2017 European Thermal Diffusion Coatings Technology Innovation Award
EUROPEAN THERMAL DIFFUSION COATINGS TECHNOLOGY INNOVATION AWARD
2017
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Contents
Background and Company Performance ........................................................................ 3
Industry Challenges .............................................................................................. 3
Technology Leverage and Business Impact .............................................................. 4
Conclusion........................................................................................................... 7
Significance of Technology Innovation .......................................................................... 8
Understanding Technology Innovation .......................................................................... 8
Key Benchmarking Criteria .................................................................................... 9
Best Practices Award Analysis for Thermission AG .......................................................... 9
Decision Support Scorecard ................................................................................... 9
Technology Attributes ......................................................................................... 10
Future Business Value ......................................................................................... 10
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 12
The Intersection between 360-Degree Research and Best Practices Awards ..................... 13
Research Methodology ........................................................................................ 13
About Frost & Sullivan .............................................................................................. 13
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Background and Company Performance
Industry Challenges
According to NACE International, the global cost of corrosion was estimated at about $2.5
trillion in 2016. This high cost directly impacts the global economy as iron in all its forms,
including cast iron, steel, and rolled metal, is the most widely used structural material,
compared to wood, cement, and ceramics. Even as demand for iron and its various forms
continues to increase at a steady rate across geographies, stakeholders across the value
chain in each end-use industry are constantly looking for new methods to mitigate
corrosion. One approach to mitigating corrosion is the application of a sacrificial zinc metal
layer as a coating on the metal substrate because zinc acts as a barrier, thus preventing
corrosion.
While some low-cost zinc plating processes offer short-term corrosion protection for up to
5 years, industries are open to exploring new, higher-cost technologies with a corrosion
performance for up to 15 years so that cost neutrality can be achieved by extending
maintenance cycles. The following are the key challenges driving the need for an effective
alternative to traditional zinc coating processes.
Corrosion in Hybrid Construction: Lightweighting of components in industries such as
automotive and aerospace has become a top priority objective for all major
manufacturers. For instance, the vehicle body’s hybrid construction is made of composite
materials comprising electrochemical-based light metal alloys and low alloy steel. These
components face corrosion problems because of the difference in the electrochemical
potential of individual constituent metals. In addition, because magnesium and aluminum
alloys offer a good weight-to-strength ratio, they are the most preferred for
lightweighting; however, they are susceptible to corrosion at the joints.
Protection of Precision Components: Parts and components with a sealing function
come with stringent specifications on tolerance and secure sealing abilities. Any additional
protective coating layer can alter the dimensions of these components and degrade the
integrity of the seals. Alternately, precision components covered with expensive stainless
steel layers are uneconomical and, thus, not preferred. These factors have led to a high
demand for an effective technology that mitigates corrosion without altering the tolerance
for delicate parts.
Hydrogen Embrittlement: Hydrogen absorption in the steel structure’s crystal lattice is
a major concern in galvanizing processes. For instance, in the hot-dip galvanizing process,
prior to galvanizing, a solution with a 10 to 15% concentration of hydrochloric acid is used
at ambient temperatures to remove mill scale on the steel’s surface. During this step,
hydrogen is absorbed into the structure and alters the mechanical properties of the high-
strength steel, i.e., steel with tensile strength greater than 1,000 megapascal (MPa) and
Rockwell hardness of greater than 30 Rockwell C, resulting in the loss of tensile and
torsional ductility and increasing the chances of component failure.
Re-work to Finish: The occurrence of varying design specifications provided by the
component manufacturer is common when using hot-dip galvanizing or electro-plating
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processes. For instance, while coating a threaded small-to-medium sized steel part, a hot-
dip galvanizing process may fill in the threads and cover the part’s fine details,
necessitating further re-work to strip the coating and regalvanize to achieve exact
specifications because the hot-dip galvanizing process has a heavy coating coverage with
a non-uniform coating thickness of above 100µm. A process is needed that can provide a
conformal coating with a uniform coating thickness.
