Canadian Manufacturing

Kontrol Technologies provides manufacturing capacity update

In order to receive the final balance of $800,000 certain conditions are required to be met, which includes the increase of manufacturing capacity to 20,000 units per month.

March 31, 2021  by CM Staff

TORONTO — On Mar. 31, Kontrol Technologies Corp. provided an update on its manufacturing capacity as it relates to various milestones for the Ontario Together Fund.

CEM Specialties Inc. (CEMSI), a wholly owned subsidiary of Kontrol Technologies, received up to $2 Million in funding from the Ontario Together Fund to accelerate commercial production of the BioCloud units. To date $1.2 Million has been received from the Ontario Together Fund. In order to receive the final balance of $800,000 certain conditions are required to be met, which includes the increase of manufacturing capacity to 20,000 units per month.

Kontrol plans to deliver a final package to the Ontario Together Fund in the next week, confirming that it has met the conditions precedent for the final $800,000 in funding, including the required manufacturing capacity. Manufacturing capacity is the ability to manufacture a certain number of units per month and is not a sales forecast. The final $800,000 funding balance is issued at the discretion of the Ontario Together Fund following the Company’s submission.

“As we initiated commercial production, we have made continuous improvements to the manufacturing of BioCloud,” says Paul Ghezzi, CEO of Kontrol. “Some of these improvements relate to a reduction in sizing of internal systems, reduction of electronic boards and overall streamlining of installation. This is part of the normal process of moving from individual prototypes to commercial production. We have done so in a short period of time with great effort from the entire team.”

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“We have made great progress with BioCloud manufacturing,” says Jeff Stewart, CEO of OES Inc. “Through our internal capacity and the addition of manufacturing capacity with our Ontario based strategic manufacturing partners we are pleased to be able to deliver up to 20,000 units per month in manufacturing capacity.”

Currently the global supply chain for the majority of components used in the manufacturing of BioCloud appears to be stabilizing. However, lead times on electronic components and semi-conductors, which are subject to competition from the automotive and mobile industry, have been a challenge. Kontrol reviews the global supply chain with its manufacturing partner OES Inc. on a routine basis. Kontrol reiterated that it has no control over potential delays and lead times in the global supply chain.