The contract has a total value to Tecnoglass of approximately $40 million.
José M. Daes, Chief Executive Officer of Tecnoglass, commented, "Tecnoglass has enjoyed a strong presence in South Florida for over 18 years, delivering high-quality, value added products and services. We continue to focus on expanding our presence in this growing market, and look forward to participating in this high-profile project."
Tecnoglass also updated the progress of its manufacturing expansion initiatives at the Company's integrated manufacturing facility located in Barranquilla, Colombia.
Mr. Daes stated, "Over the next 10 months, we intend to invest approximately $50 million to increase our manufacturing capacity in response to the growing global demand for achitectural glass and associated aluminum products, and prepare for what we expect to be an exceptional 2015 and 2016 for Tecnoglass. This expansion, which is fully financed, includes the installation of new laminating lines, high-volume insulating equipment, a new aluminum extrusion press with the capacity for an additional one million pounds per month, an approved PPG paint line with the capacity to treat one million pounds of aluminum each month, and a new aluminum foundry. We are also investing in technology that will make our manufacturing process cheaper and more efficient, thus enhancing the scalability of our infrastructure and improving our results of operations. We expect this new equipment to become operational beginning January 1, 2015, and we expect all new lines to be operating by August 1, 2015. This capacity expansion, once complete, is expected to increase our total manufacturing capacity by approximately 50%."
In 2013, Tecnoglass completed a two-year, $29 million capital improvement program under which it invested in state-of-the-art glass manufacturing equipment and increased its aluminum extrusion capacity to 1,200 tons per month. These activities have supported a significant increase in the Company's annual sales, from $130 million in 2012 to an estimated $206 million in 2014.
Mr. Daes concluded, "Demand for our products is strengthening in Latin America, specifically Colombia, and we also expect to benefit from our ongoing expansion efforts in the United States. In 2013, U.S. sales accounted for 36%, or $66.7 million, of our total revenues; for the first half of 2014, U.S. sales comprised 48%, or $47.9 million, of our total revenues. Moreover, our increased bonding capacity is allowing us to pursue larger projects throughout North, Central and South America."
Tecnoglass is the #1 architectural glass transformation company in Latin America, providing hi-spec glass, windows and aluminum products for the global residential and commercial construction industries. Headquartered in Barranquilla, Colombia, Tecnoglass operates out of a 2.3 million square foot vertically-integrated, state-of-the-art manufacturing complex that provides easy access to the Americas, the Caribbean, and the Pacific. Tecnoglass sells to more than 800 customers in North, Central and South America, with the United States accounting for approximately 36% of Company revenues in 2013. Tecnoglass's tailored, high-end products are found on some of the world's most distinctive properties, including the El Dorado Airport (Bogota), Imbanaco Medical Center (Cali), Trump Plaza (Panama), Trump Tower (Miami), and The Woodlands (Houston). For more information, please visit www.tecnoglass.com
Forward Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Tecnoglass's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of Tecnoglass' business. These risks, uncertainties and contingencies are indicated from time to time in Tecnoglass's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that Tecnoglass' financial results in any particular period may not be indicative of future results. Tecnoglass is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.