LOW-COST ECO-FRIENDLY COATINGS COMPANY
TO FLOAT ON OFEX
At present, Greenkote generates revenue by providing a range of innovative coating
services from its hi-tech Israel-based plant. Further plants are planned in Europe
and the US and the Company also intends to license its technology and supply production
lines to third parties globally. Feasibility studies are already underway for a
plant in Germany. The Company expects this, and the American unit, to commence operations
in 2006. Greenkote has also appointed an initial licensee in England and is negotiating
with seven others in Germany, Italy and USA.
Basically, Greenkote’s patented coating process improves the properties of a wide
range of metals, alloys and powders by giving them added qualities such as increased
resistance to both low and high temperature corrosion as well as improved wear resistance
and better bonding to rubber and plastic. It is used mainly in the automotive, construction,
medical, and aerospace industries. Existing customers include Motorola, GM and VW
supplier MAG, and the Israeli Defence Forces. In addition, through a relationship
with TCB, a leading UK supplier of tension control bolts, the TCB/Greenkote product
has received the accreditation of several major British heavy construction projects
which include the Oval cricket ground and Heathrow Terminal 5 amongst others.
Greenkote is initially concentrating its efforts on the multi-billion pounds automotive
and construction sectors. The Company believes that, within three years, each of
its new plants will generate revenues of US$4million dollars a year, the first cash
from these being generated towards the end of 2006.
A major plus factor for the Greenkote system is that, unlike other thermo diffusion
processes, it incorporates no heavy metals and does not release toxic chemicals
during the production process. This, the Company believes, makes it the only ecologically
sound process on the market. This is of crucial importance in the automotive industry
where stringent environmental regulations already exist and more are imminent.
Says Greenkote’s CEO Arie Laor: ‘Our process can compete at both ends of the coating
spectrum. It provides improved anti-corrosion properties at reduced costs for our
main market - corrosion resistance coatings, and it offers up to 70% cost reductions
in the hard-coatings market.
‘It has many major advantages over competitive systems. The core process can, for
example, utilise the same equipment in a single plant to produce a wide range of
coatings serving different markets. It is also extremely easy to implement both
in mass production and small batch environments.’
Greenkote perceives its major competitive advantage to lie in three main markets:
zinc aluminium coated components; Chromium, Vanadium and Titanium based hard coatings;
and coatings offering high temperature corrosion resistant and prevention of seizing
for steels, stainless steels and nickel alloy parts. It intends to develop a critical
mass of operations and a global presence within three years.