Jul 7 2010
Deltron, Inc. (OTCBB: DTRO) is pleased to provide shareholders with an update on the company’s established polyurethane manufacturing business, development of proprietary breathing technology, and strategy for increased revenue and market penetration this year.
Deltron’s Blu Vu Deep Oil and Gas Exploration, Inc. division is a developer of breathing technology for use in extreme environments. Blu Vu designs and develops proprietary closed-circuit rebreathers and components for deep sea oil & gas exploration, mining, search and rescue, fire, building safety and hazardous materials applications, as well as for recreational diving. As the rebreather technology is designed to increase dive time, depth and diver efficiency, a key application is in offshore oil and gas drilling. Blu Vu’s solutions are engineered to allow offshore operators to provide more comprehensive equipment inspections and thorough maintenance operations as well as maximizing diving time when needed during critical spill containment maneuvers. Deltron recognizes the critical need for solutions to improve inspection, maintenance and repair of oil and gas rigs like BP’s Deepwater Horizon.
Blu Vu is progressing with the development of innovative components including a new proprietary bailout valve, which is a critical airflow safety and control mechanism for rebreathers. The Company has applied for patents, produced working prototypes, selected a manufacturing tooling provider and established contact with rebreather OEMs. Blu Vu is completing an extensive testing process and plans to launch models for commercial as well as recreational diving in October.
Wholly owned subsidiary Elasco, Inc. is a growing engineered plastics and polyurethane molding and manufacturing company. Elasco has been in business for 31 years producing recreational and industrial products. From its vertically integrated production facility in Garden Grove, California, the company provides complete design and manufacturing services including prototype work, mold and tooling design, manufacturing, proprietary polymer mixing, custom casting and plastic injection molding. Elasco generates revenue serving a diverse customer base and sees opportunities to expand its business this year.
An exciting growth area for Elasco is in the development and sale of new, “green” polyurethane formulations made from renewable plant-based raw materials, rather than petrochemicals. The company has developed sustainable, energy efficient soy-based polyurethanes that significantly reduce the carbon footprint of manufactured products. The soy-based polyol resins used in Elasco’s polyurethanes reduce related carbon emissions from the manufacturing process by 36%, require less energy to produce, use sustainable materials, are free of volatile organic compounds (VOCs), and reduce demand for and reliance on non-renewable petroleum reserves.
Deltron recently announced that Elasco has been selected by a major Fortune 500 research and development company to work on production of a patented, environmentally friendly LED light transmission product. Deltron has entered into a general supplier and patent agreement with this company, which has operations in more than 60 countries and sales exceeding $20 billion. Deltron is working closely with the company’s engineering team on manufacturing process design and prototype production. Deltron hopes to secure a lucrative manufacturing contract in addition to providing consulting services.
As reported, Deltron’s Elasco generated $2,032,000 in revenue and $127,700 in earnings, before interest, taxes, depreciation and amortization (EBITDA) in 2009. Positive indicators for increased sales and profitability this year include the addition of several new customers, inquiries from potential new customers and additional orders from existing customers.
Deltron continues to seek complementary businesses to enhance its growth. The company is looking to acquire additional companies with historically profitable results, strong balance sheets, high profit margins and solid management teams. Deltron is focusing on other manufacturing companies, as well as businesses in the commercial and recreational diving field.
Henry Larrucea, Deltron CEO, commented: “Deltron’s prospects for near-term growth are excellent. Our manufacturing business is seeing increases in demand, our Blu Vu engineering team leads the industry in rebreather technology expertise and production capacity, and we are working on new initiatives and acquisitions to bring significant value and income to Deltron.”