APM's goal is to become North America's leading specialized primary kaolin producer. To this end, a new state-of-the-art processing facility has been constructed in Dearing, Georgia and the first shipment of product from the new plant took place on May 11, 2009. The new Dearing plant is ideally located along the Augusta Highway, adjacent to rail with existing access to all required utilities. Extensive product development and testing has been carried out over the past five years and APM has advanced commercial trials underway to complement production commitments already in place.
APM is targeting value added products that benefit from the unique attributes of the Company's high quality primary kaolin resource under a two phase development program. Target markets under the current Phase one program, is focusing primarily on primary kaolin products for the North American ceramics and whitewares industries where the combination of our quality products, the elimination of foreign exchange risk and our logistical savings we offer to United States manufacturers who import primary clays from the U.K and Europe, gives us a tremendous competitive advantage. We also conduct toll processing of a non-kaolin product for a third party under a contract that guarantees minimum monthly production volumes.
During the Phase one program, a Phase two feasibility program will be completed along with further product development and trials for an expanded product line targeting the paint and coatings and catalysts industries as well as other specialty industrial applications. Product trials have shown that APM's primary kaolin products meet or exceed the quality of comparable foreign imports. Proximity to the U.S. domestic market and elimination of foreign exchange risk add a strong competitive advantage.
