September 27, 2005 08:30 ET

Raymor Begins the Commercialization of its Net-Shape Forming Technology With an Order From Volvo Aero for Satellite Components

MONTREAL, QUEBEC--(CCNMatthews - Sept. 27, 2005) - Raymor Industries Inc. (TSX VENTURE:RAR) is proud to announce that its wholly-owned subsidiary, AP&C Advanced Powders and Coatings Inc. (AP&C) has received an order from Volvo Aero for the manufacturing of thruster nozzles used for satellite guidance and stabilization in space. To manufacture these nozzles, and to meet the high standards required for components in space, AP&C successfully used its patented Net-Shape Vacuum Plasma Spray Forming technology. Given the current demand for this technology, AP&C advances by two years the commercialization initially planned. AP&C's new client, Volvo Aero, specializes in the fabrication and repair of components used in aircraft engines and rockets.

Volvo Aero, a division of Volvo, is one of the primary companies at the core of the European Space Program. Volvo Aero develops and manufactures high tech components for aircraft, rockets, and gas turbines. The company generated sales of US$921 million in 2004, and employs around 3360 people worldwide.

AP&C was approached by Volvo Aero due to its expertise and its patented Net-Shape Vacuum Plasma Spray Forming technology. Given the very high material costs as well as the specifications required by Volvo Aero, AP&C's patented technology is most beneficial from an economical standpoint for these types of nozzles as well as many other components used in space.

"This unique manufacturing technique is advantageous when the materials used are very expensive, such as components sent to space. As well, this is the only possible solution when a component requires the layering of many materials in order to generate new properties," said Dr. Michel Drouet, Chief Scientist with AP&C. "With this technology, we can manufacture components with properties which were unthinkable to produce otherwise," added Dr. Drouet.

"We are very happy that our Net-Shape Vacuum Plasma Spray Forming technology can help Volvo Aero," said Stephane Robert, President of Raymor Industries. "Besides the space market, this technology opens doors for us towards new, very promising markets, including ballistic protection, and we will take advantage of them to the utmost," adds Mr.Robert.

AP&C holds the exclusive, worldwide rights to the patented Net-Shape Vacuum Plasma Spray Forming technology, which requires the use of a VPS (Vacuum Plasma Spray) system. AP&C's VPS, valued at CDN$2.5 million, is the only commercial VPS in Canada. This technology has been successfully demonstrated in other applications, including the manufacturing of a combustion chamber prototype for turbines and armoured helmets for the Canadian military. With this first contract from Volvo Aero, AP&C undertakes the commercialization of this innovative technology where the needs are immediate in the aerospace and defence sectors.

From the report "2005 State of the Space Industry", the authors, The International Space Business Council, state that "now is a good time to be involved in the space and satellite industry." World turnover, generated from commercial services and government programs, reached US$103 billion in 2004, and is forecast to exceed US$158 billion in 2010. More than US$18 billion is spent annually on the development of space systems. The US Defense spending on space has grown from around US$15 billion in 2000 to more than US$22 billion today, and is forecast to reach $28 billion by 2010.

RAYMOR INDUSTRIES INC. (TSX VENTURE:RAR) has as its mission to become the leading Canadian developer of high technology and a producer/recycler of advanced materials and nanomaterials for high value-added applications. In November 2004, Raymor Industries created a wholly-owned, industrial subsidiary, AP&C Advanced Powders and Coatings, specializing in nanotechnology and advanced materials, and comprising four operational divisions: (1) nanotechnology products, including nano-powders, nano-coatings, and single-walled carbon nanotubes (C-SWNT) for "the applications of tomorrow"; (2) thermal spray coatings, which largely targets military, aeronautical, aerospace, specialized industrial, and mining applications; (3) spherical metallic powders, primarily used for biomedical and aerospace applications; and (4) net-shape forming, a component manufacturing technique used for ballistic protection and other aerospace and military applications. Raymor holds the exclusive rights to more than 20 patents throughout the world, with other patents pending.


Stephane Robert, President.

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