Amaero Completes Qualification of Niobium C103 with ADDMAN
Released
Released
Announcement PDF
ASX Announcement: 9 September 2024
Amaero Completes Qualification of Niobium C103 with ADDMAN
Amaero completes qualification of C103 AM powder to ADDMAN Group and its
subsidiary Castheon’s technical specifications.
Positions Amaero as the largest capacity and most responsive U.S. domestic
producer of C103, refractory and specialty alloy powder for additive manufacturing.
Amaero’s successful qualification of C103 AM powder triggers ADDMAN’s offtake
obligation with 0.25 tonnes expected to ship in CY2024 and 2.0 tonnes expected to
ship in CY2025.
The qualification commences a five year preferred supplier agreement whereby
Amaero will be the primary supplier of C103, refractory and titanium alloy AM powder
to ADDMAN Group and its subsidiaries, including Castheon and Keselowski
Advanced Manufacturing. Expected future sales are material to Amaero’s revenue;
moreover, the attributable revenue is a key assumption underpinning Amaero’s
expectation that it will achieve EBITDA breakeven in FY2026.
Amaero Chairman and CEO, Hank Holland, will host an investor briefing on Monday,
September 9 at 12:00pm AEST.
Amaero International Limited (ASX:3DA) (“Amaero” or “the Company”) is pleased to announce
that it has completed the qualification of Niobium C103 in accordance with ADDMAN Group and its
subsidiary Castheon’s technical specifications. Since announcing the strategic offtake and preferred
supplier agreement on March 27, Amaero and ADDMAN moved deliberately. Commissioning of the
atomizer was completed ahead of guidance and delivery C103 AM powder to ADDMAN for testing was
completed ahead of guidance. The achievement of qualification with a leading technical and
manufacturing authority, and doing so ahead of guidance, is Amaero’s most significant milestone. With
qualification having been achieved, Amaero is now the largest capacity and most responsive U.S.
domestic producer of C103, refractory and specialty alloy powders for additive manufacturing.
As previously disclosed, Amaero entered into a binding offtake and preferred supply agreement for
Niobium C103 additive manufacturing (AM) powder. This agreement was contingent on successful
qualification according to the counterparty’s specifications. The counterparty, ADDMAN Group, along
with its subsidiaries Castheon and Keselowski Advanced Manufacturing (KAM), are owned by American
Industrial Partners (AIP), a U.S.-based private equity firm with US$17 billion under management.
Castheon, under the leadership of Chief Scientist Dr. Youping Gao, is a leader in additive manufacturing
of Niobium C103 and refractory alloys, primarily serving the defense and space industries. With over
20 years of experience in the traditional processing of C103 for space-borne products, including leading
NASA-certified AM projects, Dr. Gao has played a crucial role in refining the use of C103. ADDMAN’s
recent combination of Castheon and KAM creates the largest U.S. domestic metal additive
manufacturer with 50+ 3D printing machines and 300,000+ square feet of production capacity across
multiple locations. The companies actively collaborate with U.S. Department of Defense-funded
laboratories and major defense contractors on critical national security projects, including hypersonic
and strategic missiles, space launch systems, and satellites.
ASX Announcement: 9 September 2024
Amaero’s successful qualification of C103 AM powder triggers ADDMAN’s obligation to purchase no
less than 2.25 tonnes of C103 at a fixed price with 0.25 tonnes expected to be shipped in CY2024 and
2.0 tonnes expected to be shipped in CY2025. The attributable revenue is material to Amaero. Having
had an entity with ADDMAN’s technical authority and role in the market with defense primes and DoDfunded labs qualify its C103 AM powder, Amaero expects this will be looked upon favourably by other
potential customers with whom it is speaking about potential new commercial agreements.
Further, the agreement establishes Amaero as the preferred and primary supplier of C103, refractory,
and titanium alloy AM powders to ADDMAN Group including its Castheon and KAM subsidiaries. The
preferred supplier agreement is for a period of five (5) years and does not establish a minimum order
threshold. Amaero has confidence that its qualification in combination with its capacity and
responsiveness will provide the foundation for Amaero to make additional future sales of C103 to
ADDMAN. The expected future sales to ADDMAN are material to Amaero’s revenue; moreover, the
attributable revenue is a key assumption underpinning Amaero’s expectation that it will achieve EBITDA
breakeven in FY2026.
The Company engaged Fairmont Consulting Group to provide an in-depth analysis of the anticipated
demand of C103 AM powder. The findings of the consulting report were summarized in an ASX
announcement dated February 7, 2024 and the study estimated that demand for C103 AM powder
would grow at 62% CAGR over 5 years with period ending demand in FY2028 estimated at 105 tonnes.
