50329044 Lightweight Concrete 16 Pages

7/30/2019 50329044 Lightweight Concrete 16 Pages

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SECTION1LIGHTWEIGHTCONCRETEASNAPSHOTThisnewinnovativetechnologyisanaturalindustryprogressioninthiscountrywhichintegratesseamlesslywithcementprovidersandcontractorsalike.Itisanextensiontothemostadvancedbuildingtechnologiesbutsurpassesallotherswithitsenergyefficiencyfeaturesduetotheingredientsthatmakeupitscomposition.Likeanynewproductitwillnotbeembracedbyallthemarketinfactweexpecttopenetrateonlyafractionofthemarketbutinparticularthosekeydevelopersandcontractorswhoarelookingforspeedofconstructionactivitiesandqualityfinish.BecauseofitsGreenqualitiesweexpectstrongsupportfromthemediaandenvironmentallyconsciousmarketsectorswhowillunderstanditsenvironmentallysoundandsimplisticfeaturesandbenefitstotheenduser.ThisGreenaspectofthetechnologyallowsthosedevelopersandcontractorswhoembraceittomakeboldstatementstothemarketaboutitsenvironmentallyfriendlyfeaturesasidefromallthecommercialbenefitscontractorswillreapfromincorporatingitintheirconstructionmethodology.

SECTION2LIGHTWEIGHTCONCRETEWHATISIT?LightweightConcreteisasthenamesuggestsLIGHTWEIGHTCONCRETE.Thetwomainreasonswhyitissolightarebecause;(i)Ithasnoaggregateinitsmixcompositionandsubsequentlyinmostofitsnormalapplications(housingconstruction)itisnotasstrongastraditionalconcretemixhowever,inconjunctiontheSterlingPanel(asweoutlinelaterinthisdocument)lightweightconcreteisamarketleaderwithoverallunprecedentedtechnologyintegrity.Themainingredientinlightweightconcretethatmakesitlighterth

annormalmixconcreteiswhatisreferredtoasafoamingagent.Thisfoamingagentwhenmixedwithsand,cementandwaterproducesaslurry,themixingprocessincorporatessmallenclosedAIRBUBBLESwithinthemortartherebymakingitlighterandhavingspecialpropertiesdetailedfurtherherein.Thereareanumberoffoamingagentsavailableinthemarketthataregenerallymanufacturedfrompalmoilorsimilarbiomasssubstanceincluding,proteinbasedfoamingagentsandsynthetic.(Notetheformulaoffoamingagentsisawellguardedsecretofthemanufacturerthatcannotbeacquired).Thefoamingagentcanbe1

(ii)


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purchasedfromthemanufacturersbutgenerallyitispartofapackagewiththeirhardware.WhentheundilutedfoamingagentismixedwithwaterandprocessedthroughaFoamGeneratortheendproduct,thefoam,canbebestlikenedtothatofmostshavingfoams.

SECTION3HOWISLIGHTWEIGHTCONCRETEMANUFACTURED?Withnoaggregatetheonlyingredientsthatmakeuplightweightconcretearecementpowder,sand,waterandthefoamingagent.Thestrengthoflightweightconcretecanbevariedsignificantlybythemixratiooftheingredients.OncetheLightweightconcretemanufacturerunderstandsthedensityoftheconcretemixrequiredthecompositionofeachoftheingredientsisnotedsoastoobtainaconsistentconcretestrengthforthejobathand.Lightweightconcreteismixedinanagitatorinthesamecommonmannerasnormalconcrete.Duringthemixingprocessthefoamispumpedintotheagitatorandtheoutcomethereafterfromthemixingofsand,cement,waterandfoamalthoughlightweightconcreteisbestdescribedinappearanceanddensityasaslurry.

