The shaping of metal into various forms has been carried out by smiths for eons. Norsk Titanium (OTCQX:NORSF) has re-imagined this process with its patented Rapid Plasma Deposition (RPD) technology to usher in a new era of metal additive manufacturing.
The company was founded in 2007 by a group of Norwegian scientists and engineers who had the dream of pioneering the next industrial revolution.
As CEO Michael Canario told Proactive, the company’s vision is “innovating the future of metal manufacturing.”
READ: Norsk Titanium reports strong progress towards its 2022 milestones throughout 3Q
“The fundamental approach to metal manufacturing hasn’t changed in hundreds of years,” he explained. “We are industrializing a new, cost-efficient and environmentally appropriate production process for the manufacturing of structural metal components.”
With more than 170 patents and published industry standards, Norsk is the global leader in wire-based, direct energy deposition 3D printing.
At present, it is the only Federal Aviation Administration-approved and original equipment manufacturer (OEM)-qualified company for structural titanium parts manufacturing.
Rapid Plasma Deposition’s advantages over traditional metal manufacturing
With its RPD process, Norsk can deliver metals of greater strength and durability on-demand with an improved environmental footprint.
In this process, titanium wire is melted in an inert atmosphere of argon gas, and precisely and rapidly built up in layers to a near-net-shape part. It is monitored more than 600 times per second for quality assurance, according to Norsk.
While Norsk’s focus is on titanium, its technology is applicable to many other metals, with the company currently looking at potential applications in nickel alloys, stainless steels and refractory metals.
According to Canario, Norsk’s RPD process was designed to be used in the existing metal manufacturing supply chain as a direct replacement for a metal block, forging or casting, without the need for expensive tooling or high initial capital expenditures.
“Our technology investments have delivered a digital platform for us to rapidly convert customer drawings to additively manufactured components,” he said.
READ: Norsk Titanium produces additive titanium components for industrial market through partnership with Hittech Group
The key benefit of Norsk’s RPD is a significant reduction in the amount of raw materials required.
“Creating a 3D printed ‘preform’ that is near-net shape to the final part geometry eliminates waste and processing in the supply chain,” he said. “This yields lower costs for the raw materials, lower post-processing costs and significantly faster lead times for the end customer.”
RPD reduces the amount of energy required to create the raw material, the most energy intensive part of the metal supply chain, by up to 75% when compared to traditional processes.
“In today’s market with constrained supply chains, reduced titanium raw material availability and soaring energy costs, Norsk Titanium (OTCQX:NORSF) is well positioned to support the needs of our customers,” he said.
Opportunities in commercial aerospace, defense and industrial markets
Canario described commercial aerospace as by far the largest opportunity for Norsk in its first metal titanium.
“The addressable market for RPD is measured in multiple billions of dollars and it is concentrated at Boeing and Airbus,” he said. “The qualification process is extensive and we’ve been working with both OEMs for many years.”
He added that the defense and space segment is smaller and more fragmented, but also has some opportunities that the company can pursue by leveraging the extensive work it has done in commercial aerospace to get to market faster.
While Canario noted that the industrial segment is even more fragmented again, it has some attractive applications in equipment manufacturing and oil and gas.
“We clearly have a significant set of opportunities in these three areas and our plan is to expand to other metals with these customers as a next step,” he said.
Transition to serial production underway
Canario described 2022 as a key transition year for Norsk as the company broadens its customer base.
Norsk already has impressive partnerships in place across its three main segments with big names including Boeing, Airbus, and US Department of Defense prime contractors.
In October 2022, the company announced that it had received its first commercial serial production order from its long-time industrial customer Hittech Group. Den Haag, Netherlands-based Hittech selected Norsk’s RPD as a raw material replacement to legacy milled titanium plate in a component for an ASML silicon wafer manufacturing machine. The Norsk RPD preform weighs 80 kilograms and provides a significant reduction in machining cost and lead time versus the legacy 220-kilogram plate.
The company is also moving toward serial production in 2023, opening the door to other markets with long-term potential for value creation.
Across its two sites, Norsk company has the production capacity to support up to 700 metric tons of output per year. Its Plattsburgh Production Development and Qualification Center in New York, USA, is the world’s largest 3D printing facility with 620 metric tons of annual capacity across 31 RPD machines. The company has an additional 80 metric tons of annual capacity across four RPD machines and a metallurgy lab at its site in Eggemoen, Ringerike, Norway.
In 3Q 2022, the company initiated serial production trials of its first two A350 parts for Airbus, with successful completion of testing and the industrial manufacturing trial to allow the company to work directly with Airbus tier-one suppliers to transition additional parts to its RPD technology.
With the release of its 3Q results, the company reiterated its revenue target of US$15 million for 2023 and US$150 million in 2026.
“Key customer initiatives are progressing in all three of our main segments and we anticipate announcements regarding serial production contracts by year-end,” Canario concluded.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie