SYDNEY, AUSTRALIA: Amaero International Limited (ASX:3DA) has signed a binding three way partnership settlement (JV Agreement) with Rabdan Industries for additive manufacturing and powder manufacturing in Abu Dhabi, the United Arab Emirates (UAE).
Rabdan is an affiliate of diversified holding firm Ethmar Holdings. The JV Agreement provides that Amaero and Rabdan will exclusively partner on additive manufacturing and metal powder manufacturing within the Middle East. In addition, the JV will pursue an ambitious technique to develop projects so as to vertically combine the titanium present chain together with titanium sponge, melt, mill and forge operations.
The JV company, FALCON Advanced Metals, will be a 50/50 partnership between the 2 companies and can function as a holding firm that controls and owns directly and not directly subsidiaries that will undertake projects. The companions will contribute working capital on a pro-rata basis.
Amaero will contribute goodwill, reputation and expertise. A licensing settlement is anticipated to be signed between FALCON and Amaero for IP and know how in respect of the JV.
Rabdan will contribute native knowledge and relationships and has additionally dedicated to directly present funding for capital expenditure on the project level and/or to not directly safe funding from Abu Dhabi based strategic teams on a non-participating, non-equity basis. The particular phrases for every project will be outlined in separate SPV agreements.
The project under consideration by the JV has a capital budget of A$300 million. The built-in project includes:
- An Applied Engineering, Design and Commercialisation Centre;
- Large format 3D printing; and
- Large scale metal powder manufacturing that would come with seven gas atomisers – 4 devoted to titanium and three atomisers for aluminium, copper and superalloys.
Amaero expects to replace the market on the project, in addition to capital commitment(s), in Q3 FY2023. FALCON has presented an built-in additive manufacturing and metal powder manufacturing project to the Tawazun Economic Council, in addition to Tawazun Special Projects group. After quite a few meetings, FALCON has received indications of strong support and discussions proceed to advance.
Hank Holland, Amaero’s Chairman and CEO said: “After spending three months within the UAE and numerous hours with our partners, I couldn’t be extra enthusiastic about embarking on the subsequent chapter of Amaero’s growth and development with Rabdan Industries. Our partner brings deep knowledge and relationships within the UAE, in addition to within the Kingdom of Saudi Arabia. Moreover, FALCON Advanced Metals’ capabilities and growth technique closely align with the UAE’s precedence financial and industrialisation initiatives.”