According to Grand View Research, the global nanocoatings market demand was 255 kilo tons in 2012, with revenue estimated at around $1.5 billion.
The report from Grand View Research noted that an increase in R&D activity in nanotechnology has been driven by the growing preference for advanced materials in the medical and automotive industry. A surge in R&D activity in nanotechnology is expected to boost the nanocoatings market growth.
The nanocoatings market consists of nanotechnology developed coatings which have superior properties. These properties include abrasion resistance, ductility, hardness, lubricity and transparency when compared to conventional coatings, according to the report from Grand View Research.
Further the report added that the shifting of demand towards nanocoatings instead of polymer coatings, due to factors such as superior properties and low VOC emissions, are likely to be the major driving forces for the nanocoatings market.
The nanocoatings market is divided on the basis of product offerings, which include anti-fingerprint coatings, anti-microbial coatings, anti-fouling & easy-to-clean coatings and self-cleaning coatings. Nanocoatings have usage in a variety of industries, including medical & healthcare, food manufacturing, packaging, marine, and water treatment among others.
Monday morning, Miami Florida-based Abakan Inc. (OTCQB:ABKI), an emerging company in the advanced coatings market, announced that as part of its long-term strategy, it has increased ownership in subsidiary MesoCoat Inc. to 100%. The company said that in exchange for 20.5% of its minority ownership in Powdermet Inc., it has acquired from Powdermet, the remaining 11.9% of Mesocoat, along with land and equipment worth $550,000, the extinguishment of existing inter-company debt of $486,000, the return of 400,000 outstanding Abakan common shares to authorized capital and $1 million in cash.
Commenting on the development, Robert Miller, CEO of Abakan, said that obtaining 100% ownership of MesoCoat along with owning the 5.7 acres of land where ABKI’s clad pipe manufacturing facility sits and on which the company plans to build a 160 ton/year PcomP powder production facility were some of the company’s goals for this year. Miller further said that the transaction also transfers ownership of necessary PComP powder production equipment from Powdermet to MesoCoat, in addition to six cash payments over five months totaling $1 million, which will be utilized in part to fund capital expenses for the PComP facility. Miller added that when constructed, the new plant running at full capacity would be able to increase annual revenues by approximately $20 million.
While the news may seem positive for the Company, shareholders are less enthusiastic about the Company prospects with shares falling from the $0.80 level last July to current levels of $0.30. Hopefully this acquisition will turn the tides for shareholders as they hope for some improving share price appreciation.
