SOURCE: Composite Technology Corporation

December 18, 2008 08:05 ET

Composite Technology Continues Stranding Relationship Expansion

CTC Cable Enters Into Second Stranding Agreement in Indonesia

IRVINE, CA--(Marketwire - December 18, 2008) - Composite Technology Corporation (CTC) (OTCBB: CPTC) is pleased to announce that its CTC Cable subsidiary has signed another manufacturing agreement with an overhead conductor manufacturer in Indonesia. The agreement with PT Tranka Kabel sets out the process for the qualification of the manufacturer as an ACCC™ conductor aluminum wire strander and governs the commercial stranding of ACCC™ conductors for the Indonesian market. The agreement also establishes terms to provide stranding services for CTC Cable to export to other markets.

The full operation of the agreement is contingent upon PT Tranka Kabel successfully passing qualification requirements. PT Tranka Kabel has already manufactured qualification samples and it is anticipated it will complete the process of qualification in the first half of calendar 2009. The agreement provides for the stranders to assume much of the Indonesian country risks of foreign exchange and payment making the servicing of this market by CTC Cable simpler and more effective. ACCC™ composite core production will continue at CTC Cable's ISO 9001:2000 certified facilities in Irvine, California, where capacities have been expanded in recent months in anticipation of increased demand. CTC Cable will continue to provide support and training of installers for the Indonesian market.

"We are pleased to add another high quality stranding source for the Indonesian market. Indonesia has a well defined plan for electrical transmission expansion. With the addition of local standing capacity we will be well positioned to serve the growing market," commented Marv Sepe, President of CTC Cable and COO of Composite Technology Corporation.

About PT Tranka Kabel

Founded in 1952, PT Tranka Kabel is the first cable manufacturer in Indonesia. Its continued success through 5 decades lies in the company commitment to quality. Since 1972, Tranka Kabel has been producing telephone cables of various type and sizes. Today with the current facilities, Tranka Kabel is able to produce telephone cables from 1 pair up to 2,400 pairs. Situated in the outskirts of Jakarta, the present manufacturing facilities consist of 2 plants with 15 hectares of land. In 1994 the second plant was equipped with state of the art machinery especially from Nokia Cable's machinery of Finland.

About CTC:

Composite Technology Corporation, based in Irvine, California, USA, develops, manufactures and sells innovative high performance electrical transmission and renewable energy generation products through its subsidiaries:

CTC Cable Corporation produces composite rod for use in its patented high efficiency ACCC* conductors, (Aluminum Conductor Composite Core) used in electrical transmission grids. ACCC conductors have less line loss compared to similar diameter conventional conductors and therefore enable power generators to reduce the amount of generation while still delivering the same power to customers. Our conductors have demonstrated significant savings in upgrade capital costs as well as operating expenses when substituted in grid systems. ACCC conductors enable grid operators to reduce blackouts and brownouts by providing reserve electrical capacity, since they can be operated at higher temperatures without significant thermal line sag. ACCC conductors are an economical solution for reconductoring power lines, constructing new lines and crossing large spans. ACCC core is produced by CTC Cable and delivered to licensed qualified conductor manufacturers worldwide for ACCC conductor production and resale into local markets.

DeWind Inc designs, produces, and sells the DeWind series of wind energy turbines, including the new 2 megawatt (MW) D8.2 model in both 60Hz and 50Hz, the 2MW D8 model in 50Hz, and the 1.25MW D6 model in 50Hz. The D8.2 turbine uses a WinDrive® hydrodynamic torque converter, by Voith AG, in combination with a synchronous high voltage generator that is synchronized directly to the grid without the use of power conversion electronics. DeWind D8.2 turbines are assembled at TECO Westinghouse Motor Co., in Texas.

*ACCC is a trademark of CTC Cable Corporation

For further information visit our website: Investor Relations Contact: James Carswell, +1-949-428-8500.

This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (the "Company"). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, new or revised governmental laws and regulations (or the lack thereof) that affect wind energy, competition with larger companies, development of and demand for a new technology, risks associated with a startup company, the ability of the company to convert quotations and framework agreements into firm orders, our customers' fulfillment of payment obligations under the respective supply agreement, our ability to deliver reliable turbines on a timely basis, general economic conditions, the availability of funds for capital expenditure and financing in general by us and our customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, ability to produce the turbines and acquire their components, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company, including those that are found in the Company's Annual Report filed with the SEC on Form 10-K for fiscal year ended September 30, 2007, the upcoming Company's Annual Report filed with the SEC on Form 10-K for fiscal year ended September 30, 2008, and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.

Contact Information

  • Investor Relations Contact:
    James Carswell