Manufacturing Site Repurposing
Options
What does the future hold in store…
& What is the Value Proposition?
Repurposing of Manufacturing Site
BUSINESS RESEARCH
Current Manufacturing Site Strategies
• Company X
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Launches website xxxcoating.com
Picks up film production from OM Companies
Aggressively going after other film products
Recently installed a number of capital upgrades & attending
conferences/new website
– Sees growth out into the future past conventional films and planning
for it…
• Company Y
– Aggressively competes and wins graphics products
– Redesigns some current film offerings to compete in the future –
aggressively competes in Indian film market
Current Manufacturing Site Strategies
• Conferences/Coating Machine Manufacturing
– AIMCAL /CEMA conferences held on a yearly basis held both in Europe
and US (well over 100 exhibitors & many seminars)
– A number of companies still exist for making coating machines
including bead and curtain coaters
• Our Company
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–
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Have some small contracts with outside companies for pilot services
Have a history of outside companies contacting us for services
Has very limited web presence and mainly for pilot capabilities
Have done prior repurposing studies and found some outside business
opportunities
Marketplace Data around Coating
• Coating Market Research Reports:
– Global Market for Thin Film Materials to Reach $14.9 Billion in 2016 (Electronics.ca
Research Network):
– Global Markets, Technologies and Materials for Thin and Ultrathin Films -- Focus on
Electronics (Reportlinker.com ):
“The global market for thin film technologies (including equipment, materials and
services) is currently valued at more than $50 billion and continues to grow.”
Manufacturing Capabilities
Manufacturing capability – wider than we think:
• The current manufacturing structure has been driven by the requirement
of extremely uniform and robust photographic films:
• The current manufacturing site can coat a much wider array of products
than just conventional AgX films
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At lower flows; moderate speeds – can coat close to water viscosity
At moderate flows/speeds coating is capable for a wide array of viscosities
Could use a wide array of various polymers and solvents
Can use to coat a variety of surfaces (coat smooth and rough substrates) and can use
multiple slot dye configurations
– Much of the research looking at manufacturing site capabilities was done in the 80’s
through 90’s
– Pilot capability to demonstrate still exists to assess these alternate systems
Manufacturing Capabilities
Comparing different coating systems – thickness operating range:
Many coating technologies overlap each other in terms of capabilities
Patent/Development Activity in
Manufacturing Field (since 2000)
• There have been over 50 patents issued around coating in the last
10 years:
• Much technical activity in the area, coating type
is a “buzz” word at coating conferences…
Repurposing of Manufacturing Site
VALUE PROPOSITION OPTIONS
Value Proposition Options
Film Flow Options
Entire Film Flow Options
Manage to Film
Decline
Film & Tollcoating
2014 - 2015
2015 - 2017
Transition to
Functional
Aqueous ML
Coater
2015 +
Degree of Difficulty/Resources
Staging for Future
Sale
2015 +
Current Approach – Manage to
Volume Decline
• PROS:
– Minimum cost
• CONS:
– Film manufacturing discontinuance…
– Lose uniform aqueous multilayer coating
capability forever
Manage to
Film Decline
First Strategy – Film & Toll
Manufacturing
• PROS:
– Extends the life of film
– Keep cash flow positive for a longer period of
time
– Maintains manufacturing capability of functional
materials
• CONS:
– Little tollcoating opportunities that make
significant money
– Manufacturing optimized for film – need to
update facility & maintain resources
Extend Life of Film
Film &
Tollcoating
Tollcoating OM
Materials
Tollcoating
Functional
Materals
Second Strategy – Aqueous Functional
Printing Manufacturing
• PROS:
– Extends the life of manufacturing site
– Could provide a method for both commercialization
and manufacturing of future products
– Could provide a multitude of coating options if capital
is available
Transition to
Functional
Aqueous ML
Coater
Aid in
Commercialization
Path for Functional
Printing Products
Film & Some
Tollcoating
Operations
Functional Printing
Manufacturing
• CONS:
– Not part of current vision
– No active esearch on uniform aqueous materials
– Significant effort to get to a low variable cost, flexible
manufacturing facility
Capital
Upgrades
Uniform
& Additive
Functional Printing
Manufacturing
Company Future Vision
• To be a provider of higher margin specialized
materials that have the following
characteristics:
– High resolution
– Range of patterns
– Utilize material property/formulation expertise
Last Strategy – Manufacturing Site->
Sale to Outside Investor
• PROS:
– Generates cash for Company
– Removes assets from company that are not part of the
future vision
– Keeps jobs and tenants at site
Staging
for Future
Sale
Continue Film
Operations &
Initiate Tollcoating
Streamline &
Increase Flexibility
of site
Establish
partnerships
• CONS:
– Would require significant resources & budget for
establishing a potential future product portfolio &
improving site for future sale
– High risk but high payback
– May already be too late to explore & execute
Establish portfolio
of future products
or revenue
Repurposing of Manufacturing Site
WHAT DOES THE CURRENT MANUFACTURING
INFRASTRUCTURE BRING TO THE TABLE?
