Victorian Centre for Advanced Materials Manufacturing

ACCelerAting innoVAtion

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Victoria has considerable skills in adVanced materials and adVanced manufacturing technologies and Vcamm’s role is to proVide businesses with managed access to this expertise.innoVation is a key driVer of our economy and Vcamm will further enhance the ability for our local manufacturing businesses to innoVate.

hon. richard dalla-riva mlc, minister for manufacturing,

exports and trade, Victoria

foreword

for several years Vcamm has been supported financially by the Victorian government. our purpose is to

assist manufacturing companies connect to Victorian universities and other publically funded r&d activities,

to “commercialise” the results of research in materials engineering, and to apply advanced materials to new

manufacturing technologies. we have identified emerging market “demand-side” factors, and constructed

appropriately qualified teams to meet realistic development milestones.

the time-scale for this work is longer, and often more technologically complex, than most australian

manufacturing companies can tolerate. the future returns are not easy to calculate by traditional financial

valuation techniques, so Vcamm provides a bridge between available early venture-capital funding and

in-house company funding. in australia, we have virtually no sources of early stage start-up, or angel/seed

funding, and we have very few people able to manage the evolution of technology into stable companies.

Vcamm has been able to provide this type of patient

finance for appropriately researched ventures with

market potential, and staff who are proving adept at

managing the many challenges. we greatly appreciate

the foresight of the Victorian government in recognising

the risk of market failure in our emerging high-

technology manufacturing industries. support for

the Vcamm innovation centre at knoxfield has been

vital in allowing the development of several fledgling

companies, with brilliant local technologies and will be

key to our future accelerating innovation.

brad dunstan,

Vcamm chief executive officer

dr colin adam,

Vcamm chairman and

independent director

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we help businesses deliver on key elements for success including:

technologyo developing a business case for research investment

o establishing product and process needs

o identifying technical research and development requirements

o identifying and engaging the right research partners

o designing and managing research projects

o technology development and ip management

businesso b2b orchestration and technology transfer

o strategic and business planning

o identifying potential business partners

o market development for new technology or innovations

o mentoring and specialist manufacturing business management

and operational advice

o access to industry research, business, government and

investment networks

o incubation and space for new businesses or new projects at the

Vcamm innovation centre

o commercialisation of innovations and intellectual property

financeo providing pre-seed and incubation funding

o assistance sourcing and applying for government grants

o matching businesses with potential industry-based or

independent investors

o conducting financial evaluations and due diligence tests or reports

Vcamm is the Victorian centre for advanced materials manufacturing. we are a not-for-profit company established specifically to improve the competitiveness and sustainability of the state and the national advanced manufacturing industries through orchestrating innovation and development of leading businesses and technologies.

Vcamm making your business more competitiVe

our mission is to help australian manufacturing businesses develop new ideas, solve problems, find new markets and partners, and attract investment. Vcamm was formed in 2002, and we are backed by a consortium of leading public research and development organisations, with support from government.

Vcamm also provides a wider role in the development of strategic capability within the australian advanced materials and

innovators:skills & resources

start-ups:incubation & investment

r&d:industry partners

government:innovation –driven

industry

manufacturing firms:

project support

strategic infrastructure:

catalyse new industrylarge corporates:support for spin off ip

Vcamm technology,

business & financial

support

investors:portfolio of

opportunities

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typical capabilities our research partners can provide include a broad range of engineering consulting and research services, with expertise in materials testing, materials development and process development:

o a range of engineering capabilities from materials characterisation

to mechanical testing and design, through to aerospace and civil

engineering expertise. specialisation in nano-structured materials,

with the knowledge required to take advantage of nano-structural

manipulation of materials for large scale, application-specific

tailoring of properties.

o in-depth experience in modelling and stress analysis for

components, mechanisms and production methods. this

expertise crosses all of the materials boundaries (composites,

ceramics, metals and polymers) and extends, in scale,

from materials and materials interface investigation and

manipulation to full production modelling and factory layout

analysis.

o advanced surface analysis, both topographical and chemical,

with the ability to discern surface properties down to the nano-

metre scale. the capability to modify surfaces at the nano-

scale, improving the properties of films, adhesion layers, and

even assisting in the forensic sciences. researchers can tailor

surfaces to demonstrate a range of specific characteristics.

o advanced manufacturing techniques. these include

development of rapid production using laser technology and

non-contact measurement of surface contours.

o a full suite of testing equipment for analysing engineering

components, under a range of conditions and simulations.

