Amerityre And Qingdao Qizhou Rubber Co. Ltd. Enter Into License Agreement

Boulder City, NV - Amerityre Corporation, a developer of polyurethane elastomer tire technologies, announced recently that it has entered into a manufacturing license agreement with Qingdao Qizhou Rubber Co., Ltd., Qingdao, China. The agreement grants the Chinese company a license to initially manufacture polyurethane elastomer retreads for three large-size tires for mining applications, using Amerityre's innovative retreading process, in exchange for a $400,000 license fee payable over the next two years.

Qingdao Qizhou Rubber Co., Ltd. proposes to build a new factory next to its existing operations in the Mingcun Rubber Industrial Park located in Pingdu, China. Amerityre will sell and otherwise assist Qingdao Qizhou in obtaining the necessary equipment for the factory and supply the chemicals necessary to produce the polyurethane elastomer retreads. The parties estimate that it will take approximately 12 months to complete the factory, which is expected to have an annual retread capacity between 7,200 to 10,000 units, and which would use between 7.7M and 16.5M pounds of polyurethane elastomer material annually, based on the production mix.

"The increasing demand for natural resources by emerging countries has caused a global shortage of large OTR mining tires. There have been reports of mining equipment sitting idle, without tires," commented Ken Johnsen, Amerityre's recently appointed President. "We've been evaluating the scalability of our retreading technology in the OTR tire area and there is a substantial opportunity there. We believe our polyurethane retreading process can provide an economical and superior retreading solution. We're very pleased that Qingdao Qizhou has decided to take the initial lead in this area," he added.

SOURCE: Amerityre Corporation