Alcar Chemicals Group Announces New $75M Contract

July 5, 2006

MONTREAL–(MARKET WIRE)–Jul 5, 2006 — Alcar Chemicals Group Inc. (Other OTC:ACMG.PK) announces that it just closed a second contract with A-M Polymer Industries Ltd. for $75M worth of polyols supplies.

M. Abbas Terki, following his return from Turkey — where he successfully negotiated a new polyester resin manufacturing facility to service the growing demand for the Middle Eastern Market — has signed a second 5 year contract to secure the required raw materials supplies for its new facility from ACMG.

The second A-M Polymer facility planned in Turkey will come online next summer according to M. Terki and will require between 10,000 and 12,000 tons per annum of ethylene glycol and propylene glycol, the “green polyols” manufactured by ACMG. “M. Terki had made me part of his plans and I knew that A-M Polymer was in full expansion, especially with its recent homologations for construction and naval applications, but I didn’t expect such an additional contract this fast,” said Alexander Cavasin, CEO of Alcar Chemicals Group. “I will be meeting M. Terki next week in Geneva to propose a single contract to include supply scheduling for both facilities. The production of 20,000 tons annually will require three reactors, A-M polymer will have to work with us on a ramp-up schedule as to avoid any shortages; I agree it is a nice problem to have, nonetheless, it requires extra planning and additional funds to respond to the increased demand,” further added Dr. Cavasin.

Under the present conditions the combined contracts are worth $158M dollars over a five year period, or $31.6M annually in sales revenues and royalties combined. “Our updated Business Plan, including financials and revised projections, are now available online through our website,” specified Dr. Cavasin when asked about more details.

About Alcar Chemicals Group

The Alcar Chemicals Group (Other OTC:ACMG.PKNews) represents a significant market opportunity due to a serious worldwide supply shortage of raw materials for polymers as well as an increased requirement for ethanol and biodiesel. ACMG has been concentrating on innovative methods for biomass valorisation for the past decade, specifically petroleum-independent fuel and plastics resin production. Its proprietary technology represents today’s most economical and advanced manufacturing process for plastic raw materials, ethanol and bio-diesel, allowing production at cost savings of up to 40% when compared to current production methods.

To hear more about ACMG from Alexander P. Cavasin go to:

Important Information About Forward-Looking Statements

All statements and information in this news release, other than historical facts, are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties which are subject to section 27A of the Securities Act of 1933 and section 21E of the Exchange Act of 1934, and are subject to safe harbor created by these sections. We have attempted to identify any forward-looking statements by using words such as “anticipates,” “believes,” “could,” “expects,” “intends,” “may,” “should” and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct and actual results may vary.

A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.

Homer Paterodis
Investor relations consultant
Tele 514-952-5251

Source: Yahoo


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