SECTION4FOAMGENERATORThisessentialpieceoftechnologyintheproductionoflightweightconcreteispoweredbyair.ArelativelysimpleandgenerallysmallpieceoftechnologytheFoamGeneratorcanbepoweredfromeitheranairtankorcontinuouslyoperatingcompressor.Foamgeneratorshaveanumberofcontroldevicesthatenabletheoperatortoadjustthefoampropertiessoastoachievetherequired

densityoftheslurry.

SECTION5MIXINGOFLIGHTWEIGHTCONCRETEAlthoughwestatedearlierhereinthatlightweightconcreteismixedinthesamecommonmannerasnormalconcrete,whichitis,itisbesttouseadedicatedmixerspecifictothelightweightconcreteasrecommendedbythefoammanufacturer.Toobtainauniformandsmoothslurryitisalsoimportanttohavethemixerand2


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foamgeneratorincloseproximityforspeedofoperation.Themixingactionandtimeofmixingisequallyasimportantasmixingtolongorshortcanaffecttheintegrityofthelightweightconcretemixitsallabouttechniqueandconditions.

SECTION6INSULATIONFEATURESOFLIGHTWEIGHTCONCRETEDuetoitsverylowdensityandcellularstructurelightweightconcretehasunprecedentedthermalinsulationqualities.Subjecttothedensityofthemixlightweightconcretecanhaveupto30%aircontentloweringitsthermalconductivitythusreducingheattransmissionsignificantly.Inadditionlightweightconcreteisbasicallyaninertnon-combustiblematerialunlikemanyothertypesofinsulationwhichmaydegradeovertimeorgiveofftoxicfumeswhencombusted.OneofthekeyfeaturesoflightweightconcretethatwebroachedonearlierhereinintheSterlingsectionwasthatduetoitshighflowcharacteristicsitrequiresnocompactionandbynatureitisselflevelling.Whenusedasastandaloneproduct,thatbeingwhenitisnotbeingusedasaninfillintoSterlingPanelforexampleasaroofingsurfaceitcanalsobemixedwithsuitablewaterproofingagentstomakeitimpervious.InadditionandforfurtherprotectionalayerwaterproofmembraneintheformofapolymermodifiedmortarcanbeappliedonthefinishedlightweightconcretesurfaceasfurtherprotectionLightweightconcretecanalsobeusedtoreplaceconcreteapplicationswhichincorporatepolystyreneaslightweightconcreteisrecognisedasoneoftheleadingthermalinsulatorsintheconstructionindustry.GeneralthermalconductivityofcellularconcretecomparedtonormalconcreteBulkdensity

(kg/m3)1,0001,1001,2002,400(normalconcrete)Thermalconductivity(W/mdegC)0.300.340.381.83

Thetableaboveshowsthatthermalconductivityofcellularconcreteat1,000kg/m3isonly18%thatofnormalconcrete.

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SECTION7FIRERATINGOFFOAMEDCONCRETEAttachedistheindicativefireratinginhrsforconcreteofvariousdensities.Asacementbondedmateriallightweightconcreteisincombustible.Intheeventoffiretoabuilding,ithasbeenfoundthatlightweightconcretedosnotdisintegrateorexplode.Tableshowingthicknessoflightweightconcrete(mm)forfireresistanceatvariousdensities.Fireresistance(hrs)3470.0-82.582.5-95.082.5-87.597.5-102.587.5-105.0110.0120.0125145

Density(kg/m3)400-480800-9601120-12801600

255.0-70.070.0-77.577.585.0100

595.0-105110.0-115122.5-133-

SECTION8SOUNDINSULATIONOFLIGHTWEIGHTCONCRETELightweightConcreteprovidesbetter(orequivalent)soundinsulationtransmittedbyair(airbornesound)thanothersolidbuildingmaterialssuchascementbricksorclaybricksundercomparableconditions.Theinsulationofsolidoneleafhomogenouswallsisdependentontheweightperunitareai.e.surfacerelatedmass.UsingtheMassActionLaw(BergersLaw)forsolidwalls;Rs=14.5log(m)+10dBWhere;misthemassofthewallelementinkg/m2(inclusiveofplasterandanysurfacefinish)Rsisthesoundreductionindex(dB)foraveragerangeof100to3150HzBelowaretypicalvalu

esofsoundreductionindexforvariousdensitiesoflightweightconcretecomparedtobrickwork.4


