Amaero International Secures $38 Million Loan to Expand U.S. Manufacturing Capabilities

Key Highlights

• Amaero International Ltd (ASX:3DA) secures a US$23.5 million loan (A$37.8 million) from the Export-Import Bank of the United States (EXIM).
• The loan supports Amaero International Ltd’s (ASX:3DA) manufacturing growth, with a focus on additive manufacturing and advanced materials for aerospace and defense sectors.
• This marks a significant step in EXIM's "Make More in America" initiative, aimed at revitalizing U.S. domestic manufacturing and supply chains.
• Amaero International Ltd (ASX:3DA) plans to invest approximately US$50 million into capital equipment and facility improvements.
• The loan approval process underscores Amaero International Ltd’s (ASX:3DA) alignment with U.S. policy priorities and national security objectives.

In a major development for Amaero International Ltd (ASX:3DA), the company has secured final approval for a significant financial boost that will help expand its U.S. manufacturing operations. The Export-Import Bank of the United States (EXIM) has greenlit a loan of US$23.5 million (approximately A$37.8 million) to Amaero International Ltd’s (ASX:3DA) U.S. subsidiary, Amaero Advanced Materials & Manufacturing Inc.

This move is part of the U.S. government’s broader effort to enhance domestic manufacturing capabilities and create resilient supply chains under the "Make More in America" (MMIA) initiative.

The loan, which was approved unanimously by EXIM's bipartisan Board of Directors, is expected to propel Amaero International Ltd’s (ASX:3DA) growth in additive manufacturing and advanced materials production, specifically targeting the aerospace and defense sectors.

With the support of this non-dilutive, U.S. government-backed financing, Amaero International Ltd (ASX:3DA) is poised to play a crucial role in rebuilding America's industrial base, ensuring long-term economic prosperity, and enhancing national security.

Strategic Alignment with U.S. Policy Priorities

Amaero International Ltd’s (ASX:3DA) recent loan approval underscores the company’s strategic alignment with the U.S. government's industrial and defense priorities. The EXIM loan will assist Amaero International Ltd (ASX:3DA) in financing capital equipment and facility improvements at its headquarters in McDonald, Tennessee.

The company is already positioned as a leader in the additive manufacturing of mission-critical components, including high-performance alloys for aerospace and defense applications. The loan is the sixth MMIA loan approved by EXIM’s Board and represents a significant step forward for Amaero International Ltd (ASX:3DA), as it is the first MMIA loan focused on advanced materials and additive manufacturing.

EXIM's involvement is part of a larger effort to address vulnerabilities in U.S. manufacturing and supply chains that have been exacerbated by years of offshoring and underinvestment. Amaero International Ltd’s (ASX:3DA) business model focuses on filling these critical gaps, providing advanced materials for the aerospace, space, and defense industries.

Loan Terms and Use of Funds

The EXIM loan will be drawn over the course of five quarters, beginning in the fourth quarter of FY2025. The loan will primarily fund capital equipment purchases and associated facility improvements, with the bulk of the funds allocated to enhancing Amaero International Ltd’s (ASX:3DA) manufacturing capabilities.

This includes the installation of advanced atomizers and other critical equipment required to produce high-quality titanium alloys, refractory materials, and C103 powders, all of which are essential to the growing demands of additive manufacturing.

As part of the loan terms, Amaero International Ltd (ASX:3DA) must complete a capital raise before the first drawdown. The loan itself carries an interest rate of approximately 6.95% per annum, and the repayment structure involves an initial 12-month period of interest-only payments, followed by a seven-year period during which principal and interest will be amortized.

Amaero International Ltd’s (ASX:3DA) CEO, Hank J. Holland, emphasized the significance of this loan in supporting the company’s U.S. operations. “This is a very important milestone event for Amaero,” Holland stated. “The EXIM loan validates the alignment of our strategy with U.S. government priorities, ensuring the long-term resiliency of domestic manufacturing and supply chain capabilities.”

Supporting U.S. Manufacturing and National Security

The decision by EXIM to provide financial support to Amaero International Ltd (ASX:3DA) is not just about fostering economic growth; it is also deeply tied to national security concerns. The loan reflects the growing importance of re-shoring critical manufacturing processes, especially those related to defense and aerospace.

As the U.S. continues to rebuild its industrial base, companies like Amaero International Ltd (ASX:3DA) are seen as key players in ensuring the country’s ability to produce essential materials domestically. Rep. Chuck Fleischmann, Chairman of the House Appropriations Subcommittee on Energy and Water, highlighted the importance of this initiative.

“Amaero is providing immediate and scalable capabilities that address critical gaps in the supply chain and improve the readiness and resiliency of the domestic industrial base,” Fleischmann stated. He also emphasized that re-shoring is vital for both national security and economic development.

Amaero International Ltd’s (ASX:3DA) advanced atomization technology will play a pivotal role in addressing the growing demand for high-performance materials used in the manufacturing of components for the defense, space, and aviation sectors. The company’s position as the largest U.S. producer of C103 powders is a testament to its importance within these industries.

Job Creation and Economic Impact

The EXIM loan will also have a significant impact on job creation in the U.S. Amaero International Ltd (ASX:3DA) plans to invest approximately US$50 million into capital equipment and facility improvements, which will support the creation of an estimated 150 skilled, high-paying jobs in Tennessee. This aligns with EXIM’s broader goals of supporting U.S. businesses, particularly small- and medium-sized enterprises, by providing financing that helps them scale operations and contribute to economic growth.

“EXIM’s loan to Amaero highlights the bank’s commitment to supporting domestic manufacturers and creating skilled jobs in the U.S.,” said Reta Jo Lewis, President and Board Chair of EXIM. “We are focused on ensuring that more jobs are created in the United States, particularly in industries that are critical to our national security and economic vitality.”

Moving Forward: Capital Raising and Long-Term Strategy

As Amaero International Ltd (ASX:3DA) moves forward with its plans to expand its U.S. operations, the company will need to complete the capital raise required before accessing the loan funds. The company has already made significant strides in its business strategy, including commissioning its first advanced atomizer and placing orders for additional atomizers to scale production.

These investments are expected to position Amaero International Ltd (ASX:3DA) as a dominant player in the additive manufacturing sector, particularly within the aerospace and defense industries.

Amaero International Ltd’s (ASX:3DA) long-term strategy involves not only enhancing its manufacturing capabilities in the U.S. but also expanding its global footprint. The company is well-positioned to export U.S.-made advanced materials to other regions, further strengthening its position as a leader in the field of advanced manufacturing.

What’s Next?

Amaero International Ltd’s (ASX:3DA) recent achievement in securing a US$23.5 million loan from EXIM is a significant milestone in the company’s growth journey. It reflects a strategic alignment with U.S. government priorities to rebuild and enhance the resilience of domestic manufacturing.

The loan will help Amaero International Ltd (ASX:3DA) expand its capabilities in additive manufacturing and advanced materials, crucial for the aerospace, defense, and space sectors. As Amaero International Ltd (ASX:3DA) continues to grow its U.S. operations, it will contribute not only to the economy but also to national security, job creation, and the development of a more sustainable and resilient supply chain.

This deal is a win for both Amaero International Ltd (ASX:3DA) and the broader U.S. manufacturing sector, demonstrating how targeted financial support can help reshape the industrial landscape and drive economic growth in the years to come.