Everything has fallen neatly into place for Svenska Aerogel in the last year thanks to our Quartzene solution. Quartzene is a substantially improved and considerably more cost-effective version of the super material aerogel. As we are increasingly acknowledged for our accomplishments, interest from customers and partners has proven greater than we could hope for. In answer to this, we need now to invest in our manufacturing capabilities and our sales and marketing organization.
What has our little company in Gävle accomplished that has sparked such interest? It all started when we created a novel aerogel manufacturing process – with its very low weight and great porosity – in addition to improved properties. For example, the material has extremely good thermal insulation capacity and efficient purification capabilities through filtration. In addition, aerogel is among the lightest-known solid material, which can even capture extremely small cosmic particles.
No wonder the material is so highly praised and widely used by the American space agency NASA – known for being uncompromising when it comes to equipment and material.
If aerogel is so amazing, why is so little known about it? The explanation is simple. Though the material has existed since the 1930s, it has been too expensive for wider usage.
With Quartzene, the Svenska Aerogel team has succeeded in significantly improving the relationship between price and performance, halving the price while maintaining excellent, and in some cases, improved, performance.
Now you can get double the material for the same price as before. Our developers have also been able to extend this super material’s areas of usage. Unlike traditional aerogels, Quartzene can be used both in contexts requiring water absorption (hydrophilic) and water repellency (hydrophobic) properties. The process also enables adaptation of the material to capture pollutants in the filtration of gas or liquids.
Quartzene makes it economically feasible to start using aerogels in new applications. Our solution also opens up to new areas of usage that were impossible in the past. So when Svenska Aerogel introduced it to partners, customers and at trade fairs, the response was positive – in some cases, overwhelmingly so. A great number of companies have begun to do research on and work with Quartzene in the products they offer. In fact, as I write this, 150 of our customers have begun to offer their own customers solutions in which Quartzene constitutes a clear competitive advantage.
The possibilities for our material are many, but due to our limited organization, we have decided to initially focus on three areas, namely:
- Paint and coatings
Let me present a few concrete examples of products or solutions in which we consumers could encounter the benefits of Quartzene in the future. Imagine a paint that could stop a dashboard from heating up. Or a light, thin jacket that could keep you warm, even in winter. Or, in conjunction with fruit, which could keep for much longer than it does today. Or in treatment plants, where toxins could be captured that cannot be captured today. These are just a few examples of the many possible areas of usage.
To meet increased interest and sales, Svenska Aerogel needs to scale up its operations, in manufacturing and organizationally.
In order to leverage our advantage, we need to hire more sales engineers and manufacturing staff.
Based on current demand, we foresee a significant increase in sales in 2018 and an even sharper increase in 2019. For this, we need to hire resources to ramp up production. From our current production capacity of 3 tons per month, we need to ramp up gradually to be able to produce 20-40 tons a month, while also building an organization that can actively process and manage customer demand.
I am often asked how great I see the risks that someone comes up with a better solution that Quartzene or that someone succeeds in copying our production process. In my opinion, the risks are insignificant, thanks to our solid patent portfolio and our considerable experience and competence in working with aerogels since the mid 1990s.
In summary, Svenska Aerogel is in a phase of commercialization that has the capability to create significant value for current and potential owners. From this advantageous position, we invite you to purchase stocks in the company.