Americas Power Partners, Inc. (APP) (OTC BB: APPN) and Armstrong Service, Inc. (ASI) announced today the signing of a multi-million dollar, Long term contract to own, operate, maintain and improve the utility plant and systems for the H.J. Heinz (NYSE: HNZ) food processing facility in Muscatine, Iowa. This contract also gives APP/ASI the exclusive right to expand the project to meet future energy requirements at the Muscatine facility.
Under the terms of the new agreement:
- APP/ASI will purchase the existing power plant from Heinz and take responsibility for all utilities including electrical power, fuel, steam, compressed air, water and wastewater. The project includes major improvements to both the power plant and utility systems. The scope of the improvements includes installation of a new boiler, air compressor and overhaul of utility distribution piping.
- Heinz will pay APP/ASI on a unique billing formula that involves the total utility costs, including electric power, fuel, operations, maintenance, water, waste water and compressed air services, based on product produced at the Muscatine facility.
- APP/ASI will aggressively pursue all future utility improvement opportunities and share savings benefits with Heinz.
Thomas Smith, President of Americas Power Partners, stated: “This agreement is another example of how the alliance of Americas Power Partners and Armstrong Service offers clients such as Heinz the ability to obtain capital dollars for their existing utility systems, avoid expenditures on non-core assets and improve utility production and distribution systems to `Best in Class’ performance levels. This contract lets Heinz focus on their core business (food products) and APP/ASI focus on their core business (total energy outsourcing).”
Dan Polland, the Heinz Muscatine plant manager, stated-, “By outsourcing our entire utility responsibilities to APP/ASI, we now have an onsite energy partner providing utilities at the lowest cost available while improving our system reliability. This approach also gives us the ability to better budget our utility costs in relation to product produced.”
About Americas Power Partners, Inc.
Americas Power Partners Inc. (APP) was formed to develop, optimize, own and operate power plant systems (steam, electric, compressed air, water and wastewater) for industrial, institutional and commercial clients. APP has strategic alliances with industry leaders in the areas of power plant optimization, water and wastewater management, operations and maintenance, fuel supply and electric power marketing. APP’s management team has extensive industry experience in power development and financing of power plant systems. Additional information on APP can be found on their Web site www.americaspowerpartners.com.
About Armstrong Service
Armstrong International, Inc. (Aii), founded in 1900, is a privately held U.S. multinational manufacturer of steam specialty products and a global provider of steam systems services. Armstrong Service Inc. (ASI), a wholly owned subsidiary of AII, expands on its century of steam process expertise by providing energy management services ranging from asset purchase/lease arrangements to engineering analysis and turn-key installations. ASI offers “total” energy system design, management, operations, maintenance, and training. This unique combination of technology, products and services creates an integrated energy management approach that ensures maximum energy efficiency and productivity for clients, while minimizing costs, pollution and risk. ASI personnel have extensive experience in energy management, project management and construction for process, governmental, commercial and institutional industries. Additional information on Armstrong can be found on their Web site www.armstrong-intl.com.
The Private Securities Litigation Reform Act of 1995 provides a “safe-harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking, such as statements relating to plans for future expansion. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to, completion of definitive purchase agreements, ability to obtain needed capital, those relating to development activities, dependence on existing management, leverage and debt service, domestic or global economic conditions, and changes in customer preferences and attitudes. For more information, review the Company’s filings with the Securities and Exchange Commission.