Business Weekly - Cambridge, UK

Established in 2000, Keronite is a world leader in advanced surface treatment technology for light metals, significantly improving strength, durability and corrosion resistance of light alloys.

The proposition is particularly compelling for car-makers, with statistics showing that a ten per cent reduction in vehicle weight can translate into a six to eight percent increase in fuel efficiency.

Keronite’s Plasma Electrolytic Oxidation (PEO) coating process transforms lighter metals such as aluminum and magnesium into a hard, dense ceramic that is extremely durable and resistant to corrosion and wear.

The improved durability creates longer lasting and better performing parts such as engine components that can help reduce the amount of fuel needed to achieve optimum performance.

With recent new contracts and discussions ongoing with major OEMs and suppliers, Keronite says it is poised to grow its automotive business and expects to increase sales by as much as 300 per cent this year over 2004.

Keronite’s existing automotive business is in Europe, including a contract to coat cast-aluminum piston rings and a contract to pre-treat magnesium body panels for a major European automaker, but it has recently started to gain real traction in the all-important US market.

Over recent months it has opened a North American office in Indianapolis, developed a presence near US automakers with a sales office located in Southfield, Michigan, and formed a partnership with Michigan-based Thixomat to offer additional value to tier one suppliers and automakers with its partner’s expertise in the injection molding of magnesium alloys.

"Our scientifically developed coating process offers today’s Tier Ones and OEMs a solution to a critical challenge: How to find ways to reduce overall vehicle weight without sacrificing performance and adding cost," said Lars Olrik, CEO of Keronite.

"This patented process will allow OEMs to replace heavier parts with lighter weight alloys without giving up any durability in the form of corrosion resistance or wear."

The Keronite process has already shown success in construction applications as a protectant for aluminum architectural panels, in cookware as a substitute for hard anodising and as a coating for hand tools.

The technology’s wear characteristics have been proven in independent testing that shows the process makes aluminum seven times more wear resistant than hard anodising, three times harder than untreated aluminum, and can withstand more than 2,000 hours in salt fog, a key test for corrosion resistance.

The Indy Racing League (IRL) is in the process of making Keronite mandatory coating on all magnesium wheels used in IRL competition vehicles. Also, Keronite is specified by General Motors’ Allison Transmissions as corrosion protection for gearbox casings.

The Great Abington based company employs around 30 across Europe, North America and Asia and works with more than 38 partners worldwide with 16 of those partners operating Keronite facilities.

Industries currently being served include automotive, textile, electronics, tools and molding, architecture and consumer goods.

The company has announced its intention to float on AIM early next year.