Vcamm is backed by a consortium of australia’s leading materials and manufacturing focused research organisations including deakin university, la trobe university, monash university and swinburne university of technology.

with our consortium partners we can help businesses to access the world-class expertise and facilities that these organisations offer. this includes some of the most advanced technologies and research science available in australia as part of engineering, materials and science related faculties and multiple centres of excellence. it also includes access to business schools and the extensive international research and development networks of consortium members.

each research partner has different strengths and is recognised as a world-leader in its specific fields of expertise. the differences between the research capacities provided by each can be subtle, but can have a profound impact on the outcomes of a project. our experience allows us to help identify the most relevant research partner or partners for your specific project. this may mean coordinating the resources of multiple institutions.

Vcamm’s consortium partners are the first port of call for research needs, but we also have access to other research organisations and networks, both nationally and internationally.

technology

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collaboratiVe research networks

part of Vcamm’s role is to help build industry’s innovation capacity and to promote the capabilities of australian advanced manufacturing and materials industries. to this end we have helped to establish two cooperative research centres (crcs), which enhance national research collaborations and links with industry.

our active participation in these centres and other collaborations provides individual businesses with an access portal, which allows them to participate in large federally funded initiatives to conduct research projects and access new technologies that they would be otherwise unable to access.

advanced manufacturing crc (amcrc)

Vcamm is a founding member of the amcrc, created to

support the development of knowledge-based, high value,

globally competitive and sustainable manufacturing businesses.

research areas include advanced materials, next generation

manufacturing processes and knowledge-based business

practice for manufacturing sectors. industry sectors involved

include aerospace, biomedical, defence, energy, equipment

manufacture, fine chemicals and mining. through the amcrc

Vcamm can help businesses develop greener technologies for

their manufacturing processes, supporting more flexible and

sustainable operations.

defence materials technology centre (dmtc)

Vcamm is also a member of the defence materials technology

centre (dmtc). the dmtc aims to develop and deliver

new materials technologies and manufacturing processes

specifically to enhance australia’s defence capability. it

involves collaboration between defence, defence industry

and research agencies. projects a focused into five areas: air

platforms, maritime platforms, armour applications, propulsion

systems and personnel survivability. dmtc project outcomes

include increasing strength, payload capacity and operating

range of equipment, improving performance and durability of

equipment, increasing efficiency in production, reducing costs

and waste and customising equipment for specific australian

conditions. Vcamm is working with dmtc on a number of

projects to develop new technologies for a number of australian

businesses.

australian future fibres research and innovation centre (affric)

Vcamm is a partner in the world-leading australian future

fibres research and innovation centre (affric) in geelong. the

centre is building australia’s carbon fibre and advanced textile

research capabilities to support innovation in the automotive,

aeronautical and protective clothing industries. research will

focus on a range of innovative materials including nanomaterials,

smart fibrous materials, green natural fibres and carbon fibre.

advanced automotive technology crc (autocrc)

Vcamm helped establish autocrc with the aim of enhancing

the viability and sustainability of the australian automotive

industry. design and modelling research will help to increase

the rate of product and process innovation, reduce design

and development times, improve the quality of products

and accuracy of processes, and reduce the time it takes to

get products to market. reduced concept-to-product cycle

time represents a paradigm shift in process and production

methodologies, aimed at improving manufacturing flexibility and

efficiency and developing new material systems to meet the

automotive challenges of weight reduction, increased safety

and enhanced functionality. Vcamm can access research

and industry partners through the autocrc.did you know?

Vcamm is also a member of a number

of well respected international research

collaborations.

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case studycarbon fibre research facility to expand industry capability together with deakin university and the Victorian state

government, Vcamm is leading a strategic investment of $25

million to establish the australian carbon fibre research facility

(acfrf) in geelong. the acfrf is a world first university

connected open access research and development pilot plant

to support the growth of new carbon fibre based businesses in

australia.

the acfrf is part of the larger $100m australian future fibre

research and innovation centre (affric) which is expected

to create an international hub for fibre science and materials

research and build national capacity in the carbon fibre industry.

the centre is being established at deakin university in waurn

ponds as part of the geelong technology precinct and is co-

located with csiro’s textile and fibre facilities. it will provide

access to industrial and pilot-scale facilities to translate research

into end-user applications.

deakin university’s deputy Vice-chancellor (research),

professor lee astheimer said the centre will bring together

australia’s foremost fibre and manufacturing scientists.

using sophisticated equipment and with strong commercial

partnerships, the centre will be recognised as an international

leader in new materials industries.

facility anywhere in the world. it will be capable of producing

commercial quantities of aerospace quality carbon fibre.