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Thickness(mm)150150100100

Densityoflightweightconcrete(kg/m3)125012002000(cementbrick)1850(claybrick)

Rs(soundreductionindex)dB44.4544.2544.7044.39

Itisassumedthatwallsareplasteredonbothsideswithcementbasedplasterofminimumthicknessof12mm.Duetothehighbendingstiffnessandlowdrydensityoflightweightconcretewalls,thevaluesabovemayincreasebymorethan10percent.(ThechartdoesnottakeintoaccounttheSterlingPanelwewilluseinallourconstructionactivities).TypicalformulasforLightweightConcretegiveninISO/171(1982);Methodforratingtheairbornesoundinsulationofbuildingsandofinteriorbuildingelementsresultsinsoundreductionindexof54dBfor1250kg/m3whichishigherthanthevaluesgiveninthetableaboveandexceedsthevaluesforbrickwalls.BemindfulthatastheSterlingpanelmakesuptheinterior/exteriorwallsofourconstructionactivitiesandbeingonly5mmthicknessthesoundreductionindexabovewillobviouslychangeslightly.

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SECTION9LIGHTWEIGHTCONCRETETECHNOLOGYSEESINVOLVEMENTSouthEasternEquities(SEE)havebeenresearchinginnovativeconstructiontechnologiestobeusedinconstructionactivitiesinthePhilippinesforinexcessoften(10)years.DuringthistimeSEEintroducedandhadaccreditedbytheNationalHousingAuthority(NHA)aSandwichPanelbuildingtechnologythatsuitedamultitudeofbuildingapplicationbutparticularlythoseofthePhilippineHousingIndustry.Unfortunatelythistechnologyasweweretolaterdiscoverdidnotpasstheknocktestofconsumersandasaresultofseveralyearsofworkandalotofcostthetechnologywasabandoned.TheknocktestisasimplecredibilitytestusedbyFilipinostohearandfeeltheintegrityofconstructionmaterialsadoptedintheconstructionofanybuilding.Itisparticularlyimportantforhomeowners.Theshortthudnoisethatresonateswhenawallisthumpedonwiththepalmofaclenchedfistcomfortstheownerofthehousethattheintegrityoftheconstructionmaterial(s)areeithersolidandsecureorotherwise.Quitesimply,likemostcountriesFilipinoswanttoknowthattheirhomeisconstructedofconcreteoraconcretebasedmaterialsandthatitissecure.GiventheclimaticconditionsofthePhilippinesitisironicthatselfcomfortisadistantconsiderationtosecurity.BearingthisinmindSouthEasternEquitiesthree(3)yearsagobegantoresearchallconcretebuildingtechnologiesanditwasntlongbeforewerealisedthatlightweightconcretewasthewayofthebuildingindustryinthefuture.Lightweightconcreteisnotanewtechnologytothebuildingindustrybutgenerallymostofthepreparationandapplicationprocesseswehaveseenarearchaictosaytheleast;hencetheuseoflightweightconcretehasbeenlimited.Asidefromsprayinglightweightco

ncretethemostfrequentwayitisbeingusedatthistimeinconstructionactivitiesisasafillinginin-situformwork.However,adoptinglightweightconcreteinin-situapplicationshasmanydownsidesastheformworkisexpensiveandtimeconsumingtoconstructanddismantle.Furthermore,mostofthein-situformworkshavelimitedusesduetotheerosiveeffectscementhasonthesurfaceoftheformworkoveraperiodoftime.Despitehowwellitiscleanedaftereachapplicationtheformworkultimatelydecays,whichresultinanexpensiveexercisetoreplace.Havingsourcedanumberoflightweightconcreteproductswithintheregionwewereoftheopinionthatourfutureconstructiontechnologyissuehadbeensolved.However,therewerestillanumberofhurdlestoovercomebeforetheregularuseoflightweightconcretewouldbeviableforus,thebiggestproblemwasthesourcingofasuitableformworkthatwaspracticalandcommerciallyviable.

