Amaero commissions Guggenheim Securities to explore financing alternatives for US manufacturing facility

Image credit: Amaero International

Advanced manufacturing company Amaero International has ventured into a partnership with Guggenheim Securities to explore strategic financing alternatives to support capital investment for a manufacturing facility based in Tennessee, United States. 

ASX-listed company Amero aims to take advantage of the growing demand for reshoring advanced manufacturing and defence production in the US. 

With the surge in metal additive manufacturing and the increasing demand for high-temperature materials, Amaero said it is well-positioned for exceptional growth. 

The partnership with Guggenheim Securities aims to complete the fit-out of Amaero’s flagship facility in Tennessee, kickstart powder production, and secure commercial offtake and supply agreements. 

The collaboration with Guggenheim will zero in on strategic investors and financial sponsors in the United States, aiming to secure the necessary growth capital to fund Amaero’s strategic initiatives while maintaining a strong financial position and maximising long-term shareholder value. 

Over the next three years, Amaero estimates that its capital expenses will reach $60 million. 

The financing plan includes a combination of equity and equipment-secured financing, with powder production set to begin in the September 2024 quarter and commercial sales in January 2025, leading to anticipated breakeven operations in calendar year 2025. 

Hank Holland, chairman and CEO of Amaero, has expressed his commitment to maximise shareholder value while positioning the company as the largest and preferred supplier of C-103, specialty alloy, and Ti-64 powder in the United States. 

“Amaero has an extraordinary and timely opportunity, given the strategic imperative to reshore critical and strategic advanced manufacturing and defense production to the U.S., the secular growth of additive manufacturing, and the step function demand for high-temperature alloy powders,” said Holland. 

Based in Australia, Amaero focuses on high-value refractory, specialty alloy, and Ti-64 powder production for additive manufacturing of mission-critical components for the defence, space, and aviation industries.