Amaero International (ASX: 3DA) is an additive manufacturing company that specialises in 3D printing metal components as well as producing machines and metal powders.

The company’s traditional markets are mostly large, US-based multinationals in strategic sectors including defense, automotive, and aerospace.

Last year, Amaero set up a manufacturing facility in El Segundo, California. By establishing manufacturing on American soil, the company has been able to take on more US defence projects without security complications.

The company chose to build the facility at El Segundo because it’s known as ‘aerospace alley’. A number of Amaero’s current and potential clients such as Boeing, Raytheon, Northrup Grumman and SpaceX have production nearby.

Amaero is set to install its fourth machine at the facility next month. The company is expecting to outgrow the facility within 12 months. 

“Since we established our presence [in the US], there has been a huge turnaround in the volume of business opportunities. Now, it still takes a while to get through qualification processes and actually get revenue from these relationships but the future’s looking very bright,” says CEO Barrie Finnin.

Thanks to Amaero’s strong ties with additive research hubs at Monash University, University of Adelaide, and CSIRO, it has access to over 50 researchers and scientists to act on projects.

“What that means is, we can be a small cap but we can work with the heavy hitters,” says Barrie. 

“That’s reflected in the types of clients that we’ve attracted. Without [those relationships], organisations like Boeing, Raytheon, or Northrop Grumman, some would take one look at a company our size and say ‘That’s a risk’. Having that depth of capability actually makes us attractive to them as a potential partner.”

Last year, Amaero moved ahead with a diversification strategy after catching the attention of tooling manufacturers, especially those dye casting, injection moulding and glass processing.

That market is interested in the time saving capabilities of Amaero’s 3D printing in comparison to traditional manufacturing. Amaero’s technology can 3D print and send out tools within days of receiving a CAD file. In traditional manufacturing, this process can take 6 months. Amaero’s technology also offers a cost advantage by increasing production volume and speed.

By diversifying, Amaero has been well prepared to bear the brunt of the pandemic.

“Fortunately, the defense sector hasn’t suffered that same fight [as aviation]. And while the tooling sector has slowed, we’re growing off such a small base that the market is still enormous. China’s lock downs followed by a bit of tension between the Chinese and Australian and US governments in particular has forced people to rethink their supply chains. And so that has awakened Australian and US manufacturing in tooling, which benefits us.”

For the next six to 12 months, Amaero is focused on 3 key objectives:

• Commencing production of satellite components at El Segundo;
• Manufacturing all tooling for Fletcher Insulation Tooling; and
• Launching sales for the SP series of proprietary machine sales, the most capital efficient and safest machines on the tooling market.

In the longer term, Amaero plans to put to market a range of new alloys it has developed with Monash University. These new metal alloy powders are specially designed for additive manufacturing. They offer better strength, endurance and operating temperatures than any other alloys on the market.

“In 12 to 18 months, we hope to be breaking ground on a new facility for manufacturing those powders, so that we can supply those to the market as well,” says Barrrie.

Today Amaero International’s CEO Barrie Finnin joined us for our ‘Meet The CEO’ Live Investor Briefing. You can watch a recording of the session below, or you can click here to book into our next ‘Meet the CEOs ‘ session.

Recorded 26 August 2020 at 12pm.