Atropos Composites,LLC

Proven composite innovation with protected tech, ready to scale the utility industry.

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Engineering by Listening

Our roadmap didn’t come from whiteboards. 
It came from customers.

About Atropos

Atropos is built from real conversations with the people who needed it the most:

1.       Listen to Customer Needs: The founder worked closely with the local utility company, Ameren, on many engineering projects.  Ameren approached us to design a replacement composite crossarm because their current suppliers’ products do not meet their specifications.
2.       Understand the Pain Point: We worked with Ameren to get insights on customer pain points and establish product specifications that solve their real-world problems.
3.       Engineer the Product: With a strong engineering and manufacturing background, Atropos engineered and manufactured resilient composite crossarm products that met customer specifications and passed 3rd-party tests.

The Atropos team is made up of dedicated people with deep industry knowledge and experience:

·         Ted Stegeman – Founder and CEO: 40 years of sales, manufacturing, and engineering experience. Manufactured and deployed infrastructure for major utility and telecommunication providers. 
·         Jim Devereaux – CFO: 20 years of experience in business, accounting, and consulting. Specializing in micro start-ups. CEO of Devereaux & Co.
·         Frank Bryant – VP of Engineering and Manufacturing: 40 years of experience with 25 years of experience at the VP level or higher. Specializing in system engineering, mechanical design, and manufacturing optimization.
·         Scott Brackett – Director of Sales and Marketing: 25 years of experience in industrial sales, specializing in fabrication, infrastructure, and utilities. 
·         Carlo Herbosa – Product Manager: Mechanical and aerospace engineer. 12 years of experience in research and manufacturing.

The Market

Strong market growth and advantageous company position for the first mover advantage. Here are some key facts about the Market:

•       Crossarms are mounting points for insulators, which isolate the power lines from the pole and from each other. Each utility pole requires 2 crossarms on average. 
•       There are currently 180 million wooden distribution poles in the US. Approximately 2-4 million poles are replaced every year.
•       The U.S. CAGR of new poles and crossarms added to the grid is approximately 3.6% to 5.5% from 2024 to 2030
•       Currently, composite is projected to make up 15-20% by 2030, but only 3% is produced and supplied.
•       The global utility pole market has a CAGR of 5.18% from 2024-2032.
From the facts about the market, we can conclude the following about the US market:

1.       A total of 360 million crossarms in service in 2025, and 6 million crossarms need to be replaced.
2.       16.38 million new crossarms are to be added to the grid in 2025
3.       Combining the replacement and new crossarms, 22.38 million crossarms are needed in 2025, and this quantity increases annually.
4.       20% of the crossarms will be composite crossarms, which is 4.48 million crossarms.
5.       Currently, only 0.75 million are produced annually, leaving 3.73 million composite crossarms still needed.

Atropos works toward making up 5% of the estimated composite crossarm market share, which is:

·         $112 Million Annual Sales in 2025
·         $163 Million Annual Sales in 2030

The Problem

Utility Companies Need a Wood Alternative that Meets Their Requirements. Atropos’ design is a collaboration with our local utility, Ameren, which has 13 years of experience with using composite poles and has 9,000,000 poles in its network. They presented these problems in the current market and are our initial customer.

Traditional Wooden Crossarms Problems:
·         Storm-related power outages cost utilities $30-39 billion annually in the US.
·         3.6% - 5.5% of the existing grid infrastructure has to be routinely added annually, which is 12.96 – 19.6 million crossarms in the US.
·         Electrical vehicles, AI data centers, and the electrification of everything increase the need for grid resiliency.
·         Starting in 2022, leading wood pole treatments (Pentachlorophenol etc.) are to be banned due to public safety and environmental hazards; 26 countries have already banned these chemicals. 
·         Prior to the banning of Pentachlorophenol, wood poles had approximately ½ the lifespan of composite alternatives. New wood preservative alternatives will further reduce the lifespan.
·         Wood is a slow-growing resource. The quantity that qualifies for utility infrastructure is diminishing. 

