October 21, 2020 | Montréal, Québec
5N Plus Inc. (“5N Plus”), a leading global producer of specialty chemicals and engineered materials, and Graz, Austria-based Metalpine GmbH (“Metalpine”), a technology leader in the production of high quality performance powders for Additive Manufacturing (AM), announced today that the parties have entered into a strategic agreement aimed at jointly serving the growing demand from Additive Manufacturing markets.
Under this agreement, 5N Plus becomes the distributor of Metalpine’s portfolio of high-performance metal powders in North America, while continuing to serve the global market with 5N Plus’ expanding portfolio of products. The primary focus of the collaboration will be in AM related applications including binder jetting, metal injection moulding, powder bed fusion, directed energy deposition and cold spray technologies. Earlier this month, 5N Plus announced that it has entered the AM market as a supplier of engineered powders and has launched a broad portfolio of high-performance metal powder products to support this ambition. In addition, 5N Plus announced that it intends to achieve this goal through both organic and external actions (Refer to: 5N Plus Press Release October 7, 2020).
Over the past decade, the AM industry has undergone impressive growth, expanding by more than 20% year-over-year. This year the global market for engineered metal powders for AM is expected to reach $500 million, with a forecast growth rate further accelerating to 25% year-over-year in the next five years. The value proposition driving this growth is the industry’s enhanced ability to cost-effectively prototype with greater speed and agility; to innovate with new shapes and component designs; and to consolidate critical assemblies into single components. These attributes have the potential to dramatically alter global production paradigms and manufacturing.
With this agreement between 5N Plus and Metalpine, both companies are ideally positioned to serve this market: 5N Plus benefits from access to Metalpine’s high-performance powders including those based on alloys of titanium, nickel, stainless steel, copper and refractory metals, while Metalpine expands its reach into North America, estimated to represent 35-40% of the global market for AM metal powders.
Nicholas Audet, Executive Vice President of Electronic Materials at 5N Plus, commented: “5N Plus entered the market for engineered powders several years ago and has over the recent past succeeded in penetrating the technologically challenging micro-electronics market with powder technologies catering to our customers’ unique requirements. While we will continue to build on our achievements in micro-electronics, we have been eyeing the burgeoning metal AM market, in which high-quality performance powders are essential. This is why we recently began introducing new products targeting segments of this market.”
Mr. Audet added: “Metalpine’s comprehensive portfolio of engineered powders, based on unique production technologies, markedly strengthens and complements 5N Plus’ suite of powders. This collaboration gives our customers access to the broadest range of high sphericity metal powders available on the market.”
Gerald Poellmann, Chief Executive Officer at Metalpine GmbH commented: “Metalpine is committed to high-quality metal powders, i.e. for the additive manufacturing markets. With our proprietary and sustainable technology, we aim to produce an outstanding quality of zero porosity metal powders which are highly spherical, and practically free of satellites. Such powder is ideal for technology applications which require good flowability, highest part density and outstanding part properties. Given the complementary market position and portfolio of products between 5N Plus and Metalpine, along with 5N Plus’ track record for success based on quality products and services, I am convinced that we have picked the right partner to serve the growing demand for our high-quality metal powders in the important North American market.”
Mr. Poellmann concluded: “This partnership will provide a one-stop-shop for our customers to fulfill their demand for metal powders, spanning from copper alloys, stainless steels, tool and high temperature steels, nickel-based alloys, titanium alloys to molybdenum, tungsten and refractory metals.”
5N Plus is a leading global producer of engineered materials and specialty chemicals with integrated recycling and refining assets to manage the sustainability of its business model. The Company is headquartered in Montreal, Québec, Canada and operates R&D, manufacturing and commercial centers in several locations in Europe, the Americas and Asia. 5N Plus deploys a range of proprietary and proven technologies to manufacture products which are used as enabling precursors by its customers in a number of advanced electronics, optoelectronics, pharmaceutical, health, renewable energy and industrial applications. Many of the materials produced by 5N Plus are critical for the functionality and performance of the products and systems produced by its customers, many of whom are leaders within their industry.
Metalpine is a manufacturer of high-quality metal powders for markets with high-quality demands. With its head office and two manufacturing locations in Austria, Metalpine is part of the internationally represented htm Group (hightech metal investment GmbH) with locations in Germany, Austria, France, Bahrain, USA and Japan. With a broad product portfolio and an extensive R&D focus, Metalpine aims to work as one-stop-shop for its customers in terms of metal powder supply and technology consulting. Metalpine supports the United Nations 17 Sustainable Development Goals Initiative and is setting a benchmark for highly efficient production processes for metal powders, based on a significantly reduced environmental footprint due to low energy and inert gas consumption.
Certain statements in this press release may be forward-looking within the meaning of applicable securities laws. Forward-looking information and statements are based on the best estimates available to the Company at the time and involve known and unknown risks, uncertainties or other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting the Company’s business and activities appears under the heading “Risk and Uncertainties” of the 5N Plus’ 2019 MD&A dated February 25, 2020 and note 10 of the unaudited condensed interim consolidated financial statements for the three and six-month periods ended periods ended June 30, 2020 and 2019 available on www.sedar.com.
The Company is not aware of any significant changes to its risk factors previously disclosed, however since January 2020, the gradual outbreak of the novel strain of the coronavirus, COVID-19 and its declaration as a pandemic by the World Health Organization, has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures have caused material disruption to businesses globally resulting in an economic slowdown. While the Company has been able to mitigate the short-term impact from the crisis without significant loss of production capacity and customer demand, it is not possible to reliably estimate the length, severity and long-term impact the global pandemic may have on the Company's financial results, conditions and cash flows. The outbreak of the COVID-19 should be considered a new risk factor.
Forward-looking statements can generally be identified by the use of terms such as “may”, “should”, “would”, “believe”, “expect”, the negative of these terms, variations of them or any similar terms. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that 5N Plus will derive therefrom. In particular, no assurance can be given as to the future financial performance of 5N Plus. The forward-looking information contained in this press release is made as of the date hereof and the Company has no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward-looking statements.
Chief Financial Officer
5N Plus Inc.