HP-Stratasys deal aims to make plastic printing mainstream

In the deal, US-based Stratasys will develop and manufacture for HP an exclusive line of 3D printers based on Stratasys’ patented Fused Deposition Modeling (FDM) technology. FDM is an additive manufacturing technology, in which production grade plastics such as ABS are printed in layers to build the 3D form.

“We believe the time is right for 3D printing to become mainstream,” said Stratasys chairman and CEO Scott Crump.

“We also believe that HP’s unmatched sales and distribution capabilities and Stratasys FDM technology is the right combination to achieve broader 3D printer usage worldwide.

“HP has made a similar move in this market before, capturing a dominant position in large-format 2D printers. Together we hope to repeat this success with 3D printers.”

Santiago Morera, vice president and general manager of HP’s Large Format Printing Business, said: “There are millions of 3D designers using 2D printers who are ready to bring their designs to life in 3D. Stratasys FDM technology is the ideal platform for HP to enter the 3D MCAD printing market and begin to capitalize on this untapped opportunity.”

HP will begin a phased rollout of the 3D printers in the MCAD market in selected countries later this year, with the right to extend distribution globally.

Following the announcement, Stratasys’ shares rose by 37% to $25.60, an all-time high for the company.

Stratasys’ chief financial officer Bob Gallagher said in an interview with Dow Jones that an impediment to greater sales had been a lack of awareness of its technology. "I can't think of a better way to create awareness" than partnering with Hewlett-Packard, he said.

Gallagher added that customers who use the 3D printer often upgrade to its higher-end Fortus system, which can use medical-grade plastics and flame-retardant materials. The company hopes its partnership with HP should help Fortus sales as well.

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