Genesis Worldwide Inc.
TSX : GWI

Genesis Worldwide Inc.

April 16, 2009 12:42 ET

Genesis Worldwide Builds Strategic Alliance in China

MISSISSAUGA, ONTARIO--(Marketwire - April 16, 2009) - Genesis Worldwide Inc. ("Genesis" or the "Company"), (TSX:GWI), is pleased to announce that it has entered into a strategic business alliance with China Perfect Machinery Industry Corp. Ltd. ("China Perfect"). The formal signing ceremony took place on April 12, 2009 at the Canadian Trade Mission in Beijing, China. The signing was witnessed by Mr. Dashan Liu, Vice President of SINOMACH, China Perfect's parent company, The Honourable Stockwell Day, Canada's Minister of International Trade, Mr. Robert G. Wright, Canadian Ambassador to China, and Mr. Terry Robinson, National Director, Housing Export, CMHC International.

Mr. Xiaogang Liu, President of China Perfect, and Mr. Mag Mostafa, Chief Operating Officer of Genesis, represented their respective companies at the ceremony. Mr. Liu initially met with Mr. Mostafa and visited Genesis and its light steel framing ("LSF") manufacturing plant in Vaughan, Ontario in August 2008. The two companies have worked toward a cooperative venture since that time. Vince Mifsud, President and CEO of Genesis, travelled to Shanghai in November 2008 to meet with China Perfect Vice President, Danqing Bo, to further advance this new partnership.

"Compared to traditional construction technology, Genesis' technology provides apparent advantages. China is a market with huge potential that is filled with passion for innovative technology," Mr. Xiaogang Liu commented. "We believe Genesis' technology will be widely used in this market under the joint effort between Genesis and China Perfect."

From the Genesis perspective, "Forging this alliance with China Perfect is a significant announcement for Genesis," said Mr. Mostafa. "As we continue to execute our business plan, particularly in the area of licensing our technology, we have made major inroads beyond Canada into Russia, Eastern Europe, the United States, the Middle East, and now the world's largest market, China. This broadens our global footprint while developing a key relationship with a major player in the Chinese market," added Mr. Mostafa.

Genesis, a leading provider of "green" structural building products and technology in the LSF industry, will work with China Perfect globally in providing LSF solutions for projects six storeys and under. This relationship will extend as well to China Perfect's sister companies under China National Machinery Industry Corporation ("SINOMACH"). SINOMACH, the parent company of China Perfect, is a large scale, state-owned enterprise group under the leadership of the State Assets Supervision and Administration Commission. SINOMACH has been active in over 130 countries in Asia, Africa, Latin America, Russia and Eastern Europe as general contractor for large infrastructure and building projects. Through this alliance, China Perfect will bring Genesis' LSF turnkey technology, the Genesis Solution, which includes CAD and ERP software, industrial equipment, hardware, processes and engineering services to the Chinese market and to countries where SINOMACH has suitable projects for Genesis' technology.

China Perfect, established in 1992 and headquartered in Shanghai, is focused on the development of industrial parks, and trade and real estate development. The corporation owns foreign trade rights to do import and export business deals with metals, and mechanical and electrical products, especially in selling steel materials.

With nine professional architectural design institutes, 6,000 engineers and designers, and over 1.5 million square metres of construction designed per year, SINOMACH has indicated that it potentially has projects of over 300,000 square metres suitable for the Genesis Solution per year. SINOMACH will actively promote Genesis' technology to provide to their clients a solution that is environmentally friendly, energy efficient and cost effective.

The alliance will expedite and facilitate Genesis' global outreach in markets China Perfect and SINOMACH are already actively involved in, involving building projects that are suitable for Genesis' LSF technology. The projects will include economical homes, schools and hospitals that are sponsored by the local or Chinese government.

The Genesis Solution provides China Perfect and SINOMACH with immediate access to a much faster, more cost-effective way to build structures compared with the traditional way of building with concrete. Going forward, China Perfect and SINOMACH will no longer have to provide hundreds of site laborers for applicable projects or export costly pre-casted concrete from China. Genesis, through its global network of licensees or partners, will be able to supply the engineered light steel structural materials from a close-by facility and use much less site labor for the same project.

About Genesis Worldwide Inc.

Genesis is a leading provider of green light steel building products, systems and technology targeted at the global commercial, residential and institutional building sectors. Genesis delivers customized turnkey structural solutions including innovative light steel products, and provides software packages, industrial equipment, training programs, professional services and support to licensees globally. Headquartered in the Greater Toronto Area in Ontario, Canada, Genesis has established a network of partners with engineering, manufacturing and distribution operations in Canada, the United States, the Middle East, Eastern Europe and Russia. For additional information about the Company, visit www.genesisworldwide.com.

Caution Regarding Forward Looking Information

Certain statements in this press release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements") and are made pursuant to the "safe harbour" provisions of such laws. Statements related to the Company's projected revenues, earnings, growth rates, performance, business prospects and opportunities are forward-looking statements, as are any statements relating to future events, conditions or circumstances. The use of terms such as "may", "will", "should", "plan", "believes", "predict", "potential" "anticipate", "expect", "project", "target", "estimate", "continue", and similar terms are intended to assist in identification of these forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects, and opportunities. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect.

Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance or achievements of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements.

Many factors could cause the actual results of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements, including, without limitation, those factors discussed under the heading "Risk Factors" in the Company's most recent Annual Information Form ("AIF"), a copy of which is available on SEDAR at www.sedar.com. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and the Company does not undertake any obligation to update forward-looking statements, except required by law, should assumptions related to these plans, estimates, projections, beliefs and opinions change.

Contact Information

  • Genesis Worldwide Inc.
    Catherine Smyth
    Manager, Investor Relations
    (905) 285-9909, ext. 302