RE:Hi DeanI see a number of investors have comments / questions regarding Nordex operations. Please see the following update. Should you have any additional questions or comments feel free to contact myself anytime.
Nordex continues its expansion efforts and is seeing increasing demand for Nordex products and expertise as the Company opens new operations in new areas.
New expansion sites generally cost anywhere between $100k and $750k depending on the size of the site, storage required, equipment & mobile units required and the amount of site preparation necessary to meet regulatory requirements. These facilities may be totally operated and managed from the main facility in Kirkland Lake or have several employees on site dependent on the levels of activity. Each location is unique to the products and services required to meet the needs of the clients in a particular region.
In the last two years Nordex has increased staff from approximately 30 employees in 2012 to about 60 employees in January 2015. Employees may work out of one site or actively move between different sites as services and client demand warrants.
Start-up costs for expansion to western Canada will total about $250k as product will initially be manufactured in Kirkland Lake and transported from Ontario. Strategic locations have been identified for the storage, distribution and sale of these products. It is expected that sales will commence in the first half of 2015. Dependent on the level of sales generated and logistical considerations a need to build a manufacturing facility will be assessed and determined. Such a facility and supporting equipment could cost up to $10 million. A decision on any expenditure will be made in a timely fashion as business opportunity dictates. It is expected key staffing positions will be added as operations expand.
No determination on any financing initiatives has been made at this time but the corporation will continue to evaluate the best strategies for the Company and its stakeholders. When any such decisions are made a press release will disclose the corporate direction.
Nordex continues to develop case studies demonstrating the benefits of using Nordex products and services through its unique “Product & Blast Optimization” initiatives. These studies and reports are available for new and existing clients and held in the strictest confidence and are not for public distribution.
In addition, Management has recently identified some new opportunities in the United States for potential distribution and sale of Nordex products. If/when such opportunities develop information will be disclosed publicly in a press release.