Posts Tagged ‘BASF’

This might be one of the most exiting CESI finding published. Why? In December 17, 2014, the market expectations and the Nexam share price instantly plunged after the first key sentence of this specific Nexam press release:

“Nexam Chemical and BASF have jointly decided not to extend the exclusivity agreement regarding polyamide 66 compounds containing Nexam Chemical´s crosslinker, which was signed between the parties in February 2014, and which ends during the second quarter of 2015. The reason for this decision is that Nexam would like to include polyamide 66 in the projects it has with other partners in the polyamide area.

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 during spring 2015.

For more information, please contact:
Lennart Holm, Chairman of the Board: +46 (0)706 30 8562″

Despite additional information regarding continued activities, the market obviously concluded that minimal true value remained in the Nexam-BASF collaboration and since the market has not found incentives to update this opinion. Updates indicating continued activities have been absent both from external news agents, inofficial content from independent forums as well as from Nexam and BASF.

In the light of this introduction, the new BASF patent publication (described below) resulted in an increased CESI pulse and a few questions after yet another thorough scan of the December 17, 2014 press release:

“The reason for this decision is that Nexam would like to include polyamide 66 in the projects it has with other partners in the polyamide area. [..] 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 during spring 2015.”

To the best of CESI´s knowledge, no specific information is available for outsiders regarding status in Nexam projects with other partners. However, attached below is a very recent indication that BASF is progressing well within polyamide 6 and 66 and – most importantly for the Nexam share holder – BASF is adding specific Nexam cross-linkers…

Pub. No.: WO/2015/140016 International Application No.: PCT/EP2015/055018

Original Source Link (click here)

Title: CROSS-LINKED POLYAMIDES

Publication Date: 24.09.2015 

International Filing Date: 11.03.2015 (3 months after termination of the exclusivity agreement!)

In this patent, BASF claims a thermoplastic molding material containing a polyamide + glass fibers + Nexam cross-linkers + miscellaneous additives and/or fillers. To CESI´s excitement, the Nexam cross-linkers has a central role in this patent and in addition BASF states that these cross-linkers are available from Nexam (!)

CESI Diclaimer: The patent quotes attached below was subject to automated translation by the web browser and this resulted in a few grammatical errors below. To conserve the true message and accuracy, CESI decided not to edit these grammatical errors.

“It has now been found that the profile of properties of glass fiber reinforced PA can be significantly improved by the addition, inter alia ethynylmodifizierten Phthalsäureanhydri-to or imides. The additives are this compounded at very low temperatures in the polyamide, which the amino end groups of the polymer “endcap-pen”, a cross-linking but not / or will take place in the melt in just such a small scale, so that the polymer can still be processed. The triple bonds of the additives are then thermally activated in a further step, for example by introducing high shear forces during injection molding or by annealing below the melting point of the polymer. The thus obtained crosslinked polyamides have an improved property profile. in- cluding a lower water absorption, higher heat resistance and improved creep. is also reduced by the lower water absorption of the deterioration of the mechanical properties in the conditioned state.”

[…]

“Process for the preparation of the unsaturated compounds C) are known from the EP-A 2 444 387, WO 2010/36175, WO 2010/36170 and WO 2012/52550. Such compounds are available as Nexamite ® from Nexam Chem., SE commercially.”

Very particular preference is given in the novel thermoplastic molding compositions of polyamides, which are selected from the group consisting of Polyhexamethylenadipin acid amide (nylon 66, polyamide 66), a mixture of polyamides with a polyamide 66 component of at least 80 wt .-% or a copolyamide whose blocks at least 80 wt .-% of adipic acid and hexamethylenediamine are derivable, polycaprolactam (nylon-6, nylon 6), or mixtures thereof.”

Component C1 equals NEXAMITE®A32 (Nexam Chem.) (4- (Methylethynyl) Phthalic Anhydride (CAS: 1240685-26-0)

Component C2 equals NEXAMITE®A33 (Nexam Chem.) (Hexamethylene-1, 6-di- (4-methylethynyl) phthalimide)

The mechanical properties were determined in dry and conditioned state.

[…]

Component H) thermoplastic molding compositions of the invention may comprise the usual processing aids, such as stabilizers, antioxidants, heat stabilizers and UV stabilizers, lubricants and release agents, colorants such as dyes and pigments, nucleating agents, plasticizers, and so forth.

