SOURCE: Tower Tech Holdings, Inc.

July 27, 2006 14:50 ET

Tower Tech Systems Doubles Annual Production Capacity of Large Wind Tower Support Structures

MANITOWOC, WI -- (MARKET WIRE) -- July 27, 2006 -- Ewire -- Tower Tech Holdings, Inc. is pleased to announce that its wholly owned subsidiary, Tower Tech Systems, Inc., has successfully expanded its annual production capacity by 100% for production of large wind tower support structures. This expansion represents the First Phase of a three-phase expansion program. The Second Phase, scheduled for completion later this year, will increase the Company's production capability by an additional fifty per cent per year. The Third Phase, scheduled for late 2007, will again expand the Company's Manitowoc plant capacity to approximately double the 2006 capacity. Under this First Phase, initial finished-product towers are expected to be ready for delivery to Gamesa Eolica (MCE:GAM) by approximately July 31st 2006.

The expanded production capacity came as a result of significant improvements in efficiency and productivity generated by the Company's recent installation of one (1) PullMax X93 Plate Beveler, providing bevels for high quality welds at speeds ranging from 6 to 12 feet per minute, and four (4) Lincoln Electric automatic submerged arc welding units, consisting of Lincoln Electric AC-1200 Amp Power Source, Lincoln Electric DC-1000 Amp Power Source and Lincoln Electric NA3 Control Units. The Lincoln Electric unit is the industry's leading welding system, and is specifically designed to deposit more weld metal at faster travel speeds, thereby eliminating production bottlenecks and unnecessary costs. The Company is currently in negotiations to procure additional equipment, scheduled in the 3rd quarter of 2006, that will bring Tower Tech's total capacity under Phase Two to 150 towers per year.

Samuel Fairchild, CEO of Tower Tech Holdings, announced the expansion, stating, "I commend our top-notched staff for their hard work in completing this important expansion phase. The current market imbalance between demand for wind towers and available production capacity in North America provides Tower Tech with an unprecedented market opportunity to fill the gap. The acquisition and installation of this important equipment, along with the other completed modifications to our production line, not only doubles our capacity; it also dramatically reduces our direct labor cost per tower and improves the quality profile of our finished product. By the time Tower Tech completes our Phase Two expansion later this year, we expect to be among the low cost providers in the Western Hemisphere."

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Forward-Looking Statements

Certain statements contained in this press release are forward-looking statements that involve risks and uncertainties. The statements contained herein that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933. Forward-looking statements deal with the Company's current plans, intentions, beliefs and expectations and statements of future economic performance. Statements containing terms like "believes," "does not believe," "plans," "expects," "intends," "estimates," "anticipates" and other phrases of similar meaning are considered to imply uncertainty and are forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from what is currently anticipated. Factors that could cause or contribute to such differences include those discussed from time to time in reports filed by the Company with the Securities and Exchange Commission. The Company cannot guarantee its future results, levels of activity, performance or achievements.

Contact Information

  • Tower Tech Holdings, Inc.
    Brian Neary