Nexam Chemical, firmly approaching large volume orders?

Posted: 24 November, 2017 in Nexam, Published Investment Calls
Tags: , , , ,

After a long period of humble and neutral statements, the Nexam Chemical CEO currently sings in major key. With cash ~100 Million SEK, the songs seems trustworthy:

Disclaimer: Presentation in Swedish. See recent interim reports for hard facts. 

 

The recent audiocasts also contain a lot of interesting information:

https://tv.streamfabriken.com/nexam-chemical-q3-2017

https://tv.streamfabriken.com/nexam-chemicals-q2-2017

Not only within its own internal patent portfolio, but also within the public external patent application landscape, Nexam Chemical seems healthy:

Slide1

Despite continued delays from Armacell (commented above)…

02/22/2017

 

…substantial scientific leaps within the research pipeline (with subsequent external funding) has been taken by the CEO Anders Spetz during the year:

05/15/2017

 

This press release is conceptually very interesting as graphene is predicted to become the next industry “wonder material” [Source link]

Furthermore, within the presumable future Nylon business area that…

09/21/2017

 

…vibrates well with the sheer CESI speculation that Nylon crosslinking using Nexam proprietary molecules eventually will be a reality (in industrial scale). Within the Nylon area, BASF is still presumably a Nexam partner due to (CESI speculation again):

  • The patent application previously commented here [Source link]
  • The Statement from Nexam in the original press release announcing the exclusivity agreement termination: “The collaboration will however continue between the parties and test material based on BASF’s polyamide 66 and Nexam Chemical’s additives will be tested in components by e.g. the automotive industry” )

 

Very interestingly, Nexam also attracted interest from the electronics industry:

10/17/2017

Nexam Chemical will early next year start supplying material to a new Japanese customer within the focus area high performance polymers, and thereby opening a new high performance segment – solutions for semiconductors.

The customer, a leading Japanese manufacturer of semiconductor materials, has for a long time collaborated with Nexam Chemical to produce materials that meet the high standards of semiconductor encapsulation materials. Semiconductors are included in the components of most of the electronics we currently have around us, e.g. mobile phones, computers etc. As components become smaller, the demand on heat resistance have increased. Nexam Chemical has materials that fit well for these requests.

”So far we have been focused on high temperature composites in the high performance area. We now have a first customer within semiconductors and we see opportunities for interesting projects together with several players, which in in the long run can lead to business. Initially it is about smaller volumes, but with a potential to develop further. This is a new exciting area where Nexam Chemical’s technology can create value for the material manufacturers” says Anders Spetz CEO at Nexam Chemical.

“The interest from the companies developing semiconductors is mainly based on that Nexam Chemical´s material and products enable curing at lower temperatures. The polymeric materials included in the semiconductors are cured in a later stage of the manufacturing process and therefore needs to be done at a lower temperature so that other parts are undamaged. As the industry moves towards smaller and smaller components, the temperature in the components are often higher during usage. Therefore, temperature-resistant materials like polyimide are needed. However, polyimide must normally be cured at fairly high temperatures, but with the help of NEXIMID®, the temperature can be reduced with up to 100 degrees Celsius. A significant difference” says Masaki Shimada at Kadotoku, Nexam Chemical´s distributor in Japan.

Another proof of principle of valuable product molecules is the announcement that Maverick has placed a first decent size order. Maverick is a producer of high temperature polyimide resins for the aerospace industry

0/26/2017

Nexam Chemical has received an order from Maverick with a value amounting to approximately SEK 5.3 million for NEXIMID®. The order will delivered according to call-off from the customer during 2018.

NEXMID® can be used to manufacture polyimide resin, which is an essential component in temperature resistant composites. Composites containing NEXIMID® is used in environments where extensive material stress and high temperature put extreme requirements on the material. The application area is mainly within advanced aircraft, space and other areas where the performance requirements on the materials are the highest.

“The order from Maverick is a confirmation that our solution add high value and that we have a strong offer within the high performance area. We are happy to see an increase in the order volume, which is promising for the future and we continuously work with the customer to provide new solutions that can generate additional value to their growing business”, says Anders Spetz, CEO.

