NEW PROVIDENCE, N.J., Nov. 12, 2013 /PRNewswire/ -- AXION International Holdings, Inc. (OTCBB:AXIH), a leader in recycled plastic and plastic composite technologies used to produce ECOTRAX® rail ties and STRUXURE® building products, today announced that it is anticipating a strong finish to 2013 by doubling manufacturing capacity at its Waco, Texas facility and acquiring equipment to support strong growth in demand. With the acquisition of this processing equipment AXION now has the capability to process its own raw material streams to support its manufacturing efforts.
"To date, 2013 has been an exciting year and the fourth quarter should be the most exciting. AXION has grown in so many ways including marketing, revenue, converting from operating through a contract manufacturing model to becoming a fully integrated manufacturer with quality and consistency. Our revenues in 2013 will exceed 2012 levels. Even more exciting is our outlook for the first quarter of 2014 which includes projects in our pipeline that we anticipate closing in 2013 for delivery in 2014. We have built a robust pipeline of opportunities and we believe a meaningful number of them will convert into customer purchase orders," stated AXION President and CEO Steve Silverman.
AXION's sales momentum highlights include:
Revenues have grown an average rate of 94% per year between 2010 and 2012
AXION reported $3.3 million in sales for the first half of 2013, with a remaining shippable backlog of $3.8 million for the balance of the year.
Revenues have diversified significantly, with one Class 1 railroad customer accounting for a projected 50% of 2013 sales, as compared to accounting for 80% of 2012 sales.
During the second quarter of 2013, AXION shipped products to 17 new customers and 5 existing customers.
"We have invested approximately $2.0 million in this vertical integration for equipment and expanded capacity. These investments will have a significant long term impact on our ability to achieve higher margins and attractive price points in the domestic market," Silverman added.
"We have added a second extrusion line, doubling our capacity. We now have the ability to purchase raw materials directly from sortation centers and grind and wash them all under one roof, thereby eliminating others in the supply chain. With this facility now operated by us, we have the capacity to offer value added services such as custom fabrication of our STRUXURE® construction mats and pre-plating services for our ECOTRAX® rail ties," concluded Silverman.
ECOTRAX® composite rail ties offer unique performance properties and address the multi-billion dollar global rail market. According to the Railway Tie Association, in the U.S. alone, 20 million rail ties are purchased each year, with 15 million of them being used as replacement ties.
STRUXURE® products address multiple infrastructure building verticals including the construction mat market which accounts for an estimated at $500 million in annual sales. STRUXURE® boards and I-beams are used to build and refurbish bridges. Over 700,000 bridges are structurally deficient and, or need repair in the U.S. STRUXURE® products have been used in military facilities, marinas, boardwalks, parks, mining, and oil pipeline infrastructure.
About AXION International Holdings, Inc. AXION (OTCQB: AXIH) is green technology company, transforming waste plastics into structural building materials. Using 100%-recycled consumer and industrial plastics, AXION develops, markets and sells its recycled structural composite products through its ECOTRAX® composite rail tie and STRUXURE® building material lines. From the railroading industry to the military to global engineering firms, AXION delivers tested, proven and superior green solutions to infrastructure needs around the world. www.AXIH.com
Forward-Looking Statements 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.