Amaero International’s (ASX:3DA) subsidiary Amaero Advanced Materials and Manufacturing has secured the final approval from the Export-Import Bank of the US for a direct loan of US$23.5 million ($37.8 million).
The loan approval process, which began in January 2024, involved an extensive due diligence process, including internal underwriting, transaction review and credit committee approval, as well as engagement of third-party consultants.
Amaero, which has a market capitalisation of $203 million, expects to finalise required documents for the loan in the current quarter.
The US Government export credit agency will provide capital equipment financing and will fund the loan as part of Export-Import’s Make More in America initiative. The initiative was established to address the longer term weaknesses in the US supply chains.
The company says its business is positioned at the nexus of strategically important US policy initiatives that include enhancing resiliency and scalability of manufacturing and supply chain capabilities.
With the first advanced atomiser and the ordering of the second and third advanced atomisers, Amaero says it is positioned to become the largest US domestic manufacturer of C103 refractory and titanium alloy powders that are essential to additive and advanced manufacturing of mission-critical components for the space and aerospace sectors.
CEO Hank Holland says non-dilutive US government-funded support is an important signal which confirms the alignment of the company’s strategy and capability with the US’s priority policy initiatives.
“Amaero has intentionally pursued a corporate strategy that addresses critical gaps in the US domestic manufacturing and supply chain capabilities,” Holland says.
“Importving the resiliency and scalability of domestic manufacturing throughput is an imperative for both national security and economic prosperity.
“After decades of offshoring manufacturing to lower-cost countries, the US has atrophied domestic manufacturing capability, has created critical vulnerabilities in domestic supply chains and has lost 7.1 million skilled, highly paid manufacturing jobs.”
Holland adds that the loan provides enabling support to the company and it expects to invest US$50 million into capital equipment and facility improvements, as well as to support an estimated 150 skilled, highly paid jobs.
Export-Import Bank President Reta Jo Lewis says approving the loan underscores the commitment to reshoring and rebuilding more resilient and scalable domestic manufacturing and supply chain capabilities.
“The loan is the sixth Make More in America transaction and further highlights EX-IM’s efforts to support the domestic manufacturing economy while creating skilled, highly paid jobs in the US,” Lewis says.
Headquartered in Tennessee, US, Amaero International is a domestic producer of high-value C130, refractory alloy, and titanium powders for additive and advanced manufacturing components used by the defence, space, and aviation sectors.
Write to Aaliyah Rogan at Mining.com.au
Images: Amaero International
