Boulder City, Nevada-Amerityre Corp. has signed a manufacturing and distribution agreement with Joon "James" Won Lee, doing business as Flatfree, Inc. of South Korea. (Flatfree- Korea).
Under this agreement, Flatfree-Korea will pay an annual license fee, and purchase manufacturing equipment and chemical systems from the US company, said Amerityre in a 17 July announcement.
Flatfree-Korea gains a license to make and market closed-cell polyurethane foam bicycle, wheelchair, wheel-barrow, hand-truck and other lawn and garden tyre products in South Korea and other Asian markets. The licence for South Korea is exclusive provided Flatfree-Korea makes minimum license payments to Amerityre of $100 000 a year over ten years.
Amerityre will sell the Korean company a $1.0 million equipment package and will help with installation and setup, training and manufacturing support.
The US company will also sell Flatfree-Korea the proprietary chemical systems necessary for the production of Amerityre's closed-cell PU foam tyres, once the equipment is installed, which is expected to be in early 2007.
Expressing his pleasure that Amerityre's foam technology is being used outside the US, Richard A. Steinke, Amerityre's founder, chairman, chief executive officer and president, commented that "we look forward to working with Flatfree, Inc. as it introduces closed-cell polyurethane foam tyre products to the Korean and other Asian markets."
Steinke added that he anticipates "this transaction to be the first of many."