PyroGenesis Signs $15MM Letter Of Intent for the Sale of Multiple Powder Production Systems for 3D Printing with International Large-Scale Manufacturing Customer
MONTREAL, March 31, 2014 /CNW Telbec/ - PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSXV: PYR), a TSX Venture 50® plasma solutions company that designs, develops and manufactures plasma waste-to-energy systems and plasma torch systems, announced today that it has signed a letter of intent ('LOI') with a major international manufacturer (the 'Customer') for multiple, plasma-based, powder production systems for 3D printing. Specifically, the LOI outlines both companies' mutual intention to negotiate and conclude a Purchase Agreement for the supply by PyroGenesis of several of its unique metal powder production platform to the Customer over an 18-month period for a contract value of approximately $15MM. The Customer's name is being withheld for competitive reasons. PyroGenesis will be engaged in negotiations with the Customer in the coming weeks, with the goal of concluding a Purchase Agreement over the next few months.
"One of the limiting factors in the full commercialization of 3D printing for metal products is the availability of high-quality, high-purity metal powder," said P. Peter Pascali, President and Chief Executive Officer of PyroGenesis. "Our platform is a proven product with completed commercial sales having already taken place in North America and Europe. A successful conclusion of this LOI will result in the rapid deployment of our powder production platform for 3D printing, thus accelerating the adoption of additive manufacturing world-wide."
"Our Customer is looking to PyroGenesis and its plasma-based technology to ensure a strategic and continuous supply of metal powder feedstock for their own internal 3D printing production use," added Gillian Holcroft, Executive Vice President, Strategic Alliances. "3D-printed metal components will transform manufacturing in the coming years in a wide range of industries, including automotive, aerospace, medical, and consumer goods."
"This is only at the LOI stage," cautions P. Peter Pascali, President and Chief Executive Officer of PyroGenesis, "and one should consider this news in that light. However, we have made sufficient progress to be highly confident that a contract will be concluded in short order; which once again underscores the success PyroGenesis is having in deploying its core plasma technology to niche high-margin applications and in multiple units."
According to World 3D Printing (Additive Manufacturing), a report issued by the Freedonia Group in December 2013, world demand for 3D printers, materials and software will rise 21 percent yearly to US$5 billion in 2017. This report also highlights faster growth projections for metals, as well as rapid gains in markets such as aerospace.
About PyroGenesis Canada Inc.
PyroGenesis Canada, a TSX Venture 50® company, is the world leader in the design, development, manufacturing and commercialization of advanced plasma processes. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials, oil & gas, and environmental industries. With a team of experienced PyroClassTM engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 demonstration facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2008 certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian company on the TSX Venture Exchange (Ticker Symbol PYR.V). For more information, please visit www.pyrogenesis.com
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PyroGenesis Canada Inc.
P. Peter Pascali
Chief Executive Officer