Examples of antioxidants and heat stabilizers are hindered Phos-phite and amines (eg TAD), hydroquinones, aromatic secondary amines, such as diphenylamines, various substituted representatives of these groups and mixtures thereof, in concentrations up to 1 wt .-%, based on the weight of called thermoplastic molding compositions.

UV stabilizers, which are generally present in amounts up to 2 wt .-%, based on the molding composition, are various substituted resorcinols, salicylates, Benzotriazo-le and benzophenones.

Inorganic pigments, such as titanium dioxide, ultramarine blue, iron oxide and carbon black, and organic pigments such as phthalocyanines, quinacridones, perylenes, and dyes such as anthraquinones, are added as colorants.

Flame retardants phosphorus, P- and N-containing compounds may be mentioned.

As nucleating agent sodium phenyl, alumina, silica, and preferably talc may be used.

The thermoplastic molding compositions according to the invention can be prepared according to known Ver-go, by mixing the starting components in conventional mixing apparatus, such as screw extruders, Brabender mixers or Banbury mixers, and then extruding them. After extrusion, the extrudate can be cooled and comminuted. It can also be individual components are premixed and then the remaining starting materials and / or likewise mixed. The mixing temperatures are generally from 230 to 320 ° C.

The molding compositions and moldings of the invention are distinguished by a good heat resistance, chemical resistance, low water absorption, better mechanical properties in the conditioned state, scratch resistance, dimensional stability and creep.

[…]

“The molding compositions are suitable for the production of moldings of any type, especially in the automotive sector.

Some examples are mentioned: cylinder head covers, motorcycle covers, intake manifolds on, intercooler end caps, connectors, gears, impellers, cooling water tanks.

In the E / E department can with improved-flow polyamides are plugs, plug components, plug connectors, membrane switches, PCB assemblies, microelectronic components, coils, I / O connectors, connectors for printed circuit boards (PCB), connector for flexible circuit boards (FPC) connectors for flexible integrated circuits (FFC), high-speed connectors, terminal blocks, connector, Connectors, wiring harness components, cable mounts, cable mount components, three-dimensional molded interconnect devices, electrical connectors, mechatronic components.

In the car-interior is a use for dashboards, steering column switches, seat components, headrests, center consoles, gearbox components, and door modules, and possible automobile exterior door handles, exterior mirror components, windshield wiper components, windshield wiper protective housings, grille, roof rails, sunroof frames, engine covers, cylinder head covers, intake manifolds (in particular intake manifold), windshield wipers, and exterior bodywork parts.

For the kitchen and household sector, the use of improved-flow polyamides for the production of components for kitchen equipment, eg fryers, smoothing irons, buttons, and applications in the garden and leisure sector, for example components for irrigation systems or even-tengeräte and door handles is possible.”

These stated BASF applications also aligns well with the application stated in the original Nexam Chemical press release (Nexam Chemical source link):

“Nexam signs co-operation agreement with BASF

2011-11-23

Nexam Chemical and BASF have signed an exclusive co-operation agreement regarding development and commercialization of crosslinked PA 66 (nylon 66).

The goal is to develop a PA 66, containing Nexam’s crosslinkers, which can be processed as usual to then be crosslinked using heat activation, and that the crosslinked material gets properties that are substantially better than current PA 66 based materials.

Initial application segments consist, among other things, of the automotive, electrical and electronics industry.

For more information, please contact:

Lennart Holm, Chairman of the Board: +46 (0)706 30 8562
Per Palmqvist Morin, CEO, +46 (0)706 55 55 82″

BASF patent WO/2015/140016 Summary (CESI)

  • Roughly 10 % less water content using a formulation containing Nexam cross-linker(s).
  • Roughly 20 % stiffer material (a +20 % E module number is stated). Slightly different results at different temperature. Higher stiffness at all temperatures was obtained using a formulation containing Nexam cross-linker(s).
  • Roughly 15 % better heat resistance using a formulation containing Nexam cross-linker(s)
  • Higher tensile strength (+10 %)
  • DRAMATICALLY higher gel content (BASF states higher is better): 400% after injection in the comparison between formulation 1V and formulation 2. Formulation 2 contains NEXAMITE®A32 and NEXAMITE®A33. The gel content after heating at 220 ° C is roughly 50% for formulation 2 compared to < 5% for formulation 1V.

