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High Performance Cold End Coating for Glass

Periodic Reporting for period 1 - ALGLASS (High Performance Cold End Coating for Glass)

Reporting period: 2016-02-01 to 2016-05-31

The glass containers undergo friction efforts during the whole production process that result in the loss of mechanical and aesthetic properties. This leads to an average rejection tax from their clients, considering surface defects, breakage, not adequate transparency etc. of 2% and, as a consequence, the glass packaging industry in Europe have lost competitiveness and they need to sell on low margins.
ALCEA France´s aim is to commercialize a thoroughly innovative cold-end coating based on polytetrafluoroethylene, ALGLASS, which increases the scratch resistance of the glass bottles to 400 rubbing cycles representing a total saving € 114 million to our customers by reducing 10% the rejection tax of glass containers. Its slippering properties allows to increase the spray speed, improving the production rate of the glass manufacturers, while allowing to work in the low temperature range (60-160ºC).
In order to confirm the feasibility of our project we have carried out a 4-month study consisting on:
- Techno-economic analysis: results show that our technology can be applied and enable significant savings: 10% reduction of the current rejection tax of glass containers by using ALGLASS, this representing € 114 million to our customers.
- Thorough market analysis: we verified that our target markets are relevant, and show great potential for growth: potential target market value of about € 47.7 billion (2014 values). This, together with the uniqueness of our solution (no competitor has a similar technology) and the favorable economic context (regarding the need of glass containers manufacturers to decrease their production costs due to the increase of the prices of raw materials) represents a very promising scenario for the deployment of our technology.
- Updated business and financial plan according to market analysis and review financial forecasts: this demonstrated the economic feasibility of our technologies, with precisely calculated production costs which are realistic and in-line with those of technologies currently in the market.
- Addressing of all kinds of contacts relevant for our project (potential customers, subcontractors and glass associations), receiving several letters of support.
- Development of complete Execution Plan for the Phase 2 project, including planning, organization, risk analysis and budget.
We expect to deploy ALGLASS on a global scale, revolutionizing the market and challenging competitive products on all levels: It will contribute to reducing the rejection tax of glass containers, emissions from glass containers manufacturer industry, reduce production costs of glass containers and enable users extra savings on energy while allowing a high quality perception of the stored products.
It will also enable our company to grow, both financially- achieving revenues of approx. € 10.4 million and profits of € 3.2 million in 2023- and in personnel- we will hire 23 more people for technical and commercial activities.