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Market Watch Titan Global Forms Ethanol Pact with Tate & Lyle
Market Watch Titan Global Forms Ethanol Pact with Tate & Lyle 
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| Titan Global Forms Ethanol Pact with Tate & Lyle |
| Thursday, 25 October 2007 | ||||||||
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With oil at $90 a barrel, the growth potential for alternative fuels is undeniable. The demand for traditional petroleum products, while continuing to grow, is squeezing both corporate profit margins and consumerís wallets. Biofuels hold the promise and profits for those companiesóand their shareholders-- that can produce and deliver those alternative fuels now and well into the future. Global ethanol production is projected to triple to 120bn liters by 2020. Rest assured, Titan Global is positioned to significantly capitalize on that growth. The key to that growth is obviously supply and price. Appalachian Oil (Appco), a unit of our Titan Global Energy division, has concluded an extremely important Ethanol supply and price deal with UK-based Tate & Lyleóa global manufacturer (2007 sales $6 billion) of renewable food and industrial ingredients. Appco concluded the deal with Tate & Lyle for increased Ethanol supply at reduced prices for calendar 2008 during Titan Globalís acquisition in the summer. Coupled with Titanís deal with Refuel America, which will supply biofuels to Appco, our product profile will allow us to enhance sales and dealers as well as open significant new markets. Even at this early stage, Titan Global Energy has established significant footprints in both the conventional and alternative fuel sectors. This fact is one of the key components in our previously published strategic vision mandate to not only enhance revenues and profitability, but to ensure environmental responsibility through the development and distribution of alternative fuels within high growth wholesale and retail energy markets. The growth and leveraging of the Tate & Lyle (2007 sales $6 billion) relationship further strengthens Appcoís position as an industry leader in the supply of biofuels in the large southeast US market. At inception, our Titan Global Energy division was slated to seek out and acquire energy assets complementary to our overall business plan to increase revenues and add compelling shareholder value. That process is well underway. Appco is projected to contribute $433 million to Titanís consolidated revenues of between $735-$745 million in fiscal 2008. As with each of our divisions, whether communications, Homeland Security, electronics or consumer goods, we establish platforms that exploit company synergies thereby opening new revenue streams and lowering costs.
Ethanol is the oil of the 21st century. US Federal Department of Energy mandates that 250 million gallons to be used by 2013. There is no doubt that this and other biofuels will make up a significant and growing component versus traditional fuels that are now based on $90 per barrel oil. While traditional fuels usage will continue to grow, alternative fuels represent the largest industrial and retail growth market of this generation. Titan continues to source new high-growth opportunities in all of its divisions as well as enhance efficiencies company-wide. Shareholders can be confident that managementís strategic vision never loses sight of our goal of adding and enhancing shareholder value in the most dynamic sectors that display compelling short and long-term value. Best Regards, Bryan Chance President and CEO Titan Global Holdings Source : InvestmentHouse.com
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