axs usa market feasibility study
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GROUP
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COMPANY INTRODUCTION
AXS Group is the only American research & development manufacturing company specializing in the production and marketing of the Aluminum Network Mesh (AXS). AXS products have many universal applications that are proven to protect humans, assets and the environment from explosions, fires, oil spills and the Green House Effect. AXS Group’s corporate office is located in the City of Dearborn, Michigan USA.AXS Group can generate over $1,000,000,000 in revenues during the next 5 years in the USA alone.
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AXS PRODUCTSAXS Raw MaterialThe AXS raw material has gone through over 20 years of research and development to ensure the effectiveness of our special and tailor made applications. The AXS raw material is made of a special Aluminum Alloy that includes copper, silicon, and various other materials and plastics with foil thickness varying from 0.05 to 0.2 mm.
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AXS PRODUCTSAXS Rolls (AXSR)AXS Rolls are obtained by cutting and expanding the AXS raw material. The AXS machine AXS R1000 produces a three-dimensional mesh with a honeycomb structure. AXS Rolls can be produced with various shapes, widths and dimensions depending on the applications.
AXS Rolls are used for the protection of large storage tanks and protecting from oil spills.
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AXS PRODUCTSAXS Cylinders (AXSC)AXS Cylinders are manufactured by continuously processing the AXS ROLLS through a second machine AXSC1000, short strips are cut, wound up cylindrically and twisted at both ends obtaining a sturdy cylindrical body with homogeneous distribution.
AXS Cylinders are used in Gas Stations Venting Pipes, Gas Stations Pump Chambers, propane bottles, and most other common applications.
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AXS PRODUCTIONAXSR1000The AXSR1000 forms a three-dimensional mesh, by cutting, stretching and twisting. The foil is fed to a cutting unit controlled by a self-regulating brake system for a precise tension. A sensor compensates and regulates the foil speed between the cutting unit and the Stretcher for an optimum stretching result.
Each AXSR1000 can produce 8 million AXS liters per year based on 20 hours per day and 6 days per week.
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AXS PRODUCTIONAXSC1000The AXS Cylinders are produced by feeding the AXS Rolls into a separate machine AXSC1000. The main part of the AXSC1000 is the rotating inner drum, fitted with two blades, which cuts the AXS mesh into strips. The strips are converted into cylinders between the rotating inner drum and the fixed outer drum.
TWO AXSC1000 can produce 8 million AXS liters per year based on 20 hours per day and 6 days per week.
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AXS PRODUCTIONCapacityThe AXS Group is currently able to produce 24 million AXS liters per year in its American facilities.
Based on 20 hours per day and 6 days per week.Additional production lines could be added immediately if needed.
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VALIDATIONS/APPROVALS NFPA - National Fire Protection Association US ARMY US NAVY Federal Aviation Administration (FAA) Aero Safe (European Commission Program For Small Plane Safety) Fauske & Associates, LLC (World Leader in Nuclear & Chemical Process Safety) TÜV Austria (World Wide Certification Authority) Magna (Steyr – Daimler-Puch)
Over 28 years of Testing & Validation
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WORLDWIDE REFERENCES
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SAFETY BENEFITS AXS helps to extinguish fires in large refinery tanks in less than a minute. AXS stops explosions in gasoline and propane containers and tanks. AXS reduces fire and explosion risks in gas stations and gasoline trucks. AXS increases the crash resistance of tanks and containers by 35%. AXS reduces sloshing movement of liquids by 80%. AXS reduces electrostatic charges by 99%. AXS Cylinders weigh only (30g/Liter).
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APPLICATIONS Refinery Fuel Storage Tanks. Gas stations Pump Chambers. Gasoline Cans. Propane Bottles. Transportation Industry. Gasoline Stations Venting Pipes. Oil Spill Containment.
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REFINERY FUEL STORAGE TANKSThe problem
Storage tank fires and explosions claim hundreds of deaths and cost billions of dollars every year. It is almost impossible to control an explosion or a fire inside a tank farm. When a tank explodes or burns, the fire rages at a dramatic temperature of over 750 degrees. Almost all automatic fire extinguishing systems would melt and be deemed ineffective.As a result the fires would be allowed to burn through causing numerous catastrophic deaths and destruction.
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REFINERY FUEL STORAGE TANKSThe solution
Special AXS Rolls are injected with a special polyurethane foam that allows them to float on the fuel surface; While regular AXS Rolls are placed in a safety ring surrounding the tank.
