Amaero International Limited (ASX:3DA) Expands Production Capabilities
Contract Details
Amaero International Limited (ASX:3DA) has signed a binding Equipment Supply Contract with ALD Vacuum Technology North America, Inc. for an additional EIGA Premium atomizer. This marks the order of the third atomizer, which is expected to be commissioned in June 2026. The second atomizer is set to be operational in June 2025, adhering to the company’s previous guidance.
Investment Strategy
The current order aligns with Amaero’s strategy to invest A$71 million in elevating its Tennessee manufacturing facility. The progress payments are structured with 35% due in FY2025 and 65% in FY2026. This investment is projected to enhance the company’s capacity as a leading producer of high-temperature alloys used in aerospace and defence industries.
Capacity and Efficiency Innovation
The EIGA Premium atomizers aim for a production capacity of around 200 metric tonnes of powder annually, with yields exceeding 50% for certain applications. The new technology notably reduces Argon consumption by approximately 50% compared to prior generations. Additionally, Amaero secured a long-term subsidized electricity agreement.
Executive Comments
Hank J. Holland, Chairman and CEO of Amaero, expressed, “Ordering the 3rd atomizer is another testament to our long-term vision and our commitment to create long-term, enduring shareholder value for long-term shareholders.” He added that the strategic decisions and investments fortify Amaero’s position in the advanced manufacturing sector, enhancing the domestic supply chain.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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