While Stratasys’ (SSYS) stock price is tumbling, the company has been on a role this last week from a future growth perspective. Yesterday they announced the opening of a massive new manufacturing facility in Brooklyn, which will expand their subsidiary MakerBot’s production capacity by 100%, while today they’ve revealed further details on a recent partnership with Beijing’s Kangshuo Group Co.
Back in May it was revealed that Stratasys’ Solidscape subsidiary would be entering a deal with Kangshuo Group to stock what will be China’s largest 3D printing bureau with hundreds of Solidscape 3Z series 3D printers. The majority of these printers would be catering to China’s expansive jewelry industry. Today, however, Stratasys has announced additional details pertaining to this partnership, revealing just how huge this deal may end up being for both companies involved.
Kangshuo Group’s service bureau, located in Foshan City, Guangdong Province, P.R. China, will be a staggering 80,000 square-feet in size and feature up to 1,000 Solidscape 3D printers. Additionally, the facility will have a 21,000 square-foot factory where Kangshuo Group will be producing made-to-order Solidscape machines for the domestic market within China. This, however, is only just the first phase of a multi-year partnership which will see Stratasys supply printers to up to four service bureaus in total. Not only that, but Stratasys will also be supplying Solidscape machines to 100 Innovation and Entrepreneurship Centers across China, as well taking part in the Chinese government’s 3D printing education initiatives by helping supply schools and educational institutions with ‘large quantities’ of 3D printers.
“We believe our collaboration is the driving force in creating a new 3D printing ecosystem in China,” said Fabio Esposito, President of Solidscape, a Stratasys company. “With Stratasys’ Solidscape 3D printers, Kangshuo is creating China’s largest Custom 3D Printing Manufacturing network, building an assembly factory for equipping China’s emerging 3D printing markets, opening Innovation and Entrepreneurship Centers across China and working with the government on educating a highly-skilled workforce. It is an amazing example of global cooperation. We are honored to have such a strong ally as Kangshuo.”
This deal should have a significant impact on Stratasys’ top and bottom lines in the midst of shareholder dismay and disappointment. This deal may be just what the company needed, timing wise to help cheer up some gloomy investors. It should also provide China with significant opportunity to advance their 3D printing initiatives both in education as well as in industry.
“This is an historic day for modern China. We are very excited about opening the largest 3D printing service bureau in China. We believe that we can now offer our customers the best possible products for the jewelry sector and help drive innovation in China,” stated Kangshuo President Bin Liu. “For us, the clear choice was Solidscape. It is the beginning of a long and prosperous journey together.”
According to Kangshuo, they exclusively chose Solidscape 3D printers because of their ability to intricately fabricate detailed objects using materials such as wax, with high quality surface detail. This will specifically cater to those looking to cast metal parts from 3D printed geometries.
Certainly this is the kind of deal that any major 3D printer manufacturer dreams of. Let us know your thoughts on this multi-year deal in the Stratasys in China forum thread on 3DPB.com