The AXS Rolls act as a blanket covering the fuel and depriving the fire from oxygen. Fire temperature was reduced from 750 degrees to 350 degrees allowing the automaticpassive fire extinguishing system to workproperly.This solution WILL save the tank and the fuel
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REFINERY FUEL STORAGE TANKSLive Demonstration
This is a 12 meter diameter tank filled with 40,000 liters of diesel, it was built specifically to demonstrate the effectiveness of our AXS system to extinguish fires in refineries and tank farms. The floating AXS Rolls were placed on the surface of the diesel. The fire was allowed to burn freely for 2 and ½ minutes before applying the foam.The temperature of the fire was measured at 350 degrees only and the biodegradable foam extinguished the fire in 17 seconds.
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GAS STATIONS PUMP CHAMBERSThe Problem
According to the NFPA, there are over 5000 fires in the 168,000 US gas stations every year causing many injuries and deaths and costing over 20 million dollars in damages.One cause of these fires is the buildup of gasoline vapor inside the Pump Chambers and increased levels of electrostatic ratios. These chambers are in need of constant maintenance due to water and rust damage.The absence of passive safety systems permits any wrong move to cause fires or explosions. Every underground tank must have a pump chamber.
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GAS STATIONS PUMP CHAMBERSThe Solution
The NFPA in the US and the ATEX directive in Europe have placed many rules and specified many standards to unify the safety codes in pump chambers at gas stations.
One easy and economical solution is filling the AXS cylinders in small easy to handle aluminum wire bags and placing them inside these chambers. As a result, the vapor is condensed eliminating the risk of fires or explosions. These bags could be removed when maintenanceis needed and placed back in the chambers when done.
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GASOLINE CANS Every year thousands of gasoline cans explode around the world causing deaths, injuries and destruction.
Placing AXS Cylinders inside these metal gas cans eliminates the pressure and stops the propagation of heat inside these cans.
We compared AXS gasoline cans with regular gasoline cans.
The AXS gasoline cans are totally safe and WILL NOT EXPLODE.
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PROPANE BOTTLES Every year thousands of Propane bottles explode inside homes and apartments and businesses around the world causing deaths, injuries, destruction and financial loss.Placing AXS Cylinders inside these propane bottles eliminates the pressure and stops the propagation of heat inside these cylinders. We compared AXS gasoline cans with regular gasoline cans.
The AXS propane cylinders are totally safe and WILL NOT EXPLODE.
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TRANSPORTATION INDUSTRYSloshing occurs when the fuel tank is partially filled, it is noisy and dangerous. It can throw the vehicle or plane off balance and result in dangerous accidents.We conducted lab and field experiments by dividing a glass tank into two exact chambers, one empty and the other filled with AXS cylinders. We placed the tank on a moving table. After a short-term acceleration, The AXS chamber that was completely filled with AXS Cylinders showed that AXS can reduce sloshing movement by 80%.
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ENVIROMENTAL BENEFITS AXS Reduces Hydrocarbon Emissions by 60%. AXS Stops oil spills in oceans, lakes and rivers. AXS does not alter the physiochemical properties of any fuel AXS reduces Carbon Footprint AXS has no Life Limit AXS is re-useable AXS is recyclable
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GAS STATION VENTING PIPESThe problem
Most recent American and Canadian studies have concluded that each gasoline station can lose around 5,000 liters every year through the emission of gasoline vapor through the venting pipes into the atmosphere.Imagine 900,000,000 liters are evaporated over 180,000 gasoline stations in the US and Canada.According to a HARC study, the oil and condensate storage tanks lose 300,000 tons of vapor per year in EAST TEXAS ALONE causing billions of dollars in economicalLoss AND huge impact on the OZONE level and the environment.
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GAS STATION VENTING PIPESThe solution
AXS PIPES reduce the loss of vapor by approximately 60% and saves the gas station industry millions of dollars per year by simply replacing the customary venting pipes with AXS Pipes.
AXS PIPES are filled with AXS Cylinders. The AXS Cylinders remaincooler than the surrounding environment and they capture theescaping vapor by condensing it and returning it to the storagetank in liquid form while keeping safe pressurized tanks.
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OIL SPILLSThe problem
Recently, oil spills have become an increasingly persistent problem with frequent recurrence and an insurmountable economical and environmental costs. It takes years and even decades to recover the financial losses and restore animal and marine habitat to its original state.Until now, most spills have been treated with very inept and ineffective booms that cannot withstand high tides and offer a real solution to contain large spills quickly and effectively.
