ZANESVILLE, Ohio, May 21, 2015 /PRNewswire/ -- AXION International Holdings, Inc. (OTCQB: AXIH), a leader in recycled polymer technologies used to produce ECOTRAX® composite rail ties and STRUXURE® composite building products is pleased to announce today that it has signed a master distribution agreement with Superior Energy Resources, LLC, a leading specialty distributor in the Marcellus and Utica shale regions, for the exclusive sale of AXION's STRUXURE® laminated mats in Pennsylvania, Ohio, and West Virginia for use on upstream oil and gas project sites.

The exclusive master distribution agreement with Superior Energy includes purchase targets of laminated mats, as a condition of exclusivity, which cumulate to first year annualized sales of $8.0 million in the region.

Based in Brockway, Pennsylvania, Superior Energy's demand for on-time supplies is critical to meeting the needs of its customers. The proximity of AXION's Ohio-based facility to project sites in the region has facilitated meeting on-time commitments.

"We pride ourselves on providing the highest level of service, and that is what we expect for our partners and suppliers," stated Superior Energy's COO Stan Foster. "AXION's Ohio facility is key to helping us meet our commitments, and AXION's engineered products are solutions to problems we encounter in the field throughout the year, not simply supplies that need to be replaced. We know that we can count on AXION to deliver a superior product on time every time. We have an important partnership that we expect to grow profitably over time."

STRUXURE® laminated mats are part of AXION's newest product line extension within the STRUXURE® composite matting product group. The laminated, or layered, mats combine two polymer-based technologies, leveraging the benefits of each to achieve a strong, durable, and adaptable finished mat.

"Drilling sites where our laminated mats are being used are a perfect application for our new composite mats as they are built upon graded, crushed-gravel soils," explained AXION's Executive Vice President Dave Crane. "Strength in compression, surface durability, and absorption of fluids are common problems with supplies on these sites. Traditional materials rot and wear out rapidly on these sites. The durable, non-absorptive qualities of our mats offer a lasting solution in this demanding environment, as well as one that won't degrade or lose its strength over time."

AXION's full assortment of composite matting products is engineered to combine strength with durability in the harshest environments. STRUXURE® Heavy Mats are currently in service on multiple midstream energy and civil construction projects.

"The value in our engineered solutions is that they combine strength with durability over time, both of which are highly valued in the markets we have chosen to serve, especially energy, transportation, and construction. We are launching additional composite matting solutions to meet market demand this year," stated AXION's Dave Crane.

AXION has also received a more than $400,000 order from H.J. Skelton (Canada) Ltd. for pipeline supports to be used in northern Canada by one of its country's largest energy companies. Founded in 1883, H.J. Skelton (Canada) Ltd. prides itself as an "ethical company," serving the needs of the railroad and engineering industries in Canada. "Since 2011, we have distributed AXION's ECOTRAX® line of rail ties to Canadian transit lines with great success. We value AXION's dedication to quality and its environmental ethic, as well as engineering polymer-based solutions that go well beyond material supply," said H.J. Skelton's President David Chapman. "Our customers seek the highest value for projects, and we partner with AXION because it always delivers on its promise to engineer the best solution for the application."

Working with engineers to create a specification for the pipeline supports, AXION's team knew that legacy or traditional materials were subject to rapid degradation in the harsh conditions found in northern Canada.

"Severe swings in temperature subject materials to multiple freeze-thaw cycles," described AXION's Cory Burdick. "These freeze-thaw cycles wear out timber- or concrete-based material rapidly, and they are very costly to replace, especially when supporting pipeline infrastructure. Our pipeline supports were tested in field applications for two years prior to being specified." The environmental sensitivity of the timber-based products led to the introduction of various polymer-based products in which AXION competed.

Diversifying AXION's portfolio of engineered solutions and applications is key to success in 2015 and beyond, according to Claude Brown, Jr., AXION's CEO. "Meeting market demand with valuable solutions is critical to profitable growth and our path forward this year," commented Mr. Brown. "In the case of our pipeline supports, our team was able to work with engineers to create a specification based on our product, making AXION the standard by which other products are measured. It is our goal to continue engineering valuable and highly-valued solutions as we meet strong demand now and even stronger anticipated demand in the future."

Even with this commercial progress, the need for additional capital remains.  AXION's investment banker, Gordian Group, LLC, is contacting potential sources of financing with the aim of securing interim funding as a precursor to obtaining the additional capital needed to maintain and grow the business.  As these efforts continue, AXION is projecting a near-term lack of liquidity within the next several weeks that is causing AXION, its advisors, and its Board to consider all options available to maintain business operations, encourage investment and to provide adequate time for responsible management of the process.

About AXION International Holdings, Inc.

AXION (OTCQB: AXIH) creates innovative structural polymer solutions, engineering sustainable products and systems that provide improved long-term value, consistent performance, and reduced maintenance costs. AXION develops its solutions for the construction, transportation, and energy industries. Visit www.AXIH.com.

About Superior Energy Resources, LLC

Superior Energy Resources is a family business located in Brockway, Pennsylvania, that supports and services the shale gas industry. Offering backyard services at the drill rig, rig mats, hoses and fittings, access mats, steel fabrication, containment, and more. You're in our backyard. Why aren't we in yours? 814-265-1080 or sales@serllc.co.

About H.J. Skelton (Canada) Ltd.

Founded in 1883, H.J. Skelton has been supplying the highest quality products to railways and transits. Skelton is a reliable source for metal and railway products, drawing on many years of experience in providing its customers with products manufactured to the latest and best designs in the world from a company that is owned and operated by Canadians. Visit www.skelton-metals.com.

Forward-Looking Statements

This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause AXION's actual results to differ materially from those currently anticipated, including the availability of materials at favorable pricing, sufficient manufacturing capability and the risk factors identified in AXION's filings with the Securities and Exchange Commission.

 

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SOURCE AXION International Holdings, Inc.

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