FSI ANNOUNCES NEW CONTRACT FOR FOOD GRADE MANUFACTURING
Flexible Solutions International (FSI) has signed a significant new contract with a US-based company for food grade manufacturing. The five-year contract, signed on January 7, 2025, includes automatic renewals for up to five additional five-year terms, unless either party provides notice of non-renewal 180 days before term end.
The contract is expected to generate annual revenue between $15 million and $30 million or more. Revenue generation is anticipated to begin in approximately six months, following the expansion of clean room space and installation of necessary equipment at FSI's Illinois facility.
This non-exclusive agreement represents FSI's strategic expansion into the food grade market, building upon their existing portfolio in biodegradable polymers for oil extraction, detergent ingredients, water treatment, and crop nutrient availability chemistry.
Flexible Solutions International (FSI) ha firmato un contratto significativo con un'azienda statunitense per la produzione di alimenti. Il contratto di cinque anni, firmato il 7 gennaio 2025, prevede rinnovi automatici per ulteriori cinque termini di cinque anni, a meno che una delle parti non comunichi la non intenzione di rinnovare 180 giorni prima della scadenza.
Si prevede che il contratto genererà un fatturato annuale compreso tra 15 milioni e 30 milioni di dollari o più. Si anticipa che la generazione di fatturato inizierà in circa sei mesi, dopo l'espansione dello spazio delle camere bianche e l'installazione delle attrezzature necessarie presso lo stabilimento di FSI in Illinois.
Questo accordo non esclusivo rappresenta l'espansione strategica di FSI nel mercato dei prodotti alimentari, costruendo sulla loro attuale offerta di polimeri biodegradabili per l'estrazione di petrolio, ingredienti per detergenti, trattamento delle acque e disponibilità di nutrienti per le colture.
Flexible Solutions International (FSI) ha firmado un contrato significativo con una empresa estadounidense para la fabricación de grado alimenticio. El contrato de cinco años, firmado el 7 de enero de 2025, incluye renovaciones automáticas por hasta cinco períodos adicionales de cinco años, a menos que alguna de las partes notifique la no renovación 180 días antes de que termine el plazo.
Se espera que el contrato genere ingresos anuales entre 15 millones y 30 millones de dólares o más. Se anticipa que la generación de ingresos comenzará en aproximadamente seis meses, tras la expansión del espacio de sala limpia y la instalación del equipo necesario en la instalaciones de FSI en Illinois.
Este acuerdo no exclusivo representa la expansión estratégica de FSI en el mercado de grado alimenticio, construyendo sobre su cartera existente de polímeros biodegradables para la extracción de petróleo, ingredientes de detergentes, tratamiento de agua y química de disponibilidad de nutrientes para cultivos.
Flexible Solutions International (FSI)가 미국에 본사를 둔 회사와 식품 등급 제조에 관한 중요한 계약을 체결했습니다. 2025년 1월 7일에 체결된 이 5년 계약은 어느 한 쪽 당사자가 계약 종료 180일 전에 갱신하지 않겠다고 통지하지 않는 한, 최대 5개의 추가 5년 계약으로 자동 갱신됩니다.
이 계약은 연간 1500만 달러에서 3000만 달러 이상의 수익을 창출할 것으로 예상됩니다. 수익 생성은 FSI의 일리노이 시설에서 클린룸 공간 확장 및 필요한 장비 설치가 완료된 후 약 6개월 후 시작될 것으로 예상됩니다.
이 비독점 계약은 식품 등급 시장으로의 FSI의 전략적 확장을 나타내며, 석유 추출, 세제 성분, 수처리 및 작물 영양 공급 화학을 위한 생분해성 폴리머의 기존 포트폴리오를 바탕으로 하고 있습니다.
Flexible Solutions International (FSI) a signé un contrat important avec une entreprise basée aux États-Unis pour la fabrication de qualité alimentaire. Le contrat de cinq ans, signé le 7 janvier 2025, inclut des renouvellements automatiques pour jusqu'à cinq périodes supplémentaires de cinq ans, sauf si l'une des parties notifie une non-renouvellement 180 jours avant la fin du terme.
On s'attend à ce que le contrat génère des revenus annuels compris entre 15 millions et 30 millions de dollars ou plus. La génération de revenus devrait commencer dans environ six mois, après l'expansion de l'espace des salles blanches et l'installation de l'équipement nécessaire dans l'installation de FSI dans l'Illinois.
Ce contrat non exclusif représente l'expansion stratégique de FSI sur le marché des produits alimentaires, s'appuyant sur son portefeuille existant de polymères biodégradables pour l'extraction du pétrole, les ingrédients de détergents, le traitement des eaux et la chimie de la disponibilité des nutriments pour les cultures.
Flexible Solutions International (FSI) hat einen bedeutenden neuen Vertrag mit einem in den USA ansässigen Unternehmen für die Lebensmittelproduktion unterzeichnet. Der fünfjährige Vertrag, der am 7. Januar 2025 unterzeichnet wurde, umfasst automatische Verlängerungen für bis zu fünf zusätzliche fünfjährige Verträge, es sei denn, eine der Parteien gibt 180 Tage vor dem Ende der Laufzeit eine Nichtverlängerungsanzeige ab.