Conclusion (CESI)

CESI does not interpret this patent as a BASF strategy to actively delay or block Nexam cross-linkers from the market. Why? All stated result data is superior to “Nexam free polyamide”. BASF should have strong incentives to capitalize on this formulation / innovation. In fact, the claimed applications are aligned well with the previous statements (Nexam: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 during spring 2015″). Presumably, the patent filing date (Mars 11, 2015) might indicate that these tests were successful and that the collaboration is in fact still an active collaboration. In addition, BASF clearly states that the cross-linkers are Nexam derivatives AND also states that they are commercially available from Nexam. Therefore, CESI does not believe that BASF plans to produce these cross-linkers in-house. 

So what did happen back in December 2014?

Due to the complexity of the formulations stated in this patent (i. d. the large number of “ingredients”), CESI is relatively convinced that the earlier BASF exclusivity agreement was in fact terminated by Nexam (as officially and originally stated) primarily due to delays in the formulation work performed at BASF. Logically, BASF had no ambitions to buy large volumes of cross-linkers without a confirmed successful formulation. Speculatively (with this patent as the guide), it seems like BASF did not solve prior formulation issues until in the beginning of 2015. Therefore, CESI also believes that only the exclusivity agreement was terminated (not the collaboration). Furthermore, Nexam´s input in terms of “hands on late stage formulation optimization” has likely been limited since (compared to 2014 when CESI got the impression that Nexam and BASF worked next to each other on a daily basis). In conclusion, this has potentially freed up resources and therefore Nexam logically and easily could take the strategic and intelligent decision to (temporarily?) exclude nylons as a focus area. Another key game stopper for top prioritization of polyamides could be “unknown time to market” for cross-linked BASF Nylons (containing Nexam cross-linkers). CESI believes that a similar strategy will be applied for other current polyamide collaboration partners with a small twist :This time, Nexam aims to charge for consulting. Finally, CESI speculatively predicts a future BASF market launch containing Nexam cross-linkers and that Nexam ultimately will capitalize on future BASF polyamides (nylons) after all. CESI embraces this potential BASF counter-strike within yet another gigantic polymer market segment. 

Note: Slightly more reading in SwedishClick here if of interest (a Dec, 2014 email from L. Holm to Six News, source: Aktiespararna):

Best regards, C.E.S.I.

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. 

Nexam (in Swedish!)

Posted: 18 October, 2014 in Published Investment Calls
Tags: , ,

Den viktigaste anledningen till varför undertecknad är övertygad om att Nexam Chemical kommer att överträffa redan högt ställda förväntningar är den vetenskapliga kärnan i företagets teknologi. Till min kännedom har denna vetenskapliga kärna överhuvudtaget inte blivit belyst av analytiker eller journalister. Mycket har skrivits och skribenter har snuddat vid ämnet, men dessa individer har lika snabbt tittat upp och zoomat ut. Jag förstår varför.

Företagets VD Per Morin har hävdat att företagets slutkunder är “i princip alla som tillverkar plast” och han exemplifierar kylskåpsproducenter, bilindustri, flygplansindustri och plastdetaljer. Vidare hävdar han att “för oss är detta nästan som Losec”.

Undertecknad tror inte att Per Morin är medveten om hur vetenskapligt träffsäkert detta Losec uttalande är.

Varför? Jag skall nu kortfattat försöka förklara:

Den aktiva kemiska substansen i Losec har namnet Omeprazol. Omeprazol är en selektiv och irreversibel protonpumpshämmare. Denna hämmare minskar utsöndring av magsyra genom att stänga av magens syrautsöndring. Det genialiska med Ompeprazol finner vi i de molekylära detaljerna. Den viktigaste detaljen är att Omeprazol aktiveras av just magsyra. Molekylen börjar alltså först arbeta då den behövs (vilket sker genom att substansens pyridindel protoneras och då triggas en kaskad av händelser och resultatet blir att magsyrapumpen “stängs av på lämpligt sätt”).

Losec / Omeprazole kan alltså definieras som en målsökande missil.

På samma sätt så finner vi genialiteten med Nexams tvärbindare i de molekylära detaljerna. Tvärbindarmolekyl nummer 1 binder kovalent (=jättestarkt) först till första molekylen av aktuell polymer. Denna nya enhet kallar vi nu tvärbindar-polymer konjugat nummer 1. Detta konjugat kommer sedan att reagera samtidigt både med tvärbindar-polymer konjugat 2 och tvärbindar-polymerkonjugat 3. Det som händer i detta ögonblick är att de tre enheternas centrala fragment (alkyndelen) “parar sig kovalent” och barnet av detta blir en helt ny, väldigt stabil molekyl. Ett benzen derrivat. Detta blir då en ny knut, en ny hub, i den nya polymer strukturen.

