Overview
Abakan Inc. (“Abakan” or the “Company”) develops, manufactures, and markets advanced nanocomposite materials, innovative fabricated metal
products, and engineered metal composites for applications in oil and gas, petrochemical, mining, aerospace and defense, energy, infrastructure, and
processing industries. Abakan is realizing on its quest to become a leader in the $200+ billion metal coatings and metal formulation markets by deploying
a suite of technologies that offer 80 times longer life, up to 40 times higher productivity, and extremely high strength-to-weight ratios compared to
competing technologies. Abakan is the largest shareholder in MesoCoat and owns 41% of Powdermet, each of which is a nanotechnology material science
company involved in technology development and commercialization. MesoCoat is focused on metal asset protection and life extension by providing
advanced wear and corrosion solutions, while Powdermet is focused on metal (composites) formulations as well as advanced energy management
solutions.
MesoCoat was recently recognized by Forbes as the #1 material science company on their list of the "America's Most Promising Companies." MesoCoat
is also the recipient of five prestigious R&D 100 awards, also known as the Oscars of Innovation, while competing with companies across the globe such
as GE, 3M, Sherwin Williams, Boeing, Lockheed Martin, Samsung, and other world-renowned national and research labs. MesoCoat and Powdermet
together have won over 100 highly competitive federal awards and grants, including a $1.8 million award from the National Institute of Standards and
Technology to develop a faster, cheaper, and greener steel-cladding technology. The technologies that are being incubated, developed, and
commercialized at MesoCoat and Powdermet include over $70 million in sunk R&D costs provided by federal and state agencies and Fortune 500
companies.
MesoCoat's ‘PComP' nanocomposite coating materials are being commercially-sold and are also under the final stages of qualification with some of the
largest OEMs from the oil and gas, oil sands and mining industries; apart from being under the final Phase III qualification to replace chrome plating and
carbide coatings for landing gears and other Aerospace applications. MesoCoat is currently scaling up production to meet the demand generated by these
long life coatings. Powdermet, on the other hand, is in the final stages of development of a family of aluminum composites that are as strong as steel but
only a third of the weight of steel; this technology is expected to commercialize in the next 12-18 months. MesoCoat's ‘CermaClad' technology, which is
currently in the final stages of qualification with South American oil major Petrobras S.A, is expected to qualify for producing corrosion-resistant clad
pipes in the first quarter of 2013. In anticipation of a large $20-$30 million initial order, Abakan has already financed a one-line clad pipe manufacturing
facility in Ohio, which is expected to be operational by December 2012 and can produce up to 20 kms of clad pipe ($65 million in revenue) annually.
Abakan is currently in the process of securing land/facilities in Brazil, Canada, and the Middle East, which are driven by strong local demand and
overwhelming support by customer and end users for their clad pipe product.
