Basanite Industries, LLC announces achieving full operational status, the completion of strategic new hires, and accelerated expansion plans in light of strong market demand
POMPANO BEACH, Fla., Nov. 12, 2020 (GLOBE NEWSWIRE) -- Basanite Industries, LLC, a wholly owned subsidiary of Basanite, Inc. (OTCQB: BASA) (collectively, hereafter referred to as “Basanite” or the “Company”), today announced that has reached full operational status. Further, in response to strong market demand, the Company plans to accelerate its growth plans, starting with a major expansion of its Pompano Beach manufacturing facility in 2021.
In the middle of August of 2020, Basanite began scaling manufacturing operations and commenced the manufacture of its initial stock of inventory of BasaFlex™, its proprietary basalt fiber reinforced polymer reinforcing bar (or rebar). Also during this timeframe, the Company filled key positions within its production facility and reached its primary goal of full capacity single shift operations. Basanite has begun selling across its complete product line and is currently working on securing larger orders for next year. The Company has also been preparing multiple test articles for customers who are now conducting testing for specific applications. Based on market demand, Basanite is now working towards beginning two shift operations early in the new year.
Management has also been recruiting key positions in the Company, focused initially on product development; driving sales growth; and expanding the Company’s market presence. Our hiring focused on key areas of excellence, including quality assurance; operations and other technical resources; engineering; and sales and marketing. Basanite has completed its initial hiring plan of recruiting and hiring the following key personnel for leadership positions, with over 140 years of industry experience in the industry combined:
|Vesna Stanic, PhD
|Director of Quality Assurance
Director of Technical Sales
Director of Business Development
Structural / Civil Engineer
Structural / Civil Engineer
Director of Operations
Earlier in 2020, Basanite contracted with an independent software company to develop BasaPro™, a design software specifically for use with BasaFlex™. This development effort has been completed and the operational software is being installed at Basanite this month. The software will allow both Basanite’s engineers and Basanite’s customers to normalize the use of BasaFlex™ in place of steel rebar in all types of concrete applications. It allows for both the conversion to BasaFlex™ from steel in existing concrete designs, or for original designs using BasaFlex™, and is based upon the application of ACI 440 and ACI 318 standards. The software is capable of showing all calculations and pictorial design work in conjunction with applicable building codes. This means Basanite can now communicate with the design community in their own language.
Basanite has been receiving multiple inquiries from a range of customers for its products, including very high levels of market interest for BasaFlex™. A large portion of these inquiries are for very large potential orders for new construction. However, these orders would be problematic to undertake at our current capacity and there is no guaranty that these orders will actually be made. However, Basanite plans to expand its production capabilities at the Pompano Beach facility, with the initial goal of reaching 5 times its current capabilities by Q3 of 2021, and ultimately 7 times its current capacity by 2022. As part of this expansion plan, Basanite is developing customized manufacturing equipment, specifically designed for the manufacture of BasaFlex™ using Basanite’s patent pending process. A version of this equipment will offer double the capacity of our current equipment (per machine), and each machine will run significantly faster. A prototype is expected to be available for testing in Pompano Beach during Q1 of 2021. Based on a successful trial, Basanite is planning a plant expansion involving 10 of these new machines, with a goal of being fully operational in Q3 of 2021.
About Basanite, Inc. and Basanite Industries: Basanite Industries, LLC, a wholly owned subsidiary of Basanite, Inc. (OTCQB: BASA), a publicly traded company with primary interests in the manufacture of composite reinforcement products made from Basalt fiber reinforced polymers (BFRP).
Basanite Industries is positioned to become the industry leading supplier of engineered BFRP composite products for the concrete industry. The Company today is running full single shift manufacturing operations and is engaged in expanding both its operational capacity and capabilities. As America begins to address rebuilding and repairing its bridges, tunnels, highways, dams, ports, buildings and other structures, Basanite is striving to take the lead in the next generation of infrastructure technology, with the availability of its highly engineered, green, and sustainable concrete reinforcement products. The many key advantages of all Basanite’s Basalt fiber-based products are clearly understood by the construction industry, and each product represents the best value proposition for the future in its segment.
About BasaFlex™: BasaFlex™, a composite reinforcement bar or “rebar,” is a state-of-the-art, sustainable alternative to steel in concrete reinforcement. The manufacturing methodology, resin matrix, and profile design of BasaFlex™ are proprietary and Patent Pending. BasaFlex™ is engineered to add intrinsic value in a concrete structure by eliminating corrosion problems associated with typical steel reinforcement – saving both time and money over the lifecycle of a concrete structure. BasaFlex™ has a 100-year design life; is non-corrosive; is just 25% of the weight of steel but has a strength to weight ratio 2.5 times greater; is transparent to magnetic fields, radar frequencies and other high electro-magnetic fields; is resistant to acids and alkali; is both electrically and thermally non-conductive; and is easy to use and much safer to handle on the job site. Because of its core advantages and competitive price point, Basanite believes BasaFlex™ will become the construction industry’s #1 choice in concrete reinforcement.
Forward-looking statements: This release contains the company's forward-looking statements which are based on management's current expectations and assumptions as of November 12, 2020, regarding the company's business and performance, its prospects, current factors, the economy, and other future conditions and forecasts of future events, circumstances, and results and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “goal,” “feel,” "may," “plan,” "will," "expect," "anticipate," "estimate," "intend," and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Forward-looking statements in this release involve substantial risks and uncertainties that could cause future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. All forward-looking statements in this press release reflect Basanite’s current analysis of existing trends and information and represent Basanite’s judgment only as of the date of this press release. Actual results may differ materially from current expectations based on a number of factors affecting Basanite’s business. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Basanite (including the risk of us continuing as a going concern), please see our Annual Report on Form 10-K for the year ended December 31, 2019, including but not limited to the discussion under "Risk Factors" therein, which we filed with the Securities and Exchange Commission on April 6, 2020 and may be viewed at http://www.sec.gov.
For more information: Dave Anderson, EVP/COO
(954) 532-4653 Ext. 102
Released November 12, 2020