Nexams tvärbindare kan alltså definieras som en dubbelt målsökande missil (!)

Olyckligtvis så visualiserar bara Nexam Chemicals denna fantastiska händelse blott med bilder i vilken “tre separata bollar går ihop och lägger sig jämte varandra”. Detta är ej riktigt vetenskapligt korrekt.  Nexams kemibild (se presentationer på http://www.nexam.se) är dock förstås blott tänkt att på ett icke vetenskapligt sätt pedagogiskt visualisera det som händer i tvärbindarprocessen. Tyvärr är den så flummig att den blir svår att förstå. Därför blir det också väldigt lätt för kritiker att inte ta Nexams representanter på allvar. Jag har sett detta ske och jag har samtidigt full förståelse att det sker. Detta är olyckligt. Efter Nexams presentation på aktiespararnas event tidigare i veckan så var det många som undrade följande: Vad är egentligen höjden? Hur mycket bättre blir materialet? Min personliga slutsats när jag överblickade denna diskussion var att frågorna överhuvudtaget inte kunde besvaras pedagogiskt av Dane. Han loopade mantrat att “annars skulle inte BASF och de övriga stora aktörerna inom polymer industrin vara intresserade”. Detta är korrekt, men svaret är ej bra, men det spelar heller ingen större roll. Samtidigt krävs det ju en hel del kompetens för att kemiskt övertyga ett gäng “äldre”, relativt negativt inställda icke-kemister, som faktiskt antagligen primärt var på aktiespararnas event för att lyssna till det lokala fastighetsbolaget Platzer :). Undertecknad fick känslan att det var det yngre klientelet som Nexam hade attraherat. Efter dragningen och frågestunden fick jag några minuter med Dane. Självklart var då svaren relativt specifika (eftersom mina frågor också var relativt specifika). Dessa svar höll kvalitet Dane! Tack!

Bild 22 i denna presentation nedan visar Nexams “tre separata bollar som går ihop och lägger sig jämte varandra” :

http://www.nexamchemical.com/Documents/Presentationer/Company%20Presentation%20December%202013.pdf

Istället för att sura över denna bild, så konstruerade jag några egna för att tydligt visualisera den centrala och kritiska molekylen som bildas i Nexams tvärbindningsprocess. Denna visualisering finner du här (kemibild 3 och 4). Bildtexterna är tyvärr fortfarande på engelska, men här visualiserar jag tydligt att man faktiskt bildar en ny stabil “knut molekyl”. Det är alltså så att Nexams “bollar”, dvs polymer aggregat, har bundits samman med starka kovalenta (SP2 och SP3) kol-kol bindningar (i diamant finner vi också (SP3) kol-kol bindningar…)

https://cuttingedgescienceinvest.com/2014/09/28/nexam-chemical-nexam-genius-applications-of-the-148-year-old-berthelot-reaction/

Här är exempel på företag som Nexam samarbetar med. Enligt Dane har Nexam aldrig “tappat intresse från någon extern part”. Detta var antagligen inte de exakta orden Dane använde, men detta var budskapet.

Nexams teknologi i punktform:

  • Polymererna blir lättare att processa (mindre viskösa oligomerer kan ersätta viskösa polymerer)
  • Nya polymerer i nya processer i nya produkter. Per Morin har tidigare uttalat att “alla som sysslar med plast är potentiella kunder för Nexam” (inkluderat flyg, bilar, detaljer…)
  • Ökad värmestabilitet
  • Ökad kemisk stabilitet
  • Ökad mekanisk stabilitet
  • Ökad UV beständighet
  • Förbättrade totala egenskaper till ett lägre pris
  • Inga större omställningar i befintliga processer behövs (dyr maskinell hårdvara behövs ej)
  • Under de sista 6 månaderna har Nexam introducerat sig för nya stora aktörer
  • Ökad grad av aktivitet i bolaget
  • Blott Armacell och BASF kan separatresultera i en omsättning av 10 MSEK första året och 50 MSEK andra året, med en nettomarginal på 40% (!)
  • Nexam spår att det snart kommer att annonseras nya applikationer (inom elektronik, energisektorn i Asien, Europeisk plaståtervinning)
  • I framtiden predikterar Nexam nya applikationer inom nylon industrin.
  • I framtiden predikterar Nexam några applikationer inom polyolefin industrin.
  • En ny produkt är under utveckling i kina.

