- Advanced 3D printing company Amaero (3DA) has signed a research agreement with Fletcher Insulation
- Under the terms of the agreement, Amaero will develop and test a new tooling production technique for Fletcher’s manufacturing facilities
- The companies will then work together to commercialise the opportunity
- The commercial terms of the Fletcher agreement are confidential, so it’s hard to know exactly what kind of money the deal means to Amaero
- Upon successful rollout, though, the deal could provide Amaero with both important downstream revenues and further opportunities with Fletcher and other clients
- We’ll have to wait and see if and when Amaero delivers on the agreement what the deal has meant for the company’s bottom line
- Amaero is up 2.8 per cent on the market today, with shares trading at 18.5 cents each
Advanced 3D printing company Amaero (3DA) has signed a research agreement with Fletcher Insulation to provide a superior tooling solution for the manufacture of Fletcher’s products.
Under the terms of the agreement, Amaero will develop and test the new tooling production technique, and the companies will then work together to commercialise the opportunity.
Innovation in insulation
The commercial terms of the Fletcher agreement are confidential, so it’s hard to know exactly what kind of money the deal means to Amaero.
In terms of strategy and market footprint though, bringing Australia’s leading insulation company on board as a client brings with it exposure to Fletcher’s two manufacturing plants, and — subject to performance — serial production revenues further along the line.
This could provide important downstream revenues and further opportunities with both Fletcher and other clients with similar needs.
The one possible downside is that Amaero will need to ramp up its production capacity to meet the volume requirements of the Fletcher agreement — requiring an unnamed amount of capex to satisfy the additional needs.
Efficiencies in manufacturing
Amaero’s immediate short-term strategy is to focus on tooling and prototyping work.
This primarily involves the design and manufacture of complex metal components used in the manufacturing production lines of other goods.
This ability to quickly turn around job-specific components for manufacturers puts Amaero in prime position to take advantage of the growing agile tooling market.
A Frost & Sullivan industry report projected the tooling market to grow almost 40 per cent to $5.43 billion by 2025.
With the Fletcher agreement, Amaero is taking another stride on its strategy pathway of focusing on the manufacture and supply of tooling using its advanced 3D printing capabilities to capitalise on the growing new market.
It’ll be interesting to see if and when Amaero delivers on the agreement what the deal has meant for the company’s bottom line.
Amaero is up 2.8 per cent on the market today, with shares trading at 18.5 cents each as at 3:40 pm AEST.