the research facility will make the region attractive for carbon

fibre commercial production and manufacturing products such

as airplane fuselages and blades for wind turbines. it is expected

to be operational in 2012, and to generate more than $1 million a

year in research income from industry within five years.

through its links with global aerospace and automotive

companies who will use the facility, Vcamm is well placed to

help australian businesses evolve into carbon fibre composite

manufacturers and to help introduce them into the global supply

chain.

deakin university’s centre for material and fibre innovation

(cmfi) already has an international reputation in advanced

composites and fibre research with extensive partnerships with

the aerospace and automotive sectors. csiro brings expertise

and equipment in commercially critical areas such as 3d

weaving and surface finishing.

exceptionally strong and light, carbon fibre is a defining material

for 21st century manufacturing. research to extend its properties,

functionality and production is undeveloped globally.

by leveraging the combined expertise and equipment of

the partners, the facility will offer an institutionally-based,

industrial-scale carbon fibre capability. there is no equivalent

did you know?

it is expected to be operational in 2012, and to generate more

than $1 million a year in research income from

industry.

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case studyautohorizon fr1: fostering innoVation in the auto industryfor the past nine years, the charitable foundation ‘autohorizon,’

has been developing the fr-1 concept vehicle – a one-off, hand

crafted, high performance vehicle that showcases australian

automotive design and manufacturing.

it is also being used to develop and design related study

programs for secondary, tafe and tertiary students, to encourage

students to consider automotive design and manufacturing

related careers. the vehicle has the hot-rod styling of the

roadsters of the 1930s. it was designed with assistance from

gm-holden and built at the automotive centre of excellence

(ace) in melbourne, under the direction of brian tanti, curator of

the world class fox collection of classic vehicles at docklands.

Vcamm is one of 90 sponsors for the project and has made a

major contribution with full time engineering staff leading the

engineering of the vehicle including the design and construction

of the carbon fibre composite monocoque chassis.

the carbon fibre ‘tub’ weighs around 80kg, and showcases

several new composite technologies developed locally. these

include a low temperature, out-of-autoclave curable carbon

fibre prepreg, suitable for high strength applications, which was

provided by gms composites. this newly formulated material

is oven-cured under vacuum pressure and provides comparable

strength to autoclave-cured materials, without the costs

associated with running an autoclave.

Vcamm and bellmont nominees developed low cost tooling

for the carbon fibre tub capable of producing parts with minimal

temperature distortion and a class ‘a’ standard surface finish.

the chassis was laid-up in two moulds, and bonded together

using aerospace-grade, high strength adhesives and curing was

conducted at boeing in port melbourne.

fr-1 is powered by a mid-mounted holden V8 engine. this

is mated to a ferrari 355 transmission and along with the

suspension is carried on chromoly subframes mounted to the

carbon fibre chassis.

supplied by diver consolidated industries the unequal length,

double wishbone rear suspension and a unique hydraulically

actuated front in-wheel hub suspension ensure the lightweight

chassis stays on the road.

all of this technology is covered by a hand crafted aluminium

skin, coach-built using a wooden buck and traditional coach

building techniques.

fr-1 will be auctioned, with all proceeds being donated to four

children’s charities.

the fr-1 project is expected to be completed in 2012.

for more information on the fr-1 project, please

visit: www.conceptfr1.com.did you know?

the fr-1 carbon fibre chassis is the

first composite chassis built in australia!

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“ to maintain the company’s competitiVe adVantage, we were keen to expand its carbon composite component manufacturing capabilities and sought Vcamm’s help to undertake a research and deVelopment program.”

al d’alberto, bellmont nominess

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business profile case studycarbon composite research proVides competitiVe edgeinvesting in carbon fibre research is helping bellmont nominees

to convert its business from high-volumes of low-technology

automotive components towards a low volume-high value model.

the business is a privately owned engineering, painting and

composites company that has been operating in Victoria for

more than 30 years and is an integral supplier to the automotive

and truck industries.

bellmont already has a reputation for flexibility and innovation,

specialising in exterior vehicle components in a variety of

materials that require an a class surface finish. its core business

has been the supply of painted and assembled parts: front and

rear bumpers, side skirts and spoilers, as well as truck cabs,

fairings, and skirts.

managing director al d’alberto says that to maintain the

company’s competitive advantage, it was keen to expand its

carbon composite component manufacturing capabilities and

sought Vcamm’s help to undertake a research and development

program.

he said they wanted to evaluate whether out-of-autoclave

forming could reliably produce complex composite automotive

components such as front fenders and bonnet scoops, while

meeting quality, surface finish, manufacturing speed and cost

the payback period for the research and development, and the

new tooling and equipment required to produce the new carbon

composite component is 32 months. mr d’alberto says within

five years of adopting the new system he expects the return on

investment to be substantial.

requirements. its research and development program tested

out-of-autoclave forming with the Quickstep system.

