Question Time, page-50

I think the Landscape has changed from how it was imagined. The initial presentation had a much faster uptake by the GDOT, and it was hoped that once the GDOT adopted Edencrete for roads, other DOTs would follow based on the results of GDOT tests. I suspect ASTM was chosen since that would satisfy the GDOT and at that time the extra exense and time of NTPEP testing seemed unnecessary when funds were tighter. Remeber it was probably envisaged that Edencrete would be used as per their own testing at 2-4gal/cu yd. but it is being used at 2 gal/cu yd by the GDOT and at 0.5 gal/cu yd for precasting. As people have rightly pointed out, the concrete industry culture is proving more difficult to penetrate than initially thought. I actually think that the Valley Prestress formula is something of a breakthrough, since it demonstrates there is an up front cost advantage as well as a performance advantage, if the recipe is right.

Personally I still think things are progressing, but behind schedule. The GDOT field test on new roads is well under way, and if other precast companies find a satisfactory formula which saves them time and money they will order it. Hopefully the other DOTs are considering using it, but I think there would be a better marketing push opportunity once some of the GDOT projects are underway or completed. During the next few months we have engineering discussions about Edencrete with the Concrete Association and commencing testing with the Koreans. I think the sales personel are working hard with DOTs and precast companies as best they can, but until they have more successful projects to demonstrate, its hard to persuade people to try something unfamiliar which at the moment has an extra upfront cost which is the way its being marketed.

I don't mind that some investors lose patience and sell out. My take is that there are a lot of new investors out there who appreciate that this will be huge, even though initial penetration is slower than expected, and are waiting to buy shares if they can get them at a lower price.