Nexam Chemical published its annual report 2013 today (http://www.nexam.se/en/Investors/financial-reports/Annual-and-Interim-Reports/). Unsurprisingly, given the tremendous progress we have seen during the recent months, CEO Per Palmqvist Morin is very positive and confident in his address to the shareholders: “Since Nexam was founded in 2009, it has evolved from being a developer of new crossbinders for the polymer market to being a company with a broad product portfolio which attracts very big interest from materials companies around the world. During the past year, a couple of testing customers have gone from just testing to initiating a commercialisation phase.”
Mr Morin highlights the fact, that Nexam has worked intensively with developing new crossbinder concepts for the volume wise large thermoplastics on the market. Nexam cooperates with around 10 large materials companies which want to improve all different types of nylons, e.g. 66, 6, 11 & 12. In the project together with BASF, it was crossbinders for nylon 66 that now enter a commercialisation phase.
Mr Morin also mentions that Nexam has worked closely together with Armacell to modify their PET-foam which has led to a supply contract for Nexam’s crossbinders. The improved PET-foam will hopefully be applied in both the wind energy sector but also within vehicles and construction in the near future. Furthermore, Nexam continues to work with several players on the modification of the large market for PET-resin and even PBT (another large market for plastics used in construction).
Regarding the aerospace market, Nexam’s first product towards this segment, NEXIMID 100 (PEPA), has been commercial for a while already and the company has regular sales from this segment (albeit still smaller volumes but expected to grow). Furthermore, Nexam states that potential customer have told them that Nexam’s products are about to qualify for new aerospace applications in both the USA and Asia. One of the companies involved in a currently ongoing evaluation project is Rolls-Royce Jet Engines.
Nexam has also products for plastics used within the consumer electronics industry. They are currently evaluated primarily by companies in Asia but also in the US and Europe. The first confirmed commercial application within this industry was announced during fall 2013 by Japanese Sumitomo.
Says Mr Palmqvist Morin: “When you look at the number of companies testing our products and considering the fact that they are working with several different polymers and applications, it will be exciting to see which company will be the next to enter a commercialisation phase.”
Touching on the recent successful direct share issue, Mr Palmqvist Morin says that the money is intended to finance and facilitate a continuously high pace of expansion, as well as the development of the company, its markets and products. Nexam predicts that the demand for several of its products will increase substantial in the coming years, which is why it has established a co-operation with three different partners for volume production of this products. Mr Palmqvist Morin continues: “Every month we get new potential customers wich want to start testing and developing material and applications with the new crossbinders from Nexam. One challenge we have is to manage to serve these new customers and satisfy their wishes – a nice challenge to have which mean that we need to become better in coordinating our projects.”
Looks like we have some exciting months ahead of us.