SOURCE: SNRG Corp.

December 08, 2009 12:52 ET

SNRG Corporation Announces Rubber Devulcanization License Agreement

HOUSTON, TX--(Marketwire - December 8, 2009) - SNRG Corporation (PINKSHEETS: SNRG) announced this morning that the Company has entered into an exclusive North American technology agreement with Vega Invest AG d/b/a Enviropark Global AG for advanced rubber devulcanization technologies.

The agreement grants the Company all North American rights to unique and advanced rubber devulcanization technologies. The acquisition of these technology rights facilitates the incorporation of our existing rubber recycling assets into two production lines in our Bay City Enviropark facility. The Company will construct two production lines, each capable of producing 40 million pounds of devulcanized rubber compound per year. The devulcanized rubber has excellent properties and can be used as a substitute for virgin materials in the manufacture of numerous rubber products.

According to the Chief Executive Officer of SNRG Corp., D. Elroy Fimrite, "The rubber recycling industry has had significant problems creating viable businesses and numerous companies have failed, leaving behind piles of tires to be cleaned up. Without devulcanization the rubber particles, no matter how fine you chop them, have the same chemical structure as the original vulcanized tire or other rubber product and will not chemically bond into a new compound for the manufacturing of a new product. With our technology we can move the rubber from the economic wasteland of conventional rubber recycling into the massive and economically viable conventional rubber applications and product markets."

"The consumption of rubber is approximately 12-14 kg per capita in the western world and has been less than 1 kg per capita in Asia," added Mr. Fimrite. "This is rapidly changing with the rapid growth of the automotive industry in China, India and Russia and has been reflected by a 400 % increase in the price of natural rubber since 2001. The emergence of a large middle class in Asia has only began to be reflected in the demand for products made with rubber, an acute shortage of supply and a significant increase in prices is very likely, a shortage that can only be solved by increased usage of devulcanized rubber due to the inelasticity of supply of natural rubber."

The technology being acquired by the company is unique, proven and ready for commercial production. The global rubber demand is in excess of 22 million metric tons per year and consists of thousands of manufacturers that can substitute devulcanized rubber in their products and achieve substantial savings.

FORWARD-LOOKING STATEMENTS AND SAFE HARBOR STATEMENT:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "plans," "hopes," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the Company's business focus; the Company's ability to acquire its target facilities and raise needed funding; the potential productivity of our proposed properties; changes in the operating costs and changes in economic conditions and conditions in the recycling and de-manufacturing industry and the unproven nature of such technologies and its commercial viability. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. SNRG Corporation takes no obligation to update or correct forward-looking statements, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.

Contact Information

  • Investor Relations Contacts:

    Mr. Christian Hansen
    Market Specialist
    Equititrend Advisors, LLC
    800-585-6988

    Mr. Jim Elbert
    Destiny Focus Consulting Inc.
    630-847-4255

    Authorized by:
    D. Elroy Fimrite
    President & CEO