Publication date: 20 March 2008
In January 2007, Yossie Riemer joined Sono-Tek Corporation as the VP of Engineering. By September of the same year he had been promoted to President of the company.
Yossie's background was from the food and biotech sectors. He spent four years as R&D Director for Pfizer, and five years as a consultant to companies in this sector. His primary degree was in Chemical Engineering and Biotechnology His main interest is in technology transfer, i.e. bringing existing technology from one sector of industry, and implementing it in a new sector.
Sono-Tek Corporation was originally established as a provider of superior spray coating solutions. Their first systems were designed for use in the Electronics Industry, but they soon diversified into Medical, Glass and Chemical Industries. They are now in a financially solid position, and are investing heavily in the growth of the company. The growth plan at the moment is to double or triple existing sales over the next two years.
These rather significant growth plans will be achieved by expanding within existing markets, and by entering new markets with versions of their existing solutions. One of the markets Yossie sees particular potential in is the Medical Sector. Sono-Tek introduced their first machine for the Medical Industry around four years ago – the MediCoat 1.0. This machine was primarily for development work, and there is an installed base of approximately 75 machines, with over 500 ultrasonic nozzles at the moment.
This machine has recently been superseded by the MediCoat 2.0. The major advantage of the 2.0 is that it can be used for development and validation, but can also be used for full production. This allows for faster FDA approvals, and subsequently a faster time to market for new products.
The Textile Industry, another sector where Sono-Tek has a significant footprint, uses speciality chemicals like fire retardants and moisture repellents. These chemicals are expensive, and the most cost effective way of manufacturing with these is to have a very tight control on the amounts used. Yossie believes that ultrasonic atomisation of these chemicals is the best way of controlling exactly how much is used during the manufacturing process.
Sono-Tek can provide customised units in continuous lines for this industry sector, allowing wide-track lines necessary for large scale production. Using ultrasonic atomisation allows the chemical to meet the target fabric at defined locations as required.
The food sector is another industry where ultrasonic spraying is eminently suitable. Sono-Tek currently provide solutions for three separate and distinct areas within this sector.
Firstly, on the packaging side – films aren’t a particularly good barrier for air and moisture – both of which will significantly reduce the shelf-life of products. Coating the film with Nano-Clay Particles is an excellent way of decreasing the permeability of films used in packaging.
For Aseptic Packaging, the current process involves using hydrogen peroxide as the main reagent for sterilisation. Hydrogen peroxide can leave a faint residue on the packaging, which can be smelt by the end consumer. By controlling the amount of hydrogen peroxide, with the use of ultrasonic spraying, the quantities used can be reduced by one third. This of course means less residue, as well as lower cost.
The final part of the food industry where Sono-Tek is involved is in the use of natural neutraceuticals and antimicrobial solutions. These are the chemicals used in a lot of baked products to help keep them fresh. Currently these are baked into the product, which unless mixed properly may not give an even spread throughout the mixture. In addition, the heat from baking may change the properties of these agents, and render some of them ineffective.
The Sono-Tek solution is to spray the product, post-baking. This allows for a massive reduction in the amounts of these chemicals used, stops damage to the chemicals (which of course leads to a massive cost saving to the manufacturer), and also means that the products can be labelled as additive free.
In the Electronics Sector, where Sono-Tek originally started, their focus is on providing additional capability to customers while lowering costs. In addition, new products are being continually researched, with a new fluxer currently being beta-tested in several sites at the moment. This new fluxer will be launched with a list price of around USD$12,000.
Advanced energy is a sub-sector of electronics, where again Yossie sees significant growth potential, both in Solar and in Fuel Cell technology. Two systems produced by Sono-Tek fit particularly well into this niche – their XYZ Platform for R&D, and their “Flexi-Coat” system for inline. This includes special pumping technology for corrosive materials like carbon-black suspensions.
Looking to the future, Yossie plans to split the company into two separate divisions, one focusing on Medical and associated technologies, the other on Electronics. This will allow greater focus on individual customer requirements, and will include the renovation and upgrading of R&D and pilot plants. It will allow Sono-Tek to elevate their level of customer service, and to move in a more proactive way for their clients.
They also intend to double Trade-Show and Conference attendance, making it easier for customers and potential customers to meet them.
Currently Sono-Tek has around 55 employees and according to Yossie they “focus on unique solutions using existing proprietary technologies.”
Their growth plan also includes opening new channels for OEM’s using Sono-Tek heads on their own platforms – Several major OEM’s are already using Sono-Tek parts.
This is supplemented by a novel approach, clients are now able to lease equipment, instead of having the capital outlay of buying new equipment. This has particular appeal to contract manufacturers. Many of these receive 12 month contracts to build product – and may not want the capital outlay involved in buying a piece of equipment for a project with a limited life-span. Under this new system, the capital outlay is replaced with a lease cost (which can be written off immediately as an overhead), and the equipment can be returned to Sono-Tek at the end of the lease agreement.
As each piece of equipment is returned to Sono-Tek, they refurbish it completely, including upgrading any software or hardware to take advantage of new innovations implemented by the company – ensuring that each piece of equipment taken through the leasing program is the most up-to-date available.
When asked for a quick summary of his view for the future, Yossie said, “For Sono-Tek the future is good. Our products are sold across a number of Industry Sectors, and on a truly worldwide basis. Our products are innovative, and the technology we use is proprietary, allowing us to craft unique solutions to meet our customer’s requirements. As a company we are responsive to our customer needs, as can be seen from the new products we are researching and introducing, and the business practices we put in place (like the leasing program). Going forward, I feel that more than doubling the growth over the next 2 years is an extremely achievable target.”
For Further Information on Sono-Tek Corporation, visit: http://www.sono-tek.com.