Vcamm was able to link bellmont with research opportunities

available through cooperative research centre funding.

being a small company, bellmont would have been stretched

to undertake a project as extensive as the one embarked on

through the amcrc. Vcamm also helped to secure Victorian

government funding to assist with the research, which began in

2008.

mr d’alberto says there is no doubt that Vcamm’s assistance in

putting together the opportunity and the support of the Victorian

government cemented the go-ahead for this project.

apart from brokering the project, Vcamm has been involved

in project managing the whole activity, acting as the liaison

between bellmont, and the research provider, deakin university.

deakin’s role has been to carry out research and development

of new carbon fibre automotive components, working alongside

engineers and technicians at bellmont nominees. this work

includes investigation into new composite materials, curing

techniques, tooling, design for manufacture, and the required

a-class surface finish.

at a glance company: bellmont nominees, kilsyth, Victoriaindustry: automotive component and composite materials manufacturingsummary: an automotive component manufacturer invests in a research partnership to develop new carbon fibre composite manufacturing capabilities that will allow it to diversify and remain competitive.Vcamm assistance: brokering research, securing r&d grant funding for research, research project management

did you know?

carbon fibre is 3 times as strong and 4 times

lighter than steel.

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knowledge-based manufacturing

manufacturing in australia is under immense pressure – squeezed between declining prices and the rising cost of raw materials. there is less and less room to manoeuvre between operating costs and profits.

supply chain management improvements and lean manufacturing strategies are critical for survival but are no longer enough in a dynamic global environment to ensure a sustainable and prosperous business.

across the developed world manufacturing is increasingly moving to an innovation-driven economic model. competitive performance depends less on input costs and production efficiencies and more on the capacity to efficiently and sustainably produce innovative, leading-edge technology goods and services.

knowledge management, value networks and intercompany collaboration provide the basis of the agility businesses need in an innovation economy to continuously and reliably develop high-value integrated products and services. these collaborative mechanisms can be provided through Vcamm.

Vcamm provides tailored assistance along the innovation spectrum and can help connect firms with appropriate expertise to assist with business strategy, planning and knowledge-process improvements.

business

initiation selectionproduction

development

innoVation processes

market realisation

innoVator

Vcamm

research institutions industry partnersgovernment investors

characteristics of knowledge based manufacturing businesses*:

o self-sustaining innovation permits efficient uptake of new

technologies in parallel to the development of new products –

thereby reducing time to market;

o much closer coordination exists between the demand and

supply sides

o sharing of knowledge within and between organisations

becomes the norm;

o supply chains take the form of flexible collaborations, networks

of specialised small and medium-sized enterprises (smes) and

‘virtual enterprises’;

o well-defined work procedures and specifications are

commonly used to maximise efficiency;

o social, environmental and economic considerations get equal

weight in decision making; and

o provision of services, rather than the outright supply of goods,

facilitates

* definition from manufuture eu initiative, wwwmanufuture.org

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initiationinnovation requires the right environment to thrive; new ideas can

be fragile. customer needs must be matched with technological

capabilities, and a framework is needed to articulate and build

substance into the innovative concept.

o Vcamm provides a framework and culture for innovation through

its regular dialogue and activities with a broad network of industry

and research associates and through the Vcamm innovation

centre, which provides an environment for repeated innovative

engagement.

o in particular, Vcamm conducts ongoing campaigns involving both

individual communications and broader forums to raise awareness of

new technologies and trends and to connect capabilities, skills and

resources around commercial opportunities.

o Vcamm also initiates technology-based opportunities where these

provide a strategic platform around which a variety of businesses

can engage and prosper.

o initial consultations with Vcamm is generally free and our staff

are always keen to meet with firms and explore needs, issues

and opportunities to leverage skills and build pathways to

commercialising innovative technology.

deVelopmentimplementing a technology-based innovation is a business

investment. in some ways it is similar to purchasing a new piece

of plant or equipment, but the risks and returns are much greater.

failing to invest in innovation or investing poorly can lead to

long- term decline; success leads to sustainable prosperity and

provides a base for ongoing growth.

innovation investments include modelling, prototyping, validation

and field testing in the development of new products and

processes. the rewards may be substantial but the considerable

investment required to investigate an uncertain outcome can

make the decision to invest in innovation more difficult than the

decision to invest in infrastructure or equipment.

