Alloy Steel International Announces Restructure Plans
PERTH, Australia, Oct. 26, 2012 /PRNewswire/ -- Alloy Steel International, Inc. (OTC: AYSI) announced today that it has experienced record sales growth, with the Company now recording sales of approximately USD29m for the financial year ended 30 September 2012 (subject to audit review). This sales growth represents an improvement of approximately 32% over 2011 sales of USD21.9m.
As previously announced, the Company has commenced construction of a new facility in Indonesia to assist with its expansion and continued growth. To date, this facility, including land purchase, has been funded from cash flow totaling over USD5m. The funding of the Indonesian facility and the funding of existing production has expanded the demand on the Company's working capital beyond the original expectations of management. Additionally, the Company remains very aware of the mixed signals going forward emanating from the poor world economic context and the significant and recent downturn in the mining and mineral processing sectors.
As a result, the Board has decided that it is not prudent for the Company to continue funding the construction of the Indonesian facility from cash flow. Accordingly, the construction of this facility will be slowed considerably until a suitable financing plan has been completed. The Company will continue to investigate all funding options.
Barry Woodhouse, Director and CFO, stated, "The Company is pleased with its 2012 record sales figures which remain subject to audit. However, as the Company has explored all available mainstream financial channels since 2010 without success, prudence dictates that our expansion plans be curtailed until a suitable financing option is put in place."
About Alloy Steel International, Inc
Alloy Steel International manufactures and distributes Arcoplate, a market leading wear-resistant alloy overlay wear plate. 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.