Plasticon Completes SEMCO Acquisition

Cutting Edge Surfacing Company Will Position Plasticon for Growth in $100 Billion + Surfacing Industry

Lexington, KY — Plasticon International, Inc. has announced that the company has completed the acquisition of SEMCO Manufacturing, Inc.

"The acquisition of SEMCO Manufacturing is an absolutely critical part of our growth strategy," said Jim Turek, President and CEO of Plasticon International, Inc. "We are very excited about the completion of the acquisition, and we are confident that SEMCO will become the greatest profit center for Plasticon International in the years ahead. SEMCO is currently profitable and enjoys a stellar reputation as a technology leader in the surfacing industry. This is an established company with an outstanding record as a pioneer in surfacing and the company has proven itself again and again with many successful high-profile projects. SEMCO's products are the most innovative and versatile in the surfacing industry today, and the market potential is staggering. To give you one example, the world flooring market is a $95 billion industry (Source: The Freedonia Group, a leading international business research company). If we can capture merely 1% of this opportunity, that translates into $950 million in sales."

Mr. Turek continued, "And of course, flooring is just one piece of the massive surfacing industry that SEMCO serves, which is why we believe that SEMCO will be such a huge profit center for Plasticon. SEMCO's best-of-breed products, which cross link chemically to virtually any material they are being bonded to, reinforces the density of almost any surface, including concrete, tile, wood, foam, metal, asphalt, rubber, tile of all types, and can even seal off toxic gases from asbestos, thereby eliminating the need to remove asbestos. Their product applications are virtually endless and extend far beyond flooring to wall surfaces, heavily trafficked outdoor walkways, parks and public works projects, kitchen and bathroom surfaces, and roadway projects (such as bridge decks and the beautification of highway dividers). There are tremendous opportunities for growth, particularly in transportation. The Senate recently passed a $285 billion transportation bill. As the only company in our sector that is DOT (Department of Transportation) approved in all 50 states, Plasticon is in a unique position to offer both our recycled plastic product lines and SEMCO's innovative products for potential DOT projects in the future. We believe that the fact that SEMCO's products are environmentally responsible and require no waste disposal, will make SEMCO's products a very attractive choice for the Department of Transportation in the future. As a green company, SEMCO Manufacturing not only meets national requirements -- they exceed requirements."

Mr. Turek also noted that the product synergies with Plasticon's existing recycled plastic rebar support product line and SEMCO's surfacing products will allow Plasticon to immediately begin offering SEMCO's products to existing customers. "SEMCO's surfacing products add years to the life of the structure they are bonding to by eliminating the absorption of water into the surface they are applied to. SEMCO has the only product on the market which effectively prevents water damage. This problem has plagued the construction industry for years and costs the U.S. billions of dollars annually. One application where this is critical is with bridge construction and repair. Until now, water damage has corroded the metal rebar supports which have been used in bridge construction in the past. The combination of Plasticon's rebar supports, which are impervious to water because they are made from recycled plastic, and SEMCO's surfacing products, which completely waterproof the structure they are bonding to, is unprecedented in our sector," Mr. Turek said. "These two products, offered together, give Plasticon an enormous competitive advantage. We will be the only company in our sector that can offer a truly comprehensive waterproofing solution to the construction industry."

SEMCO Manufacturing, based in Las Vegas, Nevada since 1981, has provided their surfacing products to many of the city's most impressive showcase projects, including a number of 5 star luxury resorts. Their eclectic customer base also includes high profile commercial, public and private clientele. Projects have ranged from critical government facilities (the flooring of the Pentagon) to elementary schools, community centers and many prominent parks and public works projects to the Bioshpere project, where the SEMCO team provided the materials for the creation of a lush, fully functioning indoor rainforest. SEMCO's product line is noted for its incredible durability which is why it is not only extensively used indoors, but also on heavily trafficked outdoor walkways, in extreme outdoor weather conditions, in chlorinated pool water and on rugged exteriors. SEMCO Manufacturing has offices in the U.S., Japan, China, Singapore, and Australia.

SOURCE: Plasticon International, Inc.