being able to leverage this investment with contributions

from collaborating partners and/or government grants can

make the difference to whether a project proceeds or not. the

most successful outcomes come from teams that incorporate

specific expertise and perspectives across business functions

and between organisations in a reliable process, and from

development processes that engage customers and incorporate

their feedback.

o Vcamm offers a variety of services to firms in the implementation of

technology innovations, including case management (for

government grants and programs) and regular project evaluation

as well as connections with experienced, skilled resources and

service providers

o Vcamm is able to host development teams at the Vcamm

innovation centre where they are co-located with other innovative

ventures and able to access a variety of resources and expertise.

selection generating interesting ideas is one thing. developing them into

a commercial proposal with a verified, viable business case

and getting the commitment of key resources is quite another.

inevitably, firms and key collaborating organisations have a

portfolio of opportunities competing for investment of time,

resources and money.

priority should always go to innovations that are thoroughly

assessed and well planned, presenting a sound business

case for investment. in many cases, this requires preliminary

investigations or feasibility studies to establish technical and

commercial feasibility and eliminate significant uncertainties.

these studies may be beyond the capabilities of the innovator

alone and they also require the involvement of key customers,

suppliers and technology experts.

o Vcamm can help firms and technology entrepreneurs develop their

business model and commericalisation strategy including selection

of critical partners, identifying sources for key resources and funding

options.

o Vcamm can help evaluate technical and commercial feasibility. in

some cases this may require access to expertise from collaborating

firms or research institutions. it may also require access to

experimental facilities or manufacturing space which Vcamm can

support through the innovation centre or through partner research

organisations.

o the work required to get stakeholders to formally commit to

proceeding with a technology innovation initiative can vary

substantially. in many cases, Vcamm services in this area can be

provided through leveraging government programs. in some cases,

a contribution to feasibility project costs may be required from

participants.

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o Vcamm can also provide experienced project management

services to development teams, which can be particularly

valuable in projects requiring coordinated activity across multiple

organisations.

o innovators may be able to access financial support through

Vcamm’s involvement in several cooperative research centres

or through co-investment in initiatives by Vcamm directly or via

partners

productionin parallel with the implementation of an innovation project,

and the ramping up of operations, additional investment is also

required to provide the infrastructure to deliver the products and

services to the market.

this might involve retooling for production. in the case of

advanced technology projects it might also involve reconfiguring

or rebuilding organisational structures and commercial

agreements.

for new business start-ups, the organisation itself must be

established and scaled up. it is at this stage that new enterprises

are most vulnerable as expenditure peaks prior to the scale-up of

revenue inflows.

o Vcamm can facilitate connections to customers, suppliers, co-

investors and co-funders, which can often be critical to enterprises

at this stage of the innovation cycle.

o the Vcamm innovation centre and research consortium partner

facilities may also be available to establish full-scale pilot production

lines under the scrutiny of development teams prior to transferring

to permanent locations.

market realisationas production investments ramp up, it is essential that the

sales strategies and resources, including personnel, are in place

to ensure secure sales and service markets. as the business

becomes profitable and grows, market feedback should be

leveraged to recommend refinements and new generations of

the innovation.

o firms can leverage Vcamm’s local and international networks and

advocacy to support effective marketing, procurement and sales

operations.

o Vcamm project management services and other supports,

including financial assistance are usually phased down as the

Vcamm innovation centre, knoxfield

Vcamm’s innovation centre at knoxfield is designed to

support the incubation of business start-ups, providing space

and ongoing mentoring and access to business support

services and technical expertise.

this new centre provides a focal point for advanced

engineering projects in a flexible environment. it caters for

a mix of industry and research collaborations, from small

start-up companies to project teams from larger established

organisations.

an important element of the centre is the potential for

interaction between different businesses and sectors of the

advanced materials and manufacturing industry, allowing

enterprises to develop globally relevant new technologies in

a unique incubative environment.

Vcamm innovation centre provides comprehensive business

incubation support to technology based start-ups:

o flexible office/factory space and terms

o staged financial support

o facilitated process and network

it also provides a collaborative facility and operating

framework that will allow businesses to work on projects

with university researchers and the centre’s technology staff

together as a team.