High Temperature and High Energy: Traditional zinc thermal diffusion coating
processes, such as hot-dip galvanizing, sherardizing, and electroplating, are required to
maintain the process bath at a temperature between 870 and 1,030 degrees Celsius for up
to 8 hours. These requirements are a major concern for component manufacturers
because they involve high energy-related costs.
These challenges with conventional zinc metal plating processes have led to increasing
interest in identifying an effective alternative that is fine tuned for lightweight metal
alloys.
Technology Leverage and Business Impact
Based in Switzerland, Thermission AG is a technology developer in the thermal diffusion
coating process field and a manufacturer and supplier of coating equipment. Introduced in
2012, Thermission’s technology overcomes barriers in corrosion mitigation, specifically for
parts and components made from high-strength steel and other metal alloys containing
aluminum and magnesium. The patented technology offers a new range of possibilities by
lowering the temperature of the thermal diffusion process and by improving the material
properties of the substrate being coated.
The technology is based on a combination of zinc powder and additives that are
proprietary and chosen according to the composition of the metal substrate to be coated.
In a typical process, parts and components made of lightweight metal alloy containing
aluminum, titanium, magnesium, or copper are pre-treated to remove oxides and to
activate the surface. The coating application is performed at a temperature between 280
and 370 degree Celsius, when the zinc dust mixture is applied to form a zinc diffusion
layer.
Industry Impact
Innovation is at the core of Thermission’s business. With a clear vision to solve the
corrosion challenges that reduce asset lifetime, Thermission has emerged as a leader in
technology innovation by bringing a new thermal diffusion technology to the market that
provides highly differentiated and customized coating solutions to customers across
industries, including automotive, marine, and railways.
Thermission’s technology is differentiated from its competitors in three aspects. Firstly,
the process takes place at temperatures below the melting point of zinc, which widens the
scope of adoption for the thermal diffusion process. Secondly, there is no formation of
brittle zinc/metal intermediate phases, thereby eliminating the risk of flaking under
mechanical stresses. Thirdly, the process works on the internal properties of the metal
substrate and improves strength and ductility.
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Thermission’s technical expertise is built upon a strong innovation framework that
identifies the evolving changes in material requirements in industries such as automotive.
Thermission offers end-to-end corrosion protection services to clients throughout the
intended life of metal components. For instance, with the need to eliminate preferential
corrosion in metal mixtures used in lightweight components for the automotive industry,
Thermission’s technology offers a competitive advantage for original equipment
manufacturers (OEMs) to differentiate their products in terms of increased safety, with
excellent resistance to acids, salts, and wear, even in the component’s edges. This high-
value product quality evaluation criterion enables OEMs to offer a unique value proposition
to their customers in terms of product lifetime and performance in harsh environments.
As a testament to its impact, Thermission has a strong footprint in the automotive
industry, with over 50 major customers in Europe and US developing customized coating
solutions for cars and trucks.
Product Impact
Even as new metal combinations are being tested for use across industries, manufacturers
are continuously evaluating new corrosion mitigation technologies to extend service life.
The cost versus performance of a new technology is a key factor impacting the choice of
adoption. For example, in the automotive industry, 80% of the metal and metal alloy
components are required to prove performance for 320 salt spray test hours. Existing
thermal diffusion coating technologies already meet this requirement at a cheaper cost.
However, premium brands in the automotive space expect their part suppliers to provide
certifications that show protection for more than 720 salt spray test hours. Thermission ’s
technology meets these requirements and exceeds expectations by delivering corrosion
protection for up to 1,400 salt spray test hours. This ability has a huge impact on the
automotive industry as maintenance costs can be significantly reduced, translating into a
positive consumer perception of the automotive brand.
In an industry such as automotive, where customers are willing to pay a premium of up to
30% on parts and components to ensure stability for up to 720 salt spray hours and even
more , Thermission is considered a leader in setting new performance standards for
endurance and durability of metal components.
