AmeriChip International Inc. (ACHI)
Interview with:
Marc Walther, President and CEO
Business News, Financial News, Stocks, Money & Investment Ideas, CEO Interview
and Information on their
Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications.

AMERICHIP INTERNATIONAL INC. and CORNELL CAPITAL PARTNERS LLP
ANNOUNCE $6.3 MILLION EQUITY FINANCE AGREEMENT

 

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AmeriChip International is ready to bring their technology to the marketplace that could lower cost and health risks for industrial metal machining companies

wpe62.jpg (4102 bytes)

Technology
Machining
(ACHI.OB)

AmeriChip International Inc.

12933 W 8 Mile Rd.
Detroit MI 48325
Phone: 313-341-1661


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Marc Walther
President and CEO

Interview conducted by:
Lynn Fosse
Senior Editor

CEOCFOinterviews.com
June 2004

BIO:
Mr. Marc Walther
is our President and Chief Executive, a member of our board of directors, appointed on May 7, 2003.  Mr. Walther is affiliated with the largest grinding wheel manufacturer in Canada and has broad management experience in all aspects of the metal machining industry.  Marc is the holder of a United States Patent No. 6171175 granted on January 9, 2001. The patent is a method of polishing uniform or free form metal surfaces.  The patent was issued in conjunction with Ford Global technologies Inc.

In 1987 Mr. Walther purchased the National Abrasive Systems Company (NASCO), which has been in the distribution of abrasive products fro the National Grinding Wheel Company in New York State since 1924.  By the time he purchased Abrasive Supply West Inc. in 1989, he had increased sales and profitability of NASCO to the extent that we was able to [purchase Ruff Abrasive in 1998 putting all plants under the NASCO brand in a 22,000 sq. ft. facility.   Mr. Walther is also a certified abrasive engineer as conferred by the Abrasive Engineering Society and in 1992 he was elected President of the South East Michigan chapter,  the youngest President in its’ 30 year history.

In 2001, Mr. Walther purchased the Canadian Grinding Wheel Company and the Wright Abrasive Company in Hamilton, Ontario, Canada.  With the consolidation of the two plants, Cangrind became the largest grinding wheel manufactured in Canada. Also in 2001, Marc became a partner in AmeriChip, Inc. and as Chief Operating Officer, will be responsible for the management of the company as well as directing and coordinating the Company’s sales and marketing programs.

Company Profile:
Headquartered in Detroit, Michigan, U.S.A., AmeriChip International Inc. holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry.

Traditional methods for handling the problematic residue, has necessitated the manufacture of specially designed control chip inserts and/or the use of coolants to assist in the separation and flushing of dangerous residue materials. Currently coolant is deployed to flush the long, stringy chips out of the machine components and remove them from the machinery base itself, which if becomes clogged can result in many hours of non-productive down-time and added costs. Additionally, coolant fumes may pose potentially serious health risks.

AmeriChip’s technology is designed to eliminate the long and often dangerous ribbon-like steel chips that tangle around moving tool parts, automation devices and other components essential to the machine processing of low medium grade carbon steels and non-ferrous metals. This results in cost savings, a superior product and a safer work environment, avoiding many of the health and safety issues associated with traditional metal processing methodologies.

Strategic alliances include: Meritage Solutions (builds custom machinery for automation and material handling), GSI Lumonics (a leading provider of Laser equipment) and Precitec (manufactures special laser heads and auto focus equipment).

CEOCFOinterviews: Mr. Walther, what attracted you to AmeriChip?

Mr. Walther: “The biggest thing that attracted me to AmeriChip was its revolutionary ability to decrease costs. With looking at everything that is going on in the United States and the jobs lost to China and Mexico; this is truly a way to bring jobs back to America. It doesn’t matter if you are in China, Mexico or wherever, you are not going to be the low cost producer of machine parts.”

CEOCFOinterviews: What is your process?

Mr. Walther: “The process that we have allows you to apply our process and it is patented. When you are producing axle shafts, our process will allow you to produce three to one. One of the other things that we offer our machine parts manufacturer customers is cost savings, because we can take existing equipment and we don’t have to change anything, but allow it to run faster and we eliminate coolant costs, which is 17% of your machining cost. The other savings would be that if you are using fancy tooling to affect shift control and to run your parts, we just use basic tooling. For an example, we had a company that we just completed testing and we are getting for production, and we went in and they were producing this job that they had original offered across to a customer that was basically four people, three shifts a day and seven days a week. We came in there with our process because we still weren’t making any money at that point they were able to produce the same amount of parts with two people, two shifts a day, five days a week and that is without implementing any of the other things. We give you a platform to start building many other things.”

CEOCFOinterviews: Tell us about the technology and how it works.

