PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR)
(NASDAQ: PYR) (FRA: 8PY), a high-tech company (hereinafter referred
to as the “Company” or “PyroGenesis”), that designs, develops,
manufactures and commercializes advanced plasma processes, high
quality plasma atomized metal powder for 3D printing, and
sustainable solutions which are geared to reduce greenhouse gases
(GHG), is pleased to provide today an update on its high quality
plasma-atomized metal powders (for 3D printing) business line.
“Over the past three years, PyroGenesis
completed a series of intricate production steps as it readied the
NexGen Plasma Atomization system. This has resulted in the most
recent milestone, where the Company announced that it had moved
from sample production to commercial size batch production,” said
Mr. P. Peter Pascali, CEO and Chair of PyroGenesis. “With the
ability to now produce titanium powder by the tonne, the Company is
now in a position where it can provide additional perspective on
status, and next steps, for both existing and developing
opportunities.”
NexGen Plasma Atomization
System
PyroGenesis previously announced the filing of a
provisional patent for a revolutionary plasma atomized metal powder
production process (“NexGen Plasma Atomization”), for use in 3D
printing by additive manufacturers. This process was a significant
departure from conventional plasma atomization – a technology the
Company also invented and coined the term for, and which is still
considered the gold standard for the production of metal powder.
The provisional patent targets higher production rates, narrower
particle size distribution (“PSD”), and has the additional
advantage of being able to shift the bulk PSD into a more desirable
distribution. These advantages enable the Company to produce for
the Additive Manufacturing (“AM”) industry, a very targeted powder,
with little to no waste, at higher volumes and lower cost.
As the inventor of plasma atomization and a
global leader in plasma research and commercialization for heavy
industry, PyroGenesis is dedicated to continuous improvement and
innovation for commercialization, with a goal to shatter all
published plasma atomization system production rates and pricing
levels.
Aubert & Duval Agreement
Status of Partnership Agreement
PyroGenesis has a technical and commercial
partnership agreement with Aubert & Duval, a world leader in
industrializing high-performance steel, super alloy, aluminum and
titanium alloys. Founded in 1907, Aubert & Duval – a division
of the French multinational mining and metallurgy company; ERAMET –
is both the world’s second-largest producer of high-power
press-forged parts and a recognized supplier of fine
metallic powders for additive manufacturing in demanding
markets such as aerospace, energy, medical, defense and
automotive
This agreement, in place since 2019, pairs
PyroGenesis with a partner that has a history of supporting their
customers in AM, from the development of product to mass
production. The agreement established the framework within which
Aubert & Duval and PyroGenesis would work together during the
period wherein PyroGenesis developed their NexGen technology. It
also provided Aubert & Duval with exclusive rights to market
PyroGenesis plasma-atomized titanium powders in Europe, while at
the same time agreeing to buy titanium powder exclusively from
PyroGenesis
Next Step: Distribution Agreements
With NexGen now producing titanium powder, and
with powder shipments now commenced for distribution to companies
worldwide for qualification, discussions are now under way between
the parties for full distribution agreements. Steps under
discussion include, but are not limited to, distribution planning,
order planning, and logistics. The Company hopes to provide more
information on these developments in the very near future.
Top Tier Aerospace Company
PyroGenesis also has an agreement with a tier
one North American global aerospace company (the “Client”), for
qualification of the Company’s titanium metal powder.
Under this agreement, the Client has been
performing an in-depth qualification process – a procedure
typically required before a company can become an approved
supplier. The process was established to, amongst other things,
evaluate the Company’s manufacturing methods, test samples of
powder for batch-to-batch consistency, and determine various
mechanical and chemical properties. Subsequently, larger volumes of
powder will be used to print test coupons to further evaluate
mechanical and chemical properties.
Upon passing all steps, including acceptance
tests, the Company’s process will be locked down specifically for
each client, with no additional modifications permitted. Upon
successful completion of the testing, PyroGenesis would expect to
receive formal acceptance as an approved supplier.
Status of Qualification Agreement
The formal and methodical process with this top
tier aerospace company is on track and is nearing conclusion.
Recently, the Client provided verbal approval of
“work instructions” – the procedures given to the Company’s factory
operators, which serves as the de facto facility operational manual
for the Client’s specific operating standards and expectations.
Next steps include the final assessment and
approval of various non-manufacturing processes, for aspects such
as quoting, handling, storing, shipping, logistics, etc. As the
Company has already achieved ISO 9001:2008 and AS9100D
certification, it is confident that these processes will meet the
Client’s standard, after which the last step is for final small
samples to be produced under the final locked-down process state.
Once the final sample powder is analyzed, the Client will provide a
memo that the Company’s titanium metal powder is approved for use
upon which the Company will inform investors.
The Company anticipates achieving final approval
during Q4 of this year, 2022.
New Developments
Commencement of Inventory Production
The Company is now announcing its intention to
start producing stock inventory of titanium metal powder – a
pre-made bulk supply of powder for storage as inventory, in
readiness for orders from Aubert & Duval and other
entities.