Tar Nexam 1 % av marknaden motsvarar detta en årlig omsättning om 15 miljarder. Undertecknad tror ärligt talat detta estimat är lågt, men självklart är det helt omöjligt att sia om framtida marknadsandel. Ett hisnande faktum är samtidigt att om Nexam tar 3% av världsmarknaden så motsvarar detta en årlig omsättning om 45 miljarder. Detta är anledningen till att Nexam handlas till ett aktiepris som idag sammanslaget motsvarar ett bolagsvärde på cirka 0.9 miljarder. Detta kan anses högt. Undertecknad anser att det är väldigt lågt. Just därför äger också undertecknad aktier i detta bolag. Självklart kan man inte annat än säga att Nexam är ett förhoppningsbolag. Undertecknad är dock HELT övertygad om att Nexam kommer att utgöra en liten del av nästa industriella revolution: Förbättrade material genom genialisk molekylär design.

Slutnot: I avslutningsvis nämnda industriella revolution plockar jag även in grafen teknologin. Grafen utgörs av ett 2 dimensionellt monomolekylärt “täcke” av kolatomer cirka 100 ggr starkare än stål. Idag går det, till min kännedom, inte att kostnadseffektivt tillverka dessa monomolekylära “täcken” i nämnvärd industriell skala. Samtliga företag inom detta område är mer eller mindre ren hype, men inte allt för många år till.

I nedanstående länk har jag i mer utförligt format analyserat Nexam (samma länk som ovan).

https://cuttingedgescienceinvest.com/2014/09/28/nexam-chemical-nexam-genius-applications-of-the-148-year-old-berthelot-reaction/

Undertecknad är  övertygad om att Nexam relativt snart kommer att påbörja samma resa som Hexpol har gjort (http://www.bloomberg.com/quote/HPOLB:SS/chart , se 5 årsgrafen…). Denna resa bör dock bli ännu bättre. Time will tell.

The scientific key to the expected near future Nexam Chemical commercial success has not yet been highlighted by analysts. Tentatively, due to a lack of scientific understanding. C.E.S.I. hopes this chemical analysis of the Nexam linker central scaffold also will enlight “non-chemist”. But first, a few quotes and some financial aspects from the recent Nexam interim report (Q2, 2014):

http://www.nexamchemical.com/Documents/Interim%20Reports/Nexam_ENG_Q2_2014_20140821_OK.pdf

Nexam Chemical 

“Nexam Chemical develops technology and products that make it possible to significantly improve the properties and performance of most types of plastics in a cost-effective manner and with the same production technology intact. The properties that are improved include temperature resistance and service life. The property improvements that can be achieved by using Nexam Chemical’s technology make it possible to replace metals and other heavier and more expensive materials with plastics in a number of different applications. The company was founded in July 2009 after a management buy-out of a crosslinker project from the Perstorp Group. By then, Perstorp had put a number of years into the development of the project, but decided to divest its involvement in the field to instead focus on aldehyde-based chemistry. Nexam Chemical currently has fifteen employees in Sweden and eight in Scotland. The Company’s head office and R&D are in Lund, Sweden, but its production takes place in St. Andrews, Scotland”

Ongoing partnerships and customer projects

“Since Nexam Chemical’s technology was introduced in 2009, a number of development projects and partnerships have been entered into with a range of leading parties, of which several are world leaders in their respective niches. They include BASF, Repsol, IRPC, Sumitomo, ABB, NASA and Rolls-Royce. Nexam Chemical currently works with over 20 of the world’s 100 largest chemicals and materials companies.”

Vision and mission

Nexam Chemical’s vision is to be a recognised world leader in the field of property modification of plastic and polymer materials via heat-activated crosslinking.

The scientific key.

But before C.E.S.I. continues, let´s halt and highlight a few statements depicted in this article:

The author “BSV” quotes (slightly edited and translated by C.E.S.I.)

The article ends with a milestone quote fr Nexam CEO Per Morin quote from a Redeye (video) presentation.

“For us this is almost as Losec, we will be protected for 20 years and we can dictate who will get to do it and on what terms …”

  • C.E.S.I. does not believe that Nexam is developing a ground braking product, because…
  • C.E.S.I. is 100% convinced that Nexam is developing an array of ground breaking products.
  • C.E.S.I. also claims that the CEO´s quote “For us this is almost as Losec” is an understatement in respect to scientific quality.

