AEROSPACE HEAT TREAT

State Releases First Funds for Signature Economic Development Project for Initial Lot of 20 Norsk Titanium MERKE IV™ Rapid Plasma Deposition™ Machines to Launch Aerospace Factory of the Future

Norsk Titanium AS, the world’s pioneering supplier of aerospace-grade, additive manufactured, structural titanium components announced today the State of New York, in partnership with SUNY Polytechnic Institute, has placed an order for an initial lot of 20 of Norsk Titanium’s patented MERKE IV™ Rapid Plasma Deposition™ (“RPD™”) machines.  The order is in accordance with an approved state budget allocation to facilitate Norsk Titanium’s US subsidiary building and operating the world’s first industrial-scale metal additive manufacturing plant in New York with the following details:

• Plattsburgh, New York selected as the location for the world’s first Rapid Plasma Deposition™ factory
• Facility to be operational by the end of 2017
• The first 20 MERKE IV™ RPD™ machines establish a baseline production level of 400 metric tons per year of aerospace-grade, structural titanium components
• The New York program envisions a capacity ramp-up to a total of 40 MERKE IV™ RPD™ machines capable of up to 800 metric tons per year, which will be consumed to meet increasing demand from the aviation industry
• New York State investment advances Norsk Titanium’s production of the first 20 machines
• New York has released an additional $4.0 million in planning funds for the Norsk Titanium US industrial-scale Plattsburgh factory

“We are proud to be a part of the unwavering vision and leadership of Governor Cuomo and are moving forward in support of his efforts to revitalize upstate New York with jobs, technology and community pride,” said Norsk Titanium Chairman of the Board John Andersen, Jr. “Our researchers have spent ten years pioneering the Rapid Plasma Deposition™ process that is now ready to cut millions of dollars in cost from the world’s premier commercial and military aircraft, and with the foresight displayed in other sectors, the State of New York is the ideal place to launch this manufacturing revolution.”

“Today marks the beginning of a new era in the way aircraft, marine vessels, automobiles, spacecraft and many industrial products are designed and built,” said Norsk Titanium President & Chief Executive Officer Warren M. Boley, Jr. “Not only are we creating jobs, huge economic impact and great visibility for the wider Plattsburgh community, we are also making history by kicking off a new phase of on-demand, near-net-shape manufacturing that sets a new benchmark of efficiency and customer responsiveness.”

“This unparalleled investment by Governor Andrew Cuomo in the North Country’s aerospace sector brings together a leading-edge global company in Norsk Titanium with an established high-tech aviation ecosystem in the region and the state, a perfect match that will create good paying advanced manufacturing jobs in Plattsburgh while advancing New York’s leadership in this dynamic and growing industry,” said SUNY Polytechnic Institute Vice President Christopher Walsh. “SUNY Poly is proud to partner with Norsk Titanium to bring this revolutionary technology to market and to continue to drive cutting edge research in all of the state’s nanotechnology-enabled industries.”

Under the terms of the deal, Norsk Titanium US will provide additional investment into the Plattsburgh operation that is expected to bring the total program commitment to the $1 billion dollar level over the initial 10-year period of operations. A $125 million New York investment in the Norsk Titanium US Plattsburgh factory was approved in the 2016-2017 State budget and first highlighted by Governor Cuomo on April 1, 2016 during the North County Highlights budget address in Albany.

Norsk Titanium US is also partnering with the North County Chamber of Commerce in Plattsburgh to support and promote the successful launch and growth of Norsk’s industrial-scale factory including workforce training, economic development and STEM outreach including specific educational programs for SUNY Plattsburgh, local community colleges and other schools in the region.

Norsk Titanium’s proprietary RPD™ process works by feeding titanium wire into a set of plasma torches protected by a cool argon environment that has made it possible to replace legacy forged parts, which take months and even years to develop and produce, with precision, additive manufactured components. The company has signed numerous contracts with the top echelon of aerospace manufacturers and tier-1 suppliers interested in leveraging RPD™ to cut cost and lead time from airframe and engine programs.

Norsk Titanium RPD™ components have equivalent strength to forgings, but are delivered inexpensively and efficiently, with unprecedented part cost and design-to-market speeds.