Although the scrap tire recycling industry has existed for many years, it is still in its initial stages. Less than 20% of all scrap tires are processed. About 10% are burned, usually for power generation. However scrap tires like coal are polluting fuels, so air quality issues can always be a problem. About 4% of our scrap tires go to countries where they are either used in retread facilities or sold as-is. Currently, about 2 percent of our scrap tires are made into crumb rubber that is used in molded products as well as modified rubberized asphalt applications. This gives a longer-lasting and more durable asphalt surface.
Stockpiles containing scrap tires pose serious health risks as they can be a breeding ground for rodents such as snakes, mosquitoes, and rodents. With approximately 250 million scrap tires being generated annually in the United States and the existing piles estimated at between 2-3 billion, this represents a serious problem.
ATP Advanced Technology Pallets, a Nevada Corporation is proud to announce its patented product RST-PAL Pallet. It is a new pallet made out of recycled scrap tire rubber. The “RST-PAL Pallet” is strong, durable and reusable, providing an alternative to wooden pallets and the expense associated with replacing, repairing and discarding wooden pallets. RSTPAL Pallets may have serial numbers and bar codes to allow for easy tracking and retrieval.
Dan Radke the inventor has granted ATP all patents rights (to the USPTO # 08/680.476) to allow ATP to manufacture the RSTPAL pallets and to market them worldwide in perpetuity.
To provide cost effective and durable pallets to all industries and manufacturing.
THE EXISTING PROBLEM
- The wood and plastic pallet life cycles are very short and expensive.
- Wood pallets can break, and they need to be repaired or replaced every few trips.
- Wood absorbs liquids, gains weight, breaks and splinters, and is difficult to clean.
- Industries want durable and long-lasting pallets.
- The environmental danger of scrap tire stockpiles is high.
- Current pallets made of wood, are consuming over 3.5 million trees annually.
- RST PAL pallets are cheaper to buy and keep.
- RST-PAL pallets are more durable and indestructible.
- RST-PAL pallets can hold 15 times more weight than a wooden pallet.
- RST-PAL pallets can be stacked, stacked, and are more durable and last longer.
- RST-PAL pallets are unique, made from recycled scrap tire rubber using a newly patented process that includes rubber, recycled plastics and a binder system.
- RST-PAL palettes are guaranteed for at least a decade.
- RST-PAL pallets have no competition worldwide.
PROCESS AND TECHNOLOGY
- Materials processing and manufacturing of pallets are based upon a USPTO # 08/680.476, which was approved and issued.
- International (PCT), Patent protection filed.
- The production line machinery is readily available and can be sourced.
- You can easily find raw materials.
- Flexible production lines enable the construction of various sizes of pallets, while ensuring high quality and yield.
- Product is production “ready”. Qualification and R&D is complete.
- Process that uses modular capacity to allow for rapid manufacturing expansion.
- Factory is environmentally “clean” with no waste stream.
- Prototypes have already been constructed, tested and validated.
- U.S. Pallet consumption is 800,000,000 per year (National Wooden Pallet and Container Association. NWPCA).
- RST-PAL pallets have the lowest life cycle cost compared to wood, aluminum, and plastic.
- There are many options for Global Pallets-leasing.
- Marketing must be focused on both closed- and open-loop distribution.
- Worldwide markets and licensing opportunities (Internationally protected patents).
- U.S. Government Agencies and Contractors.
- U.S. government has mandated product replacement with recycled products first.
- “Quality, reusable multi-trip pallets instead of poorly constructed single user pallets” is needed ASAP. (Reference: NWPCA)
- Contractors who do business with the government must purchase ‘#8220â€™ and ‘#8220â€™ environmentally friendly products.
First, “recycled products” products. (Reference: President Clinton Executive order)
- Prototypes were evaluated by different industries, including military and government agencies with positive feedback.
- Potential sales pending investment and production ramp up.
- Government sub-contractors offer environmental incentives for certain markets.
- All permits, licenses, and governmental agencies obtained in support of the project.
PALLET COST COMPARISON – OVER FIVE YEARS
- Significant savings can be made by using RSTPAL pallets. They cost $22 per RSTPAL pallet, compared to $133 for wooden pallets over 5 years. See Topic 4.2.
