manufacturing site repurposing options what does the future hold in store… & what is the value...
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Manufacturing Site Repurposing Options
What does the future hold in store… & What is the Value Proposition?
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BUSINESS RESEARCHRepurposing of Manufacturing Site
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Current Manufacturing Site Strategies • Company X
– 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
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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– 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
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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.”
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Manufacturing CapabilitiesManufacturing 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– 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
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Manufacturing CapabilitiesComparing different coating systems – thickness operating range:
Many coating technologies overlap each other in terms of capabilities
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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 typeis a “buzz” word at coating conferences…
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VALUE PROPOSITION OPTIONSRepurposing of Manufacturing Site
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Value Proposition OptionsFilm Flow Options
Entire Film Flow Options
Manage to Film Decline
Film & Tollcoating Transition to Functional
Aqueous ML Coater
Staging for Future Sale
Degree of Difficulty /Resources
2014 - 2015 2015 - 2017 2015 + 2015 +
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Current Approach – Manage to Volume Decline
• PROS:– Minimum cost
• CONS:– Film manufacturing discontinuance…– Lose uniform aqueous multilayer coating
capability forever
Manage to Film Decline
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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
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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
• 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
Film & Some Tollcoating Operations
Transition to Functional
Aqueous ML Coater
Aid in Commercialization Path for Functional Printing Products
Functional Printing Manufacturing
Capital Upgrades
Uniform & Additive Functional Printing
Manufacturing
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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
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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
• 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
Continue Film Operations &
Initiate Tollcoating
Staging for Future
Sale
Establish partnerships
Establish portfolio of future products
or revenue
Streamline & Increase Flexibility of site
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WHAT DOES THE CURRENT MANUFACTURING INFRASTRUCTURE BRING TO THE TABLE?
Repurposing of Manufacturing Site
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Sustain and Grow Approach –Lean Development Approach
• 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
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Sustain & Grow – Value Proposition
• Pilot and manufacturing value proposition:
Path to commercialization and manufacturing(i.e. Product Development flow)
Current Film Development Flow
Bench Scale evaluations &
DesignSmall Scale PilotInitial Design Optimization Larger Scale PilotIntegration
Full Scale Manufacturing
Verification
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HOW DOES MANUFACTURING SITE FIT INTO POTENTIAL FUTURE PRODUCTS?
Repurposing of Manufacturing Site
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Functional Printing Market/Applications
From: http://www.marketsandmarkets.com/AnalystBriefing/functional-printing-market.asp
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Aqueous Coating Applications in Functional Printing
• Coatings – protective coatings such a polymeric resins, overcoats to adjust gloss, lubrication (release agents) etc
• Conductive materials
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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
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Aqueous Coating Applications in Functional Printing
• Fruit & vegetable containers with antimicrobial and slip coatings
• Smart walls, High Tech Building Materials (aircraft, space, military)
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Aqueous Coating Applications in Functional Printing
• Fabrics and wall related materials• Coatings with medications and
regen film• Coatings coupled with sensors
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EFFECTIVE USE OF CURRENT MANUFACTURING FLOW
Repurposing of Manufacturing Site
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EFFECTIVE USE OF CURRENT MANUFACTURING FLOWCurrent Film Development &
Manufacturing Flow
Research & Development
Integration & Pilot Development
Full Scale Coating
Raw Materials & Roll Coating
Finishing & Packaging
Distribution & Market Channels
Marketing, Sales & Customer Support
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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
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CONCLUSIONS & RECOMMENDATIONS
Repurposing of Manufacturing Site
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Conclusions1. 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 improvefacility and attempt to sell to perspectivebuyer.
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Recommendations1. Present and discuss options and research with senior
management2. 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