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Metals-based 3D printing specialists AML3D (ASX:AL3) has announced its successful acquisition of a contract to manufacture aerospace parts for Australia’s defence sector.
Shares were up 1.7% to 6cps in the second hour of trade.
This contract, according to the company, builds on previous work with the Australian government developing a “multi-stage nozzle assembly.”
Now, through Toolcraft Australia, AML3D will supply a 6-part nozzle assembly for an Aus Government Defence Science and Technology Group (DST) project, worth $350,000.
The company has previously manufactured a 3.6m long aluminium nozzle assembly weighing 1,230kgs.
While the company did not specify what the “nozzle assembly” is actually needed for, such assets likely allow for mid-flight refuelling of aircraft.
“[This contract] is a strong endorsement of AML3D’s WAM technology for defence applications to have the scope of this A$0.35 million contract expanded to 2 additional nozzle segments that had previously been traditionally manufactured,” AML3D chief Sean Ebert said.
“AML3D’s ability to use our proprietary WAM technology to produce higher quality components, with significantly faster turnaround times, compared to traditional manufacturing, and with less waste allows us to play an increasingly important role in defence supply chains.”
AML3D is a relatively small Australian company in the bourse’s limited defence space, better known for stocks like Droneshield (ASX:DRO) and Electro Optic Systems (ASX:EOS).
However, its rapid moves into becoming a defence oriented player have been palpable since September 2023, when the company hired an ex-NASDAQ listee proponent who’d worked on the US nuclear submarine program.
Shortly after that hire, its first contract win was with the US Navy, and today’s news marks its second contract with the Australian defence sector.
AL3 last traded at 6cps.
