in Additive manufacturing

#Arcam, $AMAVF: Recent volume order a clear sign of strength

ArcamLogoOn December 4th, Sweden’s 3D-printing equipment manufacturer Arcam received one of its biggest orders so far. The Italian company Lima order a total of 5 Q10-systems from Arcam.

Says Arcam’s CEO Magnus René in an interview with Swedish news agency Direct: “At the end of 2012 we received an order for six systems at the same time, but the Lima order is certainly one of our biggest ever.”

In its recently published Q3 2014 report, Arcam stated that it saw good opportunities to receive a volume order before year end. Since then, the company has received several orders for individual systems, before then announcing the volume order from Lima last Thursday.

Asked whether this is a general shift towards bigger orders, Arcam’s CEO says: “Obviously, the more we are entering the production stage at the client (rather than R&D), the higher the chances that orders become bigger.” He explains that volume orders usually come from already existing clients. A new client oftentimes starts by ordering one system in order to test it in his production process.

Lima is already using eight of Arcam’s previous generations. The most recent order is their first Q10-system, according to CEO René. The Q10-system is Arcam’s typical system for implant production, versus its Q20-system which is more designed for the use within the aerospace industry.

Says CEO René: “The price for our systems is around SEK 4-7m, with an average value of SEK 5,5m. Q10 is slightly below the average and Q20 slightly above. If you order five systems at the same time, you can affect the price per machine. Lima is an important client for us and when they go from eight to 13 machines with one order, this gives a strong signal.

So far this year, Arcam has received orders for 36 systems which can be compared to the 27 system orders during 2013. Unlike several of the US 3d-printing players such as 3D Systems and Stratasys, Arcam has had a strong 2014 and delivers impressive growth. More and more, it appears that Arcam is at the forefront to lead what is called by many “the third industrial revolution”. Another important milestone would be a volume order from the aerospace industry, which we believe is not too far away.

Nordic Investor

 

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