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In a Monday announcement HP says the center is its largest deployment of production-grade 3D printing in Asia Pacific and Japan.
In its bid to accelerate the fourth industrial revolution, HP (NYSE:HPQ) together with Guangdong has unveiled a new production-grade 3D printing center in China.
Monday’s (June 18) announcement says the center, which is in the town of Dali, Foshan, powers its new Lanwan Intelligence – Multi Jet Fusion Technology Mass Manufacturing Center. It has 10 HP Multi Jet Fusion 3D printing systems and is HP’s largest deployment of production-grade 3D printing in Asia Pacific and Japan.
According to Statista, China’s 3D printing technology market is projected to reach US$11.05 billion by 2023, which puts HP above the curve in that growing market.
The company says the center will meet the growing demand for functional prototypes and production-grade parts for major auto, consumer goods and motorcycle customers in Foshan as well as other industries in the Greater Bay Area of Southern China.
“We are thrilled that Guangdong (Dali) 3D Printing Collaborative Innovation Platform is deploying HP Multi Jet Fusion technology at factory-scale to drive its business growth and accelerate industry innovation,” Stephen Nigro, president of 3D printing at HP said in the press release. HP is committed to helping our global digital manufacturing partner community expand and thrive.”
Monday’s announcement comes shortly after HP recently delivering strong Q2 results with the company reporting its printing revenue increased by 11 percent year over year.
Dion Weisler, president and CEO of HP said in the earnings call that the company seeks to disrupt the US$12 trillion market.
“3D printing business is a huge opportunity for us, one where we aim to disrupt the $12 trillion global manufacturing market,” he said. “The growth trajectory and the momentum behind this business continues. We have seen an increase in the customers placing repeat orders and upgrading the systems for higher volume manufacturing and scaling with double digit unit installations.”
According to BCC Research, the global 3D printing materials market will see a 22.8 percent compound annual growth rate (CAGR) between the forecast period 2018 through 2023 to reach US$2.4 billion market value. The report said that growth will be robust in the Asia Pacific region, which will see a CAGR of 25.5 percent during the same forecast period.
“The demand for 3D-printed production-grade parts will grow exponentially over the next few years as we shift from analog to digital manufacturing,” Luo Jun, executive director of China 3D Printing Technology Industry Alliance and president of Guangdong Lanwan Intelligence Technology, said in the release.
Following Monday’s announcement, HP closed the trading day at US$23.65 and was up 0.25 percent over the one day period. The stock has a target price of US$25.17 on TipRanks with a ‘Moderate Buy’ ranking. The company has a ‘Strong Buy ranking on TradingView with 15 verticals in favor and 11 neutral.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.