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% of the scrap tires are used for power generation. But, air quality is always a concern because scrap tires, just like coal, are a dirty fuel. About 4% export our scrap tires to countries where the casings can be used in retread machines or the tires are sold as they are. Currently, about 2% of our scrap tires can be processed into crumb Rubber and used in modified rubberized asphalt applications. This creates a durable and longer-lasting asphalt surface.
Scrap tires are a health hazard as they provide food for rodents, snakes and mosquitoes. This problem is serious, as scrap tires are generated in the USA annually at around 250 million. There are currently piles that amount to between 2-3 billion.
ATP-Advanced Technology Pallets a Nevada Corporation (ATP), is proud to present its unique and patented product the RST-PAL Pallet, a new pallet made from recycled scrap tire rubber. The #8220> RST-PAL Pallet provides an alternative to wooden wooden pallets. RST PAL Pallets could be serial numbered or bar-coded in order to make it easy to track and retrieve them so they can be used repeatedly over many years.
Dan Radke, the inventor of the RSTPAL pallets, has given ATP the patent rights (to the USPTO USPTO #08/680,476) to continue manufacturing and marketing them around the globe.
OUR MISSION
To provide durable, cost-effective and economical pallets to all industrial and manufacturing sectors.
THE EXISTING PROBLEM
- The life cycle of plastic and wood pallets is extremely short.
- 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 demand more durable and long lasting pallets.
- It is a potential environmental hazard to have scrap tires stored.
- Current pallets made of wood, are consuming over 3.5 million trees annually.
THE SOLUTION
- Pallets made from RST-PAL are more affordable to purchase and maintain.
- RST-PAL pallets have a greater durability and are indestructible.
- RST-PAL pallets can support 15 times the load of a similar wooden pallet.
- RST-PAL pallets can be stacked, stacked, and are more durable and last longer.
- RSTPAL pallets can be unique. They are made from recycled rubber scrap tires and include a new patent process that involves rubber, recycled plastics, as well as a binder.
- RST-PAL Pallets are guaranteed for many years.
- RST-PAL pallets have no competition worldwide.
TECHNOLOGY, PROCESS
- The materials process as well as the manufacturing of pallets were based on an USPTO 08/680.476 patent.
- International (PCT), Patent protection filed.
- Machines for production lines are available and have been sourced.
- There are many raw materials that can be found and easily sourced.
- Flexible production lines enable the construction of various sizes of pallets, while ensuring high quality and yield.
- Product is ready for production. Qualification and R&D are complete.
- Modular capacity allows for rapid manufacturing expansion.
- Factory is environmentally “clean” with no waste stream.
- Prototypes have been built, tested, and qualified.
THE SALE
- The U.S. consumes 800 million pallets annually (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 focus on both closed or open loop distribution systems.
- International markets and licensing opportunities for internationally protected patents
- U.S. Government Agencies and Contractors.
- The U.S. government requires that product replacements be made with recycled products before they are used up.
MARKET QUOTATIONS
- “Quality, reusable multi-trip pallets instead of poorly constructed single user pallets” is needed ASAP. (Reference: NWPCA)
- Contractors doing business for the government are required by law to purchase “ ” & “.
Products containing recycled products are first. (Reference: President Clinton Executive order)
SALES
- Prototypes were evaluated by different industries, including military and government agencies with positive feedback.
- Potential sales subject to investment and production ramp-up
- Environment incentives for certain markets (Government Sub-Contractors).
- All licenses, permits, governmental agencies acquired and in support of project.
PALLET COST COMPARISON – OVER FIVE YEARS
- You can save substantial money by using RST–PAL pallets. (See Topics. 4.2. and 4.3.1).
INVESTMENT REQUIRED. USE OF FUNDS
- $6M investment for 35% ownership estimated to reach profitability within 12-18 months.
- The dividends will be divided at 50% for the shareholders from the second year onwards, provided it does not impact the expansion. The remaining 50% will be dedicated for growth.
- Funds raised can be used for plant establishment, operations, marketing, and sale.
With two production lines, the first year will produce 1,137,000 units with a projected net profit exceeding $8 million.
INVESTOR DISCUSSION
- Projections show the return on original investment in less time than two years.
- Based on five years of net earnings discounted to present value, it is estimated that the valuation was approximately six times.
- Five years of projected net earnings with a 25% discount (incl. Present Value of five years of projected net earnings at a 25% discount (incl.
- Reaching less than 1% of the market share with five plants within five years.
- Projectioned revenue: $402 Million
- Projected net profits (before taxes) approximately $178 Million
- Strong and professional Management Team with highly skilled consultants.
- Alternative exit strategies are: (a), IPO in two years;(b) Acquisition; or (c) Private ownership, with a long horizon to profits.
‘#8212’ RST-PAL Pallets MANUFACTURED OUT RECYCLED SCRAP TIRES
HELPING TO CLEAN UP AMERICA’S SCRAP TIRES
1.1 Mission
ATP is a manufacturing and marketing company dedicated to providing to all industries cost effective and durable pallets made from recycled scrap tires. The product and manufacturing process are protected by patents worldwide.
Pallet users include both companies and individuals who use pallets for main distribution. They want a pallet that is more durable and lasts longer than wooden pallets. According to the National Wooden Pallet and Container Association, a wooden pallet can be used for one to two trips before it needs to be replaced or repaired. Due to their short life cycles, pallet users must purchase pallets more frequently.
Stockpiles of scrap tires throughout the United States pose a serious environmental risk. They provide habitat for rodents and insects, as well as a potential fire hazard.
ATP will reduce risks from scrap tire stocks and will conserve some of 3.5 million trees annually harvested to produce wooden pallets. ATP will locate its manufacturing plants in rural towns, near large metropolitan areas, where employment is needed the most.
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.
1.2 Objectives
- Two production lines to be established at the Stamford, Texas plant. This will allow for the production of 1.2 million pallets annually.
- 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.
- One year projected market shares of 0.15% are expected to result in net profits of $8million (before taxes), and 0.
Net profits of $66million will be achieved by 75% of the market share for year five. Accumulated profits (before taxes) are projected to be $173 million for the first five years of production.
1.3 Keys to Success
These are the main reasons ATP is a success:
- A pallet market exists in the United States that is currently worth more than 800 million pallets annually. It is estimated that about 60% of all pallets in the United States are hardwood. These are ATP’’s most targeted customers.
- RST PAL pallets have lower lifecycle costs than either wooden or plastic.
- RST PAL pallets are protected by patents, can carry over 15 times the weight of wooden pallets, and are almost indestructible.
- For years, RST-PAL pallets will be guaranteed
- Pallets have been around for a long time and are therefore a very well-known, essential product. It is not necessary to create a new product in order to get into the market. RST PAL pallets don’t represent a new product. However, they are far better, more durable and more long-lasting than other similar products on the market. 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. Dallas/Fort Worth is the first targeted marketing area, located near Stamford, Texas.
- The U.S. government has issued an executive order requiring all government agencies and contractors to ‘#8220buy recycled before”. This includes the Department of Defense as well as the Department of Transportation. ATP will target federal and state agencies to market RST-PAL pallets.
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