Tougi Signs New Contract for 1000MT of Steel Per Week
Nettel Holdings, Inc.’s (PINKSHEETS: NTTL) Tougi Division has signed its first long term cash contract for 1000MT of HMS 1&2 steel. A cash deposit was received last week and work started right away.
A cash contract means Tougi will get paid immediately when the metal is shipped.
This contract is significant for many reasons. First of all, during the past 8 weeks, the world economic crisis has created an environment of extremely tight credit and a large drop in commodities prices resulting in delays in negotiations of some of Tougi’s larger cash contracts. This new cash contract gives Tougi the financial strength to move forward and help reverse the downward trend in steel prices by putting Tougi in a stronger negotiating position. In addition, Tougi can now step up processing of steel for the 4 new contracts, recently announced, that are collateralized by the letters of credit totaling more then $6mil.
Tougi is a fully owned division of Nettel Holdings, Inc.
Contact: Nettel Holdings, Inc. Investor Relations 503-336-5098
SOURCE: Nettel Holdings