CEO statement

 

Selektope® has the potential to catalyze a paradigm shift in the marine paint industry. Marine growth on hulls and propellers creates major negative impact on ship fuel consumption, which in turn contributes to poor operating economy and increased emissions. Shifting regulatory requirements surrounding ship environmental impact, particularly those targeting emissions and invasive species, are increasing the demand for high-performance paints. In addition, there has been a fundamental reversal of the regulations regarding components and color systems, which limits the possibilities to further develop products that meet requirements.

“Selektope® is unique as a technology due to being able to reduce both invasive species transfer, plus air and sea emissions”

Thanks to Selektope®, it is now possible to increase antifouling performance to the required level with minimal additives in several product segments. Also, the customer is given the opportunity to reduce the total active substance content thus reducing the leakage of active substances into the marine environment. In summary, Selektope® is unique as a technology due to being able to reduce both invasive species transfer, plus air and sea emissions when its properties are fully utilized.

After more than 10 years of product development and testing, the commercial launch of Selektope® took place in late 2016 when one of the world’s largest manufacturers of marine paints – Chugoku Marine Paints (CMP) – launched the first commercial antifouling paint based on Selektope®. Since then, CMP has launched an additional  products, and over 200 vessels have been painted with Selektope®-based paint to-date (correct as of early 2018). Following a good response from the shipping industry, CMP has chosen to invest further in Selektope® and in March 2018 entered into a long-term delivery agreement with I-Tech, which contains significant volume commitments in coming years.

“I-Tech is welcoming ever-increasing interest in Selektope® from both ship owners and paint manufacturers”

For many years, I-Tech has had cooperation with the five major, global manufacturers of marine paints, all of which have carried out extensive development and tests with Selektope®. In the autumn of 2017, Danish paint manufacturer Hempel launched its first Selektope®-based antifouling paint.

I-Tech is welcoming ever-increasing interest in Selektope® from both the ship ownera and the paint manufacturers, which is expected to result in further product launches from CMP and Hempel and will also attract other paint manufacturers to launch Selektope®-based products onto the market. Overall, we estimate that the volumes and revenues will increase significantly this year (2018) and in the coming years.

“I-Tech has secured a high volume and scalable production capacity”

In order to meet growing demand, enable a low production cost and a high gross margin I-Tech has secured a high volume and scalable production capacity. In February 2018, we entered into an agreement with the chemical company Cambrex and acquired the process technology developed by Cambrex for Selektope®. Through this acquisition, Cambrex became one of I-Tech’s largest owners.

Rapidly growing revenue combined with a rising gross margin creates good profitability and our goal is to show sustained and rising profitability as of the end of 2019.

The use of Selektope® is not limited to marine paints for ocean-going vessels. Marine growth affects all marine installations and we see interesting applications in offshore, fish farming and other marine installations. In the long-term, we foresee opportunities with partners to launch antifouling paints for the pleasure boat market.

Gothenburg – April, 2018

Philip Chaabane, CEO I-Tech