Depending on the funding/investment capacity and criteria, funding can be for Single plant of $ 640 Million, or 14 Regional plants of $ 8.96 Billion or Global plants of $ 115 Billion.
Funds will be used for purchase of recently closed primary aluminum plant(s) owned by ALCOA and others. We will upgrade them with our proprietary know-how and technology which will make these plants about 25% more efficient. Thus, making them profitable.
More specifically, we have proposed to purchase from ALCOA their Warwick Primary Aluminum manufacturing plant which supplies ingots to ALCOA’s can production plant in same property employing 1200 people. The key term of purchase would that ALCOA buys back 100% primary aluminum production from us for us in their canning plant adjacent.
Investment is required in primary aluminum manufacturing plant(s) to make them about 25% more productive using our hands on know-how and technology. Thus, beating the competition by large margins.
In past 18 months, in USA alone 8 primary aluminum plants were closed or curtailed near 100% production. Thus, further reducing production capacity by 60% of 2014 capacity and laying off over 3262 direct employees. Meaning, now only 2 smelters remain fully operational in USA making it lowest primary aluminum production in USA since 1950! See below table.
At current LME primary aluminum price level of $1500/mt, most of the manufacturers are losing money (about $100 per mt). Yet the use of aluminum in automotive industry has gone up by 35% since 2009!
With 25% production efficiency improvement with know-how and technology, we can manufacture and sell at $1500 /mt price and make about $ 275/mt net profit. Additionally, it reduces air pollution, improves the worker health, reduces energy consumption, etc.
Thus, our solution is in unique position to take a controlling lead in the primary aluminum industry in USA, in the Region and Globally.
Main challenge is protecting our know-how. We have certain steps and procedures in place. Ideal way to protect it is to buy the recently closed plant and upgrade it with our know-how. Since we will be the owner of the plant, we will be in better position to protect our know-how from being stolen and or copied. Besides, we will have an accurate way to compare our production improvements with old plant production data.
I do not foresee major roadblocks. Minor roadblocks can be cleared as they come along.
My partner in this know-how and technology has hands on experience of 19 years o f working in this type of plant and managing it in Venezuela.
I have no such wish list!
There is no existing banking relationship and or any investor relationship for funding of this project. Myself and my partner Ing. Alfredo Jose Mundaray have personally spent our own time and money over past 4 years to develop the know-how and technology by putting it down in writing all aspect of it in details. There has been no income from it as of yet.
The key point in purchasing recently closed plants from its owner is that they buy back all the primary aluminum production from us under contract. Thus, from purchase of Warwick plant from ALCOA will have gross revenue of $ 444 million annually with about net 25% profit margin at current price.
Should we acquire all 8 closed plants from USA, we will have projected gross revenue of $ 2.663 billion annually with about net 25% profit margin at current price.
Should we acquire about 50% of the plants globally as they are suffering losses, we will have projected gross revenue of $ 23.1 billion annually with about net 25% profit margin at current price.
Thus, scope is huge which can be leveraged as acquired plant assets as well as forward sellback contracts with previous owners can be used as assets as collateral for funding.
Special note: We have a secondary process that recovers about 18% aluminum from the red mud.