29 Oct Magplane Joint Venture in Inner Mongolia Executes Entry Agreement with the Baotou Rare Earth High-Tech Industrial Development Zone
Magplane Joint Venture in Inner Mongolia Executes Entry Agreement with the Baotou Rare Earth High-Tech Industrial Development Zon
BEDFORD, Mass., 29 October 2007 /PRNewswire-FirstCall/ — Magplane Technology, Inc. (Pink Sheets: MAGP) announces today that its Joint Venture, Inner Mongolia Magplane Pipeline Technology Co., Ltd., has executed a formal agreement with the Baotou Rare Earth High-Tech Industrial Development Zone. This so called “Entry Agreement” grants the Joint Venture permission to locate within the Economic Zone and to receive the most favorable treatment that is given to companies within the zone including substantial tax benefits.
The agreement grants the JV Company 32 acres of land to establish a production base with a manufacturing capacity of 200 km/year of double pipeline and to construct a 1 kilometer customer demonstration line. The cost of the land will be covered by the Economic Zone further demonstrating the importance of this project to the Inner Mongolia mining industry.
The agreement also guarantees that the Central Government quota of permanent magnet rare earth materials will specifically include sufficient supply for the Joint Venture to meet its production of pipeline, which will require 1,500 tonnes of rare earth material per year.
Binson Du, Magplane Vice President of China Operations, and General Manager of the Joint Venture, notes that “this guarantee of rare earth material supply is particularly important and valuable because the Government has established a strict quota system on rare earth material.”
The MagPipe product is expected to become an important technology in Inner Mongolia to reduce the transportation bottleneck currently faced by the coal industry as well reducing cost and pollution levels compared to diesel trucks.
About Magplane Technology, Inc.
Founded by a group of MIT engineers, Magplane Technology, Inc. (MTI) is the developer of the Magplane system, an innovative magnetic levitation (maglev) transportation system that offers significant advancements over other high-speed trains and light-rail transit systems. Magplanes can achieve speeds up to 500 km/hour for inter-city travel and nearly silent operation for urban mass transit systems. The Magplane system has also been adapted for use in a unique pipeline application that can reduce the cost and pollution from diesel trucks used in transporting material from mining operations.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.
CONTACT: Jason Mill
Magplane Technology, Inc.
SOURCE: Magplane Technology, Inc.