SCI Engineered Materials, Inc. (OTCMKTS:SCIA) Files An 8-K Entry into a Material Definitive Agreement
The disclosure contained in “Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant” of this Current Report on Form 8-K is incorporated in this Item 1.01 by reference.
|Item 2.03.||Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.|
SCI Engineered Materials, Inc. (“SCI”), a global supplier and manufacturer of advanced materials for physical vapor deposition thin film applications that works closely with end users and OEMs to develop innovative, customized solutions, today announced it plans to begin manufacturing thin film solar products in China beginning approximately mid-year 2019.
Under a joint agreement with publicly-owned Konfoong Materials International Co., LTD (“KFMI”), KFMI will bond rotatable thin film solar Aluminum Zinc Oxide (AZO) cylinders produced in Columbus, Ohio for thin film solar customers in China. Additionally, SCI will transfer its bonding technology for rotatable sputtering targets and KFMI will invest in new equipment for this manufacturing process. The Company’s products for photonics and thin film solar customers in areas other than China will continue to be bonded at the Company’s manufacturing facility in Columbus, Ohio.
Dan Rooney, Chairman and CEO, stated, “We are excited to enter into this manufacturing agreement with KFMI. They are a high quality partner and represent a solid business fit for SCI in a rapidly growing market. KFMI values SCI’s established manufacturing capabilities in ceramic and rotatable targets. This agreement is a strategic step forward for SCI that can lead to expanded opportunities, accelerate our market penetration and be beneficial for our customers.”
Jeremy Young, Vice President-Operations, who will become President on January 2, 2019, commented, “There are several advantages in this manufacturing agreement that enhance SCI’s position in the global thin film solar market. Specific benefits include lower transportation costs for bonded products as well as a significant reduction in time involved to ship the Company’s thin film solar products to customers in China. By working with a globally respected industry leader SCI expects this agreement will also be a catalyst to further its presence in China.”
KFMI is a high-tech company founded in 2005. KFMI is specialized in developing and manufacturing ultra-high purity metal materials and sputtering targets for the semiconductor and integrated circuit industries.
About SCI Engineered Materials, Inc. (OTCMKTS:SCIA)
SCI Engineered Materials, Inc. (SCI), formerly Superconductive Components, Inc., is a supplier and manufacturer of advanced materials for physical vapor deposition (PVD) thin film applications. The Company focuses on specific markets within the PVD industry, such as photonics, thin film solar, glass, thin film battery and transparent electronics. PVD coatings range from everyday items to computer processors. Every day applications include transparent anti-scratch coatings on eyeglasses, coatings on kitchen faucets, as well as low emissivity glass for household windows. The Company manufactures ceramic, metal, and alloy products for the photonic, photovoltaic, thin film battery, media storage, flat panel display, and semiconductor industries. The Company also develops products for the thin film solar (TFS) market. It produces ceramic powders through various processing techniques, including solid state and precipitation. It produces metal sputtering targets and backing plates.