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Amaero International Ltd (ASX:3DA) has received final approval for a loan worth A$38 million from the Export-Import Bank of the United States (EXIM) which will support the company’s contribution to meeting crucial domestic manufacturing and supply chain capabilities within the country.
Based in Tennessee, Amaero produces high-quality C103, refractory alloy, and titanium powders for additive and advanced manufacturing of components that are used by the defence, space, and aviation industries.
It received the loan (which amounts to US$23.5M) as part of EXIM’s Make More in America initiative (MMIA) – established to address what the bank refers to as ‘the longer term weaknesses in our nation’s supply chains.’
After a detailed loan approval process which began in January 2024 and included internal underwriting, transaction review, and credit committee approval, as well as engagement of third-party consultants, Amaero received final and unanimous approval for the loan from EXIM’s bipartisan board of directors.
“Non-dilutive, U.S. government-funded support is an important signal to the market that validates the alignment of Amaero’s strategy and capability with the United States’ priority policy initiatives,” Amaero chairman and CEO Hank J. Holland said.
“Amaero has intentionally pursued a corporate strategy that addresses critical gaps in U.S. domestic manufacturing and supply chain capabilities.
“Improving 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 United States has atrophied domestic manufacturing capability, has created critical vulnerabilities in domestic supply chains and has lost approximately 7.1 million skilled, highly-paid manufacturing jobs.”
He added that gaining unanimous approval from the bank’s board of directors was an important achievement.
This loan is the sixth provided under the MMIA, and the first of this kind to support advanced materials and additive manufacturing.
It was awarded specifically to Amaero Advanced Materials & Manufacturing Inc. – a wholly owned U.S. subsidiary of Amaero.
Amaero has been trading at 33 cents.
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