Asian Market Expansion
In the past, the Company has announced delivery
of preliminary metal powder samples to a client in Asia. During the
NexGen development process, while the industry awaited announcement
of the Company’s production milestones, various parties indicated
interest in PyroGenesis’ metal powder for the Asian market.
As a result, discussions are now underway with a
major distributor of metal powder to establish distribution rights
for the Asian market – a market with a very large automobile and
aerospace presence.
The Company will provide more information on
this development as it progresses.
ISO 13485 Certification
In addition to being ISO 9001:2008 and AS9100D
certified, the Company will also pursue ISO 13485:2016
certification. ISO 13485:2016 specifies requirements for a quality
management system where an organization needs to demonstrate its
ability to provide medical devices and related services that
consistently meet customer and applicable regulatory requirements.
Once obtained, the Company’s market will expand to include medical
device makers.
Introduction of New Metal Powder: Aluminum
Alloys
Today the company is also announcing its
intention to produce additional powder materials for its
plasma-atomized metal powder business line, with the first being
aluminum alloy powder.
This development comes as a result of being
approached repeatedly by tier one global automakers, who have
requested aluminum alloy powders made with plasma atomization –
specifically from the alloy known as AlSi10Mg. This alloy is
traditionally used as a casting alloy, due to its high corrosion
resistance, low density and light weight, and high mechanical
strength of the final components, while at the same time, offering
particular suitability for thin-walled components and parts with
complex geometries.
This is a medium-term goal for the company and
will require an additional stand-alone production system to (i)
prevent cross-contamination, (ii) allow for individualized research
and development, and (iii) facilitate the large scale and volume of
production that is anticipated as a result of previous requests,
and today’s announcements.
The Company will provide more information on
this development at a later date.
Development of European Manufacturing
Facility
In anticipation of the expected growth of the
European market, and the expected introduction – based on
significant recent commercial inquiries – of new markets in nearby
regions, the Company is pursuing a strategy to build and operate a
metal powder manufacturing facility in Europe.
To that end, the Company is examining
cost-positive geographies, fleshing out preliminary infrastructure
development plans, and exploring various avenues and potential
approaches. All efforts are being conducted with the full knowledge
and participation of our current European commercial partner Aubert
& Duval, whose reputation and experience in the region will
afford the Company unique advantages during all phases of this
process.
The Company will provide more information on
this development at a later date.
“As we have stated in the past, given the sheer
size of this market and our unique manufacturing process – which
improves exponentially on the world’s existing leading metal powder
production process (which we invented 25 years ago) – we expect to
capture a significant share of the overall titanium powder market,”
said Mr. Massimo Dattilo, VP, PyroGenesis Additive. “With our
NexGen system reaching the commercial scale production milestones
of the past month, combined with the attention that these
achievements have attracted worldwide, we are even more convinced
that not only has the Company’s systematic and painstaking approach
been the correct path, but that this strategy will result in unique
additional opportunities. As a result, we are continuing to
announce new products, new markets, and additional manufacturing
avenues as indicated above, all with the goal to help additive
manufacturers improve their processes & margins, by offering
the highest quality metal powders at the lowest cost.”
According to Grand View Research, the global 3D
printing market was valued at USD $13.84 billion in 2021 and is
expected to grow at a compound annual growth rate of 20.8% from
2022 to 20301.
About PyroGenesis Canada
Inc.PyroGenesis Canada Inc., a high-tech company, is a
leader in the design, development, manufacture and
commercialization of advanced plasma processes and sustainable
solutions which reduce greenhouse gases (GHG) and are economically
attractive alternatives to conventional “dirty” processes.
PyroGenesis has created proprietary, patented and advanced plasma
technologies that are being vetted and adopted by multiple
multibillion dollar industry leaders in four massive markets: iron
ore pelletization, aluminum, waste management, and additive
manufacturing. With a team of experienced engineers, scientists and
technicians working out of its Montreal office, and its 3,800 m2
and 2,940 m2 manufacturing facilities, PyroGenesis maintains its
competitive advantage by remaining at the forefront of technology
development and commercialization. The operations are ISO 9001:2015
and AS9100D certified, having been ISO certified since 1997. 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
https://www.sedar.com/ or at https://www.sec.gov/. 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. Neither the Toronto Stock Exchange, its
Regulation Services Provider (as that term is defined in the
policies of the Toronto Stock Exchange) nor the NASDAQ Stock
Market, LLC accepts responsibility for the adequacy or accuracy of
this press release.
SOURCE PyroGenesis Canada Inc.
For further information please
contact: Rodayna Kafal, Vice President Investor Relations
and Strategic Business DevelopmentPhone: (514) 937-0002, E-mail:
ir@pyrogenesis.comRELATED LINK: http://www.pyrogenesis.com/
1 3D Printing Market Size & Share Report, 2022-2030
(grandviewresearch.com)
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