TAMPA, Fla. -- MagneGas Corporation ('MagneGas' or the 'Company') (NASDAQ: MNGA) is a leading technology company. Included in the Company's IP portfolio is a patented process that converts liquid waste into MagneGas fuel. Today the Company announced that its subsidiary, Equipment Sales and Services Inc. (ESSI) has signed a contract to open a sales and service outlet into North Central Florida.
A 50/50 joint venture was established with Suwannee Ironworks ('Suwannee'), an existing client. This allows for the distribution of MagneGas in areas not currently serviced by the Company, as well as opening up additional potential revenue opportunities from gas and welding supplies. The expanded location also allows MagneGas to capitalize on authorized distributor contracts with Lincoln and Miller, which would not be possible without an already an existing distributorship. The Company expects that this new joint venture will launch MagneGas into North Florida, from Tallahassee to Jacksonville, as well as from Southern Georgia to Gainesville, FL. MagneGas's subsidiary, ESSI, will provide the inventory, proprietary distributorships, accounting and billing management while Suwanee will provide the commercial location, shipping, transportation, and personnel to operate the new location for the joint venture. The Company believes this will allow them to service existing MagneGas clients with all their industrial needs which was previously difficult due to distance..
'ESSI was purchased as a platform to not only sell MagneGas®, but to service industrial welding needs as well. Our new location will allow us to service existing MagneGas clients which was previously impracticable due to distance,' stated Jack Armstrong, Executive Vice President Operations for MagneGas and ESSI. 'We purchased ESSI to expand MagneGas sales and growth. Many clients prefer a 'one stop shop' and having a local physical location should attract additional clients to MagneGas® fuel. The official opening is scheduled for July 1 but our sales and marketing efforts have already commenced.'
Ernie Caparelli, one of the owners of Suwanee Ironworks, commented, 'Through our many business relationships in the area, we anticipated being able to provide a significant impact on MagneGas's sales growth and service in this new market. Local knowledge is critical to success in North Florida. Suwannee Ironworks has been in business for over 30 years and our long standing contacts will allow us to gain immediate traction in the market.'
Brian Linton, owner of The Recycling Center, Inc. stated, 'The Recycling Center has used MagneGas® for our scrap yards since 2012 and we love the gas. We have multiple locations and locally we feel comfortable allowing ESSI to supply us with MagneGas®. We are always looking to expand and would love for ESSI to transition into other gases, safety products and hard goods.'
To be added to the MagneGas investor email list, please email firstname.lastname@example.org with MNGA in the subject line.
About MagneGas Corporation
Founded in 2007, Tampa-based MagneGas Corporation (NASDAQ: MNGA) is a technology Company that counts among its inventions, a patented process that converts liquid waste into hydrogen based fuels. The Company currently sells MagneGas® into the metal working market as a replacement to acetylene. It also sells equipment for the sterilization of bio-contaminated liquid waste for various industrial and agricultural markets. In addition, the Company is developing a variety of ancillary uses for MagneGas® fuels utilizing its high flame temperature for co-combustion of hydrocarbon fuels and other advanced applications. For more information on MagneGas, please visit the Company's website at www.MagneGas.com.
About Suwannee Ironworks
Suwannee Ironworks and Fence was founded in 1990. With over 40 years of experience. The Company's goal is to provide clients with the highest quality in fabrication and fencing needs. Their top priority is quality work and personal service no matter how big or small the project may be. Suwannee Iron Works & Fence fabricates and installs structural steel framing and miscellaneous components involved in building large and small commercial and industrial projects such as Office Buildings, Department Stores and Warehouses throughout the United States. Their designers, engineers, and fabricators regularly work with carbon steel, stainless steel, aluminum, titanium, and magnesium. Their sister company, Suwannee Fence also supplies installs chain link, wroth iron, PVC & wood fencing custom built to the project. The Company's wide-ranging steel fabricating qualifications have made them a custom steel fabricator of choice for manufacturers throughout the United States. They have built a reputation on quality workmanship and integrity in all aspects of business. They are proud of their longevity and expect to maintain their status as a leader in the custom steel fabricating industry. The Company supplies and installs products from Maine to Hawaii and from Puerto Rico to Alaska.