Equity research Svenska Aerogel: New pilot orders and improved finances

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Svenska Aerogel Holding AB (“Svenska Aerogel” or the “Company”) has recently shared several important updates about its financing and business development. Carlsquare Equity Research has analysed the global aerogel market and identified several factors that favour Svenska Aerogel’s prospects.

In terms of financing, the Company has made significant advances towards a stronger financial position by converting a previous SEK 4.5 million loan from the Swedish Energy Agency into a grant. This grant reduces the financial costs. Additionally, Svenska Aerogel has renegotiated the repayment terms for other loans, halving the amortisation requirements on some outstanding loans for the coming year. These improvements bolster the company’s ongoing efficiency program, initially designed to reduce costs by SEK 10 million over 12 months.

Operationally, Svenska Aerogel has received a pilot order for 360 kg of Quartzene® from a European insulation materials manufacturer. This order reflects a growing trend of larger customer projects entering the pilot phase with Quartzene®. The customer has reported positive results from laboratory tests where Quartzene® was integrated into their advanced insulation material. This significantly larger-than-usual pilot order allows the customer to verify these results in a production environment.

Furthermore, Svenska Aerogel recently shipped a container order of 1.4 tons of Quartzene® to its Asian partner Rayoung, advancing two new customer projects. Of this shipment, 1.2 tons will be used for a construction and real estate project, while the remaining 0.2 tons of hydrophobic quality will be used in a process industry project. This order signifies an exciting development in the partnership and confirms Quartzene®’s potential in thermal insulation.

See also our summary of the global aerogel market in the PDF above.

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