PERTH, Australia, July 30, 2013 /PRNewswire/ -- Alloy Steel International, Inc. (OTC: AYSI) announced today that all directors were re-elected at the Company's 2013 AGM held on 28 June 2013.
Mr Gene Kostecki has advised the Board that he is now resigning as CEO and Technical Director with immediate effect to allow him to pursue other interests.
The Board has promoted Mr Steven Kostecki who will transition from Production Manager to the role of CEO and Managing Director. Mr Steven Kostecki has been in charge of Arcoplate production since 2006 and has been mentored by Mr Gene Kostecki over the recent years in anticipation of his promotion to the CEO role.
Mr Gene Kostecki will continue in a consulting role to ensure the completion of the Indonesian facility and to continue research and development on new and advanced production units to help Alloy Steel International maintain its technical superiority in the field of metallic and ceramic wear resistant materials. The main terms of the consulting agreement include:
(a) Supervision of the Indonesian factory development;
(b) Design and construction of the new mill in Australia;
(c) Confirmation of IP and royalty arrangements; and
(d) Confirmation of a 5 year term and renewal options.
The Board has been in an extended negotiation in relation to the royalty rate paid on sales. The Company has agreed to a new royalty rate of 6% which reflects current market rates of similar products and will be effective from 1 October 2012. This rate is consistent with market rates paid to unrelated parties as confirmed by the Company's advisor.
The Board is very appreciative of the efforts of Mr Gene Kostecki who has nurtured the Company from an idea, with a stream of inventions, that has changed the understanding of chromium metallurgy and helped grow the Company to become internationally recognised as providing the world's most wear resistant fused alloy steel plate. The Company has a strong balance sheet, low debt and continues to expand.
Mr Kostecki stated: "Success requires a team and through the actions of my loyal team, we have made a success of this company ... and this is just the beginning! I must pay particular tribute to my wife Maria who has provided solid support to ensure the Company's survival in its first ten years.
"It is my current expectation that the Company will continue to grow using this proven method and it will continue to service its current clients and seek new clients to ensure a continuation of sales. I will remain available in a consulting role to ensure the Company continues its growth."
About Alloy Steel International, Inc
Alloy Steel International manufactures and distributes Arcoplate, a market leading wear-resistant fused-alloy steel plate by a proprietary process. In mining processing industries, wear is the primary cause of down time, the period of time where machinery is not in operation because of the necessity of repairs or refurbishment. The Arcoplate product line substantially lowers down time and the resulting lost production. Arcoplate is widely accepted in the mining and mineral processing industries to protect a host of fixed plant and mobile equipment applications. Alloy Steel International boasts major mining companies as its clients and services the global market place from its Australian manufacturing facilities.
SOURCE Alloy Steel International, Inc.