PyroGenesis Canada Inc (TSE:PYR) (NASDAQ:PYR) (FRA:8PY) revealed that it has signed a qualification agreement with a premier global aerospace company for the production of metal powders.
“This agreement with one of the world’s largest aerospace companies is a very significant achievement in further validating PyroGenesis’ additive manufacturing powder offering utilizing our NexGen production, which provides significant cost and production advantages,” said PyroGenesis CEO P. Peter Pascali in a statement.
“This agreement has been a long time in the making. The client has visited our facilities and has evaluated our production process, and both parties have been eagerly awaiting the completion of our NexGen production line, which we announced earlier this week.”
READ: PyroGenesis says its Additive Manufacturing NexGen Powder production line now in place and producing powders
Pascali noted that it is “important to realize” that the qualification process is not only exhaustive and time-consuming but “also quite costly for this aerospace client, which we believe underscores their confidence in the added value and competitive differentiation of our offering.”
“With the previously announced improvements now incorporated into our game-changing powder production line, we are all highly confident in our ability to meet, if not exceed, this client’s stringent requirements,” added Pascali. “We fully expect to enter into similar agreements with other major players in the industry over the next several months.”
Under the agreement, the client will perform a standard qualification process typically required before a company can become an approved supplier. The process will, among other things, evaluate the company’s manufacturing methods, test samples of powder for batch-to-batch consistency and determine mechanical and chemical properties.
Subsequently, larger volumes of powder will be used to print test coupons to further evaluate mechanical and chemical properties. “It is expected that testing with real parts under real-time conditions would be in order before final acceptance,” said the company. On passing all acceptance tests, the process will be locked down specifically for the client, with no additional modifications permitted. Upon successful completion of the testing, PyroGenesis would expect to receive formal acceptance as an approved supplier.
The qualification process has now formally started, and the first powder samples are expected to be delivered “within the next several weeks,” said the company.
The Montreal-based company designs, develops, manufactures, and commercializes plasma atomized metal powder, environmentally-friendly plasma waste-to-energy systems, and clean plasma torch products.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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