Scalability
Thermission’s technology is developed as a platform coating process that seamlessly fits
into the specifications and requirements from across industries, including automotive,
marine, and railways. Offering a portfolio of three products and services, Thermission
leverages the competencies of its strong technical team, technology ownership, and direct
coating facilities to provide best in-class services for component manufacturers.
For coating single components in small batches, Thermission allows its customers to utilize
its own coating facilities in Switzerland and the United States to test new parts and realize
the benefits of Thermission’s technology for new applications where ferrous and non-
ferrous metals are being explored.
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To offer customers an edge over their competitors, Thermission offers turn-key production
lines customized to coat large bulky components that can be integrated into the
production process at the customer’s site, enabling its customers to gain complete control
and flexibility to tune the coating process and reduce response times.
One of Thermission’s first commercial successes was in 2014 when KAMAZ, the largest
truck manufacturer in Russia, bought exclusive patent rights to Thermission’s technology
and entered into a joint venture with Thermission to set up coating lines for part
processing. In the meantime several car manufactures and big suppliers have licensed the
Thermission technology
Visionary Innovation
With its well-structured innovation strategy, Thermission is positioned to become the
leader in offering disruptive technologies for metal part processing. Even as new high-
strength, lightweight metal alloys are being explored as effective alternatives to steel,
Thermission is focusing its research on identifying material strength and durability
challenges faced when metals and non-metals are combined. Thermission’s Thermal
Diffusion process offers above-par corrosion protection and alters the metallurgy of the
interlayers during the process, which improves the ductility and elasticity of the substrate
being coated.
Additionally, Thermission is focusing on new applications and markets to expand its
technology’s reach. For example, anti-corrosion coatings currently used in marine vessels
require a re-coat every year; therefore, ship owners are pushed to invest heavily on
annual maintenance. In addition, repeated re-coats applied on vessel exteriors increase
the vessel’s weight, thereby resulting in an 8 to 10% increase in fuel consumption.
Thermission aims to address this top priority application need for the marine industry.
The adoption of Thermission’s thermal diffusion process allows ship building companies to
achieve desired corrosion protection and double the duration of maintenance cycles. The
prospect of improvements in normal steel’s ductility opens up an opportunity for ship
building companies to achieve desired material strength, even at 15 to 20% less
thickness, thereby contributing to the industry’s lightweighting objective.
These clear indicators place Thermission as a visionary innovator in industries such as
automotive, marine, and aerospace that are witnessing a significant shift towards the
adoption of new metal and non-metal alloys to reduce the weight, realize fuel savings, and
reduce the carbon footprint.
Application Diversity
Thermission’s technology expertise in zinc-based coatings for metal substrates, including
raw material choice, coating system design, and commissioning, is unmatched in the
European thermal diffusion industry. The new thermal diffusion process transcends the
boundaries and limitations of competing galvanizing processes, specifically for high
strength steel applications. The technology’s flexibility to coat a wide variety of base
metals, non-metals, and metal alloys positions it as an innovative coating technology
platform that can be customized to match end-use application needs.
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Thermission’s highly skilled team of technical experts recommends modifications to the
process in terms of choice of coating material and design of optimum process conditions,
enabling customers to achieve their desired coating properties, such as coating thickness,
hardness, and density, that meet the highest quality standards of the target application.
For instance, Thermission has worked closely with several car munfacturers to develop
automotive vehicle body components with a hybrid metal. The patented vehicle
component is a non-ferrous metal hybrid construction with a zinc diffusion layer applied at
a temperature between 280 and 390 degree Celsius. This ability clearly allows Thermission
to contribute at every level of product development, from material choice to optimizing
thermal diffusion parameters, to achieve best-in-class corrosion protection in-line with
expectations from key stakeholders in end-use industries.
Technology Licensing
Thermission has made significant inroads in identifying high-value/low-risk opportunities
in terms of short-term revenue generation. With a streamlined approach to evaluating
technology licensing partners, Thermission has concentrated its efforts on increasing its
visibility, mainly in the automotive industry over the next 1 to 2 years, while the marine
and offshore industries will be of interest in the long term.
