Axion International and Sicut Holding Agree to Joint Venture

Deal meant to strength international presence in railroad tie and sleeper market.

Axion International, New Providence, N.J., a producer of industrial building products and railroad ties, has signed a non-binding letter of intent with Sicut Holding Ltd. (previously Micron Inc.) to establish a global joint venture to boost the sale of Recycled Structural Composite (RSC) ties/sleepers using the respective geographic licenses from Rutgers University. The joint venture will be 65 percent owned by Axion and 35 percent owned by Sicut.

Axion is the licensee of patents owned by Rutgers University to commercialize and sell products related to its structural composite technology primarily in North America, South America, Australia, the Caribbean, South Korea, Russia and a portion of the Chinese market based on a contracts won basis.

Simultaneously, Sicut will be the licensee of patents owned by Rutgers University for Europe, India, South Africa, South-East Asia and a portion of the Chinese market, also based on a contracts won basis. This Axion and Sicut to combine their respective licensed territories to sell RSC railroad ties and sleepers globally.

According to Axion, it is estimated by the transportation consulting firm SCI Verkehr that the railroad tie and sleeper market in Europe is worth $3 billion, with the entire global market estimated to be worth about $8 billion.


Steve Silverman, Axion's president and CEO says, "We have been working with our partners at Sicut since Axion's founding. However, instead of dividing our efforts among the world's different geographic regions, the time has come to take advantage of our synergies and combine forces to sell our innovative products on a truly global basis. Working with Sicut we can deliver quality RSC products to our customers with an expanded geographic offering as Axion penetrates the $3 billion market of Europe and other territories for the first time."

The joint venture will be called Axion Rail LLC, and will be established specifically to sell RSC ties to the global rail tie market.

Anil Aggarwal, president of Sicut Holding Ltd., adds, "We are excited to partner with Axion as we combine our management teams and leverage Axion's capital markets experience. Together, this joint venture will be more powerful than the sum of its parts, both in terms of the size of the overall market, as well as manufacturing and sales opportunities. There is tremendous opportunity in France, the U.K. and Germany to name a few of our prime European markets, as well as exciting opportunities in India, South-East Asia and Africa. Our future looks bright as the rail tie industry begins to increasingly employ eco-friendly RSC technology."

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