According to an SMS group announcement, the contract marks a first for both companies — SMS will build the plant on a subscription basis. Under the arrangement, SMS group will build and own the plant, but Outokumpu will operate it and pay SMS for the plant’s output on a pro rata basis.

“Right from the beginning, the whole project has been sailing under the flag of partnership. With this performance-based contract model we, as the leading partner in the world of metals, are breaking new ground jointly with our customer,” said Tobias Brune, head of additive manufacturing and powder metallurgy for SMS group. 

“The subscription contract provides for both companies to concentrate on their respective core competences to be successful in the market,” he added. 

SMS group did not say where the plant will be built, but it is to open in early 2022. It will be designed produce 330 tons of powder annually. In addition to stainless steel, it will atomize maraging steels, special steels, superalloys, nickel-based alloys and cobalt-chromium alloys, among others.

The plant includes the induction melter, the atomizer, two cyclones and filter elements.