NEW PROVIDENCE, N.J.--(BUSINESS WIRE)--Axion International Holdings, Inc. (OTCBB: AXIH), a leader in Recycled Structural Composite (RSC)™ technology used to produce EcoTrax™ railroad ties as well as Struxure™ building materials, today announced that it has entered into a credit facility with an unaffiliated third party investor for up to $2.0 million on a revolving basis. These funds will be used for the purchase and processing of raw material at its various manufacturing facilities.
“Axion is pleased to secure this source of working capital,” said Don Fallon, Axion’s Chief Financial Officer. “This credit facility provides us with added flexibly to pursue our goal of purchasing and processing additional scrap materials in order to produce more of our innovative recycled plastic products. As reported in our third quarter financials for the period ending September 30, 2011, Axion has seen significant demand for its 100% recycled plastic EcoTrax™ railroad ties and Struxure™ building materials, which has provided us with over $14.5 million in backlog to be delivered over three years for various purchase orders and multi-year delivery contracts.”
Axion currently has two contract manufacturers, with one facility in Portland, Pennsylvania and the second in Waco, Texas. Axion added additional equipment that will increase quality and capacity at the Pennsylvania facility in the fourth quarter of 2011. The facility is currently running at full capacity and Axion is in discussions to further expand capacity there based on rising demand. In August 2011 Axion announced an agreement with a second contract manufacturer – Coll Materials in Waco, Texas. This new site is strategically important as it is a prime location for rail customers in North America. Axion is already planning for a second production line in Waco and anticipates production from this extra line to begin in the first quarter of 2012.
About Axion International Holdings, Inc.
Axion International Holdings, Inc. (OTCBB: AXIH) develops structural building products in the United States and internationally from 100% recycled consumer and industrial plastics. It offers structural composite railroad crossties, structural composite I-beams, tongue and groove planking, and various sizes of boards for use in engineered design solutions, such as rail track, rail and tank bridges, pedestrian and recreation bridges, marinas, boardwalks, and bulk heading. The Company markets its structural products to the railroad industry, military, and industrial engineering and contracting firms. Axion International Holdings, Inc. was founded in 2006 and is headquartered in New Providence, New Jersey.
For additional information, please visit Axion’s corporate website: www.axionintl.com.
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Axion’s actual results to differ materially from those currently anticipated, including the availability of materials at favorable pricing, sufficient manufacturing capability and the risk factors identified in Axion’s filings with the Securities and Exchange Commission.