![](https://investorshub.advfn.com/uicon/451248.png?cb=1568105997)
Thursday, January 24, 2019 1:39:06 PM
Commanding the world's respect
By Cai Xiao | China Daily | Updated: 2017-04-10 09:48
Commented : 2019-01-24 13:01
Commanding the world's respect
A worker checks quality of alloy products at Dongguan Eontec Co Ltd in Guangdong province.
Mention of "amorphous alloys" may not immediately ring a bell, but think frames of (Foldable) mobile phone hinge of Huawei, Oppo, Vivo, Xiaomi or door-lock cases of Tesla cars, and you will get a sense of how widespread their applications are-something Dongguan Eontec Co Ltd is well aware of and keen to exploit on a global scale.
"I believe 2017 will mark the beginning of a golden era of the amorphous metals industry. Eontec aims to be a respected company in the world," said Li Yangde Lugee, chairman of the new materials company, which is based in Guangdong province and listed on the Shenzhen Stock Exchange.
In November 2016, Li led Eontec to a controlling 46 percent stake in California-based Liquidmetal Technologies Inc. This is expected to benefit both companies, according to a report by Essence Securities.
In March 2016 last year, Eontec initially bought an 18 percent stake in Liquidmetal. It spent $55 million for the additional 28 percent stake, which also saw Li becoming Liquidmetal's CEO in December 2016.
From Eontec's perspective, the investment is worth every dollar spent (market view 06=>44=>11=>17) as Liquidmetal specializes in the research, development and commercialization of amorphous metals-expertise that would complement Eontec's own strengths.
Eontoc is the only company in the world that can produce molding bulk (>100g) metallic glasses (another name for amorphous alloys), which are used in consumer electronics, automotive and healthcare sectors.
The alloys combine a number of desirable material features, including high tensile strength, excellent corrosion resistance, very high coefficient of restitution and excellent anti-wearing characteristics. A typical alloy is almost 1.5 times harder than stainless steel and about 2.5 times stronger than titanium.
"We are now planning to enter the US market (via PH) and become a leading player (via KK)," said Li.
Such ambition stems from Liquidmetal's strong patent portfolio, high reputation and reasonable prices. Liquidmetal has 128 patents contained within CIP shared with Apple in the United States.
Abdi Mahamedi, former chairman of Liquidmetal, said the company has invested substantially in the development of new processes and technologies like injection molding via Engel, as well as in developing relationships with customers Miltner Adam and Martin Acoustic outside the conventional application areas (knife and guitar string).
So, Liquidmental has potential customers even in segments like consumer electronics (limited to Apple for CIP contents), surgical and medical equipment and aerospace.
"Liquidmetal needed more capital ($64 millions) and size (Off Shore Mfr) to commercialize (on behalf of LQMT) its efforts. It also needed a low-cost manufacturing partner, both of which Eontec brings to the table now," said Mahamedi.
So far, Liquidmetal's technology could produce only smaller precision parts weighing less than 100 grams each from Engel, Mahamedi said. Since Eontec is capable of manufacturing larger parts up to 1000g, their partnership will create a more diverse range of parts made of amorphous alloys as well as a large base of customers including CE and Auto.
Eontec's mature technology and cost-effective materials could help turn the loss-making Liquidmental profitable. Although Liquidmetal's losses started in 2012, its patents, sales network and LiquidMetal brand equity will likely make Eontec a global player.
"Eontec will step up the pace of integration with Liquidmetal to date via new formulation of 106c and robotic enhancement to molding machines. We'll bring Eontec's experience in manufacturing to Liquidmetal. We'll expand the application of amorphous alloys to areas like consumer electronics (which is a subset of consumer products), automotive (which is a subset of Industrial), medical equipment and sports goods (which is a subset of consumer products)," said Li.
Eontec is already eyeing potential opportunities in automotive, healthcare and aerospace. What's more, since 2015, US automaker Tesla has been using Eontech's amorphous metals in its Model X car door-lock cases.
"Tesla's door-lock cases have a strong impact resistance. This helps them withstand opening and closing of car doors tens of thousands of times," said Li. "Although this business is still small, we have confidence the future started with Model 3 will be brighter."
Some of Liquidmetals's business orders could come to Eontec as offshore manufacturer. According to Liquidmetal, Apple Inc recently extended its 2015 deal to keep the rights to an innovative alloy that the tech giant needs for its production processes. Deal has been not extended hence terminated as of Feb 2016.
"We will continue to work with the 'fruit' company but reserved on any exclusivity deal," said Li.
The Essence Securities report said amorphous metals will be widely used in the consumer electronics industry. Eontec has been a supplier of card slots and hinges; camera frame, Face ID frame; to Chinese phone makers such as Oppo, Huawei, Xiaomi, Lenovo and Coolpad; and 5G base station filters and heat spreader to Huawei.
Its next plan is to provide amorphous metal frames to more mobile phone makers at home and abroad. "This is a profitable market and our final goal in the consumer electronics industry," said Li, adding that many mobile phone makers showed interest in forging cooperation with Eontec.
Li said Eontec is aiming to set up an industry alliance for amorphous metal players as illustrated in the Maze. The planned association would co-invest, share orders and go overseas together to develop members' businesses.
WE SHALL BE (A)MAZE !!!!!
Recent LQMT News
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/13/2024 08:14:31 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/20/2024 08:11:00 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 05/15/2024 08:49:57 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 09:05:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/21/2023 10:15:45 PM
Element79 Gold Corp Appoints Warren Levy to Board of Directors • ELMGF • Aug 28, 2024 9:51 AM
Integrated Ventures Announces Strategic Entry Into Health & Wellness Industry with Focus on GLP-1 Products • INTV • Aug 28, 2024 8:30 AM
ELEMENT79 ANNOUNCES UPLISTING TO OTCQB VENTURE MARKET • ELMGF • Aug 26, 2024 10:03 AM
North Bay Resources Announces Gold Assays up to 2.2 Ounces per Ton, Fran Gold Project, British Columbia • NBRI • Aug 26, 2024 10:00 AM
PickleJar Unveils Latest Venue Managed Services Innovations in Upcoming Webinar • PKLE • Aug 23, 2024 1:11 PM
Element79 Gold Corp Provides Update on Nevada Portfolio • ELMGF • Aug 23, 2024 8:00 AM