IGS Capital Group Ltd (OTC: IGSC) is a US listed company trading on the OTC exchange. It is the parent company for two companies at present:
IGSC Australia Pty Ltd (ACN 654 091 666), the business development and administration arm of the Group, and; iPlast, the leading plastic pipe manufacturer in Albania supplying the Government’s continuing replacement and upgrading of the national water infrastructure.
We are a team of experienced professions with the knowledge and experience to maximise the growth potential of businesses that we own, and build real value for our shareholders.
IGSC acquired iPlast because of its potential to expand both its manufacturing capacity and its product range, and greatly expand its market, revenue, and profitability.
iPlast is only addressing around 30% of the Albanian market because of production limits at present. The factory is currently operating at around 20% of its potential capacity and if sufficient raw material can be stored and ordered in advance, the productivity can be fivefold. Once this is achieved, we aim to monopolise that market.
Competitor’s transport costs are high because of the number of vehicles needed to move such bulky products. Additionally, a 30% tariff for finished products versus only a 10% duty for imported raw materials gives us a huge local advantage.
Export into the much larger Italian market is also a real opportunity as the cost of labour and electricity there is around 30% higher than in Albania, so Italian competitors are far more expensive. Transport costs to Italy are much lower than for products coming into Albania as we can benefit from low “backhaul” costs as many trucks bring primary loads from Italy and leave Albania empty.
We can further improve revenues with the addition of larger moulds, particularly for the corrugated pipe range, to the production lines.