, "Our ongoing partnership with the City of
Wisconsin Rapids, and this developers agreement, is a critical footing in our
efforts to launch the world`s most advanced wind blade facility. I can`t say
enough about the enormous contribution by Mayor Mary Jo Carson and her excellent
staff in making this a reality. Mayor Carson gets it, and her hard work will
generate economic benefit for the people of Wisconsin Rapids for many years to
come. We also want to thank the Common Council for its faith in our combined
vision and its recognition of our unwavering commitment to Wisconsin Rapids." 

Jamie Mancl, ECC`s founder and President, noted, that "The process of working
with the City and other parties produced a final plan that is dramatically
better than the one with which we started. Mayor Carson and her staff were very
patient with us as we shifted our plans in real time to capture newly-emerging
trends in the market. For example, our final requirements for land and
investment by the City reflects newly-emerging market trends in wind -- a
greater emphasis on development of offshore wind farms, and the longer wind
blades required by those farms; a stronger need for more flexible logistics
strategies, including the use of unit trains for shipping finished blades for
installation; heightened sensitivity to the environmental impact of blade
production; and a substantially higher degree of automation required for future
blade production. As we worked through these and other refinements, our vision
for our WindFiber Campus, and the more than 600 high-paid, permanent jobs it
will create, took final shape." 

Adrian Williams, WindFiber`s director and the central architect of the Windfiber
strategy, commented that "This agreement sets all of the wheels into motion.
ECC`s blade plant will be the first production facility in North America that is
designed to produce blades up to 65 meters in length, ideally positioning us to
deliver blade solutions for the coming generation of large-diameter onshore and
offshore wind energy turbines. These larger machines, already in use throughout
Europe, maximize energy capture and minimize the cost of energy produced. The
WindFiber plant will enjoy maximum production design flexibility in order to
meet the blade requirements of our customers. We will also be able to employ
innovative supply chain strategies that will give us a strong competitive edge
as well as unique product and manufacturing technologies that will deliver
significant improvements in blade reliability, turbine availability and
manufacturing efficiency. As we begin to break ground, we will roll out the
details on these advantages to the marketplace, as well as the other key
elements of our WindFiber strategy." 

Mary Jo Carson, the Mayor of the City of Wisconsin Rapids, expressed her strong
commitment to the success of WindFiber, saying, "The City of Wisconsin Rapids
has just taken a giant step into the world of "green" jobs. Energy Composites
Corporation will be creating more than 600 non-exportable jobs in Wisconsin
Rapids in the very near future. This means that the blades that ECC`s employees
will be making for the wind energy sector are too large to be made and shipped
to the United States from places like China. Our City is proud to be part of
this project and we look forward to production beginning towards the end of
2010." Carson added that "The ECC projects is yet another example of the power
of a public/private partnership, creating a long-term relationship that will
benefit the City, the company, and the people of Wisconsin Rapids." 

Fairchild added, "This is an important milestone. There are, of course several
more ahead. With the developer agreement signed, ECC can now begin specific
discussions with our targeted clients on schedules, costs, manufacturing
requirements and the like. We can now finalize financing. We can nail down the
final architectural requirements and place out bid packages. And we can begin to
focus on the remaining parts of our WindFiber campus, including our research and
development component. We are very pleased with our progress, and look forward
to delivering substantial value to our shareholders, our clients, our
employee-associates and our community." 

About Energy Composites Corporation 

ECC operates a world-class, automated 73,000 sq. ft. climate-controlled
manufacturing facility in Wisconsin Rapids, WI, employing advanced composite
materials to design, engineer and manufacture complex composite structures,
vessels and processing systems for a range of clean-tech applications that
include: wind energy system components, flue gas desulfurization for power
plants, infrastructure for bio-fuel storage and processing, infrastructure for
managing waste water and drinking water, advanced municipal utilities
infrastructure, and caustic material storage and handling systems for the
petrochemical, mining and the pulp and paper industries. ECC also provides 24/7
field service crews nationwide for wind energy system composites maintenance,
repair and overhaul; industrial retrofit, shutdown and maintenance; system
installation; and repair and inspection services. For additional information,
visit our website at www.energycompositescorp.com or contact Sam Fairchild at
1-800-787-5439. 

Certain statements found in this press release may constitute forward-looking
statements. Forward-looking statements are based on current expectations and
include any statement that does not directly relate to a current or historical
fact. Such statements are generally identifiable by the terminology used, such
as "anticipate," "believe," "intend," "expect," "plan," or other similar words.
Our forward-looking statements in this release generally relate to our
expectations and beliefs with respect to our growth and expansion activities and
plans. Although it is not possible to foresee all of the factors that may cause
actual results to differ from our forward-looking statements, such factors
include, among others, the following: (i) unforeseen delays, costs or
liabilities associated with our growth and expansion plans; (ii) fluctuations in
general economic conditions; and (iii) those risks described from time to time
in our reports to the Securities and Exchange Commission. Investors should not
consider any list of such factors to be an exhaustive statement of all of the
risks, uncertainties or potentially inaccurate assumptions that could cause our
current expectations or beliefs to change. Shareholders and other readers should
not place undue reliance on "forward-looking statements" as such statements
speak only as of the date of this release. We undertake no obligation to update
publicly or revise any forward-looking statements, other than as required by
law.

Energy Composites Corporation
Sam Fairchild, 800-787-5439
www.energycompositescorp.com

Copyright Business Wire 2009

 

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