Rossi: Outsourcing for Production Arranged With Chain of Industries in US, Europe and Asia [Update: Confidential Parts to be Outsourced]

There’s an interesting response from Andrea Rossi on the Journal of Nuclear Physics that indicates that he and Industrial Heat are well prepared for the industrialization of E-Cat plants.

A reader asked Rossi about how long it would take for the industrialization of the E-Cat to take place, assuming the current test is successful.

Rossi responded:

Andrea Rossi
July 8th, 2015 at 7:56 AM
Jan:
To answer to you I’d need the well discussed about crystal ball. I can say, though, that we have already all the plans ready, as well as agreements with a chain of industries in America, Europe and Asia ready to start their parcel of outsourcing activity. Assuming that the results of the tests on course will end up to be positive ( which is still not sure) , I can suppose, but it is only a supposition, that in one year the massive production could be in line. I underline: this is a supposition, not a forecast.
Warm Regards,
A.R.

Rossi is typically optimistic here when it comes to his projections of when mass production might start begin, but he also admits this is just a guess. More interestingly to me here is that he says that plans and agreements are already in place with industries across the world to get started with outsourcing. It makes a lot of sense to outsource production of non-confidential parts for the E-Cat plants, since it will be much cheaper than doing everything in-house. I expect that many of the required parts needed are already available off-the-shelf, but perhaps some custom parts will be needed as well.

I would guess, however, that IH will need quite a bit of factory space for production of confidential parts, as well as for assembly of the plants.

UPDATE: I sent some follow-up questions on the outsourcing topic:

Q. When you talk about outsourcing, does this mean that companies around the world will be making parts for the E-Cat plants, and shipping them to your own factory for assembly into plants?

A: The final manufacturing, after the outsourced parts will have been collected, will be made in due places, under due supervision to help to control that the IP conservation procedures are respected. At least until the massive production will devoid of importance the reverse engineering.

Q. Will you be the sole manufacturer of the reactors and fuel because of the industrial secrets involved?

A: No, the manufacturing will also be made by the manufacturing Licencees: obviously the confidentiality of the secret parts will be maintained. We have studied together a procedure for this.

I find these responses quite interesting, and I think what Rossi says, could bode well for the fast dissemination of the E-Cat. He talks about final manufacturing taking place in “due places” (plural), which indicates that there will not be one central factory in the US where everything is shipped to and from. He also mentions “manufacturing licensees” — suggesting that Industrial Heat will not have to set up their own manufacturing facilities to put together the E-Cats. It could be a situation similar to how Apple contracts out the manufacturing of its products to a large manufacturing partner.

The big surprise here for me is in the response to the second question, where Rossi states that even the confidential parts will be outsourced. On May 2 2015, Rossi had posted that “We will manufacture only the confidential parts, outsourcing all the rest.” So there seems to have been a change in thinking here. If even the secret reactors are being outsourced it should eliminate a potential bottleneck. It seems like they feel they have a sufficient plan to be able to supervise the manufacturing process so that secrets don’t leak out.

In the end, Rossi concedes that reverse engineering will take place, but he hopes that with a mass production plan, and cheap enough products, it won’t make sense for competitors to try and build E-Cat clones to sell.

  • AdrianAshfield

    If the test continues to work well there is no reason for Industrial Heat/Cherokee to wait right up to the end in order to prepare for production.

    • Bob Matulis

      That is a good point – would make no sense to me to wait if a SSM plant is working for over a half a year. And why scuttle everything if it works for “only” 340ish days? That would not make sense either.

      • Agaricus

        New readers please note that a well-worn ploy of the detractors known as ‘shills’ or ‘trolls’ is to wait until a thread is a few days old before planting their content-free but disparaging posts using a throwaway ‘handle’. As this seems to be the case here, the comment should be assessed in this light.

  • GordonDocherty

    “Assuming that the results of the tests on course will end up to be positive ( which is still not sure)”

    Now it makes sense – the agreements only activate if the results are positive. Conversely, until the results are announced and are positive, production will have to wait.

    That way, the producers don’t “jump the gun” to produce components before lessons have been learned and incorporated, so minimizing the risks of rework, scrappage and/or reputational damage.

    • blanco69

      In my experience, overlaying any production agreement with the proviso that this may or may not go ahead, means that suppliers will do nothing in terms of preparation. In that respect then there is no well oiled machine piosed to swing into action when the gun is fired. I wouldn’t expect any third party preparation until Rossi places a firm order.

    • Omega Z

      Agreed, Who wants to build a couple 100K components only to learn they need scraped, redesigned & manufactured a new.

  • mcloki

    I would think that the container components would be easy to replicate. The computer controllers and wiring of sensors would be a bit more difficult but once established. Sensors, wiring, housings are almost all commodity pieces. The fuel mixture is proprietary, the fuel container would be proprietary. Once they establish Ver1.0 E-cat “engine” reactor for the lack of a better word. They could really explode the E-cat market by letting everyone into the party.

  • Charlie tapp

    Does anyone actually think that once the test is over he is going to actually release info about it? Seriously people if this thing is real he is going to fall off the radar take a pay check and never be heard from again, or misterious heart attack. If he keeps talking he will only say (the test is positive now we are going over all the data for the next year and cannot release info per the customer request) time to start following someone else I think ! Maybe parkhomov tell him to start a website. Journal of low energy nucular physics

  • Sanjeev

    Some more reveals by Rossi:
    2- No, the manufacturing will also be made by the manufacturing
    Licencees: obviously the confidentiality of the secret parts will be
    maintained. We have studied together a procedure for this.

  • Omega Z

    This is pretty much what I’ve posted before, except I thought Rossi/IH would manufacture the reactors & fuel themselves for a period of time. Eventually resulting in Rossi/IH just be a licensing & R&D firm. Somewhat like Apple.

    By licensing to competitive industries, you have multiple product variations & competitive prices. How many competing manufactures use the same Intel or AMD chips in their products. And as to a competitor to the E-cat technology, It’s not if, but when.

  • Mytakeis

    Rossi, a kuwell dude!