TechPrecision Corporation’s Ranor, Inc. Subsidiary Purchases Previously Leased Property for Its Manufacturing Facility
WESTMINSTER, Mass., Jan. 5, 2011 /PRNewswire/ — TechPrecision Corporation (OTC Bulletin Board: TPCS) (“TechPrecision”, or “the Company”), a leading manufacturer of large-scale, high-precision machined metal fabrications with customers in the alternative energy, medical, nuclear, defense, aerospace and other commercial industries, today announced the purchase of its subsidiary, Ranor’s, manufacturing location in Westminster, Massachusetts from WM Realty Management, LLC, an entity controlled by one of TechPrecision’s directors, Andrew Levy. Prior to the sale, the Company had leased the purchased property from WM Realty. Ranor paid WM Realty $4.3 million for the property, which includes a 125,000 sq. ft. manufacturing facility that serves as Ranor’s primary operating location. TechPrecision expects savings from the elimination of the WM Realty lease agreement to generate $200,000 in cash flow improvement.
On December 30, 2010, Ranor received $6.2 million in tax exempt bond financing through the Massachusetts Development Finance Authority to purchase the property and complete an 18,000 sq. ft. facility expansion in calendar year 2011. Additionally, the bond funding will also be used to finance one of the largest CNC (Computer Numeric Control) horizontal gantry mills in North America, which Ranor requires for production of new orders and to more aggressively participate in its Nuclear, Defense and Medical businesses. The total project (including purchase of property, future facility expansion and the gantry mill) is approximately $7.3 million and is expected to create up to 30 additional highly skilled jobs. The interest rate on the tax exempt bonds has been fixed at an average rate of 4%.
“We want to thank Congressman Olver and the Massachusetts Development Finance Authority for the quick access to loan capital, which was implemented by the Federal government last fall and allocated to states to drive economic growth for small businesses and create new jobs,” said Mr. James Molinaro, Chief Executive Officer of TechPrecision Corporation. “We are excited about our facility expansion and the additional revenue capacity this will enable us to achieve. We know that the new gantry mill will allow us to process projects 35% faster than our existing tool sets. The property purchase and tax-exempt financings reflect TechPrecision’s commitment to simplifying its capital structure and migrating toward a more optimal balance sheet with transparency and streamlined reporting.”
About TechPrecision Corporation
TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: alternative energy (Solar and Wind), medical, nuclear, defense, industrial, and aerospace to name a few. TechPrecision’s goal is to be an end-to-end global service provider to its customers by furnishing customized and integrated “turn-key” solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company’s website or any other website does not constitute a part of this press release.
Safe Harbor Statement
This release contains certain “forward-looking statements” relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” expects” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the Company’s ability to generate business from long-term contracts rather than individual purchase orders, its dependence upon a limited number of customers, its ability to successfully bid on projects, and other risks discussed in the company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
Investor Relations Company Contact: Contact: Mr. Richard F. Fitzgerald Hayden IR Chief Financial Officer Brett Maas TechPrecision Corporation Phone: 646-536-7331 Tel: 1-610-246-2116 Email: firstname.lastname@example.org Email: Fitzgeraldr@techprecision.com www.techprecision.com
SOURCE TechPrecision Corporation