PyroGenesis Canada Inc. (TSX:PYR, OTCQX:PYRGF) announced that it has signed an initial contract with a Spanish aerospace firm for the sale of its titanium metal powder for use in additive manufacturing.
The developer of advanced plasma processes said the client is engaged in advancing aeronautics technologies for the European aerospace industry. The client will remain anonymous for confidentiality reasons, the company said.
The order is for titanium metal powder with a particle size range of 15-63µm.
This is ideal for laser bed additive manufacturing methods such as Direct Metal Laser Sintering or Selective Laser Melting, methods widely recognized for their precision and strength in creating complex metal compounds, PyroGenesis said in a statement.
It said the order has already been produced using its NexGen plasma atomization system and will soon be in transit to the client.
PyroGenesis highlighted that the contract was made possible by the recent changes to its European metal powder distribution strategy, with the company and Aubert & Duval mutually agreeing to end their distribution agreement.
“By ending our distribution agreement with Aubert & Duval, we have essentially eliminated the middleman, thereby essentially reducing costs to the end user,” PyroGenesis CEO P Peter Pascali commented.
“As can be seen from the announcement today we are now successfully selling directly to European-based clients.”
Massimo Dattilo, vice president of PyroGenesis Additive, added that the contract represents a “significant milestone” under the company’s new direct distribution strategy.
“We are experiencing an increase in activity from Europe and are currently engaging with additional European clients interested in acquiring our titanium powder for their additive manufacturing needs,” Dattilo said.
Shares of PyroGenesis increased by 13.4% on Tuesday around the midday point of trading.
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