EDEN INNOVATIONS LTD ACN 109 200 900
EDEN SECURES FINANCIAL ASSISTANCE AND INCENTIVES PACKAGE WORTH US$24.76 MILLION FROM GEORGIA ECONOMIC DEVELOPMENT AUTHORITY AND AUGUSTA ECONOMIC DEVELOPMENT AUTHORITY.
EDEN TO ESTABLISH ITS LARGE-SCALE, GLOBAL EDENCRETETM PRODUCTION FACILITY IN AUGUSTA, GEORGIA AT AN ESTIMATED COST FOR THE FIRST PHASE OF US$67 MILLION TO CREATE 251 JOBS OVER SIX YEARS, WITH SUFFICIENT LAND TO ACCOMMODATE UP TO NINE FUTURE PHASES ON THE SITE.
THE INCENTIVES PACKAGE WILL DELIVER TOTAL COST SAVINGS AND COST AVOIDANCE BENEFITS OF US $24.76 MILLION, BEING:
US$11.59 MILLION TO BE PROVIDED BY STATE OF GEORGIA,
US$13.17 MILLION TO BE PROVIDED BY AUGUSTA ECONOMIC DEVELOPMENT AUTHORITY INCLUDING A GRANT OF 45 HECTARES (112 ACRES) OF SERVICED INDUSTRIAL LAND IN THE AUGUSTA INDUSTRIAL PARK PLUS AN OPTION OVER A FURTHER 12.75 HECTARES (31.5 ACRES).
PRODUCTION CAPACITY OF THE FIRST PHASE IS TO BE DEVELOPED IN FOUR STAGES TO AN ESTIMATED TOTAL OUTPUT OF 50 MILLION GALLONS (189 MILLION LITRES) PER YEAR OF EDENCRETETM.
Level 15, 197 St Georges Terrace, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866
Email: mailroom@edenenergy.com.au
DETAILSPerth-based Eden Energy Limited (ASX: EDE) is very pleased to announce further significant progress towards the establishment of its EdenCreteTM concrete admixture in the USA, with Eden's wholly owned subsidiary, EdenCrete Industries Inc. ("ECI") securing an attractive financial assistance and incentives package worth US$24.76 million to assist it establish its large scale global manufacturing plant in Augusta, Georgia, as announced in Georgia by Governor Nathan Deal on 13 April 2016 (see attached Press Release).
Proposed EdenCreteTM Production Facility
ECI proposes to establish its large scale global EdenCreteTM production facility in Augusta, Georgia, with the first phase planned to be completed, in four stages, over the next seven years at an estimated cost of US$67 million to create 251 jobs. The first phase has a planned annual production capacity of 189 million litres (50 million gallons) of EdenCreteTM concrete admixture. The site has sufficient area to accommodate a further 9 similar phases as demand grows (see Figure 1 attached).
State of Georgia Incentive Package
The State of Georgia (through the Georgia Department of Economic Development (GDEcD")) and the Augusta Economic Development Authority ("AEDA") have collectively agreed to provide a generous financial assistance and incentives package estimated to be worth up to US$24.76 million over the next 20 years to assist ECI.
The incentives package, which is dependent on ECI establishing the new plant, will deliver total cost savings and cost avoidance benefits of US $24.76 million, with:
US$11.59 Million to be provided by State of Georgia
US$13.17 Million to be provided by AEDA
Incentive Package Details
THE details of the financial assistance and incentives package for new plant, which are being provided against ECI's commitment to build the plant, include the following:
A grant of 45 hectares (112 acres) of industrial land in the Augusta Industrial Park (worth US$2.8M) with an option over a further 12.75 ha (31.5 acres) for future expansion (see Figure1);
Financial assistance through the AEDA Industrial Revenue Bond programme that will deliver approximately US$5.8M of savings in local property taxes over 20 years;
AEDA will spend US$2.5m establishing two lane road access to site, US$100,000 towards site preparation costs and US$400,000 towards securing rail access to the site,
GDEcD will contribute US$500,000 to the cost of establishing the road, training and hiring assistance,
Augusta Utilities to spend US$1.57M to install water and waste water lines to site; and
Various other State and AEDA tax benefits including:
- State Job Tax Credits
Various County tax exemptions from Property Tax, Inventory Tax, and Freeport Exemption; and
State Sales Tax and Use Tax exemptions.
