Elk Grove, Calif.’s Northann Corp secured $6 million through an IPO targeting opportunities in its 3D printed flooring sector. These products notably incorporate cores crafted from reclaimed ocean plastics. After concluding on Oct. 23, 1.2 million common stock shares were listed at $5 each, under the ticker NCL on the NYSE.
The raised funds will channel into securing US facilities, equipment procurement, product evolution, sales drives, and other operational needs, as per official communications. Northann’s ambition is to invest around $20 million in establishing US-based manufacturing. As of now, their manufacturing hub lies in Changzhou, China, boasting an impressive capability of producing over 18,000 square meters of vinyl flooring daily.
Distinctly, Northann stands as the sole vinyl flooring producer employing 3D printing techniques. This methodology’s potential stretches beyond, encompassing wood and laminate flooring, furniture, and more. Their funding strategy for the US facility leans on mortgages and operational revenues.
Projected timelines indicate US production commencement within three to six months post-offering. A long-term goal elucidated in their prospectus hints at transitioning manufacturing from China to the US, with an eventual phase-out of Chinese operations.
Their 3D printed vinyl panels are three-tiered: a main plank substrate, a decorative segment, and a textured surface layer. Utilizing a ‘digital inventory’ approach, Northann emphasizes on-demand, small-batch production, negating extensive product stockpiling.
Earlier, Northann unveiled a pioneering tech, Envision.Style, at TISE, Las Vegas. This AI-driven tool discerns wood types and grains, facilitating authentic digital printing patterns. A novel product, Blue11, showcases a core constructed from oceanic plastic waste, with 80% of its composition sourced from marine debris. Notably, these panels are entirely recyclable and carbon-neutral.
Despite a 49% sales dip, recording $7.3 million for the six months concluding June 30, Northann remains buoyant about their US expansion. They emphasize the advantages of automation, reduced labor costs, and the prospective enhancement in brand visibility and cost efficiency with US-based production.
Northann previously received a European patent for their products, which have previously been covered in the related story below.
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