Specialist metal additive manufacturer Amaero International Limited (ASX:3DA) has given the green light for the construction of what is expected to be the world’s most advanced titanium alloy gas atomisation powder manufacturing facility, to be installed and commissioned in Victoria, Australia.
Using a proprietary Amaero developed specification, the company will construct a titanium alloy powder facility that will enable the production of aerospace grade titanium, to the highest standards at approximately half the cost of the nearest competitor. The quality and cost position will provide Amaero with a distinct advantage to secure long term off take agreements for the powders, with the facility expected to produce annual revenues of approximately $30 million when fully operational.
Amaero has assembled a team of world experts to deliver the program. Amaero’s technology fellow, Dr James W. Sears, who is one of the world’s foremost authorities on titanium powder atomisation commented:
“My career of many years working with gas atomisation, powder metallurgy and additive manufacturing technologies has led me to this point,” Dr Sears said.
“This project is a culmination of many years of experience and research and it is my pleasure to provide technology leadership to the Amaero team that delivers this project, which will become the global benchmark for titanium alloy powder manufacturing.”
Amaero’s proprietary manufacturing process is expected to position the company as a global leader in high quality titanium alloy powder production and supply. Importantly the project will provide Amaero and other users in Australia and overseas with a reliable source of strategically important titanium alloy powder.
The world supply chain source of origin for titanium alloy is currently dominated by China and Russia, which effectively set the world market price. The Australian based powder manufacturing plant is expected to position Amaero as a supplier of choice for defence, aerospace and critical manufacturing segments in allied nations.
Amaero has worked with equipment suppliers to phase the implementation of the project to minimise time to initial revenue while balancing demands on capital. Under the negotiated payment terms, the cash requirement for this project will only commit $2.3 million for the remainder of the calendar year.
I would like to thank Jim and the team at Amaero for their diligence and tireless work in proving out this new technology. This substantive and ground-breaking work now enables Amaero to take a global leading role in titanium alloy powder production,” Amaero International Limited CEO, Barrie Finnin, said.
“Producing titanium alloy powder in Australia will provide a stable, secure and cost-effective supply, allowing defence and other sectors to continue to advance their 3D manufacturing capabilities. This project directly supports Amaero in delivering ongoing, significant, high margin revenues via a stable commodities market.
“Amaero has signed a Memorandum of Understanding with a metal powder supply company that has established market channels for metal powder sales and we are now in the process of negotiating a collaborative distribution agreement. In addition, we have already received letters of support for this project from two of the five largest defence companies globally indicating strong potential demand for Ti64 powder from a competitive Australian source for specific commercial and military applications.
“Once completed, the new manufacturing facility will position Amaero as the only fully vertically integrated metal 3D printing company globally. Our facilities enable us to manufacture and supply powders along with 3D printing machines and ancillary equipment, as well as manufacture parts for small and large scale production contracts. Amaero also provides specialised R&D services via one of the world’s largest specialised metals R&D team to assist countries and major corporations develop greenfield additive manufacturing operations from concept to development and ongoing manufacturing.
“We look forward to updating the market as this project moves through its ground-breaking, construction, commissioning, and optimisation phases.”
