PyroGenesis Signs $12.5MM Contract for the Sale of Powder Production Systems for 3D Printing with International Large-Scale Manufacturer; Backlog now exceeds $20 Million
MONTREAL, July 7, 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 contract with a major international manufacturer (the 'Customer') for ten plasma-based, powder production systems for 3D printing. The contract is for the supply by PyroGenesis of ten of its unique metal powder production platforms to the Customer over an 18-month period for a contract value of $12.5 MM. The Customer's name is being withheld for competitive reasons.
With this contract in hand, the Company's backlog of signed contracts now exceeds $20MM or the equivalent of approximately 350% of the Company's revenues in its previous fiscal year, all of which is expected to be completed by year end 2015.
"As mentioned in our March 31, 2014 press release, 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 patented platform can produce these powders effortlessly. It is a proven product with completed commercial sales having already taken place in North America and Europe. What is more exciting is the demand we are currently experiencing for this product line world-wide."
The 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.
"This contract highlights the success PyroGenesis is having with the focused business development strategy implemented last year; the effects of which we are only now beginning to see," noted Mr. Pascali, "and it once again underscores the success PyroGenesis is having in deploying its core plasma technology to niche, high-margin applications."
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 production 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
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
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SOURCE PyroGenesis Canada Inc.For further information:
PyroGenesis Canada Inc.
P. Peter Pascali
Chief Executive Officer