SRI Hopes
Magnum/Sekhar Research Innovations Update R & D Unit in Malaysia and Releases details regarding Production Acceleration
11 Nov 2008, 08:30 AM
Magnum/Sekhar Research Innovations Update R & D Unit in Malaysia and Releases details regarding Production Acceleration
FORT LAUDERDALE, Fla., Nov. 11 /PRNewswire-FirstCall/ -- Magnum D'Or Resources, Inc. (OTC Bulletin Board: MDOR - News) and Sekhar Research Innovations Sdn Bhd (SRI) announce plans for production acceleration and updates R & D Unit in Malaysia.
The Magnum / SRI partnership is progressing on track, taking an expeditious but deliberate step by step strategic approach towards developing its operations and production without sacrificing quality. By always maintaining shareholder value as a top priority we are ensuring that maximum optimization is maintained at each stage of setup and development. Magnum is commitment to fully developing every opportunity while ensuring the commercial viability of all its developments along the way.
While the long term strategy is to produce high value custom compounds, the initial production of less technologically advanced products such as buffings and nuggets is equally beneficial to the economic welfare of the company. Installation of buffing and nugget producing equipment will hasten profitability by immediately satisfying available contracts for rubber mulch chips. To add additional revenue expeditiously, production through a third party may be utilized for rubber nuggets in order to immediately maximize the volume of material available to fulfill our open contracts and bring a positive revenue impact to the bottom line of the company.
Understanding that the full and viable utilization of capital, equipment and expertise is critical to its sustained and stable growth, Magnum has made a commitment to achieve these goals at each phase of development. As it increases production capacity of buffings and crumb it will continue to evaluate the allocation of resources to final value added custom compounds.
The Magnum / SRI surface activation system is currently undergoing advanced process trials and is well ahead of schedule. Magnum now expects this customized production line to be installed at the Magog facility on an accelerated basis.
Plans are underway to incorporate a comprehensive R&D laboratory unit at the Magog production facility. This unit will be outfitted with state of the art equipment, manned by highly experienced staff, and will operate in tandem with the Magnum SRI R&D facility in Malaysia. This strategy shows the clear intention to ensure that product development and quality control are given serious priority and attention.
While maintaining an aggressive pace of equipment installation, commissioning, and rapidly phasing into full production the Magnum / SRI partnership is establishing very aggressive positioning into the Global rubber compounding industry.
Also, it may be noted that the current political changes recently taken place in the US opens new channels of potential opportunities afforded to high technology and environmentally friendly companies. In addition, there may be incentives available for establishing new facilities that will maintain employment and produce economic benefits within the USA. These options are currently being explored by management to further accelerate company growth.
Status of Magnum SRI Operations in Malaysia (Note: Information is provided as a best effort basis and is dependent on many external influences)
Surface Activation System
1. Work is underway on initial production trials of the surface activation system which allows for the effective processing of large and cost effective production batches. Modification and fabrication is being carried out to increase the production capacity to commercially viable capacities in excess of a quarter ton per batch.
2. Due to the unique nature of the process system employed the heat generation is minimized while a substantial proportion of the work is done in the machine itself, this enhances the recovery of properties and allows for the balance of work to be done via single pass through a series of refiner mills. This significant combination of factors allows for 40 to 60% reduction of energy cost per pound processed. It is also the only system that can effectively process cryogenically produced ultra fine powders. Work is underway to fine tune these process parameters and production flow characteristics.
3. The full production unit is expected to go through its process evaluation using specific North American produced crumb stock during the first quarter of 2009 followed by installation and fine tuning at the Magog facility sometime toward the middle of the 2nd quarter of 2009
Processing Aids & Custom Compound Process
1. Proprietary equipment and processes for the most sensitive and important Magnum/SRI processing aids is currently undergoing modifications. They will go though further evaluation and customization trials in January of 2009. The target is to have it in production providing the requisite processing aid in time for introduction into the initial production of activated crumb by the 2nd quarter of 2009.
2. Highly specialized processing aids will be reformulated to modify the viscosity of the activated material, greatly improving its processability and flow in virgin compounds that it is blended into without proportionate loss of properties. This is normally impossible as proportionate loss of properties is a reality when using alternative viscosity modifying materials such as reclaim rubber.
3. Other processing aids and additives are being tested for the specific needs of various compound applications. The efforts are geared towards ensuring that a total system is customized so that the production can be re-compounded and modified into a full range of superior custom compounds covering a wide range of applications.
4. The Magnum/SRI R&D Facility unit is expected to have the system set for at least 2 grades of custom retread compounds ready for implementation around the end of the first quarter 2009.
5. The Magnum/SRI R&D Facility will have 2 grades of Natural Rubber custom compounds for both extruded (tire tubes) and general molded goods.
6. The Magnum/SRI R&D Facility will have at least one grade of EPDM generic custom compound ready for evaluation by potential customers around February/March 2009.
7. The Magnum/SRI R&D Facility will have one grade of Butyl custom compound ready around the first quarter of 2009.
8. The range of custom compounds will be introduced in stages to compounders already contacted in advance in Magog, and elsewhere, for specialize application evaluation. This will provide end users with sufficient time to get comfortable with our products and incorporate them as one of their standard raw materials for their operations by the time full production capacity is reached at the Magnum / SRI Magog facility.
Custom Compounds
The compounds produced will be blended with various modified formulations of virgin compound (all raw rubber content) which will be available to manufacturers to use as a virgin compound substitution material. Some of the products for which they will be utilized are as follows:
1. Truck Retread Compounds (Very large volume and value added application)
2. Natural Rubber Tubes
3. Butyl Rubber Tubes (High Value added application)
4. Natural Rubber Automotive Components
5. Car mats (low end but volume application)
6. EPDM Automotive Components (High Value added application)
7. Marine Products – Dock Bumpers
8. Industrial Shoe Soles
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