(COMTEX) B: NUCON Acquires Interest in Nuclear Power Plant Product Manufac
urer ( PrimeZone )
B: NUCON Acquires Interest in Nuclear Power Plant Product Manufacturer ( PrimeZo
e )
MOSCOW, Oct 26, 2006 (PrimeZone Media Network via COMTEX) --
NUCON-RF, Inc. ("NUCON") and ZAO ELECTRO MACHINERY BUILDING PLANT ATOLL
("ATOLL") announced today that the companies have completed the first stage
acquisition by NUCON of ATOLL, a Russian closed joint stock company.
The Agreement between the parties is for multiple closings in which NUCON
will acquire a total of 50% of ATOLL under Russian law. The first closing was
completed the week of October 16, 2006, in which NUCON acquired 13.25% of
ATOLL. The second closing will occur in the fourth quarter of 2006, during
which NUCON will acquire additional equity interests in ATOLL. The original
agreement was modified to permit multiple closings to conform to Russian
corporate, tax and currency laws.
ATOLL has nominated two members of NUCON's management, Professor Valery
Lebedev, Ph.D and Mr. Peter Goerke, to join the ATOLL Board of Directors
effective immediately.
ATOLL, located in the city of St. Petersburg, is a manufacturing and
research facility established to develop, manufacture and sell products
designated for nuclear power plants, including the facilities of the Russian
Federal dry storage facility for nuclear wastes at the Mining and Chemical
Combine ("MCC") in Zelesnogorsk, Krasnoyarsk region in Siberia.
The ATOLL manufacturing process utilizes state-of-the-art CNC (Computer
Numerically Controlled) machinery. The products from this facility are
electrical and mechanical equipment for the security systems of nuclear
reactors. These reactors require continuous replacement of these parts for
safe operations. The parts also include spare parts for nuclear power plants,
and handling equipment for nuclear waste containers designed for long-term
storage of radioactive wastes and spent fuel. These capabilities also present
significant opportunities for increased sales in foreign markets.
ATOLL employs approximately 220 persons, including engineers, nuclear
industry specialists, technical experts in nuclear equipment design and
construction and skilled manufacturing operators of CNC based machinery. The
level of capabilities of this group has established ATOLL as a designated
supplier to facilities operated by ROSENERGOATOM, the operator and owner of
all of the 31 nuclear reactors in the Russian Federation.
ATOLL has its own construction bureau and develops all drawings and
technical specifications for the manufacturing cycle. This has established
their production as the technical standard for spare parts and mechanisms for
nuclear reactors presently in operation and under construction in both the
Russian Federation and foreign markets. This production is the proprietary
intellectual property of ATOLL.
ATOLL has foreign trade contracts with operators of nuclear power plants
outside of Russia and is capable of providing technical support and
production capacity to support sales to export markets. NUCON believes that
it has substantial marketing opportunities that may result in increases in
sales to these foreign markets. Nuclear reactors, worldwide, require
continuous replacement of their operating parts due to strict safety
standards established for the nuclear industry. The government mandated
requirements establish consistent and long term contracts for the production
output of ATOLL in both Russian Federation as well as existing and future
foreign markets currently under review by ATOLL.
ATOLL currently has 3.8 Billion Rubles (US$146 Million) in booked sales from
Russian state enterprises for the period 2006-2007 which supports a
projection of US$77.75 Million in revenues to the interest of NUCON. NUCON
further believes that substantial increases in future sales both during and
beyond 2007 are likely.
NUCON believes this consistent and predictable turnover establishes a
reliable revenue stream and also opens up future market opportunities for the
portfolio of other nuclear and environmental safety technologies and
applications of NUCON with existing ATOLL customers.
The assets of ATOLL include approximately four acres of property where the
administrative buildings and factory are located in the central part of St.
Petersburg. NUCON is currently exploring the sale of the property and moving
the facilities of ATOLL in conjunction with the acquisition of another larger
manufacturer of nuclear reactor parts and equipment. NUCON believes this
consolidation would position it as one of the leading suppliers in both the
Russian Federation and foreign markets for replacement parts, environmental
safety technologies and equipment for nuclear reactors.
NUCON further believes that the completion of the ATOLL acquisition will now
qualify NUCON with the basis for listing on a principal U.S. and other
foreign stock exchange such as NASDAQ, the Alternative Investment Market in
London, or RTS Moscow. NUCON has completed its first GAAP audit and intends
to file a registration statement on Form 10-SB in November and become a fully
reporting company pursuant to the Securities Exchange Act of 1934 during the
fourth quarter of 2006.
NUCON is a technical solutions company focused on environmental markets in
the Former Soviet Union, Eastern Europe and Asia. NUCON is a U.S. corporation
with executive and operations office located in Moscow, Russia and Berlin,
Germany.
NUCON has the capability to provide product, technological and engineering
support addressing environmental, power quality and radioactive waste
challenges. They include compliance, shielding, transport and storage
requirements, plant equipment protection, energy efficiency and development
of techniques for a broad range of radioactive and toxic wastes. NUCON also
has extensive in-house expertise in all aspects of radiological protection
and radiological waste management.