Mr. Walther: “We apply a laser that sets up an engineered interruption and when it does it is that it allows the heat to go to the chip and that is the key to cutting tools, whether in be a grinding mill or any kind of cutting tool. Getting heat to go with the metal you just removed instead of staying apart, and staying on the cutting to Heat is what destroys cutting tools. With reduction of heat, the process is faster. Many times we maximize the machines capabilities to go faster.”

CEOCFOinterviews: Will you give us a background on the development of the company?

Mr. Walther: “The development of the company was done by Ed Rutkowski, and I have to give him credit because everybody told him it couldn’t be done; the big companies wanted him to shelve his idea and they knew how profitable and how much savings or market share they would lose. He developed the process with a company called Fraunhofer, which is a think-tank that only accepts so many patents worldwide and they accepted his. They helped to move it forward to Ford Motor Company, and Ford put their top engineer in research and development, they call it advanced technologies, they studied it and to this date, they will fund the process in testing at any one of their plants. What we plan to do at that point instead of going out there because that is where I got involved when Fraunhofer signed off, and I reformed the corporation and we put the patent in the corporation. I decided that we were a company with no orders at that point, and how were we going to move forward. We had some base loans and we had to come up with the other half of it. Venture capital is just another word for we are going to charge you more and give you less, so we looked at the takeover of a public company called  Southborrough Ventures, Inc. and we changed its name to AmeriChip International.

Our market potential just in automotive, even though we affect aircraft and heavy equipment like tractor building, is 250 million. The part of the market that we decided to go after was automotive, and if I just laser the parts for other people and let them make the parts our market potential would be $250 million annually. If I manufacture the parts and deliver the parts as a low-cost producer, then my market potential is over a billion dollars a year just in automotive and just in North America. Then there is the European market, where we currently have consultants for a company that we can purchase. We announced several months ago that we are trying to buy called American Production Machining. We looked at that and said let’s hold off in letting our process of making our competitors or future competitors, more competitive because of our process but let’s go after purchasing our own company and implementing the process there and make them buy up a tier-one company that can quote directly to General Motors and Ford pricing and go after jobs there. It has literally put our business plan five years ahead. We are looking at many acquisitions right now.”

CEOCFOinterviews: What is the company’s financial condition?

Mr. Walther: “To this point we have no revenue except for this order that we have coming from processed parts. We want to show the public that we can implement a process and create revenue, and that is what we have done with this order. In the mean time, we are looking at acquisitions. What has been complex is that the company we are trying to purchase is in chapter 11; it is making money and it is a healthy company. It is about getting a package that we can live with and I think we are almost in completion of that.”

CEOCFOinterviews: If Ford knows you can do this shouldn’t they be jumping at this opportunity?

Mr. Walther: “They are! But the problem is that when you start implementing your process at Ford, they have little caveats like if they decide they don’t like the job we are doing for any reason, they can take the process that they just approved and take it somewhere else; and we don’t want to sublease it to anybody. Then we would start losing control. There are mechanical patents and there are process patents; mechanical patents when you invent something such as a cup, and a process patent is if you add a handle to the cup. Our patent is on the theory or idea of holding water, thus if you are using laser to affect chip control, then you are violating our patent. With Ford, we really didn’t want to go any further with that; we wanted to do the implementation by having our own tier-one company. If you are not smart with your patents of not letting too much of the technology out into the world, you could have somebody doing it in China and not know about it and you can’t sue somebody until you find them, so we are very careful. We don’t let everybody see our process, but when we choose to let someone, they have to sign a non-disclosure.”

CEOCFOinterviews: Let’s say you have the acquisitions done and you have the company that is ready to make the part, is price alone going to get you into the door to sell them?

Mr. Walther: “Absolutely! You are looking at automotive companies that are happy to get 3%; they are tripping over themselves to get 3%. Upper management and automotive has a directive that goes downward only; you will Mr. Engineer, get 14% savings to your department or we will find someone else and they are doing it. Now, we come in and all the conventional testing for cutting tools has been done and it has been exhausted over the years. To get even a 1% savings is phenomenal. Here we walk in, and we are talking about a process that gets you 85% savings, 50% savings, 25% savings; multiple savings in different areas. The automotive has to open up to that.”

CEOCFOinterviews: What are the challenges you face getting this accomplished?

Mr. Walther: “It is very simple, the only obstacle we have is financing. Working capital is everything; we could make this company rocket off like a bazooka because these people are looking for these kinds of things. If I do it without the proper working capital, then I have to tell the stockholders and the management team because it will kill the company. I have to get a working capital package that I can understand how fast I can move and then implement the plan. The plan is there and it is the working capital that gives us the timeline, so I have been working very hard on ensuring that and I feel I am getting very close.”

CEOCFOinterviews: The concept makes sense!

