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Solanex Management, Inc. (SLNX.OB) Looks For Manufacturers

Solanex Management Inc. plans to contract with third parties to manufacture and assemble the company’s Steam Injection System, a unique advanced mobile steam generation process for use by the oil industry to extract trapped oil. The system provides a number of cost and operational benefits over any existing steam system, and is expected to be of special value for the liquefying of bitumen, a semi-solid form of oil that doesn’t flow at normal temperatures.

Because the system requires a significant amount of capital to manufacture, Solanex will not maintain a standing inventory. Rather, each unit will be made to order, customized to better fit each customer’s distinctive needs. Each time a customer purchases one of the Steam Injection Systems, a field operations specialist will be sent to the site to work with customer engineers and collect relevant data. The result will be 3D terrain and site modeling and design specifications, along with delivery temperature and pressure pumping requirements. The specialist will also help determine the number of systems needed for successful application.

There are a number of manufacturing facilities being considered, and initial arrangements have been made with TS2000-Star Vehicle Technologies Inc., which has production facilities currently under construction in British Columbia through a joint venture with Heromin, the North American arm of Yituo China Manufacturing Group (YTO). The TS2000/Heromin Joint Venture has indicated that it may also open a U.S. facility in the state of Washington. Heavy steel components could be manufactured in China and assembled in Washington, along with various U.S. electronic control components. Solanex has a Master USA license which guarantees exclusivity to U.S. clients.

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