Apart from evidencing the strong support that the Government of Georgia is prepared to provide to incoming industry, this very generous assistance package will significantly reduce both the up-front capital costs and the operational set-up costs associated with establishing the large scale manufacturing operation in Georgia, and also help significantly defray operating costs for up to 20 years.
It also provides a large tract of suitable industrial land with capacity for very large-scale future expansion. The site has very convenient road and rail access to the entire North American market, as well as easy access to shipping to the global market via the Port of Savannah. The site adjoins the railway system linking it to the entire North American rail network. It is also located within 12 kilometres of the interconnected US Interstate Highway network giving it very efficient road access to North America. The Port of Savannah, the third largest port (by volume) in the US for containerised freight, is 160 kilometres away by both road and rail, and provides efficient shipping access via the Atlantic to South America, Europe, Africa and the Middle East, and also via the Panama Canal to the rest of the global market.
This incentive package will deliver a significant reduction in both the capital and operating costs, and greatly enhance the overall attractiveness of the project to future investors and lenders for fund raising purposes.
BACKGROUND
EdenCreteTM is Eden's 100% owned, proprietary carbon-strengthened concrete additive which significantly improves a wide range of performance characteristics of concrete, making it suitable for use in a wide range of applications including the construction and maintenance of concrete roads, bridges and other infrastructure. Additionally, it has potential for use in a range of other concrete applications including high wear and abrasion applications, high-rise building construction, marine and coastal applications, water storage and pipelines, and pre-fabricated concrete structures and products.
Gregory H. Solomon
Executive Chairman
For immediate release Office of Communications
April 13, 2016 (404) 651-7774
Concrete solutions company to invest $67 million in global manufacturing headquarters
Gov. Nathan Deal today announced that EdenCrete Industries Inc. (ECI), a manufacturer of carbon nanotube enriched concrete solutions, will establish its global manufacturing headquarters operation in Augusta. This project represents the creation of more than 250 new jobs and an overall investment of
$67 million in the local community.
"When global manufacturing companies like EdenCrete Industries Inc. choose to locate to Georgia, it is a testament to the international reputation of our top-ranked business climate," said Deal. "I am
confident ECI will benefit from our leading talent and robust industry network in order to find the support it needs to successfully serve its customers around the world. I am proud to welcome ECI to Georgia."
ECI is a wholly owned subsidiary of Australian-based Eden Energy Limited. With this business venture, ECI will expand the manufacturing of its proprietary product, EdenCrete™, in the U.S.
"We selected Georgia, and in particular Augusta, to establish our global manufacturing base, not only because of the government's great support for industry as is evidenced today and Georgia's highly efficient transport access to the both the North American and international export markets, but also, because of the warmth of its people, the quality of its workforce and the attractive standard of living and opportunities that it offers our future employees," said Greg Solomon, chairman of Eden Energy.
EdenCrete™ is ECI's carbon-strengthened concrete additive which significantly improves a wide range of performance characteristics of concrete. The product is suitable for use in the construction and maintenance of concrete roads, bridges and other infrastructure networks.
"Augusta-Richmond County welcomes ECI to our continually growing business community," said Augusta Mayor Hardie Davis. "Their innovative products and process is exactly the kind of company that finds the perfect location in Augusta."
The Georgia Department of Transportation (GDOT) has already approved the use of EdenCrete™ in its 24-hour highway concrete repair mix and plans a further field trial of EdenCrete™ for use in new concrete highway construction. EdenCrete™ also has the potential for use in other concrete applications
Eden Energy Limited issued this content on 14 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 14 April 2016 00:01:16 UTC
Original Document: http://www.edenenergy.com.au/pdfs/70757acd3a2d2c4771f1f86ef39c0ea7.pdf
