Vega Expands Reach in Brazil
Company Announces Joint Venture Project to Create a Regional Brand for Various Clean Energy Services
.Companies:Vega Promotional Systems, Inc..Press Release Source: Vega Promotional Systems, Inc. On Thursday March 11, 2010, 8:30 am
LONDON–(Marketwire – 03/11/10) – Vega Promotional Systems, Inc. (Pinksheets:VGPR – News) announced today it has entered into a Joint Venture Agreement to create a major regional brand to provide clean energy services throughout the South American country of Brazil.
The new Joint Venture company in Brazil will be called BrasEsco Energia, Ltda and will be owned by Vega and its Brazilian partner, C-Energia, Ltda. The Company’s headquarters will be located in Sao Paulo, Brazil.
The Company’s plan is to become a short-wired utility provider for the small to medium voltage industrial and commercial client with power loads between 100 kW up to 2,800 kW and a monthly power consumption of 30,000 kWh up to 1,250,000 kWh in large urban centers such as Sao Paulo, Salvador, Rio de Janeiro, and Belo Horizonte. The Company’s initial focus will be in Sao Paulo.
The Company will also increase cost savings to its power customers by maximizing energy efficiency through monitoring power quality and fuels consumption via the Internet. C-Energia, Ltda has already secured power contracts with large local business customers in the Sao Paulo area that will be included in the Joint Venture.
Vega has committed $1.5 million to launch the venture. Based on projects scheduled for year one, the Company will be profitable in year two and revenues will increase significantly in year three.
“Our objective is to build a regional brand for energy services focused on power generation in markets with a high density of potential customers such as Sao Paulo”, stated Michael K. Molen, Chairman of Vega. “This is a niche market that we feel we can grow by utilizing contacts that we and our partners have in Brazil. Energy expert, Bob Chew has been a Consultant to Vega and is currently relocating to Sao Paulo and will become the CEO of the new business. Bob has over 17 years of experience in the power sector, primarily in Brazil working with various power companies and is a perfect fit for the venture. We are very fortunate to have Bob running the new business.”
The Company will provide additional details for the project as they become available.