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brad dunstanchief executive officer

bsc beng(mech), grad dip mil av, maicd

adjunct professor (deakin university)

brad has provided leadership for Vcamm since its inception in

2002, and has been instrumental in

growing an entrepreneurial organisation focused on building

innovation capability in the local manufacturing industry.

brad has helped create new and exciting opportunities such as

new cooperative research centres and the australian carbon

fibre research facility. he plays an important role in promoting

Victorian and australian advanced manufacturing capability in

both national and international forums. brad has a background

in science, engineering and senior management. brads career

has involved operational roles in the royal australian air force

and senior positions within the australian automotive industry

with general motors and holden special Vehicles where he was

chief engineer before moving to Vcamm. brad is a councillor

on the federal government’s future manufacturing industry

innovation council (fmiic) and member of the Victorian

government’s small business advisory council where he

leads the manufacturing working group. he is also a director

on the boards of a number of advanced manufacturing related

businesses and the advanced manufacturing cooperative

research centre.

david owengeneral manager

b.eng (mech) 1st class hons

david is responsible for the day to day operations of Vcamm including

technology research project management and commercialisation

activities. he has more than 25 years of experience within the

manufacturing industry. he has a wealth of knowledge in product

development, operational and financial management and business

strategy, gained both in australia and overseas, experience that offers

significant value for clients. prior to joining Vcamm, david held senior

positions in industry working with holden special Vehicles and a

number of fortune 500 manufacturing companies (general motors,

general electric, borgwarner), and he has served on the boards of

several manufacturing and tech start-up companies.

iain ralphenterprise development manager

b.eng (mech), mba (tech management)

iain is responsible for promoting Vcamm’s innovation centre,

identifying and working with firms who may benefit from the

facilities and services offered at our knoxfield location. he also

helps clients to commercialise their activities, whether that

be new start-up businesses and technologies or refinement of

existing technologies and processes.

with a background in a variety of industry and consulting

roles, iain has been responsible for business process

improvement, general management, business development,

product development, manufacturing and management of r&d

portfolios.

he has a solid understanding and passion for business,

entrepreneurship and the management of innovation as

the foundation for building viable, profitable manufacturing

enterprises.

lisa ratcliffe commercial manager

assoc dip accounting, b.a.

lisa ratcliffe is Vcamm’s company secretary, but with

extensive experience in finance, administration and corporate

government she is able to act as a mentor for start-up

businesses as they establish their business and compliance

structures.

lisa has more than 20 years of experience in accounting and

the financial sector, working with the major accountancy firm

bird cameron, roles as senior financial manager in private

enterprise and with the Victorian state government. more

recently, she was the finance manager for the international

fibre centre and has extensive experience in the not-for-profit

sector. as Vcamm’s commercial manager, lisa oversees

and directs all significant aspects of Vcamm’s finance,

administration, accounting, treasury, risk management and

financial compliance operations as well as leading a financial

team providing support services to a number of start-up and

Vcamm incubated businesses.

our expertiseVcamm has a dedicated team with many decades of technical and business experience, committed to advancing australia’s

advanced materials and manufacturing capacity and competitiveness. key staff who provide the liaison between clients,

research providers, industry, government and investors include the following.

14

“ what you need is time and financial support to bring an idea through to commercialisation. goVernments are generally risk adVerse, and it can be a challenge to attract independent inVestors with a new technology, untested inthe market place. this is where Vcamm can help.”

tony duncan, circa pty ltd

circa group (l to r),greg court,stephen lawrence,

dr warwick raverty,tony duncan

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business profile case studyseed funding and support for cellulose technologyit has been more than a six-year journey for the trio of inventors

behind a breakthrough cellulose recycling process. they have

created a new thermochemical process known as furafuel that

converts waste products such as paper and straw into valuable

industrial and pharmaceutical chemicals. the resulting products

provide an alternative to petro-chemical based ingredients used

in a wide range of products from medicines to agrichemicals,

solvents and polymers.

the developers are tony duncan, dr warwick raverty and greg

court. all three have decades of experience in the paper industry.

together, with a small number of co-investors, they formed

circa group pty ltd to develop and market their new process

and products. circa ceo tony duncan says the period between

developing the process and scaling it up to a commercial level has

been a difficult one for the company, as it is for many start-ups.

“what you need is time and financial support to bring an idea

through to commercialisation. governments are generally risk

averse, and it can be a challenge to attract independent investors

with a new technology, untested in the market place,” he says.

the three founders of the circa group had already done the hard

work in developing and verifying a new chemical process when

they first approached Vcamm for assistance. through Vcamm,

circa has been able to source seed funding that has allowed

it to continue to scale up its furafuel process from laboratory

the initial focus may have been on a productive use for the 1.5

million tonnes of paper that ends up in australian landfill each

year, but the emerging technology has significant international

potential to produce valuable chemicals from a range of other

cellulose-based wastes.

