AL3 - $1.7M 3D printing system now operational at US defence supplier

Our 3D metal printing Investment AML3D (ASX: AL3) just commissioned one of its $1.7M printing systems at US based FasTech - a US supplier to the defence, aerospace, and energy sectors.

FasTech manufactures and supplies parts for defence, aerospace and energy from facilities close to the US Navy Additive Manufacturing Centre of Excellence in Danville, Virginia.

And now, they are using AL3’s systems in their manufacturing systems.

Today’s order was first signed by AL3 back in November (source), today’s announcement triggers the final payment of ~$1.18M (source).

Today’s deal is the third US defence related announcement AL3 has put out inside the last 15 days:

• $9.9 order from the largest US military shipbuilder Huntington Ingalls (adding onto a previous order) - (March 17th)
  
  
• $2.6M order related to the US submarine program for parts that are no longer manufactured (March 26th)
  
  
• $1.7M installation now operational at FasTech (US Defense, Aerospace, Energy and industry supplier) - Today

The first two on that list were into the US marine related industry.

Today’s announcement is into a customer that supplies to defence, aerospace and the energy industries BUT also does more generalist industrial manufacturing.

So now, we are seeing AL3 expand into multiple markets inside the US.

We have shared this image before showing the different markets AL3 could sell its systems (and contract manufacturing services to):

(source)

Now we know that the US customer base includes - US Navy shipyards, defence contractors, energy utilities, and now industrial parts suppliers.

We are Invested in AL3 to see it expand its business in the US - see our deep dive on the US opportunity here: AL3: New $2.6M US Navy submarine parts order... A week after $9.9M military shipbuilding order.

What does AL3 do?

AL3’s technology combines robotics, welding, automation and software.

AL3 tech “3D prints” complex industrial parts for the defence, oil & gas and aerospace industries, and sells these 3D printers to industries looking for on-site custom solutions.

We have been to AL3’s Australian facility in Adelaide to check the systems out and it's genuinely amazing to see these things in motion.

We saw the largest ever custom AL3 ARCEMY 3D printing system ever built, before it was to be shipped off to the USA, as well as some of what the product software looks like:

To see our full site visit write up read: Our AL3 site visit and what we learnt.

What's next for AL3?

More US Navy system sales 🔄

With 100 systems forecast across the Marine Industrial Base and only a handful deployed so far, the pipeline from HII alone may become substantial.

We want to see more orders from the six US naval base companies named in the Navy's LOI. (source)

US facility expansion 🔄

AL3 is investing $12M to expand its Ohio production capabilities which is required to keep up with its growing sales.

The additional four systems ordered by Newport News systems will ship from its Ohio US technology center.

UK and European market entry 🔲

AL3's CEO has flagged early-stage demand in their UK and European markets and we think that NATO's 5% GDP defence spending target could create a new wave of opportunity.

Back in April last year AL3 announced it had started alloy testing with BAE Systems (capped at 123BN who are a multinational aerospace, arms and information security company), so we are hoping successful testing leads to sales into the UK/EU…

Ultimately, we want to see AL3 make a first sale into Europe or the UK.

(source)