BLAINE, Wash., Aug. 22, 2012 /PRNewswire/ -- Hollund Industrial Marine, Inc. (PINKSHEETS: HIMR) ("Hollund" or the "Company") announced today that the Company has executed a MOU (Memorandum of Understanding) with one of the largest remanufacturing lumber companies on the Pacific Coast, North Cal Wood Products, Inc.. This positioning gives Hollund the ability to substantially improve its revenue potential through the extensive sales and distribution outlets North Cal has established over its stellar 30 year history.
"This relationship marks the beginning of an exciting new chapter for Hollund," stated Peter Meier, President of Hollund. "So many avenues of possible long-term sustainable revenue and growth have now been opened up to our niche timber harvesting company. We are thankful to North Cal for sticking with us through our evolution. The fact that they have taken this leap of faith, speaks volumes to Hollund's truest market potential."
Over the past eighteen months, Hollund has made several advancements toward North Cal, but, was initially unsuccessful in their pursuit of an alliance. People close to the company suggest that while the concept of Hollund's business model showed great promise, at the time, Mr. Frank Van Vranken, Founder and President of North Cal (a 35 year lumber vet), simply did not wish to risk his company's reputation.
"You don't become one of the top 10 lumber manufacturing companies on the west coast by mismanaging relationships," stated Mr. Van Vranken. "My 35 years in this business has offered an invaluable education in patience, discipline, diligence and perseverance. Hollund's management, while still evolving, has demonstrated to us these same qualities. This brings us to trust they will continue to make the type of quality decisions, exemplary of the past nine months since our last alliance discussions, which could possibly catapult their growth within the next year. We believe we can contribute to such possibilities and wish to be part of it."
As one of the nation's premier reclaimed woods company and distribution sources for residential and commercial builders around the world, North Cal maintains a large portfolio of Fortune 500 clients. Believed to own one of the largest recycled wood inventories on the Pacific Rim, North Cal also operates a growing deconstruction business; currently involved in a number of high profile building and deconstruction projects throughout the United States.
Van Vranken continued, "We survived the economic collapse where nearly 100 of our competitors – large and small – have folded. This is because we have always adapted and expanded our business model appropriately. Today, North Cal is taking that step once again with a growing company called Hollund. What we seek is to substantially increase the flow of lumber through our mills. Being that we consider ourselves pioneers in the quest for environmental sustainability, what more suitable way of accomplishing both goals than with supporting the harvesting of underwater forestation."
Details of the MOU have not yet been disclosed but management intends to elaborate on the matter at the shareholder conference call. However, sources close to both companies indicate that while it appears this strategic partnership is solely a dedicated sales and distribution hub for Hollund, the company is poised to benefit from a considerable portion of its operations virtually being indirectly managed by North Cal executives. This could possibly lead to further corporate integrations down the road should this initial relationship prove productive.
Meier concluded, "Between committing to the share reduction plan, securing an exclusive license to an underwater robotic technology, and our development teams making strides in North and South America, I do believe we are beginning to fully demonstrate our potential. Now with North Cal acting as a guide, there is the distinct possibility that should we stay the course, we could one day become one of the world's largest producers and manufacturers of 'green' wood products."
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About Hollund Industrial Marine, Inc.
Headquartered in Blaine, WA, Hollund Industrial Marine Inc. (Pink Sheets: HIMR) seeks to align the interests of businesses, communities, utilities and governments by offering an integrated business model for underwater forest management. Hollund's model – including resource and needs assessment, permitting, environmental and project planning, logging, milling, product branding and sales adds value for our shareholders, our partners and reservoir based communities.
About North Cal Wood Products
North Cal is an integrated reclaimed wood products company catering to high-end commercial and residential clients. Our products include solid hardwood flooring, siding, decking, lumber, and custom beams, slabs and millwork.
North Cal reclaims virtually all the woods that we sell. Our unique ability to manage chain of custody from material sourcing to product delivery distinguishes North Cal from other leading competitors.
North Cal proudly offers a large selection of FSC Recycled and FSC 100% products (FSC license code # FSC-C066506). Our specialty woods include reclaimed redwood, douglas fir, and western red cedar. In addition, we offer a variety of domestic and tropical hardwoods, as well as various other domestic reclaimed woods. Founded in 1985, North Cal is based in Ukiah, California. For more information on North Cal, visit www.NorthCal.com.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "ACT"). In particular, when used in the preceding discussion, the words "estimated," "believe," "optimistic," "expect," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the ACT and are subject to risks and uncertainties, and actual results could differ materially from those expressed in forward-looking statements. Such risks and uncertainties include, but are not limited to, unfavorable market conditions, increased competition, limited working capital, and failure to implement business strategies, actions by regulatory agencies, and other risks.
SOURCE Hollund Industrial Marine, Inc.