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 Investment Opportunity
Automobile Bumper Remanufacturing Plant
Possible financing assistance through EDC - Economic Development Canada - a branch of the Canadian Goverment
EDC offers a range of financing solutions for foreign buyers of Canadian capital goods and services.
We would like to take this opportunity to introduce
The Most Advanced Technology in Plastic Repair.
Pro Technology International Ltd. is North America's specialist in all aspects of plastic and composite repair. Each Pro Tech product is the result of extensive research, field-testing and consultation with plastic repair professionals. This commitment to research and development has made Pro Tech first choice among plastic repair specialists whose products depend on providing excellent results, the first time, and every time.
As North America's leader in plastic repair technology, Pro Tech offers the most advanced and only complete system to Mechanically or Chemically repair all types of plastics in use today - including Automotive, Agriculture, Trucking, RV, and Marine repairs.
A few of Pro Technology's recent accomplishments:
Keystone Automotive Group USA (Bumper Recycling Division = 51 Locations)
Consulted and assisted in creating a uniform procedure for remanufacturing plastic automobile bumpers.
Bayer Corp. (Chemical Division)
Pro Technology was chosen to develop a repair procedure and product line to repair their Centrex / Lustran plastic which is used for outer panels in the RV (Recreational Vehicle) industry.
John Deer Agriculture (Seeding Group)
Pro Technology was chosen to develop a repair procedure and product line to repair their seeding, holding and various other tanks used in the agriculture industry
Saturn Corp. (Division of General Motors)
Pro Technology trained selected design staff in the use of our Mechanical Welding System using GTX plastic in the design procedure of the mock up stage of new prototype vehicles.
I-CAR (Inter-Industry Conference on Auto Collision Repair) www.i-car.com
Pro Technology assisted in the rewriting of the Plastic Repair Procedures for I-CAR's (Uniform Procedures for Collision Repair) training courses.
Pro Technology was instrumental in redeveloping the Mechanical Welding System which I-CAR has in place today.
Pro Technology continues to keep informed of the latest plastic technology used in the automotive and related plastic industries and are often consulted by companies worldwide for their expertise in plastic repair technology.
Pro Technology is expanding Internationally and is searching for financial partners
Through our division, Protech Plastic Repair Systems Inc. we custom design and build complete Bumper Remanufacturing Plants anywhere in the world.
Currently we have a structure where there could be two or three partners;
Protech Plastic Repair Systems Inc.,
International Partner A, and / or
International Partner B (A variety of combinations is possible)
Protech Plastic Repair Systems Inc
- Supply the blueprints for equipment to be made
- Obtain all the plant equipment locally and oversee installation
- Provide the training of staff, remanufacturing processes, quality control and inventory systems and assist plant to be ISO 9000 certified if required
- Develop on site training facility
- Provide on going technical assistance
- Assist in setting up collection and distribution of bumpers. Supply all small hand tools (welders, sanders etc.) for 25 employees and Pro Tech plastic repair products for the first 60 days of operation.
International Partner A
- Purchases the exclusive rights to Protech Plastic Repair Systems Inc. proprietary systems and procedures to construct a Bumper Remanufacturing Plant payment to be discussed based on various equity structures)
- First payment to implement structure of proposed company
- Second payment when plant is up and running and producing remanufactured bumpers.
- Third and final payment once plant is making a 10% net profit
- Provide sufficient funds to:
- purchase or lease a building
Building Size required 2,300 to 2,800 sq. m plus outside storage
- purchase equipment
- provide working capital
- Provide on going management services
Market Overview:
Plastics are used in a wide variety of products throughout the world. Historically, replacing a damaged part with an expensive OEM part or a less expensive but poorer fitting aftermarket part has been the accepted procedure.
The damaged part was then disposed of in a landfill site. This is particularly expensive to the insurance industry given the increasing use of plastics in automobiles and trucks.
