Kafus Plant Operational and Shipping Flexply Composite Mats
BOSTON - Kafus Industries (AMEX:KS) Kafus Bio-Composites, Inc., a division of Kafus Industries (AMEX:KS) announced that it is fully operational at its Elkhart, Indiana composites facility, and is currently shipping Flexply(TM) natural fiber composite mats to leading automotive trim manufacturers for use in model year 2000 vehicles.
The Elkhart facility reached full operational capacity in less than one year, on time and on budget. Further, Kafus Bio-Composites has secured a powerful customer base among the Tier One suppliers, who recognize the benefits of Kafus' new environmental materials in producing superior interior trim components for major car and truck manufacturers.
Kafus Bio-Composites is currently shipping product to Findlay, who produce GM Saturn deck trays and Ford Cougar door panels, International, Volvo and Mack Truck interiors. Johnson Controls is also a customer, supplying Chrysler. Visteon Automotive Systems is a joint development partner with Kafus in the field of natural fiber composites and is incorporating Kafus' revolutionary new materials in the year 2000 Lincoln Continental, Ford Mustang, Escort, Taurus, Focus and Mercury Sable models.
Based upon current levels of production, Kafus Bio-Composites expects to ramp to 24-hour production by July, and commission its second manufacturing line in late 2000.
Flexply(TM) natural fiber composite mats serve as an alternative to glass fiber reinforced plastics. Natural fibers such as kenaf or hemp are blended with polymer fibers to produce non-woven mats and panels. Under heat and pressure, these mats can be three-dimensionally pressed into door panels, seat backs, deck trays, instrument panels and other interior components.
The advantages of natural fiber composites are many: They speed the manufacturing process, thus lowering manufacturing costs, while producing finished components which are lighter, stronger and less likely to shatter upon impact. They can also be recovered and recycled both on the production floor and at the end of a vehicle's useful life.
In January of 1999, Visteon and Kafus Bio-Composites signed a joint development agreement and are moving forward on the next generation of Flexply(TM) based products. Kafus Bio-Composites expects to establish significant markets for Flexply(TM) mats and panels in molded furniture parts, advanced packaging solutions, and within the construction and interior design industries.
Kafus is an emerging global manufacturer of superior materials produced from sustainable resources.
The foregoing contains forward-looking statements, which are subject to a number of contingencies and uncertainties. Such forward-looking statements are not guarantees of future performance, and are based on numerous assumptions about future conditions that could change. No assurance can be given that the level of production at the Elkhart, Indiana facility will continue at the current rate. Further, Kafus is subject to a number of risks which are set forth in its filings, with the Securities Exchange Commission.
Contact: Kafus Industries Ltd. Tony Francel, 941/698-8920 888/333-5377 781/326-5105 (FAX) Website: www.kafus.com or Kafus Bio-Composites David Agneta, 781/326-5001 781/326-5105 (FAX)