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SECTION10STERLINGCONSTRUCTION&DEVELOPMENTCORPORATION(STERLING)Approximately12monthsagowewereintroducedtoSterlingwhohadpatentedanin-situbuildingtechnologythatwasfabricatedfromtheregularJamesHardiepanelmanufacturedinthePhilippines.TheSterlingtechnologyisbestdescribedasapermanentin-situbuildingtechnologyandhasbeenembracedbyconstructioncompaniesinthelocalandinternationalmarkets.Onacommercialbasisthetechnologyisonparitywithtraditionalbuildingmethodsi.e.,concretehollowblocks(CHB)buttheSterlingpanelismanytimesfasterinconstructionandhasafarsuperiorfinish.InallthetimethatSterlinghavebeenprovidingtheirtechnologytothemarkettheonlywayoffillingupthecavityintheirpanelwithconcreteisbypouringtraditionalconcretemixfromabucketorsimilarcarryingapparatusdirectlyintoit.InitsnaturalstateofreadinessforacceptingtraditionalconcretefilltheSterlingpanelisnotrobustenoughtoacceptconcretefillfromapump.Thefillingofthecavitybyusingaconcretepumpwouldresultinablowoutatthepanelseamsduetotheshearweightandpressureoftheconcrete.Thecurrentsystemoffillingthecavitywithbucketsoftraditionalconcretemixisalsoflooredwithtechnicalissuesnottomentionthetimeittakestobucketfillthecavityorthemanpowerrequired.Attheforefrontoftheseissuesiswhentheconcretemixispouredintothecavityoutofbucketsitleavesairpocketsaroundtheplasticrecycledpanelspacersthatholdthetwo(2)sidesoftheSterlingpaneltogether.Theonlywayaroundthisproblemistocompresstheconcretefillwithwhatiscommonlyknownasaconcretevibrator.However,onceagaintheuseofavibratorwouldresultinfracturingoftheSterlingpanel.WhilstSterlinghaveate

chnicallysoundin-situconstructiontechnologyithassomeflawsasdetailedabovewhichcanonlybeovercomebythefillingofthein-situwallcavitywithaveryliquidselflevellingconcretelightweightconcrete.

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SECTION11SEESPUMPANDMIXERTECHNOLOGYBeingtechnicallysatisfiedwiththeSterlingpanelandlikewisewithseveralofthesuppliersoflightweightconcreteproduct(foamingagent)wascomfortingbutSouthEasternEquitieswasstillnotsatisfiedwiththehardwaresolutionsithadbeenofferedduringitshardwaresourcingexercise.QuitesimplywewantedacombinedmixerandpumpthatwouldtransferthelightweightconcretedirectlyintothecavityoftheSterlingPanelandwewerenotabouttocompromise.Frominternationalinquirieswewereabletolocateseverallightweightconcretemanufacturerswhohadthepumptechnologythatallowedendusertopumplightweightconcretedirectlyintoin-situformwork.Thoseinvolvedinhousingconstructionactivitieswhousein-situbuildingsystemsallhaveresidualconcretemarkingsandscoringwhentheformworkisremoved.Thesemarksandscoringarecreatedbythepaneljointsinparticularthegeneralunevennatureofin-situformwork.Toremovethesevisiblemarkingswhichcrisscrossinternal/externalwallstheyhavetobecementrenderedbutthisatimeconsumingandexpensiveexerciseandmoreimportantlythewallsrarelyhaveanevenfinishappearance.WiththeSterlingproductthisisnotnecessaryastheformwork,thatisthein-situbondedJamesHardiepanelsareneverremovedtheymakeuptheinternalandexternalwalls.SeveralmonthsagoSouthEasternEquitiesonabacktobackformalarrangementwithBubbleDouble(aBVIcompany)enteredintoacommercialarrangementwithanorganizationwhohassuccessfullydevelopedandtestedalightweightconcretemixerandpump.Themixer/pumpchemicaladditiveinjectorincludingthedieselmotorandhydraulicpumpwhichoperatesallthefunctionofthetechnologyarefullencasedandintegratedonamobiletrailer.Tothe