Why? Here is why:

Losec, i. e. Omeprazole, is a selective and irreversible proton pump inhibitor. It suppresses stomach acid secretion by specific inhibition of the H +/K + ATPase system. Because this enzyme system is regarded as the acid (proton, or H+) pump within the gastric mucosa, omeprazole will inhibit the final step of acid production. http://en.wikipedia.org/wiki/Omeprazole.  However, the beauty is in the fine details of the chemistry! The drug Omeprazole is activated by stomach acid (by protonation of the pyridine moiety, which triggers the remaining desired cascade of events). Thus, Omeprazole should be defined as a target seeking missile.

Likewise, the beauty of the Nexam cross linker is also in the fine details of the chemistry! Cross linker molecule number 1 covalently binds both the polymer and the cross linker-polymer conjugates of the cross linker molecules number 2 and number 3. Thus, the Nexam cross linker molecules are double target seeking missiles! Thus, C.E.S.I. claims that the CEO statement “For us this is almost as Losec” is an understatement in respect to scientific quality. Both the description, the chemistry, the impact and the hidden simplicity is hard to grasp, especially for a non-chemist..

Therefore, the scientific key will also be explained in one single picture, which was also appreciated the small children of C.E.S.I. In fact, this synthetic scheme was C.E.S.I.s´ contribution to the family´s joint art weekend session…

PLEASE CLICK PICTURE TO ENLARGE

Nexam PNG

C.E.S.I. was only 99% confident that the combination of the Nexam polymers was a genius application of the historical 1866 Berthelot reaction. This key question had to be addressed, so C.E.S.I. submitted this question and this exact picture included…, to the Nexam CEO Per Morin and Daniel Röme, PhD and NEXAM Director of Business Development & Innovation. The content was much appreciated, confirmed and approved. Logically, Per and Daniel recommended C.E.S.I. to add another 4 words to the title: “A first and simplified crash course on Nexam Chemical Crosslinking perspective”.

Likewise, Per and Daniel also stressed that this simplification dedicated to non-chemists was appealing (Sept 25, 2014). They recommended C.E.S.I. not to edit the early draft picture “too much” (most likely, they also wished you, the reader of the manuscripts´ final version , a few moments of laughter.

However, C.E.S.I. came to the conclusion that a non-chemist still would not grasp the scientific beauty of the Nexam technology. This conclusion resulted in a few additional graphic views to illustrate the Nexam technology:

CLICK PICTURE TO ENLARGE!

 Benzene Diamond Graphene Introduction FINAL3

CLICK PICTURE TO ENLARGE!

Sunday FINAL Berthelot

CLICK PICTURE TO ENLARGE!

CYCLOTRIpng240SUN final

Key scientific messages in these graphic slides:

  • Nexam´s cross linker design is a genius application of the “forgotten” Berthelot reaction
  • The Berthelot reaction – as such – has been ignored (and been forgotten about!) by scientific communities, presumably due to the inherent issues in other non cross-linker applications (i. e. “normal” synthetic chemistry).
  • The core of the Nexam cross linker technology end-products is a Benzene derivative. Benzene derivatives are very stable. This derivative should be a perfect central hub (=knot) in most multidimensional polymer frameworks! Nexam technology is not solely genius – It is unique!

Nexam competitors?

C.E.S.I fails to find Nexam competitors. Most likely, there is competition in this specific cross linker technology, but C.E.S.I. can not find any relevant “Nexam threats”. The most interesting finding is this article:

http://www.ptonline.com/articles/radiation-crosslinking-boosts-nylon-properties

“TechnoCompound offers nylon 6 compounds that can be crosslinked with standard electron-beam technology, including conveyor batch processing, in-line wire/cable processing, and film/sheet processing. Companies can utilize existing electron-beam processing equipment to replace higher-cost thermoplastics with high-performing and more economical crosslinkable nylon (see Table 1). TechnoCompound’s compounds have been targeted for electrical connectors, with a strong focus on automotive applications where higher temperature performance is required.”

And the article summarizes:

“OTHER ACTIVITIES IN CROSSLINKED NYLON

Most of the development activity and commercial use of crosslinked nylons has taken place in Europe and Asia. Sumitomo Chemicals was among the first companies that pursued crosslinked nylons. By 2005, the company had developed new radiation-crosslinking nylon 66 molding compounds, which were adapted commercially for heat-resistant electrical connectors.

In late 2011, BASF (U.S. office in Florham Park, N.J.) and Sweden’s Nexam Chemical, a supplier of heat-activated crosslinkers for polymers, forged an exclusive cooperation agreement to develop and commercialize crosslinkable nylon 66 for automotive and electrical/electronic applications as initial targets.