Vcamm is also helping circa to make new investment and

market contacts through its extensive networks and tony says

efforts are beginning to pay off. Vcamm introduced circa to

a Victorian manufacturing company looking to diversify and

helped broker an agreement between the organisations to allow

the manufacture of the first industrial scale unit with minimal

investment from both sides. chinese investors are among those

showing the strongest interest in the furafuel system because

it offers a modular, scalable design and the process can be

operated by local expertise. this means it can be established

where the fuel stocks are located, rather than having to transport

fuel stocks to a central location.

it is energy self-sufficient, does not need to generate a strong

vacuum, can tolerate variable moisture levels in its feed stocks,

and does not use food products as fuel stocks as some biofuels

do. the process actually produces water, and also char, which

could potentially be used as a soil conditioner.

tests producing one kilogram of chemicals a day to a larger

proof-of-concept assembly line producing 10kgs a day, and are

commissioning a pilot plant, which will convert 100kgs a day.

“often, when you are looking for early stage investors,

the cash to equity trade-off can be crippling, but Vcamm has

been very supportive and we were able to negotiate an equity

deal that allowed us to stay in charge of the business we

founded,” tony says.

Vcamm has been a shareholder in circa since 2010. it has

also provided a new location for circa that includes office and

laboratory space at the Vcamm innovation centre in knoxfield.

“before we were in a small factory by ourselves. it is good to

have space in an office that provides support services, and where

there are other people around to interact with. it’s also a relief

to go back to developing our business instead of worrying about

whether there’s a leak in the roof that needs fixing,” tony says.

business support provided by Vcamm includes an assessment

of the company’s corporate governance processes. tony says it

has put more rigour into business management practices, and

this would help give other potential investors more confidence in

the soundness of the business. Vcamm enterprise development

manager iain ralph says the circa technology has some amazing

potential particularly given its positive environmental footprint.

at a glance business: circa group pty ltd, knoxfield, Victoriaindustry: chemical manufacturingsummary: a start-up company with a break-through proprietary thermochemical technology adding value to cellulose feedstocks such as waste paper, finds a home base with VcammVcamm assistance: office facilities, business development and networking, seed funding.

16

incubation fundingVcamm operates an incubator support fund to seed advanced

technology manufacturing start-ups and early stage enterprises.

if a piece of intellectual property shows commercial promise,

Vcamm can invest in and develop that idea, re-investing royalties

into other business partnerships.

the fund provides seed capital to:

o entrepreneurial ventures spun-out from Vcamm’s consortium

partners and other research organisations

o independent ventures in advanced manufacturing and material

technology fields, either start-ups or corporate spin-off initiatives.

an independent investment board is used to assess and

make investment decisions and Vacmm’s management and

administrative staff closely monitor the investments and work

with businesses to achieve agreed outcomes.

Vcamm may also become a co-investor in a new business by carrying

out work ‘at cost’, in return for royalties or equity.

goVernment grantsVcamm has a thorough understanding of state and federal

government funding and grant opportunities – a critical area for

small organisations faced with the sizeable development costs

that precede commercialisation.

we help identify and leverage the opportunities that exist in

public funding; we offer assistance to businesses in identifying

opportunities and in grant application requirements; we liaise with

state and federal governments. direct inVestmentidentifying potential opportunities in the science sector for industry

and independent investors can be a challenge for the uninitiated.

Vcamm can connect businesses to potential third party investors. we

have a strong relationship with the venture capital community and

our proposals attract the serious consideration of potential investors.

potential investors may also be other businesses with complementary

interests considering investment through a business partnership

arrangement. all investment partnerships are treated as

commercial in confidence. direct investment partnerships

include an exit strategy to ensure that future financial

structures are not impeded.

funding research and development is a major challenge. Vcamm can help your business meet this challenge.

finance

ip eValuationsinvestment at all levels requires rigorous technology and

opportunity evaluations and due diligence reports to assess

the risk and provide confidence to investors. Vcamm has

the expertise in technical assessment of intellectual property

to support business case development, technology portfolio

planning and financial decison making.

did you know?

Vcamm has been successful in raising over

$100 million in state and federal funds for its

technology partners.

