15th Aug 2006 10:30
3DM Worldwide PLC15 August 2006 3DM Worldwide plc AGM Statement The last year has seen the company build on the foundations established throughthe commissioning of the Alpha line and reaching the point where we are able tocommercially demonstrate the process to our clients. The increasing importanceattached to the recycling of plastic waste, by Government agencies and potentialcustomers, has become a key driver in attracting interest in the PIM process. Our understanding of the technical relationship between product design, moulddesign, material selection and process settings has improved significantly,particularly in relation to the use of recycled materials. This, combined withimprovements in our costing model, allows 3DM to provide clients with detailedprofessional proposals for product development, toll manufacture, and productionfacilities. When a client explores the move to a new technology it will take the opportunityto review the market and address issues with the existing products whendesigning new products for production utilising the PIM process. 3DM has gone down this route with a number of clients and is delighted that wenow have two products for toll production, a third contract at sign off stageand a further two funded product development projects which will ultimately leadto toll manufacture. • The first of these products is construction site safety hoarding. 3DM Worldwide plc is currently working with Bovis Lend Lease and Land Securities to develop and trial eco hoardings. The project will utilise the PIM process to convert various plastic waste streams into flat sheet for use as eco hoardings. Bovis Lend Lease and Land Securities are committed to reduce the extent of their construction waste materials that is currently disposed of via landfill. 3DM's PIM process offers the opportunity to convert the waste material into higher value products as the waste material can be used in the core of a new product. The PIM process is consistent with the vision of Bovis Lend Lease which is to become a sustainable organisation, consistently delivering best practice environmentally sustainable solutions. Bovis Lend Lease and Land Securities have made a significant contribution towards the cost of one of the three new moulds and both have committed to taking significant initial production subject to satisfactory trials of finished product. Production of sheet material will commence in September. It is anticipated that the first projects to trial the eco hoarding should generate revenue in the order of £50,000. The customer, St David's 2 retail development, is a regeneration project in Cardiff by St David's Partnership, a partnership between Land Securities plc and Capital Shopping Centres plc. The market for construction site safety hoarding is significant and 3DM expectsto supply commercial volumes from the end of this year. This is a key milestonein demonstrating the commercial viability of the PIM process to clients. Theability to produce sheet material in volume will also allow 3DM to supply testpieces for existing enquiries for use as concrete forms and as floor linings forvans. • The development work for the recently announced contracts for pallets is underway. • We expect to complete the signing of a contract for the design and production of a range of bathroom products in the near future. • The funded development work announced on 22 May 2006 as part of the preliminary results for the year ended 31 December 2005 Operations Review statement is progressing on track. • The prototype disabled access ramps produced for Nottingham Rehabilitation are currently undergoing tests and we expect feedback on the results in the coming weeks. A number of other projects for toll manufacture are at advanced stages ofdiscussion with product designs and samples under test. In addition: • 3DM is pleased to announce the signing of a collaboration agreement with Severnside Recycling, a subsidiary of packaging manufacturer, DS Smith plc, which will dramatically reduce the amount of plastic waste being sent to landfill. The project will target the conversion of plastic waste generated by Severnside's retail customers into returnable transit packaging. • The Salvation Army have signalled their intent to progress a plastic recycling project in the UK subject to satisfactory completion of due diligence and fund raising. The proposal includes the installation of a PIM Delta line in the West Midlands. The project is expected to progress in 2007. 3DM Worldwide has a high level of interest in the PIM process and will continueto focus on the Construction, Materials Handling and Automotive Sectors. Thisinterest, which includes the potential for licensing in South America, theMiddle East, and the Far East; production line projects in Tanzania and Keyna aswell as a recycling project in Hungary is in many cases close to conversion intocommercial agreements. In the USA the on going projects in the automotivesector and for modular housing are progressing satisfactorily. The key milestone of volume production on the Alpha line at Bedwas House willprovide clients with the confidence to adopt the PIM process. The number ofparties considering the purchase of PIM production lines at this stage in thecommercialisation of the technology is encouraging. The Board remains confidentof further contract wins over second half of this year. 15 August 2006 3DM Worldwide 02920 885858Niall Mackay, Chief Executive College Hill 020 7457 2020Matthew Gregorowski This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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