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Another 3D printer, another defence contract. VEEM Ltd (ASX:VEE) has announced its receipt of two contracts, each worth $1 million, part of the Australian Defence Force’s controversial nuclear subs program.
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One contract will see VEEM provide a 3D sand printing machine while the other will see it install a CNC (computer-guided) machining unit.
Sand printing is where a 3D printer uses sand to create a mould bound with glue that is then used to create a part not unlike traditional sand casting; the CNC machine should speak for itself.
While $2M isn’t necessarily the world’s largest amount of money these days, the market reaction was perhaps surprising.
Shares dipped -3.24% to 89.5cps – however, with only $4.3K in shares having traded hands by 11.30am AEST, it’s perhaps truer to say the market missed the news entirely.
“We are proud to be part of Australia’s defence industry and very appreciative of receiving the $2 million in grant funding which enables VEEM to increase its capacity and capability for manufacturing propellers and other critical components for Navy and the Nuclear-Powered Submarine program in particular,” VEEM MD Mark Miocevich said.
If a 3D printer making parts for the Australian defence force ecosystem broadly sounds familiar, that’s because it is.
AML3D is another company that does more or less the same thing; Aurora Labs also operate in the space.
In the background, defence forces around the world are looking to 3D printing as a way to reduce manufacturing costs (read: a human hand being involved in machining).
VEE last traded at 90cps.
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