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OIL SPILLSThe solution
The AXS BOOM is an engineered floating structure that uses AXS rolls and Cylinders to trap the crude oil while allowing the water to pass through with no resistance.The collected oil would form a floating oil lake on the surface of the oceans or rivers that would be skimmed and moved away to be recycled and used.
The AXS BOOM is an economical and highly effective way to protect any water way froman oil spill catastrophe.
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MARKET ANALYSISThe AXS applications can actually benefit every household, company, school, hospital or government agency. It protects human, properties and is an indispensable factor in protecting and saving the environment. The AXS applications would benefit the following sectors the most:• The oil and gas industry.• The Petrochemicals industry.• Transportation industry.• Household products.• Regulatory agencies.• Government agencies.• Fighting Global warming.
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MARKET ANALYSISPetroleum Refineries
The AXS System can suppress fires and prevent BLEVE. AXS can extinguish refinery fires in less than one minute, it can save the affected tank and can actually save the affected fuel inside the tank.
Per the US census Bureau, the capacity of these refinery storage facilities is 710,413,000 Barrels converted into 80,000 million AXS liters.
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MARKET ANALYSISNatural Gas Refineries
This is a very dangerous industry. The AXS System can prevent major catastrophes by eliminating any explosions in these storage facilities.
The US Census Bureau concludes that the natural gas storage facilities had a capacity of 3,814 million cubic feet which converts to 100,000 Million AXS liters.
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MARKET ANALYSISDefense Industry
The AXS Applications can prevent explosions in air plane fighter Jets, helicopters, military sea vessels, army tanks and army personnel carriers. AXS products could also be very essential in securing military airports, fuel storage and distribution facilities.The AXS System can offer a valuable benefit in managing and offsetting the Defense industry's Carbon Credits.
This category is minimally estimated at 20,000 million AXS LITERS.
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MARKET ANALYSISAirplanes
Approved by the FAA and the European Union to prevent explosion and reduce sloshing, the AXS System is a cost effective and approved alternative to the foam currently used in passenger and cargo airplanes, have anyone noticed that the foam is not preventing airplane fires or explosions.
According to the FAA published reports, there are 375,000 registered in use aircraft in the US representing a demand of 15,750 million AXS liters.
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MARKET ANALYSISAirports
The AXS System can prevent airport fuel storage fires and BLEVE explosions. A BLEVE explosion can actually wipe out an entire airport with all of its planes and inhabitants. Per the US Census Bureau there are 15,079 airports in the US, each airport holds a minimum of 100,000 gallons storage facility.
The US airport fuel storage is calculated at 4,000 million AXS liters.
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MARKET ANALYSISTransportation Industry
AXS reduces the diesel foaming during filling by 80%. This benefit reduces the tank filling time by 30 minutes. As a result, the productivity is increased by 3 to 4 hours per week.
There are 2.2 million multiple axle trucks in the US totaling 2,500 million AXS Liters.
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MARKET ANALYSISGasoline Distribution and retail Industry
AXS can prevent explosions, suppress fires, eliminate electrostatic charges and save the fuel trucking companies millions of dollars by reducing the fuel shrinkage during transit. Here also AXS can improve the Carbon Credits.
There are 168,000 gas stations and 20,000 gas distributors in the US totaling 1000 million AXS Liters.
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MARKET ANALYSISPropane Industry
Propane Industry: AXS can eliminate the BLEVE affect and stop explosions in large storage tanks or everyday propane bottles.
There are 115 million propane bottles in the US, that would translate into 2,000 Million AXS liters.
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MARKET ANALYSISHousehold products
AXS can reduce fires and explosions in all motorcycles, lawn mowers, snow plowers, gasoline cans and power tools that represent a remarkable hazard in American Garages.
This is calculated to require 1000 Million AXS liters.
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MARKET ANALYSISOil Spills
AXS can prevent oil spills in oceans, rivers, lakes and ponds. The Coast Guard is responsible for establishing rules and regulations for oil spills in the US. There are 600 oil rigs in the Gulf of Mexico alone, each rig needs 1,452,500 AXS liters to form a one mile long AXS BOOM to safeguard against oil spills and comply with regulations from the government and the insurance industry. AXS BOOM is also needed throughout the US Lakes and Rivers.
This category is estimated at 3,700 million AXS Liters.
