Re: [ARSCLIST] Quantegy has closed ???

[James Lindner <jim@xxxxxxxxxxxxxxxxx>]

Coaters do not have to be as big as they used to be depending on the volume
of product required. I was priveledged to see an experimental coater at
Imation a few months ago and it was really quite small as compared to the
monsters of years ago. Since it is an experimental coater the output is very
small - but they move the base film though the coater at MUCH higher speeds
then they did years ago. I have also seen slitters that are quite small.
Again it all depends on the output required. I suspect that if someone was
really serious about the business that it would be a much better economic
proposition to build a new coater that has much better technology then to
work with old ones.

I believe that there are several companies around that have coating lines
that could make the product for someone who private labels it if they wanted
to. The real issue is the commodity pricing in the market and the marketing
costs. If there is really a market - there is nothing stopping any of the
current people in the business from turning out 2", or  1" or 1/4" product -
it is fairly low tech as compared to some of the other technologies going on
for the computer side of the business where the densities required are
hugely higher. If any one out there really has a large order - I have no
doubt that any of the majors would be able to make it on special order. The
issues is trying to make a buck when you are out there selling single cases
through distribution.

There are two other aspects of this that are interesting that have not been
mentioned.

1. Patents. When Quantegy was split off from Ampex a significant number of
patents relating to making tape were split off to the new company. These are
in receivership as well. After the real estate - these may be the most
valuable part of the company.

2. The cases! When 3M got out of the business - Quantegy bought the licenses
to the 3m patents and other assets in order to sell the cases. This is now
part of the receivership as well.

I don't think that this is all over yet. I suspect that there will be more
news. I would not expect that anyone will "take over" Quantegy - I am sure
that the most likely potential purchasers were contacted a long time ago and
chose for whatever reasons to not buy - at least in the current financial
structure. There may be other options, however. It will take some time to
shake out.

jim

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        Jim Lindner
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