compositeguy,
Please find the answers to your inuiry below:
A. Aside from providing raw material for composite deck boards and accessories, what other classes of end products might be able to use the Watts produced plastic if sold to other manufacturers? What else would be normally excluded, besides assumed food, beverage, and medical products? Am especially interested in those potential manufacturing sectors which could use Watts-type plastic, which are considered less vulnerable to recession issues.
Initially will be for molded type products and some less demanding films. Can eventually process all resins.
B. Also, is it likely that any plastic produced in 2008 or 2009 be sold as excess, above and beyond of being used for in house decking products production?
None in 2008, potentially late 2009 for excess plastic unless decking demand reaches 2007 levels.
C. How about an update on the Watts construction? See updated photos. How long will it be before the building(s) will be at a stage that will allow the beginning of plastic production equipment installation… Since the plant completion is still being targeted as early April, what does that entail?
The focus is on recycling and reducing feedstock costs with Phase 1.
When will Phase One equipment be debugged, running at design speed and producing a significant volume of plastic that can be used in the Springdale extrusion operation.
May is projected debugged date.
D. Would like to get a clarification on the still pending permits issues. Do these remaining permit issues apply to any type of construction, or are they operational permits only, such as Illinois river discharge.
Operational only. There is no discharge to river.
E. The issue of the Weyerhaeuser inventory acquisition was somewhat difficult to fully understand. Can management elaborate on how much and when this inventory will, or has to, be acquired? Were numbers used in the Nov. C.C. retail, wholesale, or cost numbers? Am interested in timing and costs and how it might play out in relation to cash flow challanges in the next few quarters.
We are unable to share specific plans, but Weyco and Lowe’s are working with us to prevent this from being an issue.
F. About when will the new rights issue be more detailed? Will details be released in 2008? Will the resultant capital be used for purposes other than the Weyerhaeuser inventory buyout? Was all that inventory ChoiceDek, only?
We are unable to comment on this at this time.
G. Have all severance packages been written off in the 3rd quarter?
Yes
H. Would like to know more about Joe Brooks' and Tim Morrision's recent trip to China. Any more details available about strategic initiatives or progress in that area?
Tim Morrison did not go to China. Details of this trip must remain as proprietary information for now.
J. Is there any information that can be released regarding a market beginning to open up in Central America?
There is nothing to comment about at this time.
Regards,
AGORACOM
