Amaero Inc. has resumed titanium powder production after a six-week pause to conduct a comprehensive safety review. The company completed the review in conjunction with Jensen Hughes, a leader in safety and risk-based engineering, resulting in remediation and improvements to process, systems, and facility safety. During the production pause, there were no purchase order cancellations and no employee attrition.

The safety review was initiated following incidents in May. Amaero’s leadership team, advised by senior consultants from Jensen Hughes and informed by technicians, operators, maintenance, and facilities staff, led the review. The company collaborated closely with the Cleveland Fire Department, City of Cleveland, Bradley County, and the State of Tennessee throughout the process.

Hank J. Holland, Amaero’s Chairman and CEO, highlighted several remediation and improvements, including enhancements to standard operating procedures, changes to equipment layout, designation of "hot zones," relocation of control panels for remote activation, increased use of sensors, removal of PVC exhaust piping, redesign of dust filtration and exhaust systems, more stringent PPE practices, and improvements to bonding and grounding. These measures will be permanently embedded in the company’s culture and foundational manufacturing practices.

Holland noted that Amaero has completed a record revenue quarter and holds a strong contracted backlog for the balance of the calendar year. The company has also finished its 3-year capital investment plan and commissioned scaled production capacity. Amaero aims to engage with key stakeholders in the U.S. government, Department of War, U.S. Navy, prime contractors, and key suppliers to build out advanced material and manufacturing competency.

Amaero Inc. is an ASX-listed company with manufacturing and corporate headquarters in Tennessee, U.S. It is a leading U.S. domestic producer of high-value refractory and titanium alloy powders for additive and advanced manufacturing components used in defense, space, aviation, and medical industries.

Amaero Inc. has been awarded a production contract valued at $344,000 by Bechtel Plant Machinery, Inc. (BPMI), a defense prime contractor, to produce piping in support of critical submarine industrial base needs. The contract marks a progression from development and demonstration phases to low-rate-initial-production (LRIP) for Amaero. This award positions the company to commence receiving production contract awards for critical components, leveraging its established capabilities in powder metallurgy-hot isostatic pressing (PM-HIP) technology.

Strategic Collaboration and Progress

Over the past two years, Amaero has closely collaborated with BPMI and the U.S. Navy to advance development, demonstration, first article, and LRIP projects. Prior to this announcement, the company did not disclose six contracts that were previously awarded by BPMI. The successful progress of these prior contracts has been instrumental in securing the current production award. The U.S. Navy recently announced support for PM-HIP as a mature manufacturing technology and a viable alternative for large casting and forging supply chain challenges.

PM-HIP Technology and Market Position

Amaero has established a market leadership position in PM-HIP manufacturing of near-net-shape components using proprietary state-of-the-art numerical and metallurgical methods. The company’s simulation tools and engineering team have demonstrated success in meeting the demanding requirements for production components in defense, energy, and industrial applications. PM-HIP is a near-net-shape manufacturing process capable of producing large and complex components such as valves, fittings, manifolds, structural components, and pressure vessels, which would typically be produced using casting or forging.

Demand and Future Outlook

BPMI has previously announced estimated demand for up to 400 PM-HIP components per year to support current and near-term shipbuilding needs. Addressing the significant ramp-up in naval vessel production demand, PM-HIP offers shorter lead times, improved manufacturing flexibility, and greater inspection confidence while maintaining the high material performance standards of forgings. The following table summarizes the key details of the contract and the associated demand:

Executive Commentary

Hank J. Holland, Amaero’s Chairman and CEO, commented: "Amaero’s differentiated numerical modeling, metallurgical and technical manufacturing competency has positioned the Company as an industry leader. The United States Navy has ambitious plans to grow its sovereign shipbuilding capability and capacity. PM-HIP is an important supplementary manufacturing modality that addresses critical bottlenecks and vulnerabilities in the maritime industrial base supply chain. We are appreciative of the close collaboration with BPMI and the U.S. Navy and look forward to advancing the qualification of more critical submarine components."

Nathan Weiderspahn, BPMI’s Executive Manager, Industrial Base Management, added: "Amaero’s progress in PM-HIP development reflects the type of technical rigor and collaboration needed to strengthen our submarine industrial base with innovative manufacturing methods. This contract award is another meaningful step in expanding production capacity and capability for critical components, supporting the Navy’s long-term shipbuilding objectives."