Mr. Walther: “Most companies don’t have a solid idea, but this is a solid idea. With working capital being the thing every company has to watch, I can control the growth and it isn’t going to be a problem getting orders if I can control the growth based on working capital and capacities that the companies we buy have.”

CEOCFOinterviews: Once it starts, it will be like dominoes!

Mr. Walther: “Exactly! And the key is the working capital and that is why I feel I am almost there.”

CEOCFOinterviews: You talked about keeping jobs in America. If you are going to need fewer workers and the work it is going to be done so much faster, how does that save jobs in America?

Mr. Walther: “The only options that a lot of the large companies have now, being that labor is their biggest cost, the steel and machine is going to be the same price, you are looking at labor and the overhead of the buildings, and let’s say that the overhead of the buildings is going to be the same even though we know they are not, that big wad of cash out there is yea, human beings. It is going to happen; those companies are going to move, and I can’t stop that process but I can introduce the AmeriChip process, which is going to stop the bleeding of American jobs out of the country. All of the jobs we have lost, we can recoup because we are a low-cost producer and all the jobs that might have been going out, which I think every automotive production job that is out there right now has a possibility of leaving this country purely on the fact of labor costs, and we can help slow that down. As energy becomes more costly, these companies are going to at not shipping to China because they cost so much to come back. They can make it cheaper than China by using our process. If you throw in the energy factor and we can’t help but save jobs for America.”

CEOCFOinterviews: In addition to having such a good basic product, the climate is right as well is that correct?

Mr. Walther: “Yes it is, it has never been so right!”

CEOCFOinterviews: Is there anything else that investors should know about AmeriChip, and is there anything they might not realize when they look at the surface of the company?

Mr. Walther: “The biggest thing to look at is this is a simple process that doesn’t require a lot of capital to implement. The thing that should jump out at you is the size and potential of our market and how we can affect it. Looking at that and looking at being a low-cost producer, should be exciting for people looking at the company. The biggest thing that should jump out at people is the financial package. Our business plan is sound; our idea is more than sound. It is just a matter of putting gas in the tank and once we do, this company will grow at a rapid rate.”

CEOCFOinterviews: Are there forces to try to stop you?

Mr. Walther: “Yes, we haven’t encountered any forces that would stop us except that since 9/11 the financial market has gotten very tight and the LTV mode to asset ratio has changed. Before if you were a new company and you would be doing 75%, for every dollar you would have to come up with 175% asset to that dollar. It has gotten even tighter than that, sometimes even 3/1 asset to value. That has probably been the only obstacle that we have encountered and we are actually hurdling that well. But there is no alternative to a merchant. All of the ship breaker inserts that could have been created geometrically have been created. They are coming up with this and that and trying to do it but the end result is the tools wear and the chip breaking doesn’t last long or never starts. You still have to run it at lower speeds to compensate for the heat. We have no competition. Our biggest obstacle is the financial package to help us perform it.”

CEOCFOinterviews: In closing, what would you like readers to remember about AmeriChip?

Mr. Walther: “Again, we are in the acquisition mode. I want to thank the stockholders for being patient with us; this has been a long hard road but I can’t begin to tell you how hard the board has worked to move this forward. We believe strongly in what we are doing and we have funded this company to this point. I think you are going to see great results.”

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Newsflash!

To view Releases highlight & left click on the company name!

AMERICHIP TOOL AND ABRASIVES
REPRESENTS FOUR NEW LINES

Detroit, MI September 20, 2004.   Ed Rutkowski, President of AmeriChip Tool and Abrasives (OTC- BB ACHI) is pleased to announce the Company has secured the rights to represent four new lines.   They include Morse Cutting Tools, (www.morsecuttingtools.com) Superion, Inc., (www.superioninc.com) KEO Cutters, (www.keocutters.com) and Mitutoyo Gages (www.mitutoyo.com) The representation of these lines will generate an additional $300K - $500K  in sales in the next 12 months for AmeriChip International’s wholly-owned subsidiary, AmeriChip Tool & Abrasives.

Posted: 9/22/04 - CEOCFOinterviews.com
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AMERICHIP INTERNATIONAL INC.
PROVIDES UPDATE

Detroit, MI September 1, 2004 The Board of Directors of AmeriChip International Inc. (the Company) (OTC- BB ACHI) is pleased to announce that Marc Walther, President and CEO has been featured in a comprehensive interview conducted by Eric, David & Sons, Inc. and is quoted as saying “ The key for me right now, is to get this first company under our belt and to show people that it really works. Without question, we will be successful and instrumental in keeping and bringing precious American jobs back home, where they belong.”

