Client Success: Sylvan Point Technologies
Bruce CFDC has been happy to have the opportunity to work with Sylvan Point Technologies over the past 2 ½ years. Due to the nature of our geographic region, Bruce CFDC does not see many clients participating in the manufacturing sector. As such, we welcomed the opportunity to add this $75,000 loan to our portfolio. Sylvan Point Technologies has since been approved for a second advance of $50,000.
Sylvan Point Technologies sells a high-speed Digital Ink Jet (DIJ) printer and all accompanying inks and software. Hank Sawatsky, a chemical engineer, is the inventor and designer of the “Sylvan Process”, which utilizes DIJ technology. The process was brought to life by contracting the services of AccuDrop, a high-tech company in Texas, and was further contracted with Cor Deen Industries in Allenford for the design and build of a prototype. They operate a manufacturing facility in Springmount Park, just outside of Owen Sound. The process Hank has developed is a high-tech method of printing on cylindrical items - such as pens, glassware, ceramics and drinkware - applying all inks and coatings digitally through a high-speed jetting process at a much reduced cost over methods currently available. With the Sylvan Process, graphics are generated on one computer and sent to another computer to drive the ink jet printer, producing a near photographic quality that is dishwasher-safe and abrasion resistant. DIJ printing has been available for flat items for several years, but has never been done on cylindrical items that are commonly used in the promotional products field. Currently, screen printing is used for this type of product decoration, which requires an individual screen for each desired colour, which means setting up a new screen each time an additional colour is needed. Therefore, most clients will only use 1 or 2 colours, because it is cost-prohibitive. The Sylvan Process allows quick transition from job to job, eliminates much of the front-end set-up, and can use up to 5 colours at a time for minimal additional cost. Hank has four registered patents (1 in Canada and 3 in the US) around his coating and decorating systems, and has 3 in US and 1 in Germany that are still patent-pending.
The printers sell from USD $177,000 to $495,000, and Sylvan needs to think globally - to look outside Canada to gain a wide enough client base to be profitable. The first high-speed cylindrical Carousel Printer was sold and delivered to Moderne Glass Company Inc., in Pennsylvania. ARO Technologies from Collingwood is contracted to complete the design, fabrication and commissioning of these Carousel Printers. They will produce a further five printers, which Sylvan has committed to produce for Moderne. This facilitated the need for Sylvan to approach Bruce CFDC for a further advance to their current loan, to allow them to be able to fulfill this significant order. They began production of the first unit in July 2013 and anticipate that the first printer will be complete and ready for delivery in September/October 2013. After the first machine is complete, ARO will be able to produce two machines simultaneously. It will then take Sylvan one month to install the ink delivery system, test and complete two days of training with the client’s staff, and finally provide delivery and set-up.
While the immediate focus for the company is on fulfilling the existing printer orders, Sylvan Technologies continues to plan for the future. There is great interest in the industry, and they feel they are poised to take advantage of this opportunity. Libbey Glass has stated that the “Sylvan Process will become the major glass decorating process in the industry". During the current production process, they continue to undertake R&D projects, develop new printers, and strive to improve the Sylvan Process, in order to maintain their position at the forefront of the digital ink jet printing industry.
Sylvan Point appreciates the support given by both Bruce CFDC and BDC, as key initial funders of this project. He credits these organizations for a willingness to support a design, development & production company with a cutting edge process. They are also thankful for our understanding, as they have faced operational start-up issues, which have led to periods of financial difficulty. We look forward to great things from this company, as they put those difficult days behind them and begin to reap the rewards of their years of investment, hard work and perseverance.