PyroGenesis to spin off its 3D printing business
New public company that will produce metal and alloy powders.
MONTREAL — PyroGenesis Canada Inc. is moving ahead with a plan to spin-off 80% of its 3D additive manufacturing business into an independent publicly traded company.
The board of the Montreal cleantech company that manufactures plasma waste-to-energy systems and plasma torch products has unanimously approved the plan to create the company that will produce metal and alloy powders for the 3D printing industry using PyroGenesis’ technology. It will also distribute powder production systems and equipment under an exclusive worldwide license.
There’s no name for the company yet but for the time being, PyroGenesis is calling it 3DCo.
PyroGenesis will provide maintenance and technical support services to 3DCo for each system purchased, for up to $750,000 per system per year and under a non-compete agreement, it will also receive royalty payments of up to 10% from 3DCo’s powder production revenues.
3DCo is to be in commercial production as early as this year’s third quarter.
PyroGenesis, referencing the Wohlers Report (2015), says the global demand for 3D printers is expected to grow from 1,200 machines in 2014 to over 14,000 machines in 2020, which will increase the demand for metal powders exponentially to 8.6 millikilograms by 2020. That will generate $3.45 billion in worldwide revenues.
The small, spherical, uniform, titanium powder to be produced by 3DCo will account for over 30% of this metallic powder demand.