In addition it is also harmful to the environment due to the ever-increasing number of damaged plastic parts ending up in landfill sites. Recently new technology has enabled the development of equipment, materials and systems that are now able to repair damaged plastic parts at a fraction of the cost of replacement parts. These new repair systems are also beneficial to the environment, as they allow for the recycling of plastic parts that otherwise would end up in landfill sites.
These technological changes have created tremendous opportunities for companies that can provide quality equipment and materials to efficiently and effectively repair damaged plastic products on a timely basis.
New OEM replacement parts are expensive to the insurance industry and not overly profitable to the automotive repair industry as the margin is generally higher on the labour mark-up than on the parts mark-up. Aftermarket parts have proven to be difficult to fit and paint and generally have a poor reputation in the industry. Repairs to plastics parts have been attempted but have not generally been acceptable, as they have been of poor quality.
The use of plastic continues to grow dramatically, particularly in the automobile industry. Virtually all-automobile bumpers today are made of plastic. Most automobile accidents involve damage to either the front or rear bumper, resulting in a continuous demand for high quality plastic repairs.
In addition to the Automobile industry, the use of plastic continues to grow in the Trucking, Farm Implement, Recreational Vehicle, Marine Industries, Computer, Office Equipment and Medical Equipment Industries.
It was recognized early during the ongoing development of lighter, faster and more fuel efficient automobiles that plastics could play an important role.
The benefits of a reduction in vehicle weight were obvious. According to the plastic industry, ("For every 181 kg (400 lbs.) of vehicle weight reduction; fuel consumption improves by 1.5 kpl (3 mpg)")
Other advantages in weight reduction are that the frame and suspension components can be reduced in size and gauge contributing to a further weight reduction, less tire wear and reduced energy consumption in the manufacturing process (melting plastic vs. smelting and forming of steel parts). Also plastic is as recyclable as steel.
Other benefits of utilizing plastic in automobile production include:
- reduction in manufacturing cost
- increase in vehicle design options
- improved corrosion resistance
- dent resistance when used in body panels
Because of these many advantages there has been a dramatic increase in the use of plastic for automobile production over the years. In 1970 there was approximately 60 lbs. of plastic used in the average North American automobile compared to 250 lbs, in the average 1995 automobile. It has now reached approximately 490 lbs. Many of the new plastic parts used today are TPO (Thermoplastic Olefin) and PP (Polypropylene).
Some of the areas in which plastics are used in automobiles are:
- fascias and bumper covers
- interior and exterior trim
- fuel tanks
- washer and overflow bottles
- wheel housings
- exterior body panels
- fan shrouds
- valve covers
- fuel rails
- intake manifolds
- springs
- composite plastic floor tunnels
- energy absorbing foams
- upper radiator core supports
An indication of the popularity of plastic use is that in 2003 there were over 1000 new plastics and plastic blends patented and continues to grow.
Historically, there has not been a repair procedure for all of these plastic products and have been replaced rather than repaired. With the discarded part being disposed of in land fill sites. |
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Key factors for success in this industry include the following:
- Low Production Costs:
Repaired parts are priced at considerably less than OEM parts.
The repair procedure uses little in the way of materials but relies on the repair technician's ability and time.
- High level of support service:
Because this market is so new, ongoing technical support is required to assist repair technicians in identifying the type of plastic requiring the repair and matching it to appropriate repair technique and material.
Protech is well positioned to capitalize on developments within the industry as noted below:
- Plastic Repair Materials:
With extensive experience in this field, and the use of professional chemists and other consultants, Protech has developed the most technologically advanced products for mechanically and / or chemically repairing all types of plastic in use today.
- Plastic Repair Tools:
ProTech has developed the welding tools and accessories necessary to simplify the use of its mechanical welding procedures
- Bumper Remanufacturing Systems:
Protech has developed proprietary systems for the remanufacturing of damaged plastic bumpers in large volume.
- Procedures and ongoing technical support:
Utilizing ProTech's extensive experience in the remanufacture of plastic bumpers the company is well positioned to offer a high level of support to users of its systems.
| For further information on this business opportunity please click here |
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