The truly depressing and sad story of voxeljet

The Atomic Layers: S5E4 (00120)

Atomic Layer of the Day:

I wrote about this yesterday: voxeljet, one of the oldest companies in the AM industry, which developed a unique 3D printing technology using sand for the foundry industry, has been sold to Anzu Partners, an American investment firm. It was sold for a mere €20 million, of which only €1.7 million was in cash—the rest went toward paying off the company’s debts. What’s more, the company has until January 12 of next year to find a better offer. (Meaning that it probably won't find it, and if it does, then whatever...)

Considering the incredible things created using voxeljet's machines, what we are witnessing is deeply saddening.

voxeljet was founded in 1999 in Germany as a spin-off from the Technical University of Munich. From the beginning, it developed large-format 3D printing technology (Binder Jetting) for creating complex and large-scale applications for the foundry industry. During its first decade, the company performed relatively well, even being included in 3D Systems’ U.S. distribution portfolio.

In 2013, voxeljet debuted on the Nasdaq stock exchange. Unfortunately, from that point on, due to the obligation to disclose quarterly financial results, it became clear just how fragile and unstable the business was.

In November 2013, the company was scrutinized by Andrew Left, the author of Citron Research, who published a report with the following title:

From the report, we learned, among other things, that in Q3 2013, voxeljet sold just three machines—an improvement compared to the previous year, when it sold only two (and those were used). These three machines brought the company $4.76 million in revenue. Worse still, Andrew Left discovered that voxeljet wasn’t actually selling machines but… offering loans for their purchase.

According to the company’s information, “in September 2013, another loan was approved for a customer to finance the purchase of a 3D printer for €678,000.” The other two machines were also sold in similarly creative ways. Thus, according to Left, using traditional business criteria, voxeljet sold nothing in Q3 2013.

The report also highlighted the company’s convoluted communication strategies and highly creative methods of trading its shares to raise capital.

In conclusion, the seasoned analyst questioned how such a company even managed to get listed on Nasdaq and whether it might be the worst company listed there.

That was just the first year on the stock exchange. The following years were no better. Browsing through archival articles from my former portal, Centrum Druku 3D, I found the following headlines:

• April 2014: voxeljet shares plummet...

• April 2017: A weak year for voxeljet

• April 2022: voxeljet achieves +15% higher revenue than the previous year but continues to generate high losses

• November 2022: voxeljet reports +16% revenue growth for Q3 but continues to record high losses, extending its losing streak to four consecutive years...

• April 2023: voxeljet reports +10% revenue growth for 2022 but continues to generate significant losses...

Annually, voxeljet sold around 25–35 machines, some new and some refurbished. Despite their high prices, it was still not enough to achieve profitability. The company offset some losses with 3D printing services, but the business never fully came together.

In August 2022, the company did something I had never heard of before. I didn’t even know it was possible. voxeljet signed a sale-and-leaseback agreement for its headquarters to secure funds to pay off its debts. In short, the company sold its headquarters to a bank and then leased it back in installments—all to repay debts and try to survive.

Alright, we understand—voxeljet has always been a struggling company. It made large 3D printers that no one bought. So why all the buzz about it…?

Because, you see… the technology developed by voxeljet is so incredible that it revolutionized the entire global automotive industry!

In November 2023, a small and almost entirely overlooked event occurred at the very top of the automotive industry, causing significant ripples throughout the sector. General Motors acquired Tooling & Equipment International (TEI), a company specializing in the production of large-format casting molds. Its key client was Tesla.

TEI helped Tesla create “gigacasting”—a pioneering process of casting very large car body components in one piece to save time and money. This became one of the hallmarks of Elon Musk’s cars. Tesla was forced to look for an alternative while GM immediately began leveraging the technology and know-how developed by its key competitor.

What machines did TEI use in its work? voxeljet machines.

Over several years, TEI gained a reputation as one of the largest users of sand 3D printing in the U.S., utilizing two VX4000 machines and purchasing a third in early 2023. This allowed TEI to print hundreds of cores for several vehicle assemblies in a single night.

TEI worked with Tesla since 2017, contributing to the development of the Tesla Model Y, Model 3, Cybertruck, and Semi Truck.

So, just three voxeljet machines were enough to revolutionize the production of car bodies.

Do you now understand why this story is so depressing and sad?

voxeljet struggled for years to make ends meet, while giants in the automotive industry revolutionized the sector using their products. And now the company is being sold for €20 million—less than half of what OnlyFans model Sophie Rain earned in a year…

AM is a very unforgiving industry. Harsh. And relentless.

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Atomic Layer from the Past:

12-04-2013: 3D Systems unveiled ProJet 1200 micro-SLA 3D printer.

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News & Gossips:

1. Stratasys expanded its long-term technical partnership with NASCAR, making it the official 3D printing partner of the car racing circuit.

2. Axial3D partnered with GE HealthCare for DICOM-to-Medical model 3D printing.

3. And to wrap up this long article, here’s a fun fact. My historical piece today on the ProJet 1200 printer from 3D Systems turned out to be one of the least-read posts in the entire series... Seriously, I didn’t expect that this 3D printer would spark so little interest. Now I also know it doesn’t evoke any memories for anyone...