Presentation of SuperChrome to Asia

1. 5/2018 - page 1
Gary Vergason
Vergason Technology, Inc.
Van Etten, NY
USA

2. 5/1/2017 page 2
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 30 minutes presentation, 10 minutes questions
 Max 30 slides
 Agenda
 Introduce VTI
 Define the market opportunity
 Describe why electroplated chrome is bad
 PVD metallizing success highlights
 Recent availability of PVD chrome
 All PVD chrome approaches require paint
 Test for PVD chrome must be different from those for electroplated chrome
 SuperChrome is the best of the PVD chrome
 SuperChrome stack and process overview
 SuperChrome appearance
 SuperChrome meets all OEM requirements
 SuperChrome approval by OEM partially complete
 Minimum Investment in SuperChrome
 Turnkey system
 Size of facility
 Cost Model by part size
 Options to discuss
 If you have your own paint line
 If you want to go ahead with inline immediately
 How to get started to qualify parts

3.  Design, assembly, process development and
commissioning of PVD/PECVD plasma
equipment and turn key solutions
 Service and Distribution partners in Europe,
Asia, Central/South America
 Toll Coating Services available in USA
 First Rapid Cycle Coater built: 1988
 37 second cycle time, LEAN manufacturing
 > 200 Coating systems deployed worldwide
 >30 Years experience in PVD technology
 Tribological, shielding, reflective, decorative
coatings, plasma cleaning
 USA 4,000 meter2 facility
Vergason Technology, Inc.
A Reliable Supplier
Vergason Technology, Inc.
Van Etten, New York

4. VTI History of Metallizers
Press-Side 3000
Typical cycle time:
Press-Side 3500
Automatic loading
Typical cycle time:
Press-Side 4000
Automatic doors
Typical cycle time: 4 minutes

5.  ElectroPlating On Plastic (POP)
 Between $2B - $4B annual
 Automotive
 White goods
 Sanitary
 Textures: gloss, various matte
 Electroplating additives
 Reflectivity & color variants
 Electroplating additives
 Temperature, current
Plating on Plastics Market
SuperChrome market subset
High gloss
High, medium and dark reflection

6. • Cr micro-cracking and
porosity was used to
reduce anodic reaction
with Ni
• Abrasive polishes were
needed to remove
these contaminants
• Severe pitting could
lead to rust from the
substrate
Chrome Plating on Metal
1940-1975

7. Gaskets protected plated
metal and painted metal
interface – possible to polish
without effecting paint
Performed similar to painted
metal surfaces during
impact testing
Superior metal to metal
adhesion
When chrome wears, nickel
shows and can accelerate
anodic action
Chrome Plating on Metal
1940-1975

8. Modern POP is complex
1.Begin ABS or ABS/PC
2.Etching and neutralization
3.Activation
4.Acceleration
5.Electroless nickel plate
6.Immersion copper
7.Bright copper deposition
8.Semi-bright nickel
deposition
9.Bright or satin nickel
deposition
10.Microporous nickel plate
11.Decorative chrome plate

9. Electroplate process limits part
geometry: learned over time
• Bad Shapes for
Electroplate
• Shape improvements
for Electroplate
Adapted from “DuraChrome Hard Chromium Plating”, Eric Svenson, Plating Resources Inc., Cocoa, FL USA, 2006, p.10.

10. Electroplating (Galvanic)
Operations
• Well known manufacturing technique
supplying surface finishes for a wide variety
of markets for many decades
• Permanent installations not well adapted
for LEAN manufacturing (synchronous
processing)
• Large amounts of floor space required
• Complex multiple steps requiring close
monitoring and control
• Requires substrate surfaces that are
capable to become electrically conductive
(plating grade ABS). High scrap rates
• Extensive and expensive waste stream
management and workspace air control
Plating Delamination

11. Cumulative hexavalent chromium exposure was
associated with an increased lung cancer risk
 Am. J. Ind. Med., 2000 Aug, vol 38, pg 115-126
Inhaling airborne hexavalent chromium near
electroplating may cause
lung cancer
irritation or damage to the nose, throat, and lung
(respiratory tract)
irritation or damage to the eyes and skin
 Health Effects of Hexavalent Chromium, USA OSHA Fact
Sheet
Environmental issues with
plating

12.  Past successes of decorative PVD
 Aluminum for reflectors for many decades.
 High durability  paint base coats for structural support of the
PVD film
 Resins & molded surface improvement  direct PVD coating
since 1988.
 Reactive PVD coatings over electroplated chromium in
hardware and plumbing for more than 2 decades
 Chrome Challenges
 Thornton* sputtered chromium on ABS, w/ & w/o paint base-
coating; no top-coating. All cracked.
 Today, PVD solutions for chrome plating replacement are
finally commercially available
Decorative PVD: Brief Evolution
*J.A. Thornton, “Sputter Deposition onto Plastics,” 18th Annual SVC, p. 8, 1975

