Company Adds New Laminated Mat Fabrication and Rail Tie Pre-plating Services to Meet Growing Demand
SOURCE AXION International Holdings, Inc.
AXION International Holdings, Inc. (OTCQB: AXIH), a leader in recycled polymer technologies used to produce ECOTRAX® composite rail ties/sleepers and STRUXURE® composite building products is pleased to announce today that it has increased all phases of its production output, adding manufacturing and fabrication capabilities and capacity at its company-operated facilities in Waco, Texas, and Zanesville, Ohio.
Aligning with what CEO Claude Brown, Jr. wrote in his letter to shareholders in late 2014, AXION's production rate at its Waco
facility has been steadily increased over the past six months to meet
the growth in demand for its engineered products, consistently improving
monthly recycled-plastic throughput from 1.5 million to over 2 million
pounds, a Company record. To continue to meet current demand, production
output must remain above 2 million pounds per month.
According to Ron Hensen, the Company's Waco
facility manager, "Recent production gains are attributed primarily to
improvements in raw material sourcing and the addition, training, and
stabilization of a fourth shift." The Waco
facility now operates 24 hours per day, 7 days per week. The rate of
regrind from unusable output, another factor and key performance
indicator that typically escalates during production increases, has been
reduced by 18% over the same period.
"Adding
capacity at both facilities has been and continues to be a key goal,
and we have more than doubled our yield in less than one year as we've
significantly reduced our rate of unusable output," explained R. Russell Hall,
VP of Operation Systems and Quality. "We are also focusing on
fabrication and services that further distinguish AXION, which is a
customer-driven emphasis that facilitates growth efficiently."
In Waco,
construction mat fabrication continues at an increased rate, matching
the doubling in other areas of the business. Related fabrication
capabilities have been brought on-line for the ECOTRAX® rail division to
meet the increase in demand for pre-plated rail ties, as well as a
Company drive to offer that value-added service. Cutting and plating of
tunnel ties, a new operation to meet demand for domestic transits and
railroads, is underway, increasing the breadth of AXION's core
competence in that location.
AXION's Zanesville
operation started processing high-density polyethylene plastic in baled
bottles for support of extrusion and mat fabrication processes in the
middle of December. Plastic reprocessing capacity has doubled. Most of
the reprocessed plastic is used as raw material for production of
AXION's construction mats that are manufactured using two types of
extrusion lines: continuous extrusion for small- and medium-sized
profiles and molded extrusion for larger profiles.
In early February at its Zanesville
facility, AXION began fabrication of laminated and heavy mats, two
types of construction mats in its STRUXURE® line. Laminated mat
fabrication is expanding to keep pace with growing order quantities. The
Company is also increasing construction mat inventory levels in Waco and Zanesville to service large customers.
Given
the demand across its ECOTRAX® composite rail tie and STRUXURE®
construction mat lines, AXION has begun preparation for another doubling
of production capacity before the end of 2015.
About AXION International Holdings, Inc.AXION
(OTCQB: AXIH) creates innovative structural polymer solutions,
engineering sustainable products and systems that provide improved
long-term value, consistent performance, and reduced maintenance costs.
Made with recycled plastics, AXION's products are non-corrosive,
impervious to moisture, do not leach chemicals, are resistant to insects
and rot, and are capable of supporting heavy loads. From the
transportation to the energy industries, AXION develops superior polymer
solutions for infrastructure needs around the world. Visit www.AXIH.com for more information.
Forward-Looking Statements
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause AXION's actual results to differ materially from those currently anticipated, including the availability of materials at favorable pricing, sufficient manufacturing capability and the risk factors identified in AXION's filings with the Securities and Exchange Commission.
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