Amaero International partners with Perryman to strengthen US specialist metals supply chain

Advanced materials specialist Amaero International (ASX: 3DA) has signed a three-year supply agreement with Houston-based The Perryman Company, a key step in its aim to support the US specialist metals supply chain.

Under the contract, Perryman will be Amaero’s preferred and primary supplier of scalable US-melt and forged titanium and alloy bar feedstock for its atomisation of premium spherical powder.

Perryman is a global leader in the manufacturing of titanium products and the first fully vertically integrated manufacturer of specialty titanium products.

Titanium leader

Chief executive officer Hank Holland said the agreement aligns with Amaero’s aim to be the premium C103, refractory and titanium spherical powder producer with a vertically integrated US supply chain.

“Securing a long-term, US-sourced supply agreement for titanium bar [is] a critical step towards securing a US domestic supply chain for additive/advanced manufacturing of titanium end-parts,” Mr Holland said.

Amaero has its manufacturing and corporate headquarters located in Tennessee and is a leading US domestic producer of high-value C103 and titanium powders for additive and advanced manufacturing of components used by the defence, space and aviation industries.

C103 – a niobium alloy (niobium-hafnium-titanium) – is a high-performance, heat-resistant material typically used in aerospace components and other high-temperature environments.

Successful raising

Amaero announced a successful, upsized $25 million placement in September, following strong support from existing cornerstone institutional shareholders as well as from new Australian and international institutions.

Net proceeds from the placement are primarily being used to fund the purchase of capital equipment, including a second atomiser and improvements to the company’s Tennessee headquarters.

Following the transaction, the company has a cash balance of approximately $37.2m to contribute to its planned capital investment program as it ramps up production.

‘Sense of urgency’

“Amaero has taken bold actions and made decisive investments to commission the largest US domestic atomisation capacity for C103, refractory, aluminium and alloy powders,” Mr Holland said.

“After decades of offshoring manufacturing, we have atrophied our manufacturing capabilities, created critical vulnerabilities in the domestic supply chain and lost approximately 40% of the domestic manufacturing workforce.”

“Acting with a sense of urgency to improve the resiliency and scalability of the US domestic manufacturing and supply chain ecosystem is imperative for both national security and economic prosperity,” Mr Holland said.