ebeam Technologies

In its first year as a separate operating segment, ebeam Technologies focused on the integration of its US subsidiary and the expansion of capacity for Tetra Pak. Important interim goals were reached in opening up new applications and regions. Expenses for investment in future projects were reflected in an EBITDA deficit of CHF 9.1 million (prior year: deficit of CHF 9.7 million). The postponement of large orders resulted in a sales figure of CHF 16.9 million (prior year: CHF 18.1 million). However, the high order backlog existing at the end of the year validates the growth strategy.

EBT completely integrated its US system business acquired in the previous year and reoriented it. The segment also enjoyed success in new applications in the strategic areas of food and printing, where the presentation of promising pilot products marked significant milestones. Postponements in the acceptance process for large systems meant that some of the expected sales will only be booked in 2017. The high order backlog for 2017 nevertheless validates the segment's growth strategy.

On track with the expansion of production facilities and capacity for Tetra Pak

EBT's customer Tetra Pak, the world's largest packaging manufacturer, is gradually converting its plants to the chemical-free sterilization of beverage packaging. The aligning of the supply chain to produce higher volumes for Tetra Pak is progressing to plan: The manufacturing cell installed in the prior year that produces ebeam lamps was enlarged in 2016 to keep pace with the increased demand. And the construction to expand the facility in Flamatt, which besides the x-ray business will also provide additional production space for EBT, is well underway. The building is to be occupied in stages beginning in summer 2018. This will allow EBT to work with predictable operating and investment costs.

Ready for growth in the system business through ebeam

At the end of 2016, EBT completed the full integration of PCT Engineered Systems, the Davenport, Iowa-based company acquired in May 2015: The legal integration of the new subsidiary has been accomplished. In Asia, the structures were created to further expand the business and the key account management was strengthened. For the world's only vertically integrated powerhouse for low-energy ebeam, the stage is thus set to tap new applications. Through the purchase of the US company, ebeam has expanded its portfolio by adding an established solution for the curing and enhancement of plastic films and printing inks. In 2016 this enabled EBT to develop an innovative solution for digital printing.

New applications in the food and printing industries

To help drive the planned strong growth, the segment ramped up its investment in the food and digital printing sectors. A joint project with Bühler, the global leader in solutions for food processing, revolves around the inactivation of bacteria on granular dry foods. A prototype for this application was developed in 2016 and its effectiveness tested on more than 20 different foods. Also contributing to greater food safety is the ebeam Inkjet Dryer (EID), a novel product presented in 2016 that permits the food-safe, individualized printing of packaging. With both applications EBT is targeting markets that, amid the rising urbanization and purchasing power in emerging economies, will be buoyed by growing demand for food that is packaged, safe and, increasingly, also individualized.

2017: Strong growth planned

With the ongoing projects in the system business and the expected contractually secured orders, the groundwork is laid for vigorous growth in 2017. EBT will further the development of its business – such as in terms of regional expansion – and expects to see the first inroads made by its newly established team in Asia. In 2017, to bring the ebeam Inkjet Dryer to market, EBT aims to win strong partners in terms of the printing machine, print head and ink. Field tests for the application developed with Bühler are to be conducted in the first half of the year at Kündig, an international food processing company. EBT will also continue to work forcefully on its activities to develop more applications.

ebeam Technologies

Core business

Innovative technologies for the sterilization of beverage packaging and the enhancement or treatment of surfaces such as food packaging films and pressure-sensitive adhesives form the core business of the EBT segment. Other applications include the microbial inactivation of dry foods and the environ- mentally friendly curing of inks in digital printing.

Products

EBT develops and manufactures compact ebeam sets and whole ebeam systems for the resource-efficient, chemical-free treatment of surfaces in the food and printing industries.