17

amsterdam fab lab at the waag society

creating a fab-lab

in the future the Vcamm innovation centre expects to host

a ‘fab lab’ – a concept created by mit in the united states.

the global network of local not-for-profit labs has already

been established in 16 countries around the world.

a fab lab creates a shared space for research, invention,

problem solving, learning new skills and collaboration. it

provides access to tools for digital fabrication – tools often

only available in commercial-scale organisations.

equipment available in fab labs generally includes an array of

flexible computer controlled tools that cover several different

length scales and various materials, with the aim to make

almost anything. commercial activities and new enterprises

can be incubated through access to a fab lab’s equipment,

although the lab remains essentially an open access venue.

supported technologiesVcamm has undertaken key projects, incubated businesses,

held shares and invested in a number of advanced technology companies including:

cell growth scaffolds – cytomatrix

surface wear coatings – hard technologies

carbon fibre process – Quickstep technologies

armour tech – australian defence apparel (ada)

automotive carbon fibre – bellmont composites

nanotechnology – micronisers

fluid mixing – tasweld engineering

tyre recycling – Vr-tek

rapid fluid heating - microheat technologies

biomass and high value chemicals – circa group

carbon fibre structures - autohorizon fr1

continuous enhancement of sheet metal alloys - cecap

solid oxide fuel cell technology - ceramic fuel cells ltd

dendrimer nanotechnology products - starpharma

anti-cancer therapeutics - prima biomed

x-ray phase contrast imaging technology - xray technologies

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“ the immediate follow on was that Vcamm introduced us to the Victorian science agenda program and to a collaboration focused on producing new technologies for bushfire protection”

Jim griffin, diver consolidated industries

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from its origins in 1935 as a supplier to the automotive industry,

the family-owned engineering firm diver consolidated industries

has recently diversified its interests to ensure a future that is less

reliant on a shrinking local automotive industry.

diver consolidated industries had sought Vcamm’s help to

identify technical and business opportunities that would allow

it to diversify and value-add to its core capabilities to reduce the

exposure to automotive and find new growth sectors.

diver ceo Jim griffin says economic conditions were affecting

the engineering business. markets for their core services were

contracting and sales volumes halved, which forced them to

downsize parts of the business.

“at the same time we were on the lookout for opportunities that

would complement our own, where we could bring our expertise

and financial muscle together with our export experience and

networks for mutual benefit,” Jim says.

Vcamm initially identified the opportunity to provide stamped

metal plates for microheat’s new highly advanced systems

for rapid heating of fluids for both domestic and industrial

applications. the new technology, protected by a family of patents

in more than 52 countries, saves energy, water and greenhouse

gas emissions, and has enormous global potential, particularly in

the developing green economy.

“we worked with Vcamm and could see that our advanced

automotive heat shield materials would ideally be suited

to applications for both domestic dwellings. as a result of

significant testing and development we have been able to

develop new radiant heat protective window curtains for use on

houses and buildings.

there are a number of new opportunities for diver on the horizon

including looking at emerging carbon fibre manufacturing. Jim

points to the value of ongoing business relationships, noting

“without Vcamm’s counsel we wouldn’t have felt comfortable

taking the position we have.”

diver had capability in advanced metal stamping and fabrication,

suitable for production of components such as electrodes, as well

as subsystem assembly.

“Vcamm also saw the immediate opportunity for us to supply

metal stampings to help with their electrodes, which are a core

part of the technology, and to extend that involvement over time,”

Jim says. “we also saw that we could help microheat with

some product design and engineering support as well as part

manufacture.”

Jim says that while diver won’t be supplying microheat in

the short term there have been a number of opportunities

for collaboration and a significant shift in the diver’s business

approach as a result.

“if Vcamm didn’t understand our needs, then the relationship

with microheat technologies would not have happened,” he says.

“our engagement took us outside our normal area of business,

and has caused us to look at new opportunities that fit our

strategic objectives but still draw upon our key competencies to

develop new products and expand our business.

“the immediate follow on was that Vcamm introduced us to the

Victorian science agenda program and to a collaboration focused

on producing new technologies for bushfire protection”.

at a glance business: diver consolidated industries, reservoir, and microheat technologies, ferntree gully, Victoriaindustry: metal manufacturing and engineeringsummary: a family owned metal fabrication company diversifies with development of new technologies and venture in new sectors.Vcamm assistance: analysis of compatible technologies and investment opportunities – business matching

business profile case studycollaboration brings new growth opportunities

Vcamm limitedVcamm innovation centre

551 burwood hwy knoxfield Victoria 3180

t +61 3 9955-9000www.vcamm.com.au

correspondence to: Vcamm limited

po box 62 belmont Vic 3216

registered office: Vcamm limited

c/- geelong technology precinctpigdons rd

deakin university Vic 3217 t +61 3 5227-1101 f +61 3 5227-1103

abn 90 102 661 530

acn 102 661 530

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