Foster Corp., Dayville, Conn., developed its Fostalink crosslinkable elastomeric nylon compounds for medical applications such as catheters and valving, and nonmedical applications such as heat-shrink valving.”

C.E.S.I. : Examples of TechnoCompound´s crosslinker technology and specific cross linkers:

“Nylons 6, 66, and 11 can be radiation crosslinked, but the first two require addition of a crosslinking agent. For example, the polyfunctional monomer triallyl isocyanurate or triallyl-cyanurate can be compounded into nylon pellets. The crosslinkable pellets can then be molded, extruded, or otherwise formed into the final product”

A google triallyl isocyanate price search, makes C.E.S.I. feel like the scientist Mr Walt in the cutting edge quality TV series “Breaking Bad”:

http://www.alibaba.com/showroom/triallyl-cyanurate.html

Despite the low cost of “triallyl isocyanate” (1-2 US$ / Kilogram), this cross linker is based on “electron beam technology”, which to C.E.S.I seems inferior to standard heat activation of cross linkers (Nexam-BASF. Nexam-Armacell, Nexam-X, Nexam-Y etc. etc.)

http://en.wikipedia.org/wiki/Electron_beam_processing

Very interestingly, the Nexam CEO Per Morin touch upon this subject in an Introduce.se Nexam Video interview (June 10th, 2014). His conclusions are in accordance with the C.E.S.I. conclusions: “Electron Beem technology has been around for 50 years, it´s simply too expensive”

http://www.introduce.se/foretag/nexam/intervjuer/2014/6/nexam—intervju-med-vd-per-palmqvist-morin-och-forskningschef-dane-momcilovic/

And the competition from the giants within Process Polymer industry? Well, it seems that theese “key industry leaders” are aligning themseves to the core Nexam technology…

Nexam – Scalability issues?

Daniel Röme, PhD and NEXAM Director of Business Development & Innovation and Per Morin Nexam CEO:

Translated and slightly edited by C.E.S.I (!):

“I judge the risk of being unable to scale up production as relatively small,” says Daniel Rome. Instead, he assesses the risk of postponed projects as higher. This has happened before for Nexam. When plastic manufacturers are in reorganizations or depressed market conditions, they prioritize ongoing projects and existing customers in front of the development projects in where Nexam are involved. Nexam believes it can provide more information about pet foam-scaling during September or at the next quarterly report, and CEO Per Morin estimates that Nexam could ultimately turnaround around 50 million a year on the pet foam project with this specific client. Generally, Nexam Chemical aims towards gross margins around 40-50 per cent, he says, but declines due to many uncertain parameters to provide any more long-term sales forecast. According to the Nexam CEO, Per Morin: Today, we can not see a need for a rights issue to scale up production with connected associated working capital requirements, “No, instead we’ll solve the working capital requirements by negotiating with our customers and suppliers”

Original swedish version in link below (please use google translate):

http://www.privataaffarer.se/direkt-nv/nexam-upprepar-prognos-om-breakeven-2h-2014-vd-545809
C.E.S.I. conclusion: Nexam is Nexam´s worst enemy, or?

The molecules, i. e. the products, in the Nexam pipeline are extremely easy to synthesise for most chemists ( a person skilled in the art of constructing new molecules). One might argue that Nexam can produce the linkers in the most cost efficient way and this might be true today, but potentially not in the future or even near future. C.E.S.I. predicts that it would take an experienced Synthetic Chemist (e. g. C.E.S.I.) approximately 5-15 days to synthesize (= to construct) one or a few grams of cross linker material. C.E.S.I. has + 13 years of experience in small scale small molecule synthesis. C.E.S.I. can not understand that a high quality process company with a vibrant creative environment should, per default, fail to copy the Nexam cross-linkers with roughly the same production cost (or even at lower production). Therefore, securing the intellectual Property (IP) must at all times be on top of Nexam´s highest priority agenda. From the massive IP press release news flow from Nexam, C.E.S.I. concludes that the Nexam CEO and the Nexam board has understood this key issue. Thus, C.E.S.I. is thrilled of excitement. Now, it seems that analysts and the market “demand” a big order from a key industry process company. Today, C.E.S.I. does not share the analyst’s and the market´s demand. C.E.S.I. would like to see even a few more “new patent press releases” prior to the announcement of the first big order. However, the recent small order announcement is a key milestone (see below). This order is a another “proof of concept” i. e. it is a solid proof that the nexam technology is not solely of academic interest… C.E.S.I. predicts that Nexam will be a key player in the next industry revolution (New superior bulk- and advanced materials).

http://www.nexamchemical.com/en/Investors/Press-releases/Pressmeddelande/?releaseid=1701030

http://www.nexamchemical.com/en/Investors/

The world of plastics and polymers is wide and complex. There are tons of materials out there and only some of them can and have been optimized for use in 3D printing. So, if you were a company that produced some of the most advanced polymeric mixes out there, what would you do? You would probably do what Sweden based Nexam Chemicals just did for its PEPA Crosslinker: develop a process for using it for 3D printing with thermoplastics.

