Amaero International, a pioneer in the additive manufacturing sector, is poised for a significant expansion following a comprehensive market study conducted by Fairmont Consulting Group LLC.
The study, which focused on the demand for Niobium C103 alloy (Nb C103 or C103) and other specialty materials crucial for defence and space applications, has projected a remarkable surge in demand for C103 PBF powder, estimating a 62 per cent compound annual growth rate (CAGR) over the next five years.
With an anticipated demand of 105 tonnes by FY2028, driven by significant investments in hypersonics, strategic missiles, space launch, and satellite programs, Amaero is strategically positioned to capitalise on this burgeoning market.
Fairmont’s exhaustive 72-page market study, coupled with its proprietary market model, delved into 550 discrete programs within the defence and space sectors, providing Amaero with invaluable insights into demand signals, market supply, pricing dynamics, and strategic positioning.
Armed with this detailed analysis, Amaero said it is now equipped to tailor its production and market strategies to ensure sustained growth and profitability.
Currently, the market price for C103 powder ranges from $4,150 to $5,385 per kilogram, with order lead times extending up to 24 months.
In response to this growing demand, Amaero is ramping up its production capabilities by securing 2.5 tonnes of C103 feedstock and planning the addition of four atomizers, along with related capital investments.
These measures aim to bolster the company’s production capacity for C103 and other high-value specialty alloy powders, cementing its position as a key US domestic producer.
Amaero’s strategic pivot towards the production of C103, alongside the development of refractory alloys and other specialty materials, underscores its commitment to meeting the evolving needs of the defence, space, and aviation industries.
Amaero Chairman and CEO Hank J. Holland expressed that the company has taken bold and decisive steps over the past year to position Amaero as the largest and most responsive US domestic producer of C103 and other high-value specialty alloy powders.
According to him, the Fairmont Consulting market report validates the strategic direction and provides important market signals for demand, supply, and pricing.
Additionally, Holland highlighted that the report offers crucial insights at the program-level that will assist in shaping the business development strategy.
“We expect that prioritising the production of C103 and high-value specialty alloy powders will materially increase revenue trajectory and will accelerate the path to profitability,” Holland concluded.
While Amaero refrains from providing specific financial guidance, the company has outlined key assumptions and performance drivers based on the Fairmont Consulting report and stakeholder discussions.
These plans are contingent upon Board approval, with a final investment decision anticipated by the conclusion of FY2024.
