Drosrite North American automobile parts manufacturer This was the 1st Drosrite contract ever.
DROSRITE™
DROSRITE™ is a salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the aluminum industry. DROSRITE™ avoids costly loss of metal, while reducing a smelter's carbon footprint and energy consumption, providing an impressive return on investment. PyroGenesis' patented DROSRITE™ process increases aluminum alloy recovery from dross and reduces operating costs. In comparison, competing processes have significantly higher operating costs and produce a hazardous waste that has to be disposed of at additional cost.
In 2015 PyroGenesis entered into an agreement with a North American automobile parts manufacturer to supply a commercial DROSRITE™ Furnace System by the end of 2015. In accordance with the contractual timeline, the client inspected the system in Montreal in December 2015 and immediately released it for shipment to one of its facilities in Mexico, where it was installed and commissioned in Q1, 2016. The system is currently undergoing performance testing, which is expected to be completed in Q3, 2016.
Early yields from operating the system exceed expectations.
If confirmed during the official performance testing phase, these increased yields would improve upon the already impressive return on investment previously demonstrated. As a result, the client has already indicated the requirement for a further 3 DROSRITE™ systems with purchase orders expected to be confirmed in Q2, 2016, following completion of the performance testing.
Management believes that this first commercial sale will enable the Company to leverage this reference site to generate a continued flow of orders for additional DROSRITE™ systems from primary and/or secondary aluminum smelters, and large finished goods manufacturers, primarily in the transportation sector.
Then, from the Nov. 22, 2016 Q3 MD&A:
DROSRITE™ DROSRITE™ is a salt-free, cost-effective, sustainable process for maximizing metal recovery from dross, a waste generated in the aluminum industry. DROSRITE™ avoids costly loss of metal, while reducing a smelter's carbon footprint and energy consumption, providing an impressive return on investment. PyroGenesis' patented DROSRITE™ process increases aluminum alloy recovery from dross and reduces operating costs. In comparison, competing processes have significantly higher operating costs and produce a hazardous waste that has to be disposed of at additional cost. In 2015 PyroGenesis entered into an agreement with a North American automobile parts manufacturer to supply a commercial DROSRITE™ Furnace System by the end of 2015. In accordance with the contractual timeline, the client inspected the system in Montreal in December 2015 and immediately released it for shipment to one of its facilities in Mexico, where it was installed and commissioned in Q1, 2016. The system is currently undergoing performance testing, which is expected to be completed in Q3, 2016. Early yields from operating the system exceed expectations. If confirmed during the official performance testing phase, these increased yields would improve upon the already impressive return on investment previously demonstrated. As a result, the client has already indicated the requirement for a further 3 DROSRITE™ systems with purchase orders expected to be confirmed in Q2, 2016, following completion of the performance testing. Management believes that this first commercial sale will enable the Company to leverage this reference site to generate a continued flow of orders for additional DROSRITE™ systems from primary and/or secondary aluminum smelters, and large finished goods manufacturers, primarily in the transportation sector.
Then, from the May, 2017 Q3 MD&A:
DROSRITE™: The DROSRITE™ Furnace System was proven out at a North American customer’s Mexican facility during the first half of 2016. Soon thereafter, a successful demonstration of the DROSRITE™ System in the Middle East took place, following which an unsolicited request to exclusively market the process in the region was received and is currently being discussed. Management’s belief that the supply and installation of the first commercial sale in North America would enable the Company to leverage this success to generate a continued flow of orders for additional DROSRITE™ systems is being borne out. This recent flurry of activity and interest for the DROSRITE™ system bodes well for 2017 where we now expect to have at least 3 orders placed and delivered. We expect the first follow on contracts to be signed in the 2nd half of 2017. The market potential for PyroGenesis’ DROSRITE™ system, from Aluminium dross alone, exceeds $400MM