bestofourknowledgeandresearchthetechnologywewillbeofferingtothePhilippineconstructionindustryinassociationwithSterlingisaworldfirstandSouthEasternEquitieshavesecuredtheexclusiverightsthereto.

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SECTION12THESEETECHNOLOGY(i)THEHARDWAREDuringourhardwaresourcingexercisewenoticedthatallthelightweightconcretesupplierswemetorspoketoallhadsimilarhardwarecomponents.EachhadaFoamGenerator,Mixer,andwherewedidlocateitapump.Thesewereallseparateunitsandonseveraloccasionsalsoincludedageneratorthatwasrequiredtopowerthehardwareasmostofitwaselectrical.Itisnothardtounderstandthatwithalltheseseparatepiecesofhardwareconnectedbypipes,cables,etc.andallhavingtheirownspecifictaskinthemanufactureoflightweightconcretethatlifeismorethanjustalittlebithecticfortheoperators.Worststillthereisnouniformityintheprocessastheoperatorsaremovingfromhardwaretohardwareandthentransfertheendproduct(lightweightconcrete)fromonemachinetoanother.Thisprocessisjusttocomplex,messyandunproductivegiventhelossintimeinmanagingallthevariouspiecesofhardware.WithoneofthemanufacturersofhardwareandfoamingagentinAsiawespentseveralmonthssourcingcomponentssothattheycoulddevelopafullyintegratedsystemforusbutthisalsobecametoohard.Onseveraloccasionsweweretoldbyotheroperatorsthatanintegratedsystemwouldsimplyjustnotwork.AftermonthsandmonthsofinternationalenquirieswelocatedanAmericanengineeringcorporationwhohadjustdevelopedwhatwewerelookingfor.NowreferredtobyusastheAirCreteJuniorthispieceofTechnologyhasallthecomponentsintegratedandmountedonatrailerthatcanbetowedbytheaveragesizedhouseholdcar.Itisinfactsocompactthattheoperatorshavenoreasontobedistractedbyperipheralhardwareactivities.ThisTechnologyincludesthemixer,pump,foamgenerator,dieseloperatingmotor,hydraulicsystems,aircompre

ssorandairholdingtankallintheonecompactunit.Theunitiscompactandmobilebuthasgreatperformanceoutputtomeetthedemandsofthemostdiscerningcontractorswhenengagedingeneralhousingactivities.Duetoitscompactsizeandthefactthatitismountedonatrailertheunitcanbecraneliftedallowingittobeusedinhighrisedevelopmentactivities.SEEhavesecuredtheexclusiverightstothisTechnologyforthePhilippinesandweexpecttoexpandtheserightstotheothercountrieswhereSterlingsupplytheirpaneltoi.e.MiddleEast,SouthAfrica,Indiatonameafewandtherearemorecountriesontheenquirylist.9


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(ii)

FOAMINGAGENTFoamingAgentsareinmostinstancestheintellectualpropertyofmanufacturersofLightweightconcreteTechnologiesandaremostlysoldtoendusersonapackagebasis.Thatbeingtheendusergenerallyacquiresthehardwareofthefoamingagentmanufactureronthebasisthatithasbeenspecificallysetup(sotheysay)fortheirfoamingagent.Withtheexemptionofone(1)allthefoamingagentswehaveknowledgeofallworkonthesamebasicdilutionformulaofaround40to1.Thismeansonelitreoffoamingagentplus39litresofwaterproduces40litresoffoamingsolutions.However,40litresoffoammix(i.e.foamingagentandwater)expandtoaround500litresoffoam.

