AML3D Limited (ASX: AL3) has been awarded a manufacture contract for the provision of a test part for the purpose of ASC Shipbuilding contract to design and build the Hunter class frigates for the Royal Australian Navy. ASC Shipbuilding is trading as BAE Systems Maritime Australia (BAESMA).
The test part contract follows previously announced feasibility and commercial validation testing programmes that demonstrated the AML3D’s Wire Arc Manufacturing (WAM) is a cost-effective manufacturing solution that meets the Royal Australian Navy’s standards.
The contract for a test Hunter class frigate component and additional test materials will be carried out at AML3D’s manufacturing facilities in Adelaide. Whilst the value of the initial test is not material and is not expected to exceed $200,000, AML3D sees this as a significant milestone in the commercialisation of WAM as a manufacturing solution. The work associated with this contract will commence immediately and is expected to run for 8 to 10 weeks.
The new contract expands AML3D’s relationship with BAESMA in Australia and is a demonstration of AML3D’s strategy to drive growth by accessing additional marine and defence markets. It is also illustrative of the role AML3D’s WAM® technology can play in supporting sovereign manufacturing capability within Australia, which is also applicable to other markets.
Sean Ebert, AML3D’s Chief Executive Officer said, “We had great confidence that our WAM® technology would satisfy BAESMA’s testing and move into component manufacturing. AML3D has a focus on the significant demand we are seeing in the US, where we are enjoying a lot of success in winning a steady stream of contracts, but we also have a stated aim to develop our commercial relationships across additional marine and defence sectors. Expanding our relationship with BAESMA in Australia, as part of its work for the Royal Australian Navy, is a great example of delivering on this aspect of our growth plan and diversifying our revenue base.”