Report
Teaser, summary, work performed and final results
Periodic Reporting for period 1 - SEAMLESS (Surface Catalysed Adhesive for Low Temperature Joining of Lightweight Materials and Components)
Teaser
The SEAMLESS business innovation project concerns the development of a novel approach to joining of lightweight materials and components incorporating in-mould bonding process and the use of a surface catalysed adhesive specifically aimed at the vehicle manufacturing...
Summary
The SEAMLESS business innovation project concerns the development of a novel approach to joining of lightweight materials and components incorporating in-mould bonding process and the use of a surface catalysed adhesive specifically aimed at the vehicle manufacturing sector.
The SEAMLESS innovation action project objectives are to: (i). Strengthen and prepare robust business case for commercialisation of SEAMLESS technology. (ii) Prepare for scale-up and commercialisation of SEAMLES (iii) Obtain further investment of up to €2 million (Phase II funding or private investment) to develop production process and scale up the SEAMLESS technology (iv) Grow the application areas & customer base generating significant cumulative revenues in a 5 year post project period.
The SEAMLESS project consisted of the following main tasks: (i) assessment of project risk across technical, legislative/regulatory, financial, commercial and political areas (ii) conduct voice of customer work with OEM vehicle manufacturers and component manufacturers (iii) conduct a detailed market study (iv) prepare scale up plans (v) IP management (vi) prepare robust business plan.
The outcomes of the SEAMLESS innovation action project are: 1. Risk management strategy defined 2. Validated customer needs and specifications 3. Market Analysis performed 4. Scale up plans defined 5. IP strategy 6. Robust business case prepared
Work performed
The Stage I Action allowed us to push the technical and commercial aspects of SEAMLESS forwards. Specifically we have:
• Developed two processes to deliver the bonding technology – (i) PowderBond-2 based on original PowderBond platform technology involving coating metal part and bonding plastic component part in mould – i.e. Polypropylene to Aluminium. (ii) Seamless approach which involves contact cure adhesive system where the activated surface is imparted onto the composite/plastic part during the moulding cycle.
• Undertaken a comprehensive risk assessment
• Conducted voice of customer work with 3 OEMs -JCB, Jaguar Land Rover, Emerald Automotive and 3 component manufacturers – Penso, Prodrive, DaLio Spa. Other VOC work was undertaken with Babcock and Bighead Fasteners.
• Undertaken a comprehensive market analysis covering market size and dynamics, accessible routes to market and associated timescale, SWOT analysis and prioritised market entry strategy (costs, margins and ROI for supply chain partners).
• Prepared a scale-up strategy report including sales and marketing, manufacturing & investment requirements, business model canvas and value proposition to understand the most appropriate models such as licensing etc.
• Undertaken a review of intellectual property and protection measures in place for our key IP and knowledge generated.
• Created a business plan that includes a plan for the acquisition of further funding to commercialize and scale up the SEAMLESS technology.
• Identified target end-user applications and key supply chain partners for optimal commercial exploitation.
Final results
The expected final results of SEAMLESS that will result from the Action are:
• Detailed requirements definition for the SEAMLESS technology that will be represented as a set of end user specifications.
• SEAMLESS product implementation to achieve a fully demonstrable system/product.
• Product Testing and End user validation
• SEAMLESS scale up and product launch.
• Creation and implementation of a robust Business Plan to cover both in- project activities and post-project activities. The business plan will build upon the initial commercialization plan already developed and will consider market access (opportunities and dynamics), IP landscape (future IP opportunities), supply chain and competitor analysis and routes to market and cost analysis to ensure economic viability.
• To strengthen patent portfolio through the identification and preparation of further protection needed to completely protect the SEAMLESS platform.
Growth potential: Commercialisation of SEAMLESS will introduce a new stream of revenue for PBL. Initial revenues are anticipated through direct sales to Vehicle OEMs and tier 1 and 2 manufacturers, however we expect to run multiple business models such as licensing which will be investigated during the feasibility study. The forecasts are preliminary and based on our current understanding of the market and immediate customers that we already sell to. To remain prudent, these numbers are strongly conservative and do not reflect the true market potential achievable.
Our understanding of the automotive industry gives us confidence that once we have acquired early adopters (JCB, DaLio, Geely), it will accelerate the widespread adoption of SEAMLESS.
ROI: Based on cumulative gross profit over 5-years against total costs of SEAMLESS commercialisation of (~€2.8m (€74k Phase 1 + €60k SEAMLESS investment to date + €2m estimated Phase 2 + €700k post project commercialisation costs), we calculate a simple ROI of 640% (ROI=Net profit/Total Investment *100).
Employment creation: we will create 10 internal and 37 external high value industry jobs by year 5. These positions will be filled using a transparent and non-discriminatory resourcing policy, in accordance with the principle of equal opportunities and gender diversity as laid down in the EU Directives as well the Equality Act 2010. These 47 job opportunities will be for skilled labour; however, a larger number will be created for non-skilled labour.
Website & more info
More info: http://www.powdertech.co.uk/rd-projects/.