Nexam is known for developing technology and products that improve the properties of polymeric materials using conventional processing equipment (i.e. extruders). Its technology is used for cross linking polymers (which in principle can consist of an unlimited number of monomers) and oligomers (which consist of only a few monomers) to create new cross linked polymers with superior properties.

Controlled crosslinking can give the original polyamide enhanced properties in terms of chemical resistance and thermal/dimensional stability, make it stronger during use and make it more recyclable. It can also improve throughput and enable new processes.

According to the latest Chinese patent filed in China by the Institute of Chemistry at the Chinese Academy of Sciences, that is what the Crosslinker PEPA material (aka Neximid 100) will do, by enabling new methods and new capabilities for 3D printing of polyamide thermoplastics, giving nylon properties that in certain circumstances may allow it to be used to replace metal components.

http://3dprintingindustry.com/2014/09/26/nexam-chemical-gets-3d-printing-crosslinker-pepa/

And the current Nexam portfolio? There is still room for improvements.

CLICK PICTURE TO ENLARGE!

Nexam produktportfölj by CESI

Nexam – Better plastics, Final conclusions by C.E.S.I.

  • Increased processability equalls…
  • New polymers in new processes in new products
  • Increased thermo stability (heat stability)
  • Increased chemical stability
  • Increased mechanical stability
  • Increased UV
  • Increased “total plastic properties” to a reduced price
  • Nexam´s customers can direct use the Nexam products, without associated major hardware refurbishment costs
  • Last 6 months: The Nexam technology has been introduced for new world leading companies.
  • Increased level of activity in the company
  • Solely, the Armacell and BASF project can respectively result in a turnaround of 10 mSEK year 1 and 50 mSEK year 2 – with a net marin of 40% (!)
  • Nexam predicts that news regarding more new applications soon will be announced (electronics, Asian energy sector, european plastic recycling projects),
  • In the future: Nexam predicts additional new nylon applications
  • In the future: Nexam predicts ”some concepts involving polyolefins”
  • A new product is under evaluation in china

The Nexam case is – without competition – C.E.S.I.s´ all time favorite company and investment call!

A prediction of the near future share price is slightly silly and surprisingly difficult.

A prediction of the 2019 year share price is also slightly silly, and also impossible.

C.E.S.I. is biassed and extremely positive.

Why?

Nexam End 1

…and…

End 3

C.E.S.I. has granted the approval to share these official Nexam slides (Per Morin). Original material is available at http://www.nexamchemicals.com (presentation section)

Interim Financial Statements for Quarter 3, July–September 2014

Entering into a new phase with high speed

Several new projects have been initiated during the quarter, mainly with European customers, and Nexam Chemical has delivered products to several of them. Our partnership with Armacell is progressing, albeit with some delays. We are also poised to begin a project funded by Eurostar that we will be working on together with Armacell and The European Van Company. The aim of the project is to upgrade recycled PET for use in PET foam and other applications. We were informed in the summer that this project will receive funding from Eurostar. In addition, many other entities in Europe are testing Nexam Chemical’s formulations mainly for upgrading recycled PET resin for various applications. Nexam Chemical entered into a cooperation agreement with its polyethylene partner IRPC over the summer for development and commercialization of modified polyolefins. IRPC has informed us that they now have passed the development phase, with respect to a polyethylene quality for pipes, and will begin testing the quality for approval together with their end client in the autumn/winter. This will be an interesting and potentially large application area for our company. Nexam Chemical held a technical launch of its new high-temperature resin, NEXIMID® MHT-R, in the beginning of October and we have already received several inquiries from around the world. In addition to the project with Rolls Royce and Swerea SiComp, we are expecting several companies to initiate projects with the new resin in the coming years. The in-depth section of this report features a fairly new area for Nexam Chemical: liquid crystalline polymers, or LCP plastics as they are often referred to. This material is rapidly gaining ground, especially in the electronics industry, where Nexam Chemical has already established itself as a supplier of products for property improvement.

Best regards, C.E.S.I.

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.