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- After a busy H2CY23 growing its US defence contract base, AML3D has now won a contract with BAE Systems Australia
- BAE is Canberra’s chosen partner to build a new series of Hunter ocean combat vessels
- AML3D produces 3D-printed components for marine applications using its metal-based wire arc technology
- While there is no guarantee BAE systems will use the prototype part AML3D produces, the company is confident it will be accepted
- AML3D is also producing submarine components for the US Navy
- Shares last traded at 8.1c
Metal-based 3D printing specialist AML3D (AL3) has announced its execution of a contract with multinational defence giant BAE Systems.
Specifically, AML3D will work with its Australian arm, BAE Systems Maritime Australia.
AML3D is to manufacture a prototype part for Australia’s Hunter Class Frigate Program, spearheaded by the Department of Defence in tandem with BAE.
Via DoD, Canberra inked a deal with BAE Systems – then ASC Shipbuilding – to build new navy combat vessels as part of a strategic revamp.
The contract is the latest step in AML3D’s strategic move to win global Defence contracts – particularly the Navy.
Strategic pivot to defence
Notably, AML3D has been stepping up its US market presence with a view towards this sector.
The company recently won an order to manufacture submarine parts for the US Navy back in August.
In September, the company hired a new US President to oversee operations, Pete Goumas.
Notably, Goumas used to work with NASDAQ-listed BWX Technologies, a company which also provided components to the USA’s nuclear submarines.
Analysts at Australia’s Bell Potter, for reference, wrote last year that they expect a “defence thematic” to remain in place for the next decade.
That note was written in light of the Ukraine-Russia war, but in light of recent events in Israel and Africa, this forecast appears to have been prescient.
Sensitive subject matter
What part exactly AML3D will be producing for the frigate program was, unsurprisingly, not disclosed by the company on Friday.
Inclusion of the part is not guaranteed and the company noted on Friday that the material value of the contract is not expected to exceed $200,000.
However, the contract is a confirmation of AML3D’s wire arc manufacturing technology, which allows it to 3D print metal objects.
Diverse potential
The company has also previously received interest from offshore oil and gas firms and other heavy engineering marine players.
“AML3D has a focus on the significant demand we are seeing in the US, where we are enjoying a lot of success in winning a steady stream of contracts,” company CEO Sean Ebert said on Friday.
“But we also have a stated aim to develop our commercial relationships across additional marine and defence sectors.”
AL3 shares were up 3.85 per cent to 8.1c at 11.15 am AEDT on Friday.
