we share ideas an opportunity outside of our normal business cebi spring summit april 24, 2008 doug...
TRANSCRIPT
We Share Ideas
An Opportunity Outside of Our Normal Business
CEBI Spring SummitApril 24, 2008
Doug Shull
We Share Ideas
Transmet’s Products and Markets
• Rapidly solidified metal particulates– Sales in energy industry
alkaline battery fuel cell refinery catalysts reflective roofing low energy abrasive shot Harley parts
We Share Ideas
Click here, Sound of a Harley Made Offshore
Click here, Sound of a Harley Made In America
Global Manufacturing Outsourcing
We Share Ideas
Transmet’s Products and Markets
• Fast Melt Introduction– Purchased new furnace– Melt rates not as promised– Operators complained
Issues lead to solution (video)
We Share Ideas
Improvement 2006Standard Sow Coated Sow %
Weight 1,290 Lb. 1,275 Lb.
Temp 1850 °F 1850 °F
Time 2 hr. 10 min. 1 hr. 5 min. -50%
BTUs 3,446,000 2,783,000
BTUs/Lb. 2,671 2,182 -18%
We Share Ideas
Dilemma• Should we pursue?
– Solved a major problem– Doesn’t fit our typical business model
Outside core manufacturing focus Our markets are typically energy
applications It fits if we redefine manufacturing
• Marketing video required to illustrate to Board, advisors, lawyers and marketing discussions
We Share Ideas
Intellectual Property
• Patent considerations– Patent search revealed no conflicts and that a
process patent is available over a formula patent
– Countries, costs and sales potential studied– Trade secrets strategy vs. conflicts with
patent publication– Patent risk – is it too obvious?– Used 2 law firms – one for patent work, other
for business advice – Trade marking name decision delayed until
marketing relationship is determined
We Share Ideas
Going to the Market• Partnering versus “on our own” considerations
– Use existing staff to get to market fast– Strength of a strong name and existing sales
organization– Patent protection – strong organization a plus– How will the patent be protected. Marketing
partner will not sue customers.
• Finding a partner– Asking others in the industry– Online research of organizations– The approach/the response(Why didn’t I think
of this?)– Alpha and Beta sites planned
We Share Ideas
Implementation• Where we are today
– Patents filed in US, Canada, Europe, Mexico, Brazil– Marketing company is requesting worldwide exclusivity – 22 Beta sites confirming melt rates– 2 Alpha sites confirming melt rates – Test sites concern with potential melt contamination, EPA
MACT issues and user logistics for Fast Melt application– Alcoa environmental said no MACT issues, we want to
test. (Marketing partner beta site)– BTU energy savings does not seem not drive use. – Reluctance to quickly purchase is surprising everyone.– Transmet energy savings and operational improvements
continue after 2 years of use. Energy savings is approaching 28% now.
We Share Ideas
Implementation
– Increased melt rate is not enough for most– Energy savings is not enough ($0.003/lb)– Melt loss savings ($0.03/lb) is looking as the
significant driver, but it will require a system sales approach
– Patent to be awarded in US in 12-24 months– Investment is $150,000 (not including staff time)– Sales = $10,000– All costs (including staff time) are allowable R&D
tax credits
We Share Ideas
Summary
• We went looking for a solution and a product found us
• Keep on the lookout for innovation opportunities – they’re sometimes in surprising places
We Share Ideas
An Opportunity Outside of Our Normal Business
CEBI Spring SummitApril 24, 2008
Doug Shull