Most importantly, new evidence that Nexam product molecules are viable is the following important press release. Despite the initial small order, this order should be defined as a proof of concept order:

11/07/2017

Diab, a global leader within core materials for various types of demanding composite constructions has placed its first major order of NEXAMITE®-based masterbatch. The order value amounts to approximately SEK 600 thousand and delivery will take place during the fourth quarter.

 

The launch of high performance PET-foam has started, with NEXAMITE®-technology forming an essential part. The PET-foam contains Nexam Chemical’s property enhancing additive NEXAMITE®, delivered in masterbatch formulation. Using NEXAMITE® in masterbatch formulation simplifies customers production process and secures a consistent product quality in the customers existing production equipment.

“I am very pleased that we now see the results from our development cooperation with Diab. It is a commercial breakthrough order for Nexam Chemical within the area PET-foam and I am convinced that we together with Diab has developed really strong products, relevant for solar and wind energy, automotive and transport solutions, as well as advanced building constructions. We look forward to a continued good cooperation with Diab,” says Anders Spetz, CEO at Nexam Chemical.

Of great importance is the following detail: Nexam is able to deliver already during Q4.

Another milestone that not yet has solidified financial impact is the following announcement:

11/15/2017

Nexam Chemical has received a first order from one of the leaders within high performance PET-foam. The order value amounts to approximately SEK 400 thousand and will be delivered during the fourth quarter.

Nexam Chemical develops and manufacture property enhancing additives under the brand NEXAMITE®. NEXAMITE® is delivered in a pre-blended mix, a so-called masterbatch. Through masterbatch NEXAMITE® can be added to customers’ existing production equipment, which simplifies the production process and ensures a high and stable product quality. This is the third leading company within PET-foam manufacturing that Nexam Chemical deliver masterbatch to.

“It is very pleasing to see that our determined work now start to become fruitful. The customer has tested our products for some time and we have now been trusted in delivering the first volume going directly into their production of high performance PET-foam. We look forward to further deepen our cooperation for increased volumes in the future,” says Anders Spetz, CEO at Nexam Chemical.

Additional CESI blog posts are available here [Source link]. Personally, CESI is most interested in the PE pipe business segment reviewed here [Source link]

CESI has also refreshed his memory by re-reading all previous interim reports. A collection of information defined as interesting is attached below:

Slide2Slide3Slide4Slide5

And worth highlighting is also the namned partner in the recent successful MATPAX project:

11/14/2017

MATPAX, a two year Eurostars/Vinnova funded collaboration project between Nexam Chemical and two European project partners, has been completed according to plan. The aim was to develop new polyamide resins and a new manufacturing process with the goal to address light weight applications within, for example the electronic and automotive industry. Based on the positive results so far, the partners have agreed to further develop the technology.

The main focus of the project was to develop a system solution comprising a tailored resin, with embedded reactive functionality (cross-linkers), and a production process to manufacture crosslinked parts from this resin. The test results displayed significantly enhanced mechanical properties. These results create opportunities for new applications where, for instance product performance could be retained in parts made with less material than existing products – enabling weight reduction.

“The MATPAX-project was successful and the participants are optimistic about this technology. We are developing a new solution with an interesting future and we have gained a lot new knowledge about plastics materials development”, says Dane Momcilovic, CTO.

For more information about the project visit www.vinnova.se (only in Swedish). Nexam Chemical has received half of the project cost as contribution from Vinnova. Total contribution received during the project amounts to approximately SEK 2.4 million.

Partner info:

http://www.emsgrivory.com/en/about-ems-grivory/about-ems-grivory/ems-grivory-at-a-glance/

EMS Grivory product overview:

http://www.emsgrivory.com/en/products-markets/products/product-overview/

Best regards, CESI

The author, Cutting Edge Science Invest, is a Nexam Chemical share holder. Cutting Edge Science Invest can not guarantee, or take into  accountability, the content of truth and accuracy of the information in this article/post.Thus, Cutting Edge Science Invest requires that a possible reader gather complimentary information if any type of investment in the company described above is considered. Cutting Edge Science Invest provides personally biased information and at best also “general information and opinions”. The article/post does not contain professional investment advice. 

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