Vancouver, BC, April 1, 2014 - PyroGenesis Canada (TSX:PYR) has signed a Letter of Intent in the amount of $15 million to supply multiple plasma-based, powder production systems for 3D printing, to an international large-scale manufacturer. The company`s North American units are already supplying powders to 3D printing companies
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3D printing is being touted as the technology to bring about the next industrial revolution and the in-sourcing of manufacturing jobs back to the West.
The Freedonia Group forecast the world demand for 3D printers and related materials will grow by 21% annually reaching US$5 billion in 2017, with the U.S. remaining the world's largest market for 3D printing, accounting for 42% of global sales in 2017.
Although plastics will continue to account for the majority of materials demand, Freedonia forecasts faster growth for metals due to their greater strength and resistance as well as rapid gains in markets such as aerospace. A recent study by IDtechEX ,"3D Printing Materials 2014-2025" forecasts the 3D printing materials market will be worth in excess of $600 million by 2025. The study states that although photopolymers, currently at 56.3% of the market, will retain the largest single segment of the market, the highest growth will be seen in the market for metal powders, which currently accounts for 1.4% of the market, or approximately 30 tons per year.
P. Peter Pascali, President and CEO stated, "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. 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."
Although this contract is only at the LOI stage, management believes that sufficient progress has been made that the initial contract, which covers an 18-month period, will be concluded in short order.
Gillian Holcroft, Executive Vice President, Strategic Alliances for PyroGenesis added, "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."
PyroGenesis Canada, one of 10 companies in the clean tech category to be added to the TSX Venture 50, is the world leader in the design, development, manufacturing and commercialization of advanced plasma processes.
Last November, the company announced that it had secured a $5.5 million reorder for a plasma waste destruction system to be installed on a second Ford-class aircraft carrier, which is to be delivered, and recognized into income, over the next 2 years. Other recent successes include the acceptance of PyroGenesis' Plasma Waste to Energy System by the US Air Force, the sale of PyroGenesis' Plasma Waste to Energy System in Europe, the introduction of a Steam Plasma System for the destruction of ozone depleting substances within the appliance recycling sector and the demonstration of advanced material production in the Mining & Metallurgical industry using plasma.
The company recently closed a private placement of 3,660,000 units priced at $0.35, raising approximately $1.3 million.
The company currently trades at $0.69 and with 67.2 million shares outstanding, is capitalized at $46.4 million. For a more information, please visit the company`s website at www.pyrogenesis.com, phone P. Peter Pascali, President & CEO at 514-937-0002 or email ir@pyrogenesis.com.
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