13. Vergason Technology
Oerlikon Balzers
IHI Hauzer Techno
Coating
Impact Coatings
Kolzer
PVD Technology is
Available Now
SuperChrome 0.3-1.15 m
UV/Thermal Paint 20-40 m
Plastic Substrate
Chromium 0.2-0.3 m
Nickel and Copper 20-50 m
Plastic Substrate: PC/ABS

14. Chrome Plating
PVD Metallizing
Traditional Triple Stack:
Base Coat/PVD/Top Coat
PVD Metallizing versus Chrome Plating

15. PVD Metallizing
Traditional Triple Stack:
Base Coat/PVD/Top Coat
SUPERCHROME PVD Coating
Double Stack:
Base Coat/PVD
No Top Coat necessary
SUPERCHROME PVD Coating vs. Triple Stack Coating
Top Coat alters visual appearance Natural Chrome Color

16. Comparisons: Chrome Plating versus
Triple Stack
Chrome Plating PVD Metallizing
Traditional Triple Stack: Base Coat + PVD + Top Coat

17. PVD Metallizing
Traditional Triple Stack: Base Coat + PVD + Top Coat
Top Coat Darkens Color, Loses Depth True Deep Chrome Color, GM 150
Comparisons: Triple Stack versus PVD Chrome
PVD Chrome

18. Lower costs – 10 to 20% savings
Capital expeditures
Processing and effluent costs
Variety of substrate materials
Less weight – 12% savings
Easier to recycle
Less metal (mostly on one side, 150 to 250X thinner)
One metal
No galvanic interaction between layers
Pass Russian mud test!
Flexible: no cracking on tabs
PVD Advantages over Plating

19. Different materials system
Metal layers are thinner
Not the same as paint, not same as electroplate
A new specification will likely be required from
each OEM
Some, e.g. GM, already released.
In general, begin with paint specifications and
modify
Testing: differences between
PVD and electroplating

20. No top paint required
Looks like electroplated chrome
Possible to repair expensive substrates
Lowest cost of entry
SuperChrome best of PVD chrome
options

21. For now, only gloss available
Matte in development, to be accomplished with paint
Color can be measured many ways
Here, integrating sphere, D65 illuminant, 10 observer.
Typical values, compared to some plated standards.
SuperChrome appearance
Type L* a* b* Rvis (%) Gloss
SuperChrome Bright 78.7 0.0 0.3 54.4 97.5
SuperChrome Medium 72.5 0.5 1.6 44.4 97.6
SuperChrome Dark 60.0 1.2 3.7 28.1 97.7
PSA Peugeot HDX/M001
(Gris Trionx with grain Crome Brilliant)
79.0 0.5 0.6 54.9 96.5
Ford Twilite SM5166 63.6 0.9 3.4 32.3 95.1

22. SuperChrome passes all OEM Testing:
Visual, Adhesion, Weathering
Visual Appearance Interior VW TL226 PASS
Initial Adhesion Interior VW TL226 & Exterior VW
TL211/528
PASS
Visual Appearance after 2d 60°C Interior VW TL226 PASS
Adhesion after 2d 60°C Interior VW TL226 PASS
Visual Appearance after 24 h 90°C Interior TL226 PASS
Visual Appearance after Constant Climate 240h 40°C,
>96% relative humidity Interior VW TL211
PASS
Adhesion after Constant Climate 240h 40°C, >96%
relative humidity VW TL211
PASS
Artificial Aging UVB Procedure A PSA B72
0200/2013-04
PASS
Water Absorption BAC FORD PSA B72 0200/2013-04 PASS
PV1200 Climate Change Test VW TL211 PASS
Neutral Salt Spray VW TL528 PASS
Salt Spray ASTM B117-11, 1000 hours PASS
CASS, 100 hours PASS
PV3930 Florida Sunshine VW TL211, 2400 hours PASS
Russian (CaCl2)Mud per ASTM B995, 336 hours PASS
Hydrolysis 95C, 95% RH, 72 hour PASS
Should we rather use
the tables from Surfin
June 2018?