Thermission’s systems technology service delivers customized solutions to licensing
partners, with a complete transfer of technology know-how that allows partners to
formulate their own process quality monitoring mechanisms. In addition, Thermission’s
guaranteed full lifetime service support enhances customer trust and promotes long-term
business relationships.
Conclusion
As a leader in providing disruptive thermal diffusion process technologies, Thermission has
demonstrated a commitment to delivering its proprietary thermal diffusion technology as a
low-cost, energy-efficient, and eco-friendly process to meet end-user requirements in high
impact application industries, such as automotive, aircraft, and marine.
According to Frost & Sullivan’s research on best practices followed by coating process
technology developers, Thermission’s well-structured approach to identifying and
overcoming key technology barriers to deliver long-term corrosion protection for hybrid
lightweight construction is the benchmark in the thermal diffusion coatings industry that
enables customers to develop lightweight premium products with un-matched corrosion
protection.
With its strong overall performance, Thermission has earned Frost & Sullivan’s 2017
Technology Innovation Leadership Award.
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Significance of Technology Innovation
Ultimately, growth in any organization depends upon finding new ways to excite the
market and upon maintaining a long-term commitment to innovation. At its core,
technology innovation, or any other type of innovation, can only be sustained with
leadership in three key areas: understanding demand, nurturing the brand, and
differentiating from the competition.
Understanding Technology Innovation
Technology innovation begins with a spark of creativity that is systematically pursued,
developed, and commercialized. That spark can result from a successful partnership, a
productive in-house innovation group, or a bright-minded individual. Regardless of the
source, the success of any new technology is ultimately determined by its innovativeness
and its impact on the business as a whole.
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Key Benchmarking Criteria
For the Technology Innovation Award, Frost & Sullivan analysts independently evaluated
two key factors—Technology Attributes and Future Business Value—according to the
criteria identified below.
Technology Attributes
Criterion 1: Industry Impact
Criterion 2: Product Impact
Criterion 3: Scalability
Criterion 4: Visionary Innovation
Criterion 5: Application Diversity
Future Business Value
Criterion 1: Financial Performance
Criterion 2: Customer Acquisition
Criterion 3: Technology Licensing
Criterion 4: Brand Loyalty
Criterion 5: Human Capital
Best Practices Award Analysis for Thermission AG
Decision Support Scorecard
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool
allows our research and consulting teams to objectively analyze performance, according to
the key benchmarking criteria listed in the previous section, and to assign ratings on that
basis. The tool follows a 10-point scale that allows for nuances in performance evaluation.
Ratings guidelines are illustrated below.
RATINGS GUIDELINES
The Decision Support Scorecard is organized by Technology Attributes and Future
Business Value (i.e., these are the overarching categories for all 10 benchmarking criteria;
the definitions for each criterion are provided beneath the scorecard.). The research team
confirms the veracity of this weighted scorecard through sensitivity analysis, which
confirms that small changes to the ratings for a specific criterion do not lead to a
significant change in the overall relative rankings of the companies.
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The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key
participants as Competitor 2 and Competitor 3.
Measurement of 1–10 (1 = poor; 10 = excellent)
Technology Innovation
Technology
Attributes
Future
Business Value Average Rating
Thermission AG 9.0 9.5 9.25
Competitor 2 8.5 8.5 8.5
Competitor 3 8.0 8.0 8.0
Technology Attributes
Criterion 1: Industry Impact
Requirement: Technology enables the pursuit of groundbreaking ideas, contributing to the
betterment of the entire industry.
Criterion 2: Product Impact
Requirement: Specific technology helps enhance features and functionalities of the entire
product line for the company.
Criterion 3: Scalability
Requirement: Technology is scalable, enabling new generations of products over time,
with increasing levels of quality and functionality.
Criterion 4: Visionary Innovation
Requirement: Specific new technology represents true innovation based on a deep
understanding of future needs and applications.
