2022-05-04

Construction of Luxbright’s new production site has begun

Gothenburg May 4, 2022. Luxbright recently raised 25 MSEK in a share issue. CEO Mats Alm answers questions related to the new production site and other objectives for 2022. There is also an interview (in Swedish) at Direkt Studios here.

What is the purpose of the new production site in Sweden?
That is to gain full control of both development and production by gathering everything under one roof which leads to lots of advantages. Lead times will be shorter which means that we can increase quality while at the same time improve delivery precision.
The specifications of our microfocus tubes is of great interest to the market but we have had challenges to ramp up production and with the quality, i.e. lifetime, of the tubes. To develop a new product also means developing a manufacturing process for the product. Product and process goes hand in hand. Gathering all our competence at the same location and to be close to the testing capabilities that we already have in Sweden will result in significantly shorter lead times and more resources to adjust the manufacturing process. It will improve our delivery precision as well as the quality of the tubes.
Also, we will be closer to other actors in the value chain that are mostly located in the Western world and hence it offers a better basis for partnerships. We will gain better access to our customers which will speed up our commercialization process.
 
What is that makes the production site state-of-the-art?
Many things. One part is related to the 50 square meters large clean room that will prevent dust and other particles making it possible to avoid contamination. Cleaner components simply means better tubes.
Another important aspect is the ability to optimize the production line to our own product only since we will not manufacture our products in a standard setup built for other tubes as well.
Finally, we will have direct access to the test capacity that we have invested in. That way we will be able to measure the performance in a way that we not possible at other sites. All together it’s worth more than the sum of its parts.
 
Will the cold cathode tube also be produced at the new site?
Yes. According to the current business plan, the cold cathode tube will be produced in the new production site. However, the cold cathode tube is still under development but the new site means that the lead times of the development work will be much shorter. We don’t need to ship goods back and forth to China any longer.
 
What are your objectives for the microfocus business during 2022?
We are aiming at low volume manufacturing in Sweden starting Q3 2022. When the manufacturing process has been verified both regarding performance and quality, we will start to accelerate the production to the volumes that we need. Demand is higher than what we have been able to deliver so the first ambition is to deliver pending orders and demand that we already have.
 
What are your expectations for the cold cathode development during 2022?
That is to make the next generation prototype. The first prototype showed proof of concept that zinc oxide works as emitter. In the next and upcoming versions, the output needs to increase and the tube will be integrated in generators. Also, the product needs to be adapted so that it can be manufactured in a rational way in larger quantities. As mentioned before, the process and product goes hand in hand and from that aspect, the new site will be very important.