ROCK HILL, S.C. - National Additive Manufacturing & Innovation Company (NAMI), a joint venture between 3D Systems (NYSE:DDD) and Dussur, has acquired several 3D printing technologies from 3D Systems to improve the supply chain efficiency of the Saudi Electricity Company (SEC). The purchase includes metal and polymer 3D printing solutions, aimed at supporting SEC's operations across the Middle East and North Africa.
The deal, announced today, involves NAMI implementing the DMP Factory 500, DMP Flex (NASDAQ:FLEX) 350 Dual, and SLS 380 systems to create a digital inventory for SEC, which will help in reducing production times, storage space, and costs. This initiative is in line with Saudi Arabia's Vision 2030 to advance local manufacturing capabilities.
The collaboration between NAMI and SEC is expected to enhance the reliability of SEC's supply chain by producing components such as pump impellers and motor fans through additive manufacturing. The technology provided by 3D Systems is known for its precision in manufacturing end-use parts, and its NoSupports printing strategies will contribute to the efficiency of the production process.
Reji Puthenveetil, EVP of 3D Systems, highlighted the value of the company's additive manufacturing solutions in various industries and expressed optimism about the positive impact this collaboration will have on SEC and its customers. Mohammed Swaidan, CEO of NAMI, emphasized the importance of this project for the energy sector and the expected cost efficiencies and operational improvements for SEC.
The additive manufacturing market in the energy sector, valued at $2.6 billion in 2023, is projected to grow to $17 billion by 2032, according to Research and Markets. 3D Systems' experience in the industry is anticipated to help energy companies achieve goals such as increased fuel efficiency and reduced greenhouse gases.
This news is based on a press release statement from 3D Systems Inc. and does not include any forward-looking statements. The provided information reflects the current state of the collaboration and the expected benefits of the technology implementation.
In other recent news, 3D Systems has been making significant strides in various sectors. The company has forged a strategic partnership with Precision Resource to expedite metal additive manufacturing applications in critical sectors. The collaboration will see Precision Resource integrate two 3D Systems DMP Flex 350 Dual 3D printers into its California-based facility, aiming to expand its offerings and market opportunities.
3D Systems has also made a landmark move in the digital dentistry market, securing a multi-year contract worth nearly a quarter-billion dollars through 2025. This contract, which supports the production of clear aligners, reinforces the company's position as a leading supplier of 3D printing technology in the orthodontics space.
Further diversifying, the company is advancing into the production of night guards and pursuing FDA clearance for its innovative dentures, expected in the second half of 2024.
Another major development is the FDA 510(k) clearance for 3D Systems' VSP PEEK Cranial Implant, a 3D-printed, patient-specific implant for cranial reconstruction. This approval broadens the use of the company's additive manufacturing solutions in the United States.
The market for cranial reconstruction is projected to reach $2.1 billion by 2030, providing a solid base for 3D Systems to expand its PEEK product portfolio and explore additional orthopedic applications. These are some of the recent developments that have been shaping the trajectory of 3D Systems.
InvestingPro Insights
The recent collaboration between National Additive Manufacturing & Innovation Company (NAMI) and the Saudi Electricity Company (SEC), facilitated by 3D Systems' technology, is a strategic move to enhance supply chain efficiency in line with Saudi Arabia's Vision 2030. As investors consider the potential impacts of this deal on 3D Systems' financial health and stock performance, it's essential to look at the current data and trends provided by InvestingPro.
InvestingPro Data indicates a challenging financial environment for 3D Systems. With a market cap of 504.41M USD and a negative P/E ratio of -1.3, reflecting the company's lack of profitability in the last twelve months, investors should be aware of the company's current valuation and earnings performance.
Furthermore, the gross profit margin stands at a robust 40.73%, yet the company is quickly burning through cash, as noted in one of the InvestingPro Tips. This could be a concern for long-term sustainability unless the new deal with NAMI significantly boosts revenue streams.
The stock has experienced significant volatility, with a notable return over the last week of 15.23%, but has fared poorly over the last month with a -13.43% return. This volatility is something investors should monitor closely, especially in light of the InvestingPro Tips that highlight the stock's poor performance over the last decade and significant price fall over the last year.
For those looking to dive deeper into the financial nuances of 3D Systems, there are additional insights available on InvestingPro, including more InvestingPro Tips that can help investors make informed decisions. Utilize the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to a comprehensive set of tools and analyses tailored to enhance your investment strategy.
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