GE has confirmed its plans to acquire two suppliers of additive manufacturing (AM) equipment, Arcam AB and SLM Solutions Group AG for US$1.4 billion. Both companies will report to David Joyce, president & CEO of GE Aviation, who will lead the growth of these businesses in the AM equipment and services industry.
‘Additive manufacturing is a key part of GE’s evolution into a digital industrial company,’ said Jeff Immelt, chairman and CEO of GE. ‘We are creating a more productive world with our innovative world-class machines, materials and software. We are poised to not only benefit from this movement as a customer, but spearhead it as a leading supplier. Additive manufacturing will drive new levels of productivity for GE, our customers, including a wide array of additive manufacturing customers, and for the industrial world.’
Arcam AB, based in Mölndal, Sweden, invented the electron beam melting machine for metal-based additive manufacturing, and also produces advanced metal powders. Arcam generated $68 million in revenues in 2015 with approximately 285 employees.
SLM Solutions Group, based in Lübeck, Germany, produces laser machines for metal-based additive manufacturing with customers in the aerospace, energy, healthcare, and automotive industries. SLM generated $74 million in revenues in 2015 with 260 employees.
‘We chose these two companies for a reason,’ said Joyce. ‘We love the technologies and leadership of Arcam AB and SLM Solutions. They each bring two different, complementary additive technology modalities as individual anchors for a new GE additive equipment business to be plugged into GE’s resources and experience as leading practitioners of additive manufacturing. Over time, we plan to extend the line of additive manufacturing equipment and products.’
GE will maintain the headquarters locations and key operating locations of Arcam and SLM, as well as retain their management teams and employees. GE expects to grow the new additive business to US$1 billion by 2020 and also expects US$3-5 billion of product cost-out across the company over the next ten years.
This story is reprinted from material from GE, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.