Steel manufacturer Amaero International has decided not to proceed with its plans for a titanium powder manufacturing facility in Victoria.
This means that it is no longer anticipated that Amaero will become cash flow positive in 2023, the company said in a statement issued on Thursday.
The announcement follows the company’s board renewal and the completion of its strategic review on operations, business development opportunities, and allocation of capital.
As part of Amero’s board renewal, Hank Holland, an Amero non-executive director and managing partner of US-based private equity firm Pegasus Growth Capital, was appointed as the board’s executive chairman.
Holland assumes the role after David Hanna stepped down to serve as a non-executive director on the board.
The decision to drop the planned manufacturing facility in Victoria is part of the board’s measures to pursue alternative opportunities for titanium powder production. Holland has been looking into a number of opportunities in the Middle East over the past four weeks.
The company’s board also determined that Amaero’s operations will be primarily focused on titanium powder production.
Amaero’s projects with Fletcher Insulation, Rio Tinto, and Boeing are continuing, but are not expected to produce significant revenue in the near term.
The company’s executive shift also included the resignation of Kathry Presser from the board. Presser has been a non-executive director for the company since September 2019 and has also served as chair of the audit and risk committee.
Following her immediate resignation, Hanna assumes the role of chair of the Audit and Risk Committee.
