MARKET REPORT
Ultrapure Water Valve Market Niches
Ultrapure water ( UPW ) is a relatively small valve market but one where high earnings before interest , taxes , depreciation , and amortization ( EBITDA ) can be achieved . 1 Not many companies are willing to invest in the cleanroom necessary for ultrapure water . As such , it is a good example of the application of the most profitable market program .
By Bob McIlvaine , President & Founder – The McIlvaine Company
The foundation of a market program that works well for applications like UPW systems , is having a value proposition in each USD $ 10 million niche .
In the model of a USD $ 10 million niche , the share is 20 % or USD $ 2 million in revenue . The 30 % EBITDA is obtained with 5 %, or USD $ 100,000 , expensed for a direct sales effort . If the cost of maintaining a salesman is USD $ 1 million / yr . each salesperson must be involved in ten or more niches , depending on their percentage of responsibility .
A Look at the Niches
The following are some examples of companies with a focus on various UPW niches .
GEMU has a value proposition built around the advantages of a diaphragm multi-port valve block for ultrapure water systems combining reverse osmosis , electro-deionization , and ion exchange in the pharmaceutical industry .
As fewer pipes and fittings are required , using multi-port valve blocks , it is possible to build significantly more compact systems .
The number of welded , or solvent-cemented , joints is also reduced which leads to a considerable increase in plant reliability due to the avoidance of leaks . The fast and simple installation of the unit reduces installation time and costs .
Emerson has multiple valves in its Vee- Ball proposition for control of semiconductor UPW . This valve meets the purity requirements with :
• Special material selection of body , trim , and seal material components .
• Elimination of any lubricants in the assembly process .
• Careful cleaning and packing to keep the valve free of any dust or particulate .
• Component treatment to achieve very specific levels of surface roughness .
Wetted valve components are carefully processed and electropolished to establish a chromium oxide finish that is very smooth , resulting in a surface that is 30 times more resistant to chemical attack than prior to polishing .
After passivation , valves are cleaned with a special agent , using a process similar to that used when preparing valves for oxygen service . This process takes place in a dedicated clean room , where special care is taken to eliminate exposure of the assemblies to contaminants .
Plast-O-Matic flow control valves ( FC ) are manufactured in plastic materials that meet purity requirements and can be used without a pressure regulator since they are pressure compensating ( variable orifice ) rather than following the most common ‘ fixed orifice ’ design . This modification thereby affords more accuracy of flow when feed pressures fluctuate .
A UPW installation using PVDF piping . Image credit : https :// en . wikipedia . org / wiki / Ultrapure _ water .
Valve World Americas | September 2023 • www . valve-world-americas . net