This is announcement is phenomenal.
Where are all the buyers afflicted with a terminal case of FOMO??? Let’s try and do some conservative revenue projections here...
According to 1. the world carpet market annual value today is $299 billion increasing by 4.5% annually.
45% of that market is supplied by Dalton, totalling $134 Billion.
According to 2. there are approximately 24 manufacturers out of which 23 (90%) are exporting to the world market, so all companies being equal they generate $5.8 billion in revenue each.
The one company which AJX now has a contact with might treat 10% of their carpet product with Alexium FR initially. That's $580 million worth of product.
Let’s say FR comprises 1% of the cost of the carpet, that’s $5.8 MILLION REVENUE to Alexium... and that is a very conservative projection in my opinion. Now consider the TSCA becoming law, and consumer demand for safer products keeps increasing I would imagine the majority of synthetic product would be FR coated, and let’s face it, not a lot of carpet is wool. Easily, at least 50% of the total product would be synthetic fibres requiring FR. Now having a foot in the carpet door, one would expect other manufacturers to follow suit. If we get 25% of the manufacturers to use Alexium FR, that would be 5 manufacturers -- what's the revenue at today’s demand levels for 5 manufacturers? $30Million.
I'll eat carpet if we don’t see that kind of annual revenue from this segment in the near future.
1.
http://www.freedoniagroup.com/industry-study/3227/world-flooring-carpets.htm
2.
http://www.carpetbuyershandbook.com/buying-carpet/carpet-prices/carpet-manufacturer-directory.php
-- thanks to
@GCInvestor for these links (love your work!)