Existing Composite Crossarms Problems:
·         Ameren found that existing composite crossarm products on the market do not meet their stringent deflection requirement.
·         Some repair jobs involve field drilling on-site. The vast majority of composite crossarms do not offer effective field drilling due to the captured crush bushings. 
·         Many composite crossarms claim V-0 flammability, meaning that it is fire resistant. However, they have failed in 3rd-party UL94 testing. 
·         Crossarms and brackets are bulky, which makes logistics more expensive.

In conclusion, traditional infrastructure materials, such as wood and concrete, are:

·         Not sufficiently resilient 
·         Not durable
·         High Maintenance

Current composite crossarm products on the market do not meet utility companies’ requirements. 

Atropos Composite Crossarms

Atropos composite crossarms stand for unyielding quality, service, and value by providing the following features:

·         Dielectric insulation: fiberglass crossarms ensure lines are electrically isolated.
·         Foam Fill: filled with closed-cell polyurethane foam to prevent wildlife infestation.
·         Endcap: interference fit endcap interlocks with foam fill to ensure a precise and secure fit.
·         Rigidity: lower deflection than the competition at the same loads.
·         UV Protection: layered UV protection from embedded additives and a UV veil.
·         Fire Resistant *: optional fire-resistant additive for special use cases
·         Crush Bushing: internal bushing allows proper bolt torque while maintaining the composite structure

Atropos composite crossarms have superior bending stress compared to wood crossarms:

·         Western Red Cedar: 7,500 psi
·         Southern Yellow Pine: 14,500 psi
·         Atropos Product Bending Stress Range: 39,000 psi – 87,000 psi

Compared to existing composite crossarms products, Atropos:

·         Meets utilities’ deflection requirement
·         Field drilling compatible 
·         Passes 3rd-party V-0 Flammability Test
·         Manufactured in St. Louis, MO

In addition to solving the customers’ most pressing problems, Atropos is appealing as a business:

·         In-house engineering and manufacturing, reducing cost and overhead
·         Scalable manufacturing specializing in fiberglass pultrusion
·         Centrally located for efficient logistics
·         No capacity restraints

Competitors + Defensibility

Solve the Most Pressing Problems in the Current Composite Crossarm Market.

PUPI:
·         PUPI characteristics:
o   Manufactured by 3rd-parties. 
o   Offer a wide range of crossarm products.
o   Deflection does not meet Ameren specifications.
o   Inconsistency and errors in reported part qualities; does not pass UL94 3rd-party flammability test.
o   Cannot field drill.
·         Atropos advantages:
o   In-house engineering and manufacturing, more flexible, and reduces cost and overhead.
o   Focused on fiberglass pultrusion and minimal viable product.
o   Meets Ameren specification.
o   Pass the 3rd-party UL94 flammability test with V-0 rating.
o   Field drilling compatible.

MacLean:
·         MacLean characteristics:
o   Has manufacturing facilities or partnerships on the East Coast.
o   Has a wide range of utility products beyond crossarms.
o   Has been in the utility, telecom, and civil engineering industries for a long time.
o   Less rigid crossarms, higher deflection at similar loads.
o   Does not offer the more economical non-fire-resistant composite products.
·         Atropos advantages: 
o   Located in the Midwest, making logistics to the Midwest and the West Coast cheaper.
o   Focused and nimble on fiberglass pultrusion and minimal viable product, reducing cost and overhead.
o   Work directly with the utility company to develop specifications.
o   Offer a fire-resistant option that allows utility companies to budget their infrastructure spending. 

Shakespeare (a Valmont company):
·         Shakespeare characteristics:
o   Manufactured and shipped from Newberry, SC.
o   Acquired and backed by publicly traded company Valmont.
o   Manufacture and supply products to utility, telecom, lighting, transportation, solar, coating, and ag tech.
o   Has a large selection of composite crossarms, and also makes composite poles.
o   No UL94 fire rating available
·         Atropos advantages:
o   Located in the Midwest, making logistics to the Midwest and the West Coast cheaper.
o   Focused and nimble on fiberglass pultrusion and minimal viable product, reducing cost and overhead.
o   can cater to specific utility companies’ specifications by adjusting our products.
o   Pass the 3rd-party UL94 flammability test with V-0 rating.

 
 

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Key Facts

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