Posted: 9/7/04 - CEOCFOinterviews.com
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AMERICHIP TOOL AND ABRASVIES,LLC
APPOINTED DISTRIBUTOR
FOR A PATENTED AIR FILITRATION SYSTEM

Detroit, MI August 17, 2004 The Board of Directors of AmeriChip International Inc. (OTC- BB ACHI) is pleased to announce that it’s wholly-owned subsidiary, AmeriChip Tool and Abrasives, LLC (ATA) has been appointed as a distributor by Oil-Screenš-Reven“ N.A. based in Canada. (www.oilscreen.com) Oil-Screenš is the exclusive distributor of the revolutionary environmental ventilation and air filtration technology developed by Rentschler Reven“ of Germany. (www.reven.de)

Posted: 8/18/04 - CEOCFOinterviews.com
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AMERICHIP INTERNATIONAL INC.
RECEIVES PURCHASE ORDER
FROM THE FORD MOTOR
COMPANY

Detroit, MI August 12, 2004 The Board of Directors of AmeriChip International Inc. (OTC- BB ACHI) is pleased to announce that it has received a purchase order from The Ford Motor Company’s (NYSE-F) Sharonville, Ohio plant to run trials in preparation for a quotation for the application of the pre-machining Laser Assisted Chip Control (LACC) process on a transmission planetary carrier.

Posted: 8/17/04 - CEOCFOinterviews.com
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AMERICHIP INTERNATIONAL INC.
ESTABLISHES CANADIAN OFFICE

Detroit, MI August 9, 2004 The Board of Directors of AmeriChip International Inc. (OTC- BB ACHI) is pleased to announce that it has established AmeriChip Canada Inc. Given the high concentration of the Canadian auto industry and auto parts manufacturers in the province of Ontario, management felt it was essential to establish a presence to enable the Company to capitalize on emerging opportunities. The Company is currently assessing two such opportunities. This branch of the Company will be responsible for channeling Canadian based business opportunities to both AmeriChip International and AmeriChip Tool and Abrasives for processing.

Posted: 8/17/04 - CEOCFOinterviews.com
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AMERICHIP INTERNATIONAL INC.
SIGNS PURCHASE AGREEMENT

AND
PROJECTS EARNINGS OF $0.005
PER SHARE FOR FISCAL YEAR END

Detroit, MI August 3,2004 The Board of Directors of AmeriChip International Inc. (OTC- BB ACHI) is pleased to announce that it has signed a Bulk Asset Purchase Agreement replacing the Letter of Intent signed June 28, 2004 to acquire the Nasco Brand name of products and has now added these abrasive products to its inventory. This line of abrasive products has been sold throughout the United States and Canada for many years and is now at the AmeriChip Tool and Abrasives new warehouse in Plymouth, MI.

Posted: 8/5/04 - CEOCFOinterviews.com
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AMERICHIP INTERNATIONAL INC.
ANNOUNCES BOARD CHANGE

Detroit, MI July 27, 2004 The Board of Directors of AmeriChip International Inc. (the Company) (OTC- BB ACHI) is pleased to announce that it has appointed Mr. Russ Weldon to the Board of Directors effective immediately.   Mr. Weldon replaces Mr. David Howard.

Posted: 7/29/04 - CEOCFOinterviews.com
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AMERICHIP TOOL AND ABRASIVES
SECURES CARBOLOY LINE

 

Detroit, MI July 19 2004 The Board of Directors of AmeriChip International Inc. (the Company) (OTC- BB ACHI) is pleased to announce it’s wholly owned subsidiary, AmeriChip Tool and Abrasives, (“ATA”) has secured the right to represent the prestigious Carboloy line of products.

Posted: 7/23/04 - CEOCFOinterviews.com
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AMERICHIP INTERNATIONAL INC.
PURCHASES ROBOTIC ARM AND
COMMENCES “TRIALS” FOR NEW CUSTOMERS

            Detroit, MI July 12, 2004 The Board of Directors of AmeriChip International Inc. (the Company) (OTC- BB ACHI) is pleased to announce it has purchased from GSI Lumonics, a robotic arm that works in tandem with the Company’s laser.  GSI Lumonics, (www.gsilumonics.com) is AmeriChip’s strategic partner with the exclusive right to provide the Company with the requisite laser and robot equipment required to implement the Company’s patented LACC (laser assisted chip control) process.

Posted: 7/12/04 - CEOCFOinterviews.com
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AMERICHIP INTERNATIONAL INC.

and

CORNELL CAPITAL PARTNERS LLP

ANNOUNCE $6.3 MILLION EQUITY FINANCE AGREEMENT

_________________________________________________________________

Detroit, MI June 2, 2004 The Board of Directors of AmeriChip International Inc. (the Company) (OTC- BB ACHI) is pleased to announce that it has entered into an agreement totaling six million three hundred thousand dollars ($6,300,000) in equity financing with the New Jersey based domestic investment fund Cornell Capital Partners, LLP.

Posted: 6/3/04 - CEOCFOinterviews.com
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