GE snaps up two European 3D printer manufacturers
Bloomberg News
In a bold move to acquire technology that could transform factory production in the coming decades, General Electric Co. announced it will spend $1.4 billion buying two European makers of 3D printers to expand use for the manufacture of components like aircraft parts.
GE offered to buy Sweden’s Arcam for 5.86 billion kronor ($680 million) and, in a separate transaction, acquire SLM Solutions Group of Germany, the Boston-based company said in a statement Tuesday. The biggest maker of aircraft engines said its first jet engine parts, called fuel nozzle interiors, made with the technology were introduced into service in July, paving the way for wider use.
3-D printers build an object by thinly layering materials such as plastic powder, metal or liquid resin, following instructions from a computerdrawn blueprint. They are used to make components including car parts and surgical implants.
The global market for 3D printing, also known as additive manufacturing, is growing as companies like GE move toward commercial parts production from making prototypes. The aviation industry was one of the early adopters because it allows for more complex designs, helping to lower the weight of parts and cutting back on waste of expensive materials on factory floors. GE Aviation has said it expects to print more than 100,000 parts for its jet engines by 2020.
Until now, companies “have typically bought one or two machines for research and development,” said Rachel Gordon, analyst at IDTechEx, a research company that has written a report on 3D printing. Companies are now “starting to use them to actually produce parts, buying bigger numbers of machines.”
GE’s move could trigger a wave of acquisitions in the sector, she said.
With the offers for the European companies, GE is buying into two competing technologies. Arcam promotes its proprietary technology using electron beams as having a fast printing process and greater ability to use a wide range of printing materials, while laser-based systems like SLM’s are generally capable of making more detailed components. GE already became Arcam’s top customer last year, placing the largest order to date to help produce turbine blades for jet engines.
“We chose these two companies for a reason,” said David Joyce, chief executive of GE Aviation. “They each bring two different, complementary additive technology modalities. Over time, we plan to extend the line of additive manufacturing equipment and products.”