Arcam subsidiary AP&C breaks ground on second plant; ponders purchase offer from GE Sweden

Arcam AB, a supplier of additive manufacturing (AM) equipment, announced that its powder manufacturing subsidiary, Advanced Powders & Coatings (AP&C) in Montreal, QC, Canada, has begun to build its second powder plant in Saint-Eustache, also in Quebec. Alain Dupont, President of AP&C, led the groundbreaking ceremony, which was attended by ministers and representatives from municipalities and the industry. AP&C specializes in plasma atomized metal powders for AM, and plans to invest up to CAD 31 million in this second powder facility. AP&C will also create 106 new jobs in addition to the 85 people currently employed within the next three years.

“The need for high-end titanium powder is driven by the fast growth and adoption of additive manufacturing, said Magnus Rene, CEO of Arcam. “Arcam is determined to serve the industry through cost-efficient solutions, thus converting traditional manufacturing into additive manufacturing. A requisite is to offer the highest quality powder for production at a competitive cost.”

AP&C benefited from the support, advice and financial assistance of Canada Economic Development, Montreal International Investissement Quebec and the Quebec Ministry of Economy, Science and Innovation in moving its expansion project forward.

“This investment makes it possible to provide our existing and future clients with superior quality powders to meet the high manufacturing standards of the aerospace and orthopedic industries,” said Alain Dupont, President of AP&C. “With this new powder production facility and advances in atomization technology, AP&C will significantly increase capacity.

“Without the involvement of both the federal and provincial governments, our project would have been difficult to carry through at this speed,” Dupont concludes. “Our points of contact were receptive to our needs, and showed keen knowledge of the issues and challenges facing our industry.”

On September 6, Arcam announced an offer to purchase the company from GE Sweden Holdings AB, an indirectly wholly owned subsidiary of General Electric Co. The offer was set to expire on Oct. 14, but in Arcam’s interim report released Oct. 21 covering January to September 2016, Arcam’s CEO announced that GE had extended the the acceptance until Nov. 1, 2016. “For us at Arcam, the tender from GE is a strong confirmation that the company we have built . . . is a major player in the additive manufacturing industry and an attractive partner to GE,” Rene stated during a conference call. “We share with GE the belief that additive manufacturing is a fast growing, strategically important industry. GE plans to retain and expand Arcam’s current customer base in aerospace as well as in orthopedics. GE also intends to keep current locations and to retain current management and employees.”