Magplane Technology Successfully Demonstrates MagPipe System in Inner Mongolia
LITTLETON, Mass., July 14 /PRNewswire-FirstCall/ — Magplane Technology, Inc. (Pink Sheets: MAGP) is pleased to announce today that it has reached a major milestone in the development of the MagPipe pipeline transportation system. The company has successfully demonstrated and verified the fundamental operation of the MagPipe system in Baotou, Inner Mongolia (IM) representing significant progress towards the installation of the first MagPipe commercial line in Inner Mongolia. With the successful demonstration, the Inner Mongolia Joint Venture (JV) ratified its first commercial contract for installation of a pipeline system due for delivery in 2010.
President & CEO, Larry Roderick said, “Although the wide-spread economic conditions and funding interruptions caused a number of changes to the technology development program and delayed commercial MagPipe installation dates from late 2009 to mid 2010, the program remains healthy and is well-positioned to move forward.”
The Demonstration System:
The JV/MTI team demonstrated operation of the MagPipe system on a short oval demonstration track at the facilities in IM. The demo system comprises MTI proprietary magnetic arrays designed and assembled in the U.S., the MagPipe control system designed by MTI, and the MagPipe pipe modules, motor coils, capsules, and suspension track fabricated and assembled by the JV engineering team in China. A team of MTI engineers led by Dr. Bruce Montgomery, MTI’s Chief Technology Officer and Chairman, brought the system to full operational status in IM. Pictures of the oval demonstration can be viewed on the Magplane website. With the initial demonstration completed, the next step in the MagPipe development is the 1 km demonstration that will now be built to full pre-production status with quality control, reliability, and system maintenance features. Magplane expects to complete the 1km system in early 2010 before beginning construction of the commercial MagPipe.
The MagPipe system was demonstrated to visitors in late June including our investors, potential customers, key members of the Chinese National Development and Reform Commission (NDRC), and officials from the Tianjin Free Trade Zone, about 60km from Beijing, that has formed a multi-modal sea, land, air, and rail transportation system. The JV will continue to demonstrate the system in the upcoming months as work continues on the 1km demonstration system.
The Commercial Contract:
The first commercial MagPipe system to be completed in 2010 will be a 20km line near Erdos in Inner Mongolia. This particular MagPipe route highlights the attractive economics of the MagPipe system. Not only is coal-transport cost with the MagPipe system significantly less expensive than trucks per kilometer, in this case trucks would have to travel 40km along the road-route which is twice the distance that the small-footprint, overland MagPipe System requires. Other commercial lines, including those previously announced, have been identified and are expected to be formally awarded to the JV in the future.
More information on the MagPipe system can be found on the Magplane website and the latest pictures of the Inner Mongolia demonstration system can be found at www.magplane.com/media.htm
About Magplane Technology, Inc.
Founded by a group of MIT engineers, Magplane Technology, Inc. (MTI) is the developer of a unique magnetic pipeline application that can reduce the cost and pollution from diesel trucks used in transporting material from mining operations. Magplane Technology is also the developer of the Magplane Maglev system, an innovative magnetic levitation (maglev) transportation system that offers significant advancements over other high-speed trains and light-rail transit systems.
For more information on the Company, visit http://www.magplane.com
Statements regarding financial matters in this press release other than historical facts are “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such proclamations about the Company’s future expectations, including future revenues and earnings, technology effectiveness and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company’s actual results may differ materially from expected results.
SOURCE Magplane Technology, Inc.