Sustain and Grow Approach –
Lean Development Approach
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•
New Products Time to market,
cost and quality –
key factors
Control of the
development chain
critical to success of
new products
Toyota, Microsoft,
Harley Davidson
and Kodak film –
key examples
Separates start-ups
from true successful
businesses
Sustain & Grow – Value Proposition
• Pilot and manufacturing value proposition:
Path to commercialization and manufacturing
(i.e. Product Development flow)
Current Film Development Flow
Initial Design
Bench Scale
evaluations &
Design
Optimization
Small Scale Pilot
Integration
Larger Scale Pilot
Verification
Full Scale
Manufacturing
Repurposing of Manufacturing Site
HOW DOES MANUFACTURING SITE FIT
INTO POTENTIAL FUTURE PRODUCTS?
Functional Printing Market/Applications
From: http://www.marketsandmarkets.com/AnalystBriefing/functional-printing-market.asp
Aqueous Coating Applications in
Functional Printing
• Coatings – protective coatings such a
polymeric resins, overcoats to adjust
gloss, lubrication (release agents) etc
• Conductive materials
Aqueous Coating Applications in
Functional Printing
• Display – holographic films, 3D
imaging
• EMI – technology to reduce
electromagnetic interference
• Transistors – technology for circuit
board backplanes – coupled with
organic transistors
Aqueous Coating Applications
in Functional Printing
• Fruit & vegetable containers with
antimicrobial and slip coatings
• Smart walls, High Tech Building
Materials (aircraft, space, military)
Aqueous Coating Applications in
Functional Printing
• Fabrics and wall related materials
• Coatings with medications and
regen film
• Coatings coupled with sensors
Repurposing of Manufacturing Site
EFFECTIVE USE OF CURRENT
MANUFACTURING FLOW
EFFECTIVE USE OF CURRENT MANUFACTURING FLOW
Current Film Development &
Manufacturing Flow
Full Scale
Coating
Raw Materials &
Roll Coating
Finishing &
Packaging
Integration & Pilot
Development
Distribution &
Market Channels
Research &
Development
Marketing, Sales
& Customer
Support
Value Proposition -> Staging of Manufacturing Flow
• Photographic film = first functional printing product!
• Functional printing materials could use the same
product flow….
• Why not repurpose flow into consumable material flow
(usable for film or functional printing materials)?
• Use existing development, manufacturing, supply chain
and market channels to move into functional printing
arena without reinventing the wheel
• Partnership with other companies, universities etc to
gain access to technology and new products
Repurposing of Manufacturing Site
CONCLUSIONS &
RECOMMENDATIONS
Conclusions
1. Current path will lead to discontinuance usage of the
existing photographic film manufacturing site and
infrastructure
2. Outlined a number of options to extend the life of the facility
and reuse the existing infrastructure
3. A moderate market exists for toll manufacturing and
maintaining current photographic film products
4. Largest opportunity but highest risk would be to pursue
future products while using existing products & toll
manufacturing to cover costs – this would also require
capital expenditures
5. Last option would be to marginally improve
facility and attempt to sell to perspective
buyer.
Recommendations
1. Present and discuss options and research with senior
management
2. Attain management support to do further studies looking at
the business and technology potentials of the various
options
3. Work with marketing and sales to identify potential toll
manufacturing opportunities
4. Assess future staffing reduction impacts on potential
strategies
5. Outline plan for path forward