MISSISSAUGA, ON, Oct. 25, 2011 /CNW/ - Genesis Worldwide Inc. ("Genesis" or the "Company"), (NEX: GWI.H), a leading provider of green and sustainable structural building products and technology in the light steel structural products industry, is pleased to announce that it has signed a $2.8 million equipment contract which it has negotiated with its Vietnamese licensee, Megastar Engineering and Construction ("Megastar E&C"), located in Hung Yen Province, Vietnam (refer to the Company's Press Release dated March 21, 2011).
Richard Pope, Chairman and CEO of Genesis, stated, "This is an important step forward for our strategic positioning in South East Asia and should provide a source of future royalty income for Genesis under the license and service agreement previously entered into with Megastar E&C. All terms of the equipment contract have been agreed upon and equipment manufacturing will commence within the next few weeks once Genesis receives the fully executed contract from Megastar E&C."
"The new plant will enable Megastar E&C to build cold form steel single and multi-storey residential and commercial buildings in the Vietnam region with greater efficiency and speed while producing less waste and providing buildings that use less power than traditional structures. The factory in Hanoi is almost completed and we look forward to helping our licensee reach full production by Q3 of 2012," added Mr. Pope.
Pursuant to the terms of the equipment contract, the Company will provide the Genesis technology, including industrial equipment and hardware, project management support and implementation services including training required for the commissioning of Megastar E&C's plant. Megastar E&C will utilize the Company's proprietary CTP ("Coil-to-Panel") industrial technology platform ("CTP Technology").
Genesis is also pleased to announce that the Company has signed agreements with two separate sales agents for the sale of License, Service and Equipment Agreements to provide the Genesis Solution to private business development companies in Brazil, Libya and the United States.
Mr. Pope stated, "This represents a significant opportunity for Genesis to enter into licenses and equipment sales agreements with well established companies in multiple geographic locations worldwide. We expect to finalize the agreements in the near future and look forward to increasing our green, sustainable building technology platform in growing markets such as Latin America and North Africa regions."
About Genesis Worldwide Inc.
Genesis is a provider of green light steel building technology and solutions targeted at the global commercial, residential and institutional building sectors. Genesis delivers customized turnkey structural solutions, and provides software packages, industrial equipment, training programs, professional services and support ("Genesis Solution") to its customers and partners globally. Headquartered in the Greater Toronto Area in Ontario, Canada, Genesis has established a network of partners with engineering, manufacturing and distribution operations in Canada, the United States, the Middle East, Eastern Europe, Russia and South East Asia. For additional information about the Company, visit www.genesisworldwide.com.