AXION Accelerates Vertical Integration Strategy and Expansion of Engineered
Products Production to Meet Growing Demand
Conversion of Zanesville Facility to Increase Capacity for Engineered Products
Division; New Board Member and Changes to Executive Management Team
ZANESVILLE, Ohio, Aug. 8, 2014
ZANESVILLE,Ohio, Aug. 8, 2014 /PRNewswire/ --AXION International Holdings,
Inc. (OTCQB: AXIH), a leader in recycled plastic and plastic composite
technologies used to produce ECOTRAX® rail ties/sleepers and STRUXURE®
building products, including heavy construction and laminated temporary road
mats, today announced a move to increase production of ECOTRAX® and STRUXURE®
products to meet growing demand, and realign the Company's operational and
management team to better focus on its core activities, definitive strategy
and drive long-term growth.
AXION has announced that it will immediately begin converting extrusion
equipment in its Zanesville, OH facility now used for reprocessing plastic
waste so that such equipment can be used to produce engineered products such
as rail ties and industrial mats. The Zanesville facility will continue to
sort, grind, and wash post-consumer and post-industrial plastics and plastic
composites, though the output will now be primarily for AXION's proprietary
engineered products. The realignment will require modifications and upgrades
to existing equipment and the addition of mat fabrication capability to
support the production of the Company's engineered products. The execution of
the strategy to vertically integrate reprocessing with product manufacturing
is now being accelerated to enable AXION to increase its manufacturing
capacity and earn a higher gross margin on its product sales. AXION will
remain a significant and increasing purchaser of recycled plastic waste and
continue its marketing and manufacturing of customized reprocessed plastics
from which higher gross margins can be realized.
AXION'sSteve Silverman, who has served as AXION's Chief Executive Officer
since January, 2011 said, "This is an exciting time for the Company as we
planned for this realignment to take place in early 2015. Given the prospect
that demand can overwhelm us as our orders and pipeline continue to grow, we
decided we needed to move forward now. Our Waco, TX facility is producing
finished products and nearing full capacity for the assets we have in place
and we are currently finalizing multiple supply agreements around the world.
The test projects our rail customers previously initiated are now leading to
new orders that will be quite significant for our business and we must
increase our capacity to support such demand. Market demand for both our heavy
construction mat and laminated temporary road mat is increasing, and it is
necessary to have adequate inventory when a customer calls in an order. Our
decision to realign this facility to build this inventory is based on the
prospects we foresee in the market with our products."
AXION also announced changes to its Board of Directors and its senior
management team to more effectively support an engineered products
manufacturing business. Samuel Rose, one of AXION'sprincipal investors, was
appointed to its Board of Directors, effective August 4, 2014. In addition,
Claude Brown Jr., previously the Company's Chief Operating and Technology
Officer has been promoted to Chief Executive Officer, while Steve Silverman,
will assume the role of the Company's Vice Chairman of the Board. Mr. Brown is
a respected industry veteran with over 22 years of experience in engineering,
development, commercialization and production of unique polymer technologies
and differentiated building products.
Mr. Silverman continues, "We have built a great foundation of vertically
integrating our material stream. We have come so far in just 4 years. We now
have demand for our products at higher price per pound realizations and we
have two manufacturing facilities. As part of this evolutionary process, we
required a CEO with the experience to lead a plastic-based manufacturing
operation. There is no better person for this position than Claude."
"It is my pleasure to assume the post of Chief Executive Officer of AXION,"
says Mr. Brown, "I fully endorse the acceleration of the execution of our
strategy and am excited for the prospects we foresee for the specialized and
proprietary engineered products that AXION is now manufacturing."
About AXION International Holdings, Inc.
AXION (OTCQB: AXIH) is a green technology company, transforming waste plastics
into structural building materials. Using 100%-recycled consumer and
industrial plastics, AXION develops, markets and sells its recycled structural
composite products through its ECOTRAX® composite rail tie and STRUXURE®
building material lines. From the railroading industry to the military to
global engineering firms, AXION delivers tested, proven and superior green
solutions to infrastructure needs around the world.
This release contains "forward-looking statements" for purposes of the
Securities and Exchange Commission's "safe harbor" provisions under the
Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the
Securities Exchange Act of 1934. These forward-looking statements are subject
to various risks and uncertainties that could cause AXION's actual results to
differ materially from those currently anticipated, including the availability
of materials at favorable pricing, sufficient manufacturing capability and the
risk factors identified in AXION's filings with the Securities and Exchange
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SOURCE AXION International Holdings, Inc.
Contact: AXION Investor and Media Relations, Andrew Haag, Managing Partner,
IRTH Communications, firstname.lastname@example.org, 1-866-976-4784
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