Alexium accelerates competitive advantage in automotive fabric sector

Alexium accelerates competitive advantage in automotive fabric sector

Tuesday, November 24, 2015 by Proactive Investors

http://www.*.com.au/genera//img/companies/news/alexium_system_testing_358.jpg
Alexium is dialling into the ever growing car sector
Alexium International Group (ASX:AJX, OTCQX:AXXIY) has recently been positioning itself to deliver potential revenue streams from multiple products in several sectors, and the company has done it again.

This time Alexium is dialling into the ever growing car sector.

Alexium said that a European automotive fabric supplier placed a first purchase order for initial trials in June 2015.

With results exceeding industry standards, this positions Alexium as a potential market leader and supplier of choice.

The first product line has potential to generate revenue of US$300,000 per calendar month, but this could be just the beginning.

The customer also operates in the yachting and private jet markets, and therefore Alexium has revenue potential across a range of products estimated at US$10 to 15 million annually.


Dirk Van Hyning, Alexium president, commented:

“The obtained results exceeding industry standards by over 70% is a huge competitive advantage for Alexium in the FR industry, let alone our environmentally friendly credentials."


Certification of results

The results from the trials were certified by both the customer and an independent third party.

This follows on from a number of customer paid production trials with the customer now moving towards full-scale commercialisation.


Analysis

Alexium's foray into the automotive sector highlights the breadth potential of the company's technologies, in their ability to be used across sectors and applications.

While the client placed purchase orders for an automotive customer, this same customer can already see applications in other areas it operates in - such as the yachting and private jet markets.

This shows size and scale potential, and it is always easier to increase revenues with an existing customer - rather than attracting a new customer.

This therefore creates economies of scale for Alexium.

Alexium is also pursuing a dual-listing in New York, which would attract new international based shareholders, and would put the company on the global stage.

The company has already put in place steps to conduct an initial public offering in the United States of its American Depositary Shares, in conjunction with a planned listing on the NYSE MKT.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.