Feasibility Study

A feasibility study, along with marketing analysis and brand building proposal, is required to determine the market potential for a line of module sealants Kema Coatings is currently reviewing for enhancement. These module sealants are currently used in a variety of applications in the oil and gas industry. The company is investigating modifying the manufacturing process to determine if our module sealants can be extruded in wider widths and if so, what the application issues would be. Kema Coatings currently provides module sealants in widths of 4” and 6”. However, the industry provides the products, commonly referred to as sleeves, in various widths from 12” to 24”. These wider widths require special handling and equipment which is not easily accessible in the remote areas these sleeves are required and applied. We believe we have a huge advantage as our product lends itself to much easier, and equipment free, application. An example of the use of these products would be in the pipeline industry. During or post the pipeline being laid it may be damaged, by ground shifting or debris falling and a sleeve can fulfill the speciality requirements for this repair in remote areas. By gaining insight into the market; size of market, possible verticals to pursue, competition’s application issues and any pricing data we can get, the company will be able to determine if the ROI is there to make this is a feasible investment in time and resources. Final project deliverables include: A 15-minute presentation. A detailed strategic brief.

Potential expanded market penetration for enhanced epoxies

Three years ago, Kema Coatings Limited began a corporate restructuring that included an ownership change. Since that time, we have been working on enhancing our line of products and have now turned to epoxy and our ability to provide an even wider temperature range than was originally available. The product is now certified for -18 to 240 degrees C, and further modification to increase this range is being explored. To date. our main the focus has been on pipeline application with a few commercial applications. The epoxies can be applied both by brush, typically for smaller repair or maintenance use, or sprayed on for a larger use in industries such as construction, tanks, towers and any other steel products that require corrosion protection. To provide an example of the use of epoxy in the current setting: a pipeline used in the oil and gas industry is made of uncoated steel. Once the pipe has been laid, either on top of the ground or buried, it has to be coated to protect from corrosion and to help reduce the impact of falling debris. A commercial use would be the external application of our epoxy was used to coat the main tower at Canada’s Wonderland. While the recent enhancement for temperatures as low as -18C is important for certain markets, it isn’t the only reason Kema is considering expanding the epoxy sales focus. Our concern for the protection of the environment is paramount, and our recent testing results were very encouraging as it means when companies use or products over our competitors, the goal of protecting the environment increases; which intern minimizes any failure in the field. By increasing our market penetration, we can help reduce the use of poorer performing products. The company would like to test the market for expansion into industries such as construction, pipelines, and tanks in commercial applications. An industry review of the market is required that will provide insight into current markets and possibly future markets, to determine the verticals using epoxies and how it is used, and an overall summary of the size of the current market. The final report of the industry review will provide valuable insight into the types of uses of epoxy, the vertical markets where most usage is found and the size of the market. Using this report will help Kema Coatings expand exponentially into new markets. Final project deliverables include: - a 15 minute presentation - a detailed industry review

Feasibility Study

The feasibility study will be conducted on “sleeves” which are used in a specific repair process in the oil and gas industry. Our product(s) are made using a module sealant base with polyethylene exterior material, and currently uses 4” and 6” widths. The industry uses sleeves in the widths of 12", 18" ,20" and 24.” but our competitors installations require special handling and equipment.We therefore believe that our new product can replace and disrupt this market segment.This feasibility study will help determine the market for a new product. This new product would require capital expenditures for equipment , marketing, and distribution. The study will determine whether or not there is a market.We want the students to focus on investigating industry needs for specific sized products currently available - we need to better understand the total product being purchased currently and the forecasted future growth volumes. We then need a breakdown by size of the product and an examination of what the industry challenges are in the installation of the products currently available. We also need to understand the current costing model. Final project deliverables include: A 15-minute presentation. A detailed strategic brief.