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Bullboard - Stock Discussion Forum Mcvicar Industries Inc V.MCV

TSXV:MCV - Post Discussion

Mcvicar Industries Inc > Excellent news
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Post by TheRock07 on Jun 23, 2010 8:40am

Excellent news


McVicar develops new 4HAP production method


2010-06-23 08:33 ET - News Release

Dr. Gang Chai reports

MCVICAR ANNOUNCES ADVANCE IN PRODUCT DEVELOPMENT

McVicar Industries Inc.'s research and development team has successfully developed a new method for the production of 4-hydroxyacetophenone (4HAP), a key raw material for Zhejiang Hongbo Chemical Co. Ltd.'s (Hongbo) chemical products used for the DuPont project. Hongbo is a fully owned subsidiary of McVicar.

Hongbo acquired Xiangshui Luyuan Chemical Co. Ltd. ("Luyuan") in 2008 in order to produce 4HAP to ensure that Hongbo could provide the quantity and quality of supplies for the DuPont project. Luyuan's operation was stopped due to unexpected debt claims from previous creditors. Luyuan's production of 4HAP also experienced very low profit margins due to the low productivity (about 60%) of original production process and high amounts of waste. The new technology simplifies the production process and uses a new and recycling catalyst for the production, generating minimum waste resulting in substantially reduced production costs. This new process can generate up to 90% of the final product and is expected to improve profitability of the project.

McVicar is in the process of pilot testing the new process, sourcing and ordering equipment, and searching for an ideal site for final production.

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