Given ADDMAN’s technical authority and its strong market share as a Tier 1 supplier to DoD-funded
labs and defense prime contractors for additive manufacturing with C103 and refractory alloy powders,
the Company expects that ADDMAN Group will have a leading market share and will participate
significantly in the estimated 105 tonnes of C103 AM powder demand in FY2028.
Hank J. Holland, Chairman and CEO commented:
“Since I assumed the role of Chairman and CEO in October 2022, we have taken bold and decisive
actions to position Amaero as a leading U.S. domestic producer of C103, refractory and titanium alloy
AM powder. In order for additive manufacturing to achieve its potential, it’s imperative that we create a
more resilient, more scalable, and more responsive U.S. domestic supply chain for C103 and specialty
alloy AM powder. And, time is of the essence.
Achieving qualification of C103 with ADDMAN Group and Castheon is a validating and transformative
milestone. This strategic collaboration will play a crucial role in demonstrating manufacturing readiness
and advancing the integration of additive manufacturing into the most vital and critical defense and
space applications.
The agreement between ADDMAN Group and Amaero aligns leading organizations dedicated to
advancing the commercial viability and adoption of additive manufacturing. This collaboration brings
together Amaero’s pioneering expertise in powder metallurgy and cutting-edge atomization technology
with Castheon’s and Dr. Youping Gao’s industry-leading innovations in material science and additive
manufacturing and with KAM’s advanced manufacturing processes and scalable production capability.
The Amaero team looks forward to collaborating with ADDMAN to advance manufacturing readiness
levels (MRL) and technical readiness levels (TRL) to enable broad insertion of metal additive
manufacturing and to support the Department of Defense, DoD-funded laboratories, and defense prime
contractors to progress hypersonic and strategic missile platforms from development and demonstration
phases to serial production. As these programs are highly strategic, generational investments and as
programs are critical to national security, Amaero and ADDMAN are committed to prioritizing support
for the DoD, its laboratories, and defense prime contractors.
ASX Announcement: 9 September 2024
Lieutenant General (retired) H.R. McMaster, Special Advisor to Chairman and CEO commented:
“Amaero has acted with a sense of urgency to relocate its business to the United States, to attract a
leading technical and manufacturing team, and to prioritize production of C103 and refractory alloy AM
powders. These were vital efforts to address critical vulnerabilities in U.S. defense and national security
supply chains and will help advance hypersonic and strategic missile programs to serial production.
Amaero’s scalable production of C103 and refractory alloy powders and Castheon’s leadership position
in material science and additive manufacturing demonstrate that it is possible to use cutting-edge
technologies to re-shore and scale critical industrial base capabilities that are atrophied to a dangerous
level.”
Joe Calmese, CEO of ADDMAN Group commented:
“To fully unlock the potential of additive manufacturing, we need to improve the scalability and
responsiveness of U.S. production for C103 and specialty alloy AM powders. Amaero’s commitment to
these priorities, along with their collaboration with ADDMAN Group and the broader U.S. defense
ecosystem, will significantly accelerate the adoption of additive manufacturing and drive important
advancements in materials and manufacturing.”
Investor Briefing
Amaero Chairman and CEO, Hank Holland will host an investor briefing on Monday, September 9 at
12:00pm AEST. The investor briefing will be recorded and posted to Amaero’s website.
To pre-register for the briefing, please use the link below:
https://janemorganmanagement-au.zoom.us/webinar/register/WN_1U_gX56NTpOGUYF1RWEn7g
This announcement has been authorized for release by the Board of Directors of the Company.
About Amaero
Amaero International Limited (ASX:3DA) is an ASX-listed company with manufacturing and corporate
headquarters located in Tennessee, USA. Amaero is a leading U.S. domestic producer of high-value
C103, refractory alloy, and titanium powders for additive and advanced manufacturing of components
utilized by the defense, space, and aviation industries. The technical and manufacturing team brings
decades of experience and know-how with pioneering work in gas atomization of refractory and titanium
alloys. The company has commissioned advanced gas atomization technology with an industry leading
yield of AM powder. The company is also a leader in Isostatic Powder Processing (IPP) manufacturing
of large near-net-shape powder metallurgy parts with forged-equivalent material properties and
microstructure for a variety of alloys. IPP is helping alleviate the strained domestic supply chain for
castings and forgings of large components.
https://www.amaeroinc.com
ASX Announcement: 9 September 2024
For further information, please contact:
Amaero International Limited (ASX:3DA)
Jane Morgan Management
Hank J. Holland
Jane Morgan
Chairman and CEO
Director
hank.holland@amaeroinc.com
For more information
jm@janemorganmanagement.com.au
Follow us on X
Subscribe on our YouTube
Follow us on LinkedIn
Subscribe to our mailing list to receive updates
Visit our investor website: https://www.amaeroinc.com
Share your feedback
Discover