Mfg. - Rubber and Plastic Products | Mfg. - Transportation Equipment

Asking Price	$250,000	Inventory
Gross Income	Not Disclosed	Real Estate
Cash Flow	Not Disclosed	Year Established	2007
FF&E	N/A	Employees	N/A

* included in the asking price

** not included in the asking price

This is a start-up company, with recent patent. this 80+ year old owner developed a new form of composite railway crosstie made of recycled plastics, rubber and other scrapped items as an alternative to wood crossties. Lifespan of a wood tie is about 12-17 years. Composite crossties are rather new, but the lifespan are forecast to be at least (if not more than) three to four times that of a wood tie for less than twice the price of a wood tie. In lifecycle cost terms, annual cost of wood tie to RR is about $2.35, for composite ties it's projected at $1.10. Seler says that the composite ties will not crack, splinter or decompose; they're not affected by moisture; are dimensionally consistent; and are environmentally friendly. Seller's product has been tested by the University of Detroit, Polymer Center of Excellence in Environmental Engineering and Science (available on request). Seller is infirm and in his 80s, and does not have the drive or the capital to create the company to manufacture or market the product. The process needed is one of "pultrusion". Seller has designed the requisite machinery. Estimates the need for a facility with a minimum of 200,000 square feet, and an equipment cost of about $1,000,000. Therefore, overall, Seller foresses an initial investment requirement of somewhere between $2 and $2.5MM, including working capital. Owner says that every year about 17 million railway crossties are replaced throughout the U.S., so the potential market is huge. Only one company is currently known to make composite ties, and it is believed that it recently received an order for 30,000 ties. Several small companies are currently believed to be making composite ties, and one recently received an order for 30,000 ties. (N.B.: The seller has been told by someone in the RR industry that his design is superior to the competitor's).10

Facilities: N/a

Competition: Owner says that each year about 17,000,000 RR crossties are replaced in the U.S., so the potential market is huge. Several small companies are currently believed to be making composite ties, and one recently received an order for 30,000 ties. (N.B.: The seller has been told by someone in the RR industry that his design is superior to the competition's).

Growth/Expansion: Immense opportunity for growth.

Financing: N/a

Support/Training: Seller will help support, as needed.

Reason Selling: Age - seller is over 80 years old.