(iii)

BUBBLEDOUBLEFOAMINGAGENTThefoamingagentwehaveprocuredthelicensingrightstoissimplyknownasBubbleDoubleFoamingAgentwhichworksandlooksdifferenttoallotherfoamconcentrates.MoreimportantlyitcomplieswithalltheAmericanStandards(ASTM-C869StandardSpecifications)and(ASTMC796testprocedures)whichisastabilityduringpumpingtest.Lightweightconcreteistestedduringmixingandpumpingandthelossofaircontentisnotallowedunderthetestconditionstoexceed45.5%ofairmass.ThedilutionrateofBubbleDoubleexceeds1.300thisbeingseventoeight(7-8)timesthedilutionratioofotherbrandsofotherliquidfoamconcentrateswhichtheirmanufacturerspromoteas1.40dilutionratio.NotonlycanBubbleDoublebedilutedseventoeight(7-8)timesmo

rethananyotherbrandsoffoamconcentrateonthemarketbutitisalsoformulatedtoallowawiderangeofadjustmentindilutionratiosandyields.Asanenvironmentallyfriendlyproductitisnotaggressive,willnotchapyourhandsnotcauseproblemswithsurfacesthatittouches.Unlikeotherfoamingagentproductsitdoesnotdecomposeinanopenedcontainerandtheshelflikeisforyears.Initsnaturalstateorwhenmixedintoslurrythereisnoodourandwithaveryattractivestrawberrycolour,textureandnoodouritisaverysimpleproducttoworkwith.SimilartotheAircreteJuniorhardwareSEEhaveprocuredthelicensingrightstotheBubbleDoubleFoamingAgentbothwhichworkperfectlyinharmony.10


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Insummary,SEEhavespentanenormousamountofmoney,time,andeffortinresearchingthisrapidlyemergingtechnology,LightweightConcrete.Fromsuchresearchweareoftheopinionthatwhatwehavethemarketinganddistributionrightstoisthemosttechnologicallyadvancedhardwareandfoamingagentavailableintheworldtoday.WearecomfortablefromtestresultsthattheTechnologyproducesaconstantintegrityofLightweightConcreteinaccordancewithspecificationpredeterminedtothebatchmixoftheingredients.Asanenvironmentallyfriendlytechnologywhatthey,thatisthehardwareandfoamingagentcollectivelyareabletoproduceisunprecedentedintheconstructionindustryinthePhilippines.TheenddevelopmentinparticularhousingconstructedfromLightweightconcretewillprovideahugerangeofbenefits,pleasure,anduninterruptedlivingcomfortduetoitsthermalandacousticproperties.Workinginco-operationwithSterlingthecombinedTechnologieswillbedifficulttosurpassbothasapackagedbuildingtechnologyorasacommerciallyprudentbusinessopportunity.Collectivelytheywillestablishanewbenchmarkforallconstructionactivitiesinthecountrythatotherswillaspireto,orquitesimplybeforcedtojoin.ThisisaveryexcitingopportunityforanybankorInvestmentCorporationtobeinvolvedwithparticularlyorganisationswhosupportcleanenergyefficientconstructionprocessesthatcanbereplicatedonaglobalbasisatanaffordablecosttotheenduser.

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SECTION13COMPETITIONInthePhilippineswewereonlyabletolocatetwo(2)suppliersofwhattheirmanufacturerslabelaslightweightconcretetechnologiesbuteacharevastlydifferentandinferiorintheirapplicationstotheSEEtechnology,theyare;(i)SPEEDPANELAnAustraliantechnologyonlyrecentlyintroducedtothePhilippinesmanufacturedfromgalvanisedsteelwithalightweightconcreteinfill.Thistechnologyisgearedforcommercialapplication.Whilstithasexcellentacousticandthermalqualitiesitisexpensiveandbeingmanufacturedoffsitetherewillalwaysbecarriage/storageissuestobedealtwithbutitiswellsuitedforanumberofspecializedcommercialapplications.BOXSYSTEMCONSTRUCTIONAUSApatentedproductpromotedlocallybyNorthconConstruction&ManagementGroup(Northcon).Itisapre-castin-situpanelsystemthatisproducedfromanormalconcretemixblendedwithpolystyrenebeads,Portlandcementandchemicaladmixtures.