Criterion 5: Application Diversity
Requirement: New technology serves multiple products, multiple applications, and
multiple user environments.
Future Business Value
Criterion 1: Financial Performance
Requirement: Potential is high for strong financial performance in terms of revenues,
operating margins, and other relevant financial metrics.
Criterion 2: Customer Acquisition
Requirement: Specific technology enables acquisition of new customers, even as it
enhances value to current customers.
Criterion 3: Technology Licensing
Requirement: New technology displays great potential to be licensed across many sectors
and applications, thereby driving incremental revenue streams.
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Criterion 4: Brand Loyalty
Requirement: New technology enhances the company’s brand, creating and/or nurturing
brand loyalty.
Criterion 5: Human Capital
Requirement: Customer impact is enhanced through the leverage of specific technology,
translating into positive impact on employee morale and retention.
Decision Support Matrix
Once all companies have been evaluated according to the Decision Support Scorecard,
analysts then position the candidates on the matrix shown below, enabling them to
visualize which companies are truly breakthrough and which ones are not yet operating at
best-in-class levels.
High
Low
Low High
Fu
ture B
usin
ess V
alu
e
Technology Attributes
Thermission AG Competitor 2
Competitor 3
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Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan analyst follows a 10-step process to evaluate Award candidates and
assess their fit with select best practice criteria. The reputation and integrity of the
Awards are based on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1 Monitor, target, and screen
Identify Award recipient candidates from around the globe
Conduct in-depth industry research
Identify emerging sectors Scan multiple geographies
Pipeline of candidates who potentially meet all best-practice criteria
2 Perform 360-degree research
Perform comprehensive, 360-degree research on all candidates in the pipeline
Interview thought leaders and industry practitioners
Assess candidates’ fit with best-practice criteria
Rank all candidates
Matrix positioning of all candidates’ performance relative to one another
3
Invite thought leadership in best practices
Perform in-depth examination of all candidates
Confirm best-practice criteria Examine eligibility of all
candidates Identify any information gaps
Detailed profiles of all ranked candidates
4
Initiate research director review
Conduct an unbiased evaluation of all candidate profiles
Brainstorm ranking options Invite multiple perspectives
on candidates’ performance Update candidate profiles
Final prioritization of all eligible candidates and companion best-practice positioning paper
5
Assemble panel of industry experts
Present findings to an expert panel of industry thought leaders
Share findings Strengthen cases for
candidate eligibility Prioritize candidates
Refined list of prioritized Award candidates
6
Conduct
global industry review
Build consensus on Award candidates’ eligibility
Hold global team meeting to review all candidates
Pressure-test fit with criteria Confirm inclusion of all
eligible candidates
Final list of eligible Award candidates, representing
success stories worldwide
7 Perform quality check
Develop official Award consideration materials
Perform final performance benchmarking activities
Write nominations Perform quality review
High-quality, accurate, and creative presentation of nominees’ successes
8
Reconnect with panel of industry experts
Finalize the selection of the best-practice Award recipient
Review analysis with panel Build consensus Select recipient
Decision on which company performs best against all best-practice criteria
9 Communicate recognition
Inform Award recipient of Award recognition
Present Award to the CEO Inspire the organization for
continued success Celebrate the recipient’s
performance
Announcement of Award and plan for how recipient can use the Award to enhance the brand
10 Take strategic action
Upon licensing, company is able to share Award news with stakeholders and customers
Coordinate media outreach Design a marketing plan Assess Award’s role in future
strategic planning
Widespread awareness of recipient’s Award status among investors, media personnel, and employees
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The Intersection between 360-Degree Research and Best Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and demographic
analyses. The integration of these research
disciplines into the 360-degree research
methodology provides an evaluation
platform for benchmarking industry
participants and for identifying those performing at best-in-class levels.
About Frost & Sullivan
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and achieve best-in-class positions in growth, innovation and leadership. The company's
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please visit http://www.frost.com.
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS
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