Distribution Agreement For Construction Mats In The Oil And Gas Industry

Phil Black - PII Editor 27/08/2014

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Canadian Market Boasts One Of The Largest Energy Industries In The World

AXION International Holdings, Inc. (AXIH), a leader in recycled plastic and plastic composite technologies used to produce ECOTRAX® rail ties/sleepers and STRUXURE® building products, and a vertically integrated re-processor and supplier of recycled plastic, today announced that it has signed a distribution agreement for STRUXURE® Construction Mats with Hydra Energy Solutions Ltd., a Canadian corporation in the oil and gas industry.

Multiple purchase orders are being shipped on trucks and railcars into western Canada for use on oil and gas projects. These initial shipments total over 150 units consisting of STRUXURE® Heavy Mats and new Access Road Mats. The Company expects additional orders by the end of 2014.

The Canadian energy industry is one of largest in the world. According to the report Energy Vision 2014: At a crossroads by PricewaterhouseCoopers (PWC), “Canada”s potential as an oil producer is almost unparalleled, with proven and recoverable reserves ranking near the top in the world.” The report also stated that in 2013, exports increased to more than 2.5 million barrels of oil per day and Canada is only one of the 14 countries that is capable of exporting 1 million barrels a day. The report Crude Oil: Forecast, Markets & Transportation by Canadian Association of Petroleum Producers (CAAP) states that Canada holds 173 billion barrels of proven crude oil reserves, which are the world”s third largest reserves after Venezuela and Saudi Arabia. Canada is the top supplier of crude oil into the U.S. and the majority of its crude oil reserves reside in the oil sands and production increases are driven by oil sand development. Canada”s crude oil production is expected to grow to 6.4 million barrels a day by 2030.

Steve Silverman, Vice Chairman of AXION said “Canada is a market opportunity for both STRUXURE® building products and ECOTRAX® rail ties/sleepers. Oil sands are a massive source of revenue in Canada and will continue to grow and there will be a demand for more construction mats that we will look to supply. We have been working on this formal agreement for many months and we are looking forward to growing the business with our new partners.”

AXION”s EVP for Building Products Dave Crane said, “The challenging climate in Canada is ideal for our structural composite technologies. AXION mats are estimated to have greater than 5 times the life of wood mats being used today and do not lose performance capacity when wet.”

Hydra Energy Solutions Ltd.”s VP Sales, Sean McCallum said, “We are very excited to be working with AXION. Their recycled products offer our customers a great solution as far as the ability to stand up to harsh conditions better than wood, plus it offers a green solution which we support. There is a tremendous opportunity in Canada”s oil and gas industry and given our team”s expertise in the industry, we are excited to be introducing AXION”s products into that space.”

STRUXURE® Heavy Construction Mats, which are produced from 100% recycled material, are engineered using a patented Recycled Structural Composite (RSC) formula, making them extremely strong, durable and resistant to rot, fungi, insects, and moisture. The AXION technology does not absorb or release any liquids and chemicals into the environment unlike wood. STRUXURE® mats are ideal in wet or harsh-temperature environments and are resistant to abrasion and tread-wear and are an excellent, cost-effective, long-term solution for industrial, energy, and civil construction projects.