Boresight ramps up US manufacturing with lease of new facility

• New facility approximately 15 times size of current Boresight site
• Investing in additional 3D printing and supporting technology
• US-based manufacturing supports “Made in the USA” positioning
• Facility will manufacture Boresight’s BQ-400 aerial target drone

Specialist drone manufacturer Boresight (ASX:BST) has made a significant move to expand its US growth strategy by signing a lease for a new manufacturing facility in Huntsville, Alabama.

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This 812 square-metre facility is approximately 15 times the size of the current Boresight US facility in Hyntsville. The lease is on normal commercial terms for a three-year period with options for extensions.

MD and CEO, Justin Olde, said Boresight is set to purchase additional 3D printing and other supporting technology for the facility to increase the scale of production.

“This new facility will allow Boresight to expand and scale our manufacturing capacity to meet surging demand from our US based customers, both the military and industry. It enables a massive scaling of production from the hundreds to thousands of aerial target drones, driving up efficiencies and driving down costs,” Mr Olde said.

“The ability to service US customers directly from our US facility increases our responsiveness to customer requirements whilst reducing delivery lead times and freight costs. It also helps to insulate Boresight from US government decisions on import tariffs and other policy changes that may occur.

“Our Fyshwick, Australia hub will remain a key part of the Boresight footprint, manufacturing for non-US customers and as the place where we innovate and develop new products.”

Mr Olde told shareholders the increase in production capacity will enable economies of scale and bulk purchasing of components, driving manufacturing cost savings.

“Manufacturing in the US alleviates possible issues with import tariffs or other US government policy decisions that may affect imports. It also enables a ‘Made in the USA’ stamp or similar to be applied, of increasing importance within the US military market.”

Earlier this month Boresight released its latest aerial target-drone, the BQ-750 Block 2. The Block 2 model builds on the successful Block 1, providing increased speed, endurance, payload and improved flight characteristics. The Block 2 model is swarmable and it is payload capable, meaning that it can be used for enhanced training scenarios such as by fitting a dropper mechanism, electronic warfare package or shot detection capability.

BST was steady at 34.5¢ with a Mkt cap of $72.11M prior to markets opening.

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