New Argon recycling system cuts capex ~60% and lowers gas costs ~80%, while a fourth premium atomizer expands U.S. titanium and alloy powder capacity

Amaero Ltd (OTCQX:AMROF)

TENNESSEE, TN, UNITED STATES, December 11, 2025 /
/ -- Amaero Ltd (ASX:3DA, OTC:AMROF), a U.S.-based producer of high-value refractory and titanium alloy powders and PM-HIP manufactured components, has executed binding purchase contracts for a new Argon recycling plant and its fourth advanced EIGA Premium atomizer. The orders advance Amaero’s U.S. capacity expansion program while materially lowering key input costs, strengthening margins, and supporting long-term growth in defense, space, aviation and other strategic manufacturing supply chains.

Argon recycling investment delivers major cost and capital savings
Following a value engineering review of scope, delivery structure and operating model, Amaero has secured an estimated A$9 million capital saving on its Argon recycling project. The revised investment reduces total installed cost to approximately A$6 million, representing a ~60% reduction versus prior estimates.

The recycling system is expected to be installed by the end of calendar year 2026, with commissioning anticipated in the first quarter of 2027. This accelerates the realization of operating cost benefits by roughly 12 months relative to earlier guidance. Once operational, the plant is expected to reduce recurring Argon consumption expense by around 80%, materially lowering variable input costs during Amaero’s scale-up phase. The Company expects a 2–2.5-year payback period and a durable margin improvement compared with industry peers.

Fourth EIGA Premium atomizer ordered to lock in capacity growth
Amaero has placed its order for a fourth EIGA Premium atomizer, with commissioning scheduled for June 2027. The Company’s atomizer fleet is now tracked as: Atomizer #1 and #2 commissioned; Atomizer #3 expected commissioning in June 2026; Atomizer #4 scheduled commissioning in June 2027.

EIGA Premium technology is regarded as industry-leading for reactive and refractory metals due to the absence of crucible and nozzle contamination risk. In addition to these technical advantages, the EIGA Premium system delivers spherical powder morphology suitable for laser powder bed fusion (LPBF), a higher yield of usable particle size distribution, and around a 50% reduction in Argon consumption versus prior-generation systems.

Combined with Amaero’s 10-year subsidized electricity contract in Tennessee at approximately US$0.058/kWh—around 70% below the U.S. national average—the Company expects to maintain a structural cost advantage over domestic and international competitors.

Capital investment program on track; EXIM financing aligned to commissioning
Amaero remains on schedule and on budget against its A$72 million three-year plant and equipment investment program ending 30 June 2026. The Company has invested approximately A$57 million to date, including improvements to its 100,000-square-foot manufacturing facility, commissioning of PM-HIP systems, commissioning of two atomizers with long-lead equipment secured for atomizers #3 and #4, and commissioning of ancillary powder processing equipment to support scaled commercial production.

The Company’s U.S. equipment financing package with the Export-Import Bank of the United States (EXIM) totals US$22.8 million and is structured on a drawdown schedule tied to commissioning milestones. Amaero expects around US$15 million to be drawn by 31 December 2025, with the balance expected by 30 June 2026, supporting disciplined funding while avoiding idle capital.

Strong balance sheet supports scaled production and commercialization
Amaero expects to close the quarter with approximately A$53 million in cash reserves (restricted and unrestricted) and around A$60 million in tangible assets excluding cash. The Company believes its growth-oriented investments position Amaero as the largest-capacity and lowest-unit-cost domestic U.S. producer of titanium and refractory alloy spherical powders, while also strengthening its first-mover advantage in PM-HIP near-net-shape component manufacturing.

Quotes
Hank J. Holland, Amaero’s Chairman and CEO, commented:
Amaero has demonstrated its commitment to making forward leaning investments and to aligning with strategic partners to address national security and sovereign manufacturing challenges. Additionally, Amaero has demonstrated a keen focus on highly disciplined allocation of capital. As we moved decisively to re-locate the business to Tennessee in July 2023 and to execute on a 3-year capital investment and commercial engagement plan, Amaero has established a first mover advantage in both businesses – the titanium and refractory alloy spherical powder production business and the PM-HIP manufacturing business.

Our intensive engagement with strategic customers is evidenced by the December 3rd PM-HIP Roundtable at Amaero’s facility with approximately 40 maritime / submarine industrial base stakeholders including representatives from Bechtel Plant Machinery, Inc. (BPMI), Naval Nuclear Laboratory (NNL), Naval Reactors, NAVSEA, and other key stakeholders such as General Dynamics Electric Boat, Newport News Shipbuilding, Hanwha, BWX Technologies, Curtiss-Wright, Northrop Grumman and Leonardo DRS.

The convening followed a near daily collaboration with the maritime industrial base over the past 18 months that included performance on numerous contracts.

PM-HIP manufacturing of near-net-shape components is an immediate, mature and viable manufacturing technology to address critical production delays with castings and forgings. Amaero’s team has pioneering technical experience and proven program management competency. We believe that through the combined efforts of all participants, we can work together to expand the use of advance technologies in the industrial base to meet the Navy’s increasing shipbuilding demands.”

For further information, please contact:
Amaero Ltd
Hank J. Holland
Chairman and CEO
hank.holland@amaeroinc.com

Media & Investor Enquiries in United States
Shannon Devine
MZ Group
amaero@mzgroup.us

Jane Morgan
Investor and Media Relations
+61 405 555 618
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