Jan 24, 2017 | By Benedict
PyroGenesis Canada Inc., a clean-tech company that produces plasma waste-to-energy systems, has given an update on its previously announced additive manufacturing strategy. The company plans to produce smooth-flowing titanium powders that can be used in metal 3D printing.
A little over a year ago, clean-tech company PyroGenesis announced its intention to start producing speciality powders for the additive manufacturing industry, following demand from the industry for its high-performance spherical titanium powders that were once (2001 - 2004) supplied to customers in the biomedical industry. After receiving a positive early response to the announcement, the company decided to form a “spin-off” entity that would deal solely with the new 3D printing powders. PyroGenesis is currently on schedule for powder production in Q1 2017, and yesterday provided a detailed update on its progress.
According to P. Peter Pascali, President and CEO of PyroGenesis, the company’s first additive manufacturing powder production system is scheduled to be up and running by the end of the current quarter; the only major items yet to be received are the reactor and feeder, both of which are expected to be delivered in the second half of February. The first powder run is scheduled for the last week of March.
“It is PyroGenesis' goal to become a leading supplier of high purity powders, specifically catering to the Additive Manufacturing Industry,” Pascali said in a press release delivered yesterday, January 23. “Our initial focus will be to produce pure Titanium and Ti-6Al-4V powders, with additional powders/products being developed to address market needs.”
The PyroGenesis President and CEO also explained that the new additive manufacturing powders will be on sale regardless of the status of overall project: “It is important to understand that, irrespective of us being in the ramp-up phase, our powders will still be available for sale, all of which will come with a certificate of analysis. Our goal is to ramp up to full capacity, linearly, over the ensuing four months after the first powder run.”
P. Peter Pascali, President and CEO of PyroGenesis Canada
In 2015, PyroGenesis sought to improve certain elements of its powder production process, including production rate and particle size distribution, two of the most important characteristics of the process. After spending over $2 million on improvements and filing for a patent for its process (pending until completion of the new system), PyroGenesis now plans to continue seeking other improvements relating to production rate and particle size distribution, believing itself to be “uniquely positioned to develop such improvements.”
In addition to rolling out its new additive manufacturing powders this year, PyroGenesis also reiterated its commitment to completing a “spin-off” process, thereby annexing its additive manufacturing commitments from the rest of the company for the purposes of investment. “A spin-off would be less complicated to analyze for investors while providing a clear, well-defined entity with which joint ventures, or even an acquisition, could more easily be considered,” Pascali explained.
Things get interesting when Pascali gets down to the nitty-gritty about the relationship between PyroGenesis and Arcam subsidiary AP&C, now part of GE, whose metal powders are produced using old proprietary technology from PyroGenesis. An agreement between PyroGenesis and AP&C prevented PyroGenesis from competing against AP&C until 2012, allowing AP&C to become a dominant supplier of additive manufacturing powders.
Now, however, with new and “vastly improved” processing technology, and free from the shackles of the competition clause, PyroGenesis is in a position to become a major player in the additive manufacturing industry. Pascali added the following: “Since GE's acquisition of Arcam, there has been an increased interest, by others in the industry, in the timing of both PyroGenesis' powder production and its intention to spin off its additive manufacturing capabilities. This interest has created certain delays as PyroGenesis weighs the possibility of structuring the spin-off to include agreements, contracts, and/or partnerships, any of which would increase the value of the spin-off to shareholders.”
PyroGenesis predicts that each of its powder production systems will be able to generate up to $12 million in revenues while maintaining or exceeding the company’s internal requirement for a minimum 40% gross margin. The company also estimates that, should it double its production capacity every year from internally generated cash flow, it would still, by 2020, only be addressing less than 10% of projected demand for metal powders in the additive manufacturing industry, leaving huge scope for further expansion. These predictions prompted the company’s decision to re-enter powder production after initially ceasing production in 2004.
Pascali concludes: “There has been a lot of consolidation within the Additive Manufacturing Industry since the time PyroGenesis announced its decision to start producing powders, with significant interest and attention turning to the supply of powder for 3D printers. This interest in PyroGenesis' decision to re-enter the market as a powder supplier has also increased as a result of this consolidation.”
Posted in 3D Printing Materials
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