Abakan Announces Growth and Acquisition Plan For PComP Nanocomposites
(Nanowerk News) Abakan Inc., an emerging leader in the advanced coatings and metal formulations markets, today announced completion of Phase I of its PComP nanocomposite coatings growth and expansion strategy, which involved installing additional powder microencapsulation equipment to double throughput. Phase II, expected to be completed by the end of 2013, will add more nanoparticle production equipment and sintering furnaces to expand production of this highly engineered product to 18 tons per year. Phases III and IV are scheduled to expand production to 60, and then 180 tons per year over the next twelve months. Further growth and expansion plans over the next 3 years call for the acquisition of up to 10 US based thermal spray production businesses, that will have a total of 30 to 40 spray booths, that service the growing oil and gas sector, each coating cell can generate up to $5 million in revenues.
"PComP nanocomposite coating materials have proven their ability to extend component lifetimes while improving efficiencies and economics of the coating process. These advantages are now attracting the attention of large oilfield equipment manufacturers for replacing chrome and improving life of drilling and flow control components. Current capacity is sold out for the foreseeable future, making it extremely important that we scale-up production to fulfill customer requirements," said Abakan CEO, Robert Miller. "Our long term strategy is to transform the productivity of the metal coatings industry through the introduction of our scalable, productivity and performance-leading PComP nanocomposite materials. Execution of this strategy calls for both building our own and acquiring metal finishing shops, improving their productivity and profitability through the introduction of better products through advanced technology.
The initial scaling up of powder production capacity of PComP thermal coating powders is to be financed by the proceeds of a recently closed secured term loan and exchange agreement and a demand note in the net amount of $1.22 million in new debt.
About Abakan Inc.
Abakan develops, manufactures, and markets advanced nanocomposite materials, innovative fabricated metal products and highly engineered metal composites for applications in the oil and gas, petrochemical, mining, aerospace and defense, energy, infrastructure and processing industries. Abakan's technology portfolio currently includes high-speed, large-area metal cladding technology; long-life nanocomposite anti-corrosion and-wear coating materials; and high-strength, lightweight metal composites.