XL TechGroup company TyraTech launches Sustainable Solutions business
19 November 2007
XL TechGroup (AIM: XLT), the creator of world-changing companies that solve identified, global unmet market needs, advises that XL TechGroup company, TyraTech Inc. (AIM: TYR) (“TyraTech”), the pioneer of safer, effective and natural pesticide products, today announces the US launch of its “Sustainable Solutions” business with Nature's Natural, a peat replacement and horticulture product that will also provide a mass-market medium for the delivery of TyraTech's natural pesticides.
Nature's Natural is created using a proprietary technology that can separate, compost and purify livestock waste on site. The production machinery is being sold by TyraTech directly to large-scale US dairy farmers and is designed to provide safe and sustainable treatment of organic waste and solids whilst generating an agricultural, farm and home garden peat replacement product. The potential value of the US market for the sale of the machinery alone is approximately US$400 million, based on the number and scale of dairy farms across the country. First sales have now been made, providing an early source of revenue for TyraTech. By means of contractual agreements with each producer, TyraTech also retains the rights for up to two thirds of the material generated on farms using this technology for use in its Nature's Natural product lines.
Sustainable Solutions provides waste and associated pollution management for dairy farms, as well as an end product that is available as a low-cost, high quality hygienic bedding for cattle. TyraTech is also developing a process that will apply its safer and effective products for repelling insects and parasites to the bedding to improve cattle wellbeing and productivity.
Nature's Natural's low salt, pathogen and seed content, along with its high water retention and nutrient content, also mean it is valuable to horticultural markets, such as nurseries in need of a sustainable peat moss substitute for various potting and gardening uses. The annual US market for peat moss is in excess of US$245 million. The nutrient-rich soil alternative can then be used as a medium for TyraTech's natural pesticides that kill or repel insects and nematodes that impair plant growth.
Take-up of the machinery by agricultural and horticultural markets will be driven by the cost savings and additional revenue streams that producers and users will be able to generate through its application. By reducing the amount of cattle manure that is spread on the land or retained in collection lagoons, it can provide significant economic and environmental compliance advantages for the farmer, especially by curtailing the pollution of the water table and the bad odours that effect neighbours in the farming community. The Nature's Natural approach lowers the farm's on-site waste content, allowing for larger and more sustainable herds to be managed within strict US government regulations. There are further environmental advantages such as the lowering of greenhouse gas emissions via the processing of cow manure before the composting process releases these gases. As an alternative to peat, it also reduces the commercial extraction pressures currently placed on the world's endangered natural peat bogs.
Dr John Scott, CEO of XL TechGroup, said: “The sales of the machinery that produce Nature's Natural will generate an early source of revenue for TyraTech whilst building the foundations for the company to establish a presence in the US diary farming industry. The sustainable soil alternative is an ideal means of delivery for TyraTech's safer, natural, effective pesticides to the multibillion dollar horticultural and agricultural markets. We look forward to further news from TyraTech over the coming months as it continues to deliver on its exciting business plan.”
For further information:
| XL TechGroup Inc. | |
| John Scott / Harold Gubnitsky | Tel: +1 321 409 7403 |
| hgubnitsky@xltg.com | www.XL TechGroup.com |
| Chris Munden, Director of Investor Relations | Tel: +44 (0) 20 7398 7720 |
| cmunden@xltg.com | |
| Nomura Code Securities | |
| Richard Potts, Corporate Finance | Tel: +44 (0) 20 7776 1200 |
| www.nomuracode.com |
XL TechGroup media enquiries:
| Abchurch Communications | |
| Heather Salmond / Gareth Mead | Tel: +44 (0) 20 7398 7700 |
| heather.salmond@abchurch-group.com | www.abchurch-group.com |
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