Another company facing financial problems – 3D Metalforge is closing factories in Singapore and the USA

3D Metalforge – a Singaporean company providing metal 3D printing services, closed its branches in Singapore and the USA at the beginning of January. The company, listed on the Australian stock exchange ASX, struggled with financial problems and periodic insolvency throughout the last year. This is another case of a company from the global 3D printing industry that was forced to restructure or declare bankruptcy after it failed to scale up its operations.

Last year, 3D Metalforge entered into partial supply contracts with companies such as PSA Corporation Limited (PSA) and the Port of Singapore Authority. In 2022, the company also signed a non-exclusive framework agreement with Woodside Energy Ltd. for the supply of parts manufactured in 3D printing technology and signed a letter of intent with Hitachi Metals for a similar service. Although these were very high-profile and media deals, unfortunately they did not generate enough revenue for the company to prosper. In September 2022, 3D Metalforged announced the restructuring of its financing to support the development and finance the implementation of contracted projects.

Continuation of cost reduction was also implemented by reducing employment costs by approx. 30%, reducing administrative, corporate and business travel costs and optimizing the current investment equipment by canceling the next 6 months of capital expenditures.

However, this was not enough and 3D Metalforge had to apply to the Supreme Court of the Republic of Singapore for a temporary moratorium under section 64 of the Insolvency, Restructuring and Dissolution Act to deter creditors from taking legal action. The request was granted by the court. However, in December 2022, the company terminated all employment contracts with employees and all contracts with independent subcontractors of 3D Metalforge Pte Ltd (Singapore operating subsidiary) and employees of 3D Metalforge LLC (Houston operating subsidiary). They basically represent the entire 3D operating range of Metlaforge.

Most 3D Metalforge Pte Ltd employees have a 1 month notice period and will continue to work until the end of that period. Employees employed at 3D Metalforge LLC were immediately made redundant. The company is now contacting customers to make appropriate arrangements to meet current project commitments.

Source: www.3dmetalforge.com & www.3dprintingmedia.network