Es wird erwartet, dass der Vertrag jährliche Einnahmen zwischen 15 Millionen und 30 Millionen Dollar oder mehr generiert. Die Einnahmen sollen in etwa sechs Monaten beginnen, nachdem der Sauberraum erweitert und die erforderliche Ausrüstung in der Illinois-Anlage von FSI installiert wurde.
Diese nicht-exklusive Vereinbarung stellt FSIs strategische Expansion in den Lebensmittelmarkt dar und baut auf ihrem bestehenden Portfolio in biologisch abbaubaren Polymeren für die Ölgewinnung, Inhaltsstoffe von Reinigungsmitteln, Wasseraufbereitung und chemische Verfügbarkeit von Nährstoffen für Pflanzen auf.
- New contract potentially worth $15-30M+ annually
- Long-term agreement spanning up to 30 years (5 years + five 5-year renewals)
- Strategic expansion into food grade manufacturing market
- Revenue generation to begin in approximately 6 months
- Capital expenditure required for clean room expansion and equipment
- 6-month delay before revenue generation begins
- Non-exclusive contract terms
Insights
The new 5-year renewable contract with potential revenue of
The 6-month delay before revenue generation reflects necessary capital investments in clean room expansion and equipment installation. While this requires upfront costs, it creates barriers to entry and strengthens FSI's competitive position in the food grade manufacturing space. This infrastructure investment could also support additional contracts, creating operational leverage.
For retail investors: Think of this as a small company landing a contract that could potentially double their business size. The long-term nature of the contract provides stable income potential, similar to a rental property with a quality long-term tenant. However, monitor the execution risk during the facility upgrade phase and initial production ramp-up.
The expansion into food grade manufacturing requires rigorous quality control systems and compliance with FDA regulations. The clean room expansion signals FSI's commitment to meeting stringent food safety standards. The non-exclusive nature of the contract allows FSI to pursue additional customers once the infrastructure is in place, potentially leading to economies of scale.
Key operational considerations include:
- Clean room classification requirements and associated maintenance costs
- Personnel training for food grade manufacturing protocols
- Quality management system upgrades
- Supply chain modifications for food-grade raw materials
FSI's strategic pivot into food grade manufacturing aligns with growing consumer demand for quality food products and supplements. The successful contract win validates their market entry strategy and positions them for expansion in this higher-margin sector. The U.S. food grade manufacturing market has been growing steadily, driven by increased focus on food safety and quality.
In simple terms: FSI is moving from making mostly industrial chemicals to also making ingredients that go into food products - a move that typically comes with stricter requirements but better profit margins. The contract's value range of
VICTORIA, BRITISH COLUMBIA, Jan. 16, 2025 (GLOBE NEWSWIRE) -- FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE-AMERICAN: FSI), is the developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and water treatment as well as crop nutrient availability chemistry. Flexible Solutions also manufactures biodegradable and environmentally safe water and energy conservation technologies. FSI is also increasing its presense in the food and nutrition supplement manufacturing markets. Today the Company announces the signing of a new contract for food grade manufacturing.
FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex: FSI) announces that, on January 7, 2025, it contracted with a US based company to manufacture food grade products for the U.S. based company on a non-exclusive basis. The contract has a term of five years and will automatically renew for up to five additional successive five year terms unless FSI or the U.S. based company provides written notice of a non-renewal at least 180 days prior to the end of the then-current term. FSI estimates that the contract can possibly generate revenue per year between
Dan O'Brien, CEO comments, "This is a very significant contract that could provide revenue for many years. It is confirmation that our decision to enter the food grade market was correct and it is a strong base to build on as we work to obtain more business selling food grade products to US customers." Mr. O'Brien continues, "This contract was not easy to obtain. From myself on down to the factory personnel in Illinois, we had to focus on what the customer wanted and how to provide it efficiently to very high quality specifications. I'm proud of the FSI team and what they have achieved."
About Flexible Solutions International
Flexible Solutions International, Inc. (www.flexiblesolutions.com), based in Victoria, British Columbia, is an environmental technology company. The Company’s NanoChem Solutions Inc. subsidiary specializes in biodegradable, water-soluble products utilizing thermal polyaspartate (TPA) biopolymers. TPA beta-proteins are manufactured from the common biological amino acid, L-aspartic and have wide usage including scale inhibitors, detergent ingredients, water treatment and crop enhancement. Along with TPA, this division started producing other crop enhancement products as well. In 2022, the Company entered the food and nutrition markets by obtaining FDA food grade approval for the Peru IL plant. The other divisions manufacture energy and water conservation products for drinking water, agriculture, industrial markets and swimming pools throughout the world
Safe Harbor Provision
The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward looking statement with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.
Flexible Solutions International
6001 54th Ave, Taber, Alberta, CANADA T1G 1X4
Company Contacts
Jason Bloom
Toll Free: 800.661.3560
Fax: 403.223.2905
Email: info@flexiblesolutions.com
To find out more information about Flexible Solutions and our products please visit www.flexiblesolutions.com
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FAQ
How much revenue will FSI's new food grade manufacturing contract generate annually?
When will FSI begin generating revenue from the new food grade manufacturing contract?
What is the duration of FSI's new food grade manufacturing contract?
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Is FSI's new food grade manufacturing contract exclusive?
