- Optimization of Production Process Leads to 40 Percent
Reduction in Cycle Time and Opportunity for Third-Party
Manufacturing
- New Manufacturing Partnership Reached with Tintoria Piana
- New NAT Facility Leased in Florence County, South Carolina, Governor
Nikki Haley Welcomes Company to the State
VICTORIA, BC and PORTLAND, OR, March 13,
2012 /PRNewswire/ - Naturally Advanced Technologies Inc.
("NAT" or the "Company") (TSXV: NAT) (OTCBB: NADVF), which produces
and markets CRAiLAR®, a natural fiber made from flax and other bast
fibers, announced key developments this week toward advancing its
first full phase of production in order to supply its CRAiLAR fiber
to global partners.
Step Change Increases Capacity, Opens Opportunity for
Third-Party Manufacturing
In 2011, the Company embarked on a yearlong effort to optimize
production of its CRAiLAR technology. The resulting process
improvements effectively reduce the enzymatic process time by 40
percent, thereby significantly reducing the overall CRAiLAR fiber
cycle time. This reduction in process time significantly increases
production capacity in each planned manufacturing facility. More
critically, the CRAiLAR optimization allowed NAT to evaluate
third-party manufacturing partners for that process, which will
further increase overall production volume and accelerate growth of
its flagship product, CRAiLAR Flax fiber.
"This milestone is the culmination of the last year's efforts of
our innovations team, led by Jason
Finnis, our CIO," said Ken
Barker, CEO of NAT. "Intended as a strategic initiative that
would maximize the volume capability of our first facility this
year, it's now apparent that the improvements in efficiency and
resultant economics of our CRAiLAR process allows us to consider
third party manufacturing as a critical option in our expansion
plans."
Partnership Inked with Tintoria
Piana
As a result of this optimized process, Tintoria Piana entered
into an agreement to execute the CRAiLAR enzymatic process
exclusively for NAT, augmenting the Company's plans for
manufacturing capacity. The agreement calls for Tintoria to
commence production in Q2 2012. Tintoria's history in textiles
dates to 1582 in Biella, Italy.
The privately held, family-owned business has dyed fiber for the
traditional apparel business for more than 60 years, and operates
principally out of Cartersville,
Georgia in North
America.
"This move would be consistent with most other branded global
industries, where outsourced manufacturing allows for faster
expansion of the technology proposition and resulting brand message
for our partners, while significantly reducing the capital
requirements to scale up to meet demand," Barker added.
New Facility Leased in Florence
County, South Carolina, Governor Nikki Haley Welcomes
Company to the State
Additionally, NAT plans to open a facility in the 143,500 square
foot Delta Mills Cypress plant on
Old River Road in Pamplico, South
Carolina. An initial USD $8
million investment that will create 25 jobs is expected as
part of the Company's establishment of production facilities there.
Flax, grown as a winter crop in Florence and surrounding counties, will be
processed out of NAT's new facility in Pamplico, S.C.
"We are constantly working to bring investments and jobs to all
areas of our state, but it's always exciting to see a company
invest in one of South Carolina's
rural areas. We celebrate Naturally Advanced Technologies decision
to locate in Pamplico and create
25 new jobs," said South Carolina
Gov. Nikki Haley.
NAT finalized plans this week for a long-term lease with an
option to purchase the building, and its full execution is
contingent upon tax and job creation incentives in review with
Florence County. A first hearing
took place on February 16 and a
second is scheduled for March 15. A
final environmental and incentives review is scheduled for hearing
on April 19 and would complete the
process. The South Carolina
Coordinating Council for Economic Development approved a set aside
grant for $263,500 for building upfit
and job development credits, which will be available when hiring
targets are met.
"South Carolina has a strong
history in the textile, advanced materials and agribusiness
sectors, and today's announcement builds on all three. Every one of
these jobs will have an impact in Pamplico and we appreciate Naturally Advanced
Technologies' decision to do business in South Carolina," said Secretary of Commerce
Bobby Hitt.
