Amaero (ASX: 3DA, OTC: AMROF) has moved to strengthen its U.S. manufacturing base by securing major equipment orders that reshape its cost profile and expand powder production capacity. The company confirmed binding purchase contracts for its revised Argon recycling system and its fourth EIGA Premium atomizer. These steps tighten execution of its three-year capital investment plan and accelerate cost benefits initially expected later in the decade.
The update is material because Argon is a core input cost in gas atomisation, and production capacity directly governs powder supply for defence, aerospace and industrial customers. Cost reductions and earlier commissioning improve Amaero’s ability to scale while maintaining competitive pricing in markets dominated by U.S. and European suppliers.
Revised Argon System Reduces Capital Needs
Amaero cut the total Argon project cost to about A$6 million, down from a previous estimate of A$15 million. The company achieved the reduction through value engineering and changes to delivery structure and operating scope.
The system is expected to be installed by late 2026, with commissioning targeted for the first quarter of 2027. This timing brings operating expense savings forward by roughly 12 months. Once active, the system is expected to reduce recurring Argon consumption by around 80 percent, lift early-stage margins and deliver a payback period of between two and two-and-a-half years.
Fourth EIGA Atomizer Locks in Future Output
Amaero has ordered its fourth EIGA Premium atomizer, with commissioning scheduled for June 2027. Two units are operational, while the third is due online in June 2026. The EIGA platform provides contamination-free production for reactive and refractory alloys and delivers a higher yield of usable powder sizes. It also consumes about 50 percent less Argon than prior-generation systems.
A 10-year electricity contract priced at roughly US$0.058 per kilowatt-hour further enhances Amaero’s unit-cost advantages.
Capital Program and EXIM Funding Aligned
The company has invested about A$57 million of its planned A$72 million capital program, remaining on schedule for completion by 30 June 2026. EXIM Bank financing of US$22.83 million remains staged around commissioning milestones, with about US$15 million expected to be drawn by the end of 2025.
Chairman and CEO Hank Holland said, “Amaero has demonstrated its commitment to making forward leaning investments and to aligning with strategic partners to address national security and sovereign manufacturing challenges.
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