Scorpex Inc. (Pinksheets: SRPX.PK) a company that deals in industrial, hazardous and toxic waste disposal services, inked a $30 million contract with International Environment Technologies Inc.(IET) under which the latter will install operate and maintain waste gasification/thermal oxidation equipment.
Under the terms of the agreement the purchase price will be paid in four installments. The first installment of $9,000,000 will be given upon the release of funds from the lender; Next 9,000,000 upon IET's delivery to Scorpex on the completion of a certification of shop drawings and other engineering work for the installation.
Another $9,000,000 upon IET's delivery to Scorpex of a certification that the erection of the steel framework for two units has been completed; and $3,000,000 upon the final check out, testing of the unit and commissioning.
Scorpex operates in the Baja Mexico/California region. The new facility will be located on the outskirts of Ensenada, Mexico
IET will install the equipment, train the personnel, provide maintenance of the equipment and supply spare parts. A warranty for equipment installed and certification of completion will also be given to the company. The contract also allows a license to use the patented technology.
Scorpex chose IET over its competitors because of its lower capital investment compared to others in the market as well as lower operating costs, said a statement. The construction is expected to take between six to 12 months.
Chief Executive Officer Joseph Caywood said, "As I said previously, we have made remarkable progress and are very excited to be moving forward so quickly with our business strategy. Signing such a major equipment contract at the dawn of establishing our first waste disposal and processing plant is yet another strong vote of confidence by others who have chosen to join our initiative to address Mexico's growing demand for industrial, hazardous and toxic waste management."
IET's patented technology is capable of processing hazardous waste simultaneously without presorting for maximum efficiency. The system virtually reduces waste volume by 95 percent. The design of the system also reduces breeding sites for scavengers, rodents, insects and disease that are sometimes found in other processes.