"On behalf of the State of South
Carolina, I would like to congratulate Naturally Advanced
Technologies for their commitment to Florence County. As the State Senator and a
resident of Florence County, I am
thrilled to see another new capital investment and an increase in
jobs. This company has enormous growth potential here in
South Carolina," said state
Senator Hugh K. Leatherman.
NAT's 2011 business activities included purchasing agreements
with HanesBrands, Georgia-Pacific
and Brilliant Global Knitwear, along with development agreements
with Levi Strauss & Co., Cintas, Carhartt, Ashland, Westex, and Target. The first
commercial result, with Hanes, received recognition this month.
"We are proud to see our investments and hard work beginning to
pay off in the form of the production of CRAiLAR for commercial
use. We're particularly excited that Hanesbrands, our first
production partner for CRAiLAR, is being recognized this month for
its sustainability efforts by the U.S. Environmental Protection
Agency, and that it cited the use of our flax fiber in its EcoSmart
socks, which will be available at retail in April."
"We thank the State of South
Carolina, Florence County,
and all those who helped to establish the Company's presence in
South Carolina," said Barker. "The
establishment of our first full-scale production facility,
alongside our new partnership in neighboring Georgia through Tintoria, gives us a foothold
in one of the most important agricultural and manufacturing regions
in North America. We look forward
to further establishing our commercial, agricultural and civic
partnerships there."
For additional information contact the Florence County
Economic Development Partnership at 843-676-8796 or
www.fcedp.com.
About S.C. Department of Commerce
As South Carolina's leading
economic development agency, the Department of Commerce works to
recruit new businesses and help existing businesses grow. Commerce
received the Silver Award from Business Facilities magazine,
placing second in the 2011 Economic Development Deal of the Year
competition. Commerce has been part of recruiting world-class
companies to South Carolina such
as Boeing, Bridgestone, Continental, Monster.com, Heinz, ZF Group,
BMW and Google Inc. Commerce also supports small and existing
business, rural development initiatives and offers grants for
community development. For more information, visit
www.SCcommerce.com.
About Naturally Advanced Technologies Inc.
Naturally Advanced Technologies Inc. develops renewable and
environmentally sustainable biomass resources from flax, hemp and
other bast fibers. The Company, through its wholly owned
subsidiary, CRAiLAR® Fiber Technologies Inc., has developed
proprietary technologies for production of bast fibers, cellulose
pulp, and their resulting by-products in collaboration with
Canada's National Research Council. CRAiLAR technology
offers cost-effective and environmentally sustainable processing
and production of natural, bast fibers resulting in increased
performance characteristics for use in textile, industrial, energy,
medical and composite material applications. The Company was
founded in 1998 as a provider of environmentally friendly, socially
responsible clothing. For more information, visit
www.naturallyadvanced.com.
Neither the TSX Venture Exchange Inc. nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statement Disclaimer
This news release includes certain statements that may be
deemed "forward-looking statements". All statements in this news
release, other than statements of historical facts, are
forward-looking statements. Forward-looking statements or
information are subject to a variety of risks and uncertainties
which could cause actual events or results to differ from those
reflected in the forward-looking statements or information and
including, without limitation, risks and uncertainties relating to:
any market interruptions that may delay the trading of the
Company's shares, technological and operational challenges, needs
for additional capital, changes in consumer preferences, market
acceptance and technological changes, dependence on manufacturing
and material supplies providers, international operations,
competition, regulatory restrictions and the loss of key employees.
In addition, the Company's business and operations are subject to
the risks set forth in the Company's most recent Form 10-K, Form
10-Q and other SEC filings which are available through EDGAR at
www.sec.gov. These are among the primary risks we foresee at the
present time. The Company assumes no obligation to update the
forward-looking statements.
SOURCE Naturally Advanced Technologies Inc.