AML3D to make tailpiece components for the US nuclear submarine program
Today, our 3D printing Investment, AML3D (ASX: AL3) announced that it would tailpiece components for the US nuclear submarine program as part of the AUKUS partnership.
We think the $156K contract is part of AL3’s very fruitful relationship with the US Navy which has already led to some major contract wins.
Importantly, the prototype tailpiece components were 3D metal printed in less than five weeks compared to an average 17-month lead-time via traditional manufacturing.
That’s an excellent turnaround time - and AL3’s manufacturing efficiency gains are a key reason we are Invested in the company.
We want to see AL3 continue to expand its relationship with the US Navy over the coming years, now that its US manufacturing facility in Ohio is now operational.
We think this could help AL3 further grow its sales and move into new industries.
Below are some of the sales AL3 has made in the last year and a half (including a recent sale to major utility company, the Tennessee Valley Authority):
We covered the most recent sale in our latest note on AL3:
AL3 makes large sale, enters new market: US utilities
What’s next for AL3?
More sales out of the US
Now for AL3 it’s all about the US scale up.
AL3 has previously mentioned it will be doubling the capacity of its US facility AND is only days away from having the facility ready for operations.
We are hoping that the US facility coming online brings with it big new contracts to fulfil (and hopefully big $ revenue amounts attached to those deals).
We are also hoping to see some of those lucrative ITAR contracts that AL3 have mentioned get converted into sales.
(Source)
UK/European expansion on the cards?
AL3 has also previously flagged the opportunity of expanding into the UK.
The majority of AL3’s sales are out of the US, so expansion into a new market is completely new upside from a revenues perspective.
We are looking forward to newsflow from the company’s push into the UK/European market.
