To further develop its unique wheel technology, Air Suspension Wheel (ASW), an eco-friendly, cost-effective, stronger, and safer alternative to the highly pollutive traditional rubber tire, Global Air Cylinder Wheels®️, (https://globalaircylinderwheels.com/), is seeking build on its recent successful funding campaign efforts.
Encouraged by the results of its previous $3.3 million campaign, the Phoenix-based engineering company has relaunched its StartEngine campaign --- https://www.startengine.com/gacw -- to further evolve its Air Suspension Wheel, a patented airless mechanical design constructed primarily of steel with in-wheel suspension. The three-month StartEngine campaign, which ends in October, is already off to a fast start raising $190,000 in the first several days. Overall, the company has raised more than $5 million from investors so far and the company's valuation has increased from $27 million to $40 million since May 2022.
Think of it as a wheel where the steel meets the road.
The ASW combines an inner steel hub with an outer steel drum which is connected by 8 or 12 nitrogen-filled air cylinders and four to six oil-filled dampers that provide suspension and damping. On the outer drum, individually bolt-on steel or polyurethane treads are fitted. These individual treads can be replaced without removing the wheel, a time-consuming process that takes up to eight hours with OTR rubber tires.
"The ASW is so much more than just another wheel," said Dr. Zoltan Kemeny, president and CEO of Global Air Cylinder Wheels. "As opposed to the traditional pneumatic tire providing suspension outside the rim, the ASW suspension is located inside the wheel. Essentially, our wheels become part of the vehicle's overall suspension system. Our wheels are an effective and viable option to rubber tires. They are cost-efficient, safer, and are better for the environment, and for those industries that rely heavily on tires."
The ASW technology has a strong patent portfolio with eight granted, and with 52 patents pending. The company has received multiple initial purchase orders and is expected to be fully commercialized within two years with rapid adoption into mining fleets.
"Large purchase orders are expected to create our revenue streams," Kemeny said.
He added that GACW orders will be for trucks and loader wheels. Loaders have four wheels and trucks have six, generating respective revenues of $600,000 per loader and $900,000 per truck.
As a typical mine has 60 vehicles requiring 480 tires at $150,000 per wheel initial fleet orders could reach in excess of $20 million for a single mine.
Other forms of expected revenue for the company include:
● recurring revenue from tread replacement
● licensing and royalty agreements
● other applications such as cars, buses, trucks, military, bicycles, wheelchairs, and many
more
GAWC will also launch upcoming operational tests with a drum crusher for three months starting September 2022 on an open pit mine location in Chile, and with a CAT 994 front-end loader for three months starting October 2022 on an open pit mine location in Australia's Pilbara area.
"At this point, our plan is to expand our distribution network and really start taking the OTR industry by storm," Kemeny said. "GACW's focus is catering to the demand from miners seeking viable tire solutions, and it is a substantial market for us. However, the ASW technology can be applied to all verticals where traditional rubber tires are used, and this market is immense. Our wheels are gaining the traction we need to thrust us into the main market."
He added that the global OTR tire market is estimated to reach $30 billion in 2022. The overall global tire market is anticipated to reach $322 billion by 2022 with a projected CAGR of 8.4%.
GAWC has also created an experienced board of directors and formed a first-class advisory board. Additionally, they are entering a project agreement with a global over-the-road rim manufacturer for ASW testing in commercial trucks and cars.
The company's wheel technology has many benefits. Shedding rubber means no more overheating tires or dangerous explosions that can be associated with conventional tires. When rubber heats up, if the heat is not dissipated, it builds up, increasing the tire's pressure and becoming a troubling safety problem.
Then there is the environmental impact of ASW. Old rubber tires are frequently buried or burned, releasing harmful chemicals and heavy metals into groundwater and air. Tires also end up in landfills wasting space or filling up with water, creating a breeding ground for disease-carrying pests such as mosquitoes.
Mining is an industry that uses and disposes of rubber tires at an alarming rate. With more than 35,000 open-pit mines globally, the number of environmentally damaging tires disposed of each year is staggering. A study published in the International Journal of Environmental Research and Public Health, estimated that tires account for as much as 10% of overall microplastic waste in the world's oceans. A report by the International Union for Conservation of Nature raised that number to 28%.
GAWC's wheel technology has been tested in real-world conditions, and the company has been developing the ASW for OTR mining vehicles since 2016. The company's ASW was trialed at a gold mine site in South Africa in 2016, and the latest version of the wheels was successfully tested in 2019 and 2020 at a gold mine in the U.S.
Kemeny added about the potential of his company's wheel technology, "Many industries operate under status quo, resistant to change. Companies that are reluctant to innovate will not survive. Those companies that do adopt new technologies and embrace innovation will prosper. Tire use and its negative environmental impact will change inevitably. Governments are starting to mandate change on tire disposal and this is already accelerating our technology's adaptation into the market. We provide a breakthrough multi-vertical high-potential technology. For end-users, it solves a real problem. For investors, it gives them a unique opportunity to invest in an old market."
Rubber tires are expensive and account for the mining industry's largest expense after payroll. Rapid wear and tear caused by impacts, rock cuts, and extreme and uneven loading mean the lifespan of an expensive mining tire is short.
By contrast, the ASW is durable and designed to have the same lifespan as the vehicle itself, (approximately 10-15 years), meaning fewer replacement costs and less time spent swapping out damaged tires. The ASW can become part of the vehicle and has the potential to become a capital asset. Unlike rubber tires, the ASW can be leased, with a 15% residual value after 10 years of service. They can also be refurbished and leased again.
"Beyond these serious environmental and budget concerns, off-the-road mining tires represent a huge safety problem for maintenance crews due to potential explosions from overheating, improper inflation or installation, and lightning strikes. Mining companies are forced to use 'Band-Aid' solutions such as patch-up repairs, tire pressure monitoring, tire retreading, tire cooling systems, and tire rotation to extend the tire's useful life. One 13,000-pound OTR mining tire can cost over $75,000 and only lasts six to nine months. That is a large expense for a product that does not last," Kemeny explained.
Top features and benefits of GAWC's ASW technology include:
- Durable and heat resistant, reducing downtime caused by tire failure and replacement.
- Safer: No risk of explosion.
- Easy installation requires no specialized equipment, and individually replaceable treads do not require wheel removal.
- Self-aligning, self-balancing, no wheel rotation necessary.
- No need for tire pressure and temperature checks.
- Up to 40% higher payload capacity.
- Up to 30% reduced rolling resistance, reducing CO2 and NOX emissions, and making electrical cars go farther.
- Saves at least 8% fuel.
- Reduces cost per hour/mile by up to 60%.
- Functions as a flexible torque coupler.
It was while working in Germany with a large car manufacturer that Kemeny was inspired to create a new kind of wheel. He had realized through his work that the physics behind the traditional rubber tire is far from ideal. He put down his first idea for the ASW on a napkin in June 2011. After a few years of "testing in the kitchen" and acquiring the patent, the prototype for a mining vehicle was created in 2016.
His company has teamed up with experts in the field of suspension, steel manufacturing, cylinders, and treads, and features more than 200 years of combined engineering experience.
