Nettel Holdings Announces 4 New Long Term Contracts for Tougi Division
Nettel Holdings Inc. (PINKSHEETS: NTTL) announces 4 new long term contracts for its Tougi Metals division.
In order to implement these contracts and eliminate any risk of payment to Tougi from these new buyers, a Letter of Credit (LC) has been issued from their respective financial institutions. This means that they have already paid for the steel they intend to buy, and the financial institution will guarantee payment. Tougi will get paid 5-8 days after the steel is shipped.
The first LC was obtained from our buyers in Bangladesh for almost $3mil of steel to be shipped within 60-90 days. This contract is considered a revolving contract, so when the contract is complete it will immediately get renewed for an equal amount. The plan is to supply 5 containers per day on this contract. This would allow us to fulfill this requirement in 52 days.
The second contract/LC is from our buyers in Vietnam to be completed within 45 days is valued at $760,000. By loading 4 containers per day on this contract, we can satisfy this first segment in 20 days. This contract will also automatically renew when completed.
The other 2 contracts are from our buyers in India and are for 6000MT, valued over $2 mil. Arrangements are being made to commence shipping for this LC. These contracts will also automatically renew when completed.
Our current production capacity from our yards in Puerto Rico alone is now 30 containers per day. Equipment is in place, large truck scales have been installed and personnel are trained and ready to go.
The current global economic crisis has slowed us down this past month, but we are continuing to go forward. Steel prices have dropped, but since our costs are so low to begin with, it has had little impact to our profit margins. Our costs have also gone down. Going forward the world wide demand is still strong for our products, as evidenced by these new contracts.
For more detail please go to our website www.NettelHoldings.com and click on Investor Relations.
Contact: Nettel Holdings, Inc. Investor Relations 503-336-5098
SOURCE: Nettel Holdings