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MARKET ANALYSISPetrochemicals and manufacturing Industries
AXS can be used in any fuel storage tank to prevent explosions and suppress fires. AXS System is a natural product for offsetting Carbon Credits.Per the US Census Bureau there are 326,000 American manufacturers, many of these companies have multiple locations. The total need is 10,500 million AXS Liters.
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MARKET ANALYSISMaritime Industry
AXS can offer the maritime industry the best product by combining numerous benefits like explosion prevention and sloshing reduction in one easy solution.
The total demand is calculated at 500 million AXS liters.
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MARKET ANALYSISFarming Industry
AXS can reduce the HC emissions making it possible for companies to comply with increasingly stiffer regulations in the fight against global warming. Case and point California and 12 other states have changed their emission levels for farmers requiring an additional need for 500 million AXS liters.
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MARKET ANALYSISUS Market Size
Petroleum Refineries 80,000 million AXS litersNatural gas Refineries 100,000 million AXS litersDefense Industry 20,000 million AXS litersAirplanes and Airports 19,750 million AXS LitersGround and Rail Transportation 12,500 million AXS LitersManufacturers and petrochemicals 10,500 million AXS litersGasoline Distribution and Retail 1,000 million AXS LitersPropane industry and household products 3,000 million AXS LitersOil Spills 3,700 million AXS LitersFarming and Maritime industries 1,000 million AXS liters
Total 251,450 million AXS Liters
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COST ANALYSISThis cost analysis is based on the following:• 1,000,000 USD for each production line.• Annual production of 8,000,000 AXS liters. • $5.5 for each kilo of AXS raw material. • 2 workers per production line per shift.• Average hourly rate per production line is $20.00• Average hourly production of 1200 AXS liters.• Annual usage of 300,000 kilos of AXS raw material per production line.• Average marketing and sales cost per AXS liter is.
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COST ANALYSISCost per AXS liter based on producing 8 million liters per line
Items Quantity Unit Cost Total costAXS raw material 300,000 kilos $5.50 per kilo $1,650,000Labor 12,480 hours $20.00 per hour $249,600Direct Cost $1,899,600Rent $120,000 $40,000 per production line $40,000Administration $180,000 $60,000 per production line $60,000Marketing & IT $150,000 $50,000 per production line $50,000Utilities & Insurance $120,000 $40,000 per production line $40,000Shipping $400,000Total cost per production line $2,489,600Cost per liter $0.3112 per literSelling price $1/liter Profit per liter 0.6888Profit margin 221%
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PROFIT ANALYSISBased on the information provided in this presentation and based on a production increase of 16,000,000 AXS liters per year for 4 years.We can conclude the following:
Year Production Cost RevenuesProfit
2017 24,000,000 AXS Liters $7,468,800 $24,000,000 $16,531,200
2018 40.000,000 AXS Liters $14,448,000 $40,000,000$25,552,000
2019 56,000,000 AXS Liters $19,427,200 $56,000,000$36,572,800
2020 72,000,000 AXS Liters $24,406,400 $72,000,000$47,593,600
2021 90,000,000 AXS Liters $30,008,000 $90,000,000 $59,992,000
5 year 282,000,000 AXS Liters $95,758,400 $282,000,000 $186,241,600
10 year 732,000,000 AXS Liters $227,798,400$732,000,000
$504,201,600
732 million AXS liters are less that 1% of the potential US market.
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PROFIT ANALYSISBased on these conservative projections in comparison with the size of the potential market; We can stress that this is a solid business plan that can be achieved with great success and notable milestones in only 5 years and continue to grow exponentially by adding more markets and applications.Many applications are priced as a solution to an existing problem instead of being priced on a price per liter basis.• The price of AXS Pipe for each gas station is $5000 while the
cost for the actual AXS cylinders inside is less that $10.00.• The price for a gasoline can is $49.00 while the cost of the AXS
cylinders inside is $2.00
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SUMMARYAXS products and applications have been extensively tested, validated & are being used in projects throughout the world.AXS Group has the only USA based Aluminum Mesh manufacturing facility.AXS Group has invested over $7,000,000 during the past 5 years.AXS Potential Market in the USA alone is 250 Billion AXS Liters Investing $5 million in AXS Group right now would allow AXS Group in only 10 years to have over 50 employees, 25 million dollars in assets and IP, over $700 millions in revenues AND $500 millions in profits.
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CONTACT US
Michael M. MakkiCEO
15101 Century DriveSuite 507
Dearborn, Michigan 48120313 570 7797