Amaero gets green light for flagship Titanium powder facility in Tennessee
Amaero International, an Australia-based provider of metal additive manufacturing solutions, said that its flagship titanium powder manufacturing project has been approved in Tennessee, US.
The State of Tennessee spearheaded efforts to secure economic incentives from various stakeholders, which resulted in the successful relocation of Amaero’s primary facility and its research & development and corporate headquarters.
Amaero received economic incentives from the Tennessee Department of Economic and Community Development, the Cleveland-Bradley Chamber of Commerce, the Tennessee Valley Authority (TVA), and the Oak Ridge National Laboratory. A long-term commitment from the TVA includes an investment credit and a considerable electricity rate subsidy. The proposed investment credit includes a 10-year agreement for electricity rates, yielding significantly lower costs than those in the UAE and Victoria.
Furthermore, Amaero has secured a lease as the sole occupant of a 12,100 square meter manufacturing facility in Cleveland’s Spring Branch Industrial Park. The facility, set for completion in August 2023, will house a purpose-built high-bay extension designed to accommodate four electrode inert gas atomisers (EIGAs). The lease agreement spans a primary term of 15 years and includes an Option to Purchase. Amaero plans to occupy the facility and high-bay extension in April and July 2024 respectively. The facility’s strategic location benefits from proximity to Chattanooga, Oak Ridge National Laboratory, and the University of Tennessee, Knoxville.
Tennessee’s thriving aerospace and defense cluster, along with a robust manufacturing ecosystem that includes major players like Bridgestone, Nissan, Eastman Chemical, and Volkswagen, adds strategic advantage to Amaero’s operations. The state offers an efficient, pro-growth business environment, proximity to key customers, research and development partners, and a highly skilled workforce.
Bill Lee, the Tennessee Governor, welcomed Amaero’s move, declaring, “Tennessee is the best state in the nation for companies to succeed, thanks to our strong economy, unmatched business climate, and highly skilled workforce. I thank Amaero for choosing Tennessee to establish its first U.S. facility and for creating more than 100 jobs in Bradley County, providing greater opportunity to Tennesseans.”
The new facility accelerates the installation of the titanium powder production plant, reducing working capital needs by $22 million and advancing breakeven operations by 12 months. Despite these changes, the required equity capital will remain consistent with the anticipated capital for the UAE project.
Amaero’s executive leadership and Board have strong ties with financial and strategic investors in the U.S. These relationships are expected to be fruitful as the company pursues U.S. government funding and incentives for advanced manufacturing and critical materials supply chain.
Amaero Chairman and CEO, Hank J. Holland, expressed his excitement about the development, stating, “This is a seminal event for Amaero and a cornerstone development for Amaero’s shareholders, our employees, and our customers.” He also praised Tennessee stakeholders for their efforts in creating a compelling case for the relocation of the company’s flagship manufacturing facility.