(ii)

Itissaidtobeacosteffectivebuildingsystemcomparablewithconcretehollowblocksbutmuchfaster.Asanin-situbuildingproductthefinishshouldbeofhighqualityandweareinformedithasverygoodAcousticandThermalqualities.Onceagainbeingmanufacturedoffsiteithasthesamecarriage/storageissuesasSpeedpanelabove.DuetoitsfinishmostoftheclientsofNorthconarereportedtobeforeignerswhichistestamenttothefinishoftheproduct.WebelievethatNorthconmayalsomanufactureconcretehollowblocksbuttheinformation

availablesuggeststheyaremoreexpensivethattraditionalCHBwhichrestrictstheirmarketopportunitiesimmediately.OtherthanthesetwoproductswearenotawareofanyothercompetitioninthePhilippinestothatofourlightweightconstructiontechnology.InMalaysia,Thailand,IndonesiaandotherAsiancountriesthereareanumberoflightweightconcretefabricatorsusingvariousconfigurationsofpreparationanddeliveryoflightweightconcrete.However,ourresearchindicatesthatmostofthemanufacturersarefocusedonpre-castmouldingofhollowandsolidblocksincludingwallpanels.Anothercommonuseisthepre-castingofdecorativewall,ceilingandgardenfeatures.12


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ThereareafewmanufacturersoflightweightconcreteinAsiawhousein-situbuildingsystemsbuttheirformworkisexpensiveandtimeconsumingtoconstructanddismantle.Generallytherearequalityfinishissueswithusingin-situformworkbuildingsystemsthatbecomeevidentaftertheformworkhasbeenremoved.

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SECTION14TARGETMARKETSOurtargetmarketisjustafractionofthosehighlyratedcontractorslicensedwiththePhilippineContractorsAccreditationBoard(PCAB).FortherecordsandtoappreciatethesizeofthePhilippinemarketasofSeptember2009PCABhadissuedatotalof3,698contractorlicensesfor2009/2010.Ofthisnumber97.1%werelicenserenewalsandtheremaining2.9%werenewentrants.ImportanttoqualifyforourtargetmarketisthelargecontractorsAAAandAAaccountfronly6.3%oftheissuedlicenses.ThemediumsizedcontractorsAandBcomposedo36.2%whilesmallcontractorsstillremainedthemajorityofPCABlicensesat57.5%.However,morecomfortingforourentryintotheTechnologysideoftheconstructionindustryisthesurprisingincreaseinthetradefigurerelatedtotheconstructionindustryreferredtoasconstructioninvestments.Amidsttheglobaleconomiccrisis,soaringoil,gold,andfoodpricesandgeneraleconomicuncertaintyduringthefirstsemesterof2009thePhilippineeconomymanagedtogrowby3.8%.Whilsttherewasmixedearningsrecordedbyallmarketsectorstherewasastaggering15.8%growthintheconstructionindustry.Inthefirstsix(6)monthsof2009constructioninvestments,asmeasuredbythegrossvalueinconstruction(GVC)reachedPhp66.2billionrepresentinga9.7%increaseinthesameperiodin2008.Generallymarketoptimumishighandwehavenotseenorheardanythingtothecontrarythattheindustryhassloweddownin2010.Havingregardstothefinancialstabilityoftheconstructionindustryweareoftheopinionthatwecouldnothaveforecastabettertimefortheintroductionofthelightweightconcretetechnologyintothismarket.Ourgeneralsentimentsarethatitwillobtainhugerecognitionandacclaimfromallareasoftheconstructionanddevel

