Additive Industries is looking ahead to its next steps with a major investment and an executive-level changeover.
The last time we heard about the Dutch company’s financial status, it was a €10 million update last February. That €10M, though, was in the interesting form of a loan from its financing partners.
Additive Industries Investment
Today, Additive Industries has announced a €14 million investment.
The funding comes from shareholder Highlands Beheer, the parent company of the Wintermans family, which also acquired the shares owned by Daan Kersten, the CEO and co-founder of Additive Industries. Kersten will be leaving the company as of the end of next month.
“This substantial investment confirms the long-term commitment of Highlands to the growth ambitions of the company and it allows Additive Industries to make yet another significant step on its mission to revolutionize the productivity for the additive manufacturing of high quality metal parts,” Kersten said of the €14M.
The funding is set to place Additive Industries well on track for its next steps, which include:
- Protection from COVID-19 impact “that may affect the company’s business in due course”
- Expansion of product portfolio
- Acceleration of technological roadmap
- Strengthening of working capital
Many businesses operating today have been impacted by the pandemic; earmarking funds to soften that blow is a smart move on Additive Industries’ part. The company produces large-scale metal additive manufacturing equipment and many of the primary adopters of metal 3D printing — namely the automotive and aerospace industries — have been experiencing significant declines in business as travel has substantially slowed.
The other areas where the company will be routing its new capital are relatively straightforward. Additive Industries has been expanding its product portfolio from its initial large-format metal 3D printer, the MetalFAB1, with a more recently introduced smaller configuration.
At the end of 2019, the company shared updates on its exploration of new markets outside its initial areas of focus. While they had started with automotive, aerospace, and medical, they are now seeing as new target markets tooling, oil & gas, general machine building, spare parts, and other high-tech systems.
Of course aerospace remains a significant market and, despite impacts from pandemic, is still seeing some growth. In mid-April, Additive Industries shared news of ongoing sales:
“We are pleased to announce that last week a leading aerospace company in Southern California ordered three additional MetalFAB1 systems with an option to purchase 5 more systems before the end of 2020. This expansion of their metal powder bed fusion capacity to produce safety critical, highly loaded, high temperature parts replaces large castings. Additionally, we received the order for a first MetalFAB1 system for a market leading turbocharger manufacturer in Europe.”
The new funding will certainly enable Additive Industries to continue to explore options for markets and applications along with the work toward a larger product portfolio.
“Since our inception in 2012 we have been working relentlessly on building a system that is unlike any other. A modular system with the largest symmetrical build volume commercially available, minimum operating interference and most of all, class leading productivity. I am convinced that with the continued support of our clients, our partners, our team and our shareholder we can now push our innovation roadmap even more,” says CTO Mark Vaes, whom Additive Industries credits as being the “driving force behind the development of the MetalFAB1 since 2013.”
Additive Industries Executive Shift
Also included in today’s announcement is an upcoming change at the top for Additive Industries.
As noted briefly above, Kersten’s shares in the company were acquired as part of the Highlands Beheer transaction. “Financial terms of the underlying transactions” aren’t being disclosed. Neither, really, is the why behind the CEO’s departure.
Kersten said pretty simply:
“After eight intense years of fast growth I feel the time is right to make way and hand over the reins to new leadership.”
His exit will be effective June 30th. Following his departure, CTO Vaes will step up as interim CTO until a permanent successor is found.