23. Test Results - Mechanical
Resistance to Gritting Renault 47-03-003/L-2013PASS
Stone Chipping, VW TL211 PASS
Stone Chipping, PSA B72 0200/2013-04 PASS
Gravelometer/70 CASS PASS
Resistance to Scratching by Abrasion Renault
47-03-003/L-2013
PASS
Crockmeter BMW Exterior PASS
Car Wash Brush Resistance VW TL211 PASS
Abrex PASS
Martindale PASS

24. Cream A Interior VW TL226 PASS
Cream B Interior VW TL226 PASS
High Pressure Cleaning VW TL 211 PASS
Hydrolysis Interior BMW PASS
FAM test fuel VW TL211 PASS
Gasoline E10 VW TL211 PASS
Diesel B7 VW TL211 PASS
Isopropanol VW TL211 PASS
Ethanol/Water Exterior BMW PASS
Sodium Hydroxide 5% VW TL211 PASS
Sulfuric Acid 10% VW TL211 PASS
Hydrochloric Acid 10% VW TL211 PASS
Hydorchloric Acid 30% Suspended in Vapors PASS 24 Hours
Bird Droppings VW TL211 PASS
Liquid Tree Pitch VW TL211 PASS
Vomit Exterior BMW PASS
Deionized Water Exterior BMW PASS
Wheel Cleaner Exterior BMW PASS
Underbody Sealant BMW PASS
Test Results - Chemical

25. The PVD System: VTI 3800

26. • Coating zone 2.725 square
meters
• 1, 2 and 3 axis rotation,
optimizes coating zone
• Load/Unload fixtures off line
• Double door design
minimizes open vacuum
chamber time
• 4 cycles per hour, 22,880
cycles per year or 62,348
coated square meters per year
• Yes, 15 minutes/cycle
• Capital Expense for painting
and PVD equipment
(US$3M, ¥21M) amortized 5
years = $16.82/m2, ¥117/m2
Substrate Coating Zone

27. Cost ¥/m2 or ¥/part depends on part size
load factor, cycle times, etc.
Manufacturing Cost Favorable
Mirror Scalp Door Handle Rear Spoiler
PVD Consumable ¥1.41 ¥0.45 ¥3.39
PVD Amortization ¥1.37 ¥0.44 ¥3.43
PVD Labor ¥0.51 ¥0.33 ¥0.88
Paint Consumable ¥0.84 ¥0.23 ¥1.89
Paint Amortization ¥0.61 ¥0.21 ¥1.66
Paint Labor ¥0.51 ¥0.33 ¥0.88
Total Cost/part ¥5.25 ¥1.98 ¥12.12
Cost / m2 ¥116.72 ¥197.99 ¥134.68

28. 5/1/2017 page 29
Key Cost Model Assumptions
•Very detailed model
•Incorporates
• Part size
• Quantity per PVD load
• Necessary utilization by
part and process
•Key Assumptions
• Hourly labor rate
• Amortization period
• PVD Consumable and
maintenance costs
• Electricity, cooling
water, gases, target,
HMDSO
• Paint consumable and
maintenance
• Transfer efficiency,
electricity, CO2
• PVD equipment cost
• Paint equipment cost

29. Paint
Class A parts require Class A painting
Only 1 lacquer
 Custom developed
 All others and substitutions fail
 Available exclusively from VTI
Turn key solution
 VTI can source a qualified paint line in Asia
 Already have paint line? VTI can integrate
PVD
VTI supplies equipment and process
Process control is critical
 More demanding than metallizing
Turnkey Solution
Paint Line Is Required

30.  Superior product properties
 Specification-compliant properties:
mechanical and chemical resistance
 Excellent surface for support and
adhesion of PVD coatings
 Short process times
 CYCON® UV coatings are fully cured
within seconds
 Complete elimination of oven drying
 Low capital expenditure requirements:
 Requires little production floorspace
 Short processing saves energy and
investment costs
 Low VOC
UV Base Coat for SUPERCHROME
PVD Coating

31. SC 660 PVD Coating
System
Single-point
loading and safety
enclosure
Robotic
load/unload
available
SUPERCHROME PVD Coating System
Integrated production - Batch
Molding Cleaning
CYCON
UV-
Coating
Paint Line
SUPERCHROME
PVD
Batch System

32. Turnkey Systems Available

33. Inline coating concept

34. Standard plaques and design
lenses supplied from VTI, New
York R&D center
135 mm x 95 mm x 2.5 mm, lots
of 20
Prototype production from SPPP,
France
Fee based
Part Qualification Process

35. Robust PVD solutions are available
from several suppliers to start
replacement of decorative galvanic
platings on plastics and metals
10 to 20% cost reductions can be
realized
End users must understand
cleaning requirements
Specifications need to be rewritten
Clean PVD coatings like paint!
Conclusions