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TWST: Would you describe the Plasma Converter, which I think is your basic
technology system?
Mr. Longo: Yes, of course. But I've found in talking about this through the
years that five or 10 variations of the explanation lead to confusion. So,
instead of my improvising once again, I have a news release right before me, so
I'll read what we say in that. At least we'll have uniformity.
"The Plasma Converter System safely and economically destroys wastes, no matter
how hazardous or lethal, and turns most into useful and valuable products. In
doing so, the system protects the environment and helps to improve the public
health and safety. The system achieves closed-loop elemental recycling to safely
and irreversibly destroy municipal solid waste, organics and inorganics, solids,
liquids and gases, hazardous and non-hazardous waste, industrial by-products and
also items such as "e-waste," medical waste, chemical industry waste and other
specialty wastes, while converting many of them into useful commodity products
that can include metals and a synthesis-gas called plasma converted gas (PCG).
"Among the many commercial uses for PCG is its use to produce "carbonless
power," gas-to-liquid (GTL) fuels such as ethanol, synthetic diesel fuel and
other higher alcohol "alternative" fuels. Hydrogen, for use and sale, can also
be separated and recovered from the PCG synthesis gas mixture.
"The Startech Plasma Converter is essentially a manufacturing system producing
valuable commodity products from feedstock materials that were previously
regarded as wastes.
"Startech regards all wastes, hazardous and non-hazardous, as valuable renewable
resources and as feed stocks." TWST: How are the systems sold?
Mr. Longo: Our customers make money at the front end processing wastes and also
at the back end on the derivative products. The market for Startech systems is
enormous in the developed countries of the world and also in the newly
developing countries as well.
It's important for us to keep as many of our costs, even selling costs, as
variable as possible. We do this by having distributors and sales reps in many
parts of the world, but it takes time and money to build and train a distributor
and sales rep organization. But much of that is done now.
Distributors buy systems and sell them with their added administrative,
installation, engineering and maintenance services — things that might be
required by a customer in the territory. The distributor is required to buy a
certain number of machines over the years in order to keep the distributorship
franchise. We sell to the distributor and he, in turn, sells to his customer.
Each distributor has an exclusive territory and he must be strong enough in that
territory to be what Startech would be if Startech were in the territory.
We also have many fine sales representatives who act like middlemen in helping
to cause a sale to take place between Startech and the buyer. They work on a
structured commission that's paid on actual contracts only. We continue to build
the organization. It's all a work in progress.
Tickers included in this excerpt: STHK
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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