ExOne (NASDAQ:XONE), the U.S.based industrial 3D printer manufacturers, have announced they will undergo a strategic reorganization. In documents filed with the SEC the company describes how, “it will begin to refocus how it demonstrates and provides its industrial sand core and mold binder jet 3D printing services in North America.”
The move is designed to, “facilitate faster adoption of its technology, ExOne will refocus its production service centers located in Troy, Michigan and Houston, Texas into ExOne Adoption Centers (“EACs”).”
3D printing for foundries
The primary business of ExOne is the manufacture and sale of 3D printing machines and “printing products to specification for its customers using its installed base of 3D printing machines.” The company offer 3D printing using binder jetting, a service that foundries and OEM’s can use for casting operations.
This is a novel 3D printing technology that has application across many industries including aerospace and automotive, however to increase the number of machines sold ExOne acknowledge they must, “provide more robust training services and allow us to interact more closely with our customers and their applications of binder jet printing.”
Increasing revenue
During 2016, ExOne reported consecutive quarters of increasing revenue. However, the 3D printing business did not generate a profit and its share price is at a similar level to that of 1 year ago.
According to the company,
ExOne will consolidate certain of its 3D printing operations at its production service center in North Las Vegas, Nevada into its Houston, Texas and Troy, Michigan facilities and plans to exit its non-core Machin-A-Mation specialty machining operation in Chesterfield, Michigan. Both actions are expected to better prioritize ExOne’s human and capital resources toward advancing the adoption rate of its binder jet printing.
Dates for the closing the of the North Las Vegas and Chesterfield, Michigan sites have not yet been announced.
Market assessment completed
ExOne CEO Jim McCarley gave further details for the rationale behind the strategic change, “We completed a market assessment of where we stand with industrial customers’ desires for binder jet 3D printing.”
McCarley continues, “We see the North American market adoption rate of sand printing technology accelerating. Contributing to this, our S-Max platform, which has been designed with an expanded binder and base material configuration, is well positioned for growth in this area. Our goal with the EACs is to create the proper support and service structure to ensure we sustain the market’s momentum.”
2017 will be an important year of the company and we are expecting to hear more news about the execution of this strategy.
Nominations are still open for the 1st Annual 3D Printing Awards, you can make your choice here.
