AJX 9.09% 1.2¢ alexium international group limited

Research to pass time and ease nerves

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    For those anxious about progress with the FRACU, particularly in light of the recently posted article about Natick trialling a new wool based inherent flame retardant without topical treatments (eg. Alexiflam) article link
    I did some research and also contacted Alexium regarding its impact on their current efforts to treat army FRACU, I uncovered some interesting articles and insights.

    Some background first, Natick's Soldier Research, Development and Engineering Center (NSRDEC) does not stop research and development of Army Combat Uniforms (ACU's) and FLame Retardant (FR) ACU.  Once they have a particular fabric out in service -- its their job to continue R & D -- defence research is progressive that way. Inherent, Indigenously produced ACU textile technology is always part of the mix and they have researched inherently FR tech in the past as they continue to do in the present for possible future applications. Similarly they would also research non-inherently FR technologies like AJX's.

    NSEDECS latest development was published here. It consists of 50 per cent wool, 42 per cent Nomex, 5 per cent Kevlar and 3 per cent P140 antistatic fibre. The material is designed to be wholly made from domestic materials will consist of environmental friendly and sustainable fibre (As per the Berry Amendment). NyCo with Alexium treatment as we all know is also Berry Amendment compliant. The wool based textile has been driven by the American Sheep Industry (ASI) and it's clearl that they have been lobbying hard just as Alexium and its partners have been lobbying for their respective industries as can be seen here. In fact the ASI they have been unsuccessfully trying to pitch to the FRACU decision makers since before 2011.

    Just to reinforce, this wool blend is being looked at as a material for further research and as we've seen, it takes a long time from research and development to market. There are some considerable impediments to any such Inherently FR WOOL based textiles finding their way into anything beyond niche applications.

    1. Wool shrinks. In order for wool to be viable it has to undergo a "Super Wash" process that shrink-proofs the fibre before it is spun. The process also requires high quality Merino like wool to achieve the necessary shrinkage mitigation and wear performance results. Superwash involves an acid bath that removes the "scales" from the fibre, or it can be made by coating the fibre with a polymer that basically keeps the scales from being able to join together and cause shrinkage. This is the first major cost hurdle to this FR avenue. Coincidentally, the superwash process is highly toxic and managing the by-products would most likely be a highly regulated and expensive additional process.

    2. The US has much smaller flocks of wool yielding sheep. Latest statistics show less than 5 million (wool and meat) as compared to Australia  (74 million) and New Zealand (30 million) reference. A reference which I lost, indicated that
    there are not enough quality wool bearing sheep to satisfy the quantities required to outfit the entire US Army, and therefore there would have to be some importation of wool which contravenes the Berry Amendment.

    3. The current blend under research involves 50% Nomex. Nomex is an Aramid, like Kevlar. It  has excellent thermal, chemical, and radiation resistance for a polymer material, but poor strength as compared to Kevlar. Nomex is made by Dupont and has been used predominantly in the Aerospace industry. Its inclusion adds additional significant cost above that of the processed wool. From Dupont's own website "The purchase price of a garment made of Nomex® fibres is higher than that of a typical garment made of cotton or cotton blend, which was treated with flame-retardant chemicals." They go on to say it is cost effective due to it being launderable 200 times as compared to 50 times with FR topically treated cotton based fabrics. AJX's product however is rated to 100 launderings and significantly lower cost than Halogen based FR treatments as used in the incumbent Defender M FRACU so it still is more cost effective in those terms.

    4. Numerous field trials have had soldiers reporting that they prefer Nylon/Cotton blend uniforms for comfort and mobility. Recently in trials set in a tropical environment, soldiers have reported once again their preference for T420HT nylon-cotton uniform as it's neither too hot in the heat, or too cold when dampened. It is for this reason Alexium has had so much traction. reference

    5. Horses mouth. "The announced effort (that¹s all it is, an effort) with the FRACU fabric containing wool, will not affect our efforts at all.  While that fabric will be more durable than the incumbent fabric, Defender M, it will still be very very expensive because it contains very high levels of Nomex.  Alexium's work is very different and will result in a MUCH cheaper fabric with all the FR performance."

    In conclusion, I think nothing has changed and am eagerly anticipating further news in regards to FRACU. Fingers crossed, 2017 should be a bumper year -- particularly if management get their communications strategy right -- and I think they've gotten the memo as they have articulated, to me at least, that they will be communicating more clearly and concisely particularly when it comes to sales pipeline and revenue progress..

    Hope we can all relieve ourselves of the SP PTSD in 2017! Belated Merry Christmas, and Happy New year to all.
 
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