opmentindustryoncetheybecomeawareofit.TheapplicationsforitsusearewideandvariedbutourimmediatefocuswillbedirectedtowardsexistingclientsofSterlingandthereafterpotentialclientsofSterling.ThereciprocalbenefitstobothSterlingandSEEworkinginacollaborativerelationshipshouldbecomeapparentalmostimmediatelyandwillalsoallowSterlingtheopportunitytore-visitcustomersthattheymaypreviouslywereunabletocloseduetomixedreasonsassociatedwiththeirtechnology.Thetechnologyintimewillhaveimpact,butlittle,ontheconcretehollowblock(CHB)industryastherewillalwaysbeusersofthistypeoftechnologyasithasapplicationsthatwewouldcouldnotevenconsider.ItsjustamatteroftimeastohowwepenetratethismarketwithourlightweightconcretetechnologybutaLightweightconcretehollowblockatthesamepriceasthetraditionallymade14


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concretehollowblockwouldbeourobjective.Asthebusinessmaturestherewillbearequirementfortechnologydiversificationthatbeinglargerandsmallermodelsofthetechnologytoaccommodatelargecommercialdevelopmentsandsimilarlytosupportthesmallprovincialdevelopersandmanufacturersofcementbasedbuildingproducts.Theseopportunitieswillbeaddressedastheycometohand.Themarketpenetrationforthistypeoftechnologyiscontrolledbycapitalcostsandourforecastoftwenty(20)machinesinyearone(1)towellratedcontractorsofthePhilippinesContractorsAccreditationBoardisinouropinionveryconservative.

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SECTION15CARBONCREDITSThiscommercialareaofthetechnologyhasnotbeenresearchedatthistimeasitwouldbeprematureuntilsuchtimeasproductionofLightweightconcretecommences(October2010).However,givenitsgreenqualitiesweseenoreasonastowhyitwouldnotqualifyforCarbonCredits.Intheimmediatefuturewewillschedulemeetingswith;keyadvocacygroupsthelikesofPhilippineGreenBuildingCouncil(PHILGBC)andLEEDtodiscusstheinnovativeandenvironmentallyfriendlyfeaturesoflightweightconcrete.WeareoftheopinionthatwewouldobtainimmediatestatusasoneoftheleadingtechnologieswithintheBuildingforEcologicallyResponsiveDesignExcellence(BERDE)programmebeingdevelopedbyPHILGBC.

SECTION16HOWWILLCONTRACTORS/DEVELOPERSGETTOUSETHETECHNOLOGY?TheTechnologywillnotbeforsaletoanyparty,theownershipofthehardwarewillalwaysremainthepropertyofSouthEasternEquities.Wewillhoweverrentthehardwareandsellthefoamingagenttocustomersonapackagebasis.AdraftoftheDoubleBubbleServicesandRentalAgreementisattachedattherearofthissectionwhichoutlinesthetermsandconditionforthecommercialarrangementproposed.TothebenefitoftheenduserundertheproposedcommercialarrangementtheyhavenocapitaloutlayandwillstillenjoythebenefitsoftheproductdeliveredbyspecificallytrainedoperatorsintheuseandapplicationoftheTechnology.Thepricingofthedailyrentalhasbeenstructuredinsuchamannerthatthetechnologyandservicesprovidedthereafterincludingthesupplyofthefoamingagentshoul

dnotcosttheenduseranymore,orverylittle,ifany,thanthecostofusingtheSterlingPaneladoptingtraditionalconcretemixinfill.QuitesimplywhatwehavestructuredtheRentalAgreementresultsinnothinglessthanacommercialWINWINforSEE,Sterlingandthebeneficiary(Contractor/Developer)oftheTechnologyandServicesthereto.

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50329044 Lightweight Concrete 16 Pages