INVESTMENT REQUIRED. USE OF FUNDS
- $6M investment to 35% ownership. Efficiency estimated at 12-18 months.
- From the second to third year, 50% after tax of the net profit will be distributed as dividends (so long as it doesn’t affect the planned expansion). The growth will receive 50% of the net profit after tax.
- Funds raised can be used for plant establishment, operations, marketing, and sale.
First year operation with two production lines is expected to produce 1,137,000 units, with a projected net profit of over $8 million.
- Projections represent the return of an original investment in less then two years.
- Based on the discounting of five year’s net earnings to current value, this valuation is approximately six-times.
- Present Value of five years of projected net earnings at a 25% discount (incl. risk factor) is $98 million.
- With five plants, we reached less than 1% in five years.
- Projectioned revenue: $402 Million
- Projected net profit (before tax) of approximately $178 millions
- Strong and professional Management Team with highly skilled consultants.
- Alternative Exit Strategies: (a. IPO after 2 years; (b. Acquisition; (c. Private ownership with a long horizon and high profits).
—_ MANUFACTURED OUT RECYCLED SCRAP TIRES
ADVICE TO CLEAN AMERICA’#8217;S CRAP TIRES
ATP is a manufacturer and marketing company that specializes on providing durable, cost-effective pallets made from recycled tire scrap. The product and manufacturing process are protected by patents worldwide.
Pallet users, both manufacturers of commodities and industries that use pallets for their main distribution, demand a more durable and longer lasting pallet to replace wooden pallets that require constant repairing, replacing and discarding. The National Wooden Pallet and Container Association says that wooden pallets can only be used for one or two trips before they need to be replaced. Pallet users have to buy pallets more often due to the limited life span of wooden (and plastic!) pallets.
Scrap tire stockpiles throughout the United States represent dangerous environmental hazards as they are breeding grounds for mosquitoes, rodents, and snakes, and create potential hazards for fires, which are extremely dangerous and expensive to extinguish.
ATP will reduce hazardous scrap tire stockpiles and help conserve some of the 3.5million trees used each year to make wooden pallets. ATP will locate its manufacturing plant in rural areas that are close to major cities, where it is most needed.
ATP will make profits and give excellent returns to its investors, while financing aggressive growth to increase production every year. ATP will maintain a fair and friendly work environment that values diversity, product improvements, hard work, and fairness.
- To set up two production lines at Stamford’s first plant to produce 1.2M pallets annually. With projected net income of over $8 million (before taxes),
- For years 2-5, to increase production by opening two more lines of production every year.
- Target market share at 0.15% for the first year of production and to 0.75% by the fifth year. 800 million pallets are produced and sold each year in the U.S.
- A projected market share of 0.15 percent in the first year is expected to produce net profits of $8,000,000 (before taxes) and 0.
75% of the market share in year five is projected to bring net profits of $66 million. The five-year production period’s cumulative profits, before taxes, are projected at $173 million.
Success keys 1.3
ATP will succeed for the following reasons:
- A pallet market exists in the United States that is currently worth more than 800 million pallets annually. It is believed that 60% of pallets are made from hardwood; these customers are ATP’â€™s targeted customers.
- RST-PAL pallets are more durable than plastic or wooden pallets and have lower life cycles.
- RST-PAL pallets are patent protected, are durable and virtually indestructible, and can carry in excess of 15 times the load of wooden pallets.
- RST-PAL pallets are guaranteed for years.
- Pallets, which are well-known, needed and established products, can be introduced to the market without introducing a brand new product. In fact, RST-PAL pallets are not a new product at all, but are far superior, durable and longer lasting than anything comparable in the market place. The advertising and marketing costs will remain low as the RST-PAL pallets are introduced to pallet users through trade shows and conventions, with ATP’s sales representatives located in targeted marketing regions. The first targeted marketing region is Dallas/Fort Worth, Texas, near the first plant in Stamford, Texas.
- An executive order by the U.S. government established a “buy recyclable first” policy for all government agencies, contractors, and departments, including the Department of Defense, and Department of Transportation. ATP will target federal and state agencies to market RST-PAL pallets.