Worksport to Purchase 222,000-Square Foot, US-Based Manufacturing Facility
Worksport Ltd (Nasdaq: WKSP) is expanding its manufacturing operations by 222,000 square feet in Seneca, NY, to meet rising demand for its solar and hydrogen-based technologies. The facility, strategically located near distribution hubs, will enhance production capabilities with advanced automated systems. Management is securing favorable mortgage rates to maintain cash reserves while acquiring new equipment. The expansion aligns with the company's direct-to-consumer strategy, aiming for strong profit margins and market penetration over the next 12-24 months. Closure is expected by April 2022, pending due diligence.
- Expansion of manufacturing operations by 222,000 square feet in Seneca, NY.
- Acquisition of advanced automated systems to reduce labor costs and increase efficiency.
- Completion of due diligence expected by April 2022, enhancing growth potential.
- Strategic location near ports and distribution hubs, facilitating logistics.
- Focus on direct-to-consumer strategy anticipated to drive profit margins.
- Reliance on securing favorable mortgage rates may introduce financial risks if not achieved.
Mississauga, Feb. 01, 2022 (GLOBE NEWSWIRE) -- Worksport Ltd (Nasdaq: WKSP) (the “Company”), seeking to capitalize on the growing shift of consumer mindsets towards clean energy with its proprietary solar and green hydrogen-based technologies, is set to expand its manufacturing operations by 222,000 square feet into the United States of America. The Company is under contract and conducting due diligence for a period of 70 days. This purchase would establish a strategic presence with a state-of-the-art facility in the Buffalo, NY suburb of Seneca, near ports, distribution hubs, and the Canadian border.
As the Company’s manufacturing systems began occupying more space than expected and demand across all product lines increased, management proactively pursued additional manufacturing capacity that its recently leased Canadian manufacturing facility could not support alone.
“We are working with numerous US banks for a mortgage with attractive rates to preserve our large cash reserves and have already been acquiring necessary equipment including two robotic milling machines and cutting machines to hit the ground running. We are also considering robotic panel cutting, punching, and bending machines,” states Steven Rossi, CEO Worksport.
With an effective 222,000 square feet sitting on over 15 acres of land, the facility spans approximately 150,00 square feet and comes equipped with a 17,229-square foot Automated Storage & Retrieval System (AS/RS) standing 90 feet tall. This AS/RS can reduce labor costs and increase throughput by automatically loading, handling, storing, and picking 5,200 pallets weighing up to 3,000 lbs/pallet; a system representing 70,000 square feet of additional, fully automated warehouse space to support inventory demands and long-term growth.
There are also five more acres of additional land where the Company can develop between 50,000 to 100,000 square feet of additional space over coming years. And the facility’s footprint infrastructure already meets the Company’s current power and height requirements, which will allow for quick and streamlined occupancy and setup.
Worksport management would be proud to bear the American flag across all product lines, including the Company’s mobile, modular Terravis System (having recently resolved shipping and supply chain issues), Terravis Energy’s versatile, fast charging Non-Parasitic Electric Vehicle (NPEV) systems and the Terravis Microgrid™, as well as future products.
This manufacturing expansion would also align directly with the Company’s direct to consumer push that management expects will result in strong profit margins and immediate market penetration, as the Company focuses on aggressive EBITA targets within the next 12-24 months.
Worksport will update its shareholders on the purchase contract ratification, contingent upon no critical findings from Company due diligence, as well as the facility’s full scale production readiness as they become material; management estimates to close no later than April 2022.
“This is an absolutely huge step in the journey for Worksport and Terravis Energy to become major leading forces in the automotive and energy sectors. The State of New York and the municipality of Buffalo have been incredible to work with and very generous in offering business incentives of various forms including grants and rebates. We aspire to complete due diligence early and begin capitalizing on this opportunity. We would be thrilled to proudly proclaim the Company’s products are ‘Made in America’,” said Steven Rossi, CEO Worksport.
About Worksport Ltd.
Worksport Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the IP on a variety of tonneau covers, solar integrations, and NP (Non-Parasitic), Hydrogen-based true green energy solutions for the sustainable, clean energy, and automotive industries. Worksport Ltd. seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and NP (Non-Parasitic), Hydrogen-based technology. For more information, please visit www.worksport.com, www.terravisenergy.com, www.investworksport.com and www.goterravis.com.
Connect with Worksport:
Please follow the company’s social media accounts on Twitter, Facebook, Linkedin, and Instagram, as well as sign up for the company’s newsletters at www.worksport.com, www.terravisenergy.com or www.investworksport.com. Worksport Ltd. strives to provide frequent updates of its operations to its community of investors, clients, and customers to maintain the highest level of visibility.
For additional information, please contact:
Steven Obadiah
Investor Relations
T: +1 (888) 506-2013
E: investors@worksport.com
W: www.investworksport.com
Forward-Looking Statements
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