CEO Haggai Alon on why Security Matters is perfectly positioned for the global ‘arms race’ to build sustainable supply chains
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The company’s market-leading technology is uniquely positioned to address the challenges of the global post-COVID economy.
Global manufacturing companies are in an “arms race” to develop advanced waste recycling solutions, SMX CEO Haggai Alon says.
And with its market-leading product tracing solution for inputs across the supply chain, Security Matters (ASX:SMX) is positioned to capitalise in FY22 across a number of different market segments.
Alon caught up with Stockhead recently to outline the global landscape in the wake of the COVID-19 pandemic, which has completely changed how companies think about production and recycling.
For starters, auditing solutions that worked prior to the pandemic have been rendered ineffective by the restriction of movement. And secondly, the race to build solutions that fit within the global shift to ESG investment is now gathering pace.
And that’s exactly where SMX’s technology “has the advantage”, Alon says.
“The pressure of being more sustainable and building the circular economy is much higher than it was pre-Corona,” he said.
In that context, waste products are becoming “the most valuable commodity” as companies implement improved recycling practices.
“There’s an arms race going on in terms of how technology creates a process that will allow companies to reuse their waste,” Alon said.
For example, using current technology it’s fairly simple to make plastic bottles from recycled waste. However, building an entire car from recycled products is more complex.
“This is the challenge and in order to meet that challenge, you need to have technology that can go across the board,” Alon said.
As a result, Alon’s long-term strategy to focus on production authentication across the entire supply chain – not just for new-product inputs but for recycled products as well – is now paying dividends.
“This is where our strategy to have our tech as an independent certifying and grading global platform — first and foremost for plastic waste — falls into place,” he said.
The combination of climate change action and the COVID-19 pandemic has created an “anomaly”, he said, which is speeding up the pace of change.
“The need for transparency and efficient product tracing is greater than ever. And on the other hand we’ve got more complexities than ever.
“So the way to challenge it is to have a technology solution that in many ways adds a higher level of efficacy to the data that you’re using.”
Further demonstrating its flexibility, the SMX solution can be applied to both raw input products, as well as packaging components.
“If you can authenticate products through multiple phases of the supply chain you have the advantage, because you can maintain a much higher level of efficacy and transparency. And that’s where it’s really worth the money paid.”
With its patented product-tracing solution that can be used across a range of input products from solids to liquids, Security Matters now sits at the forefront of that global shift.
The evidence of its traction in the space has been borne out across recent announcements, where SMX has signed deals and partnerships across global industries from plastics to fashion to automotive parts.
And in line with the winds of change taking place on global supply chains, the company’s technology is ideally suited to solve the current challenges as the global economy emerges from the pandemic.
This article was developed in collaboration with Security Matters, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.