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Wednesday, January 09, 2008

Conforce International (CFRI) ATC Evaluation

CFRI (combined links) announced results of testing by an independent company during a trial order by ATC Houthandel which started back in May 2007. NOTE: This is for the trailer market, not the container market. Back in May, they had said:
Conforce estimates that the ATC EKO-FLOR trailer business could generate annual revenues in excess of 5.5 million USD.
I consider this new announcement to be significant good news. I suspect they might not be completely done with all the testing, if I read correctly between the lines. But here's the key info:
...EKO-FLORĀ®, has passed the internal testing and evaluation conducted by ATC Houthandel in The Netherlands.

For over 30 years, ATC has been providing trailer flooring to The Netherlands, the United Kingdom, the Republic of Ireland, Germany, Austria, Belgium, France, Finland, Norway, and the Czech Republic. The establishment of EKO-FLOR for the European trailer market was advanced in 2007 through the Company's joint cooperation with ATC. In October of 2007, ATC exhibited a sample of EKO-FLOR at The European Road Transport Show (TERTS) held in Amsterdam. The product received positive feedback from ATC customers who expressed interest in a viable, non-wood based flooring system that could withstand the required ISO 1496 forklift or rolling loads. ATC stated that in the past, it had tested several alternative wood-based and composite flooring products, however, none had been able to support the load requirements.
And here's the money quote:
"Both Conforce and ATC are delighted that EKO-FLOR was the first product to meet ATC's internal requirements. As a result of our successful evaluation, we are confident that we will be able to realize significant revenues in 2008 through our on-going relationship with ATC."
Of course the stock went down 5.66% on low volume.

I continue to own the stock.

Bruce, first time Conforce reveals that it is an extruded product. That explains some delay for modification and changes. Extrusion tooling with very specific profiles requires time. Tool shops doing this work usually have a backlog, the there are test runs for samples...which requires time. Changing extrusion machines over for samples with a special formula plastic takes time. The lead up to holidays probably made it difficult to get machine time. Now, except for the Chinese New Year, machine time should not be a problem. 6 weeks shipping time will probably be why initial revenue is pushed to 2nd qrtr. your thoughts?

I copied your comment into the latest post. This is great stuff. Thanks!
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