AML3D, K-TIG among Australian companies chasing US defence work

After winning over the US Navy, two advanced manufacturing companies emerging out of Adelaide have put the lucrative US defence industry at the centre of global growth plans.

After winning over the US Navy, two advanced manufacturing companies emerging out of Adelaide have put the lucrative US defence industry at the centre of global growth plans.

3D metal printing company AML3D and hi-tech welder K-TIG are following similar paths in the US, where they are putting boots on the ground in their bid for more defence work on the back of the landmark AUKUS agreement.

For AML3D a major breakthrough came in February, when the company was selected by the US Department of Defence to supply its specialised 3D metal printing system, known as Arcemy, to the US Navy for development of the next stage of nuclear submarines.

A second order from the US Navy was confirmed this month, and AML3D is now looking at a establishing a permanent presence in the country to support its growth plans.

The company’s interim CEO, Sean Ebert, said the AUKUS agreement and the Biden administration’s ambition to transform the American manufacturing base through hi-tech innovation were creating more opportunities for Australian advanced manufacturers.

“It’s (AUKUS) been probably one of the driving forces,” he said.

“We’re building a lot of momentum in the US, and we call it the ‘heightened time of interest’ around advanced manufacturing.

“But also the Biden administration has got an initiative called AM Forward, which is focused on increasing the adoption of additive manufacturing (3D printing) in order to increase production.

“Because the US Navy is looking to increase their production rates and increase their ability to rapidly scale their supply chain of parts, they’ve looked at adopting and accelerating the adoption of this wire arc additive technology, which we have, into their facility.”

The Arcemy system is capable of 3D printing industrial-scale metal components such as propellers, pistons, gears and pulleys.

AML3D initially set out to be a contract manufacturer but is now looking to sell its Arcemy systems to manufacturers predominantly in the US defence, and gas and industrial sectors.

K-TIG managing director Adrian Smith. Picture: Tom Huntley

Mr Ebert said the company built the technology in Edinburgh Parks, in Adelaide’s north, and was now looking to establish a permanent team and manufacturing facility in the US.

“We’ve appointed a US business development person – we’ll be looking for a local leader and expanding out the team in time to come,” he said.

“What we’re seeing is that because of the pipeline of demand from other manufacturers showing interest in our technology, largely on the back of the adoption by the US Navy taking up our technology, we see we’re going to be pulled into the market fairly progressively.”

The fact that the US defence industry has picked out the technology of a relatively small Australian company illustrates how the AUKUS deal is creating new opportunities for closer engagement between manufacturers.

K-TIG has also captured the eye of the US Navy, recently selected to develop and trial its precision welding technology with General Dynamics Electric Boat – the prime contractor for the US Navy’s Virginia-class attack submarines.

K-TIG is also undertaking a research project under the Navy’s National Shipbuilding Research Program, with the aim of demonstrating the suitability of its technology for the maintenance of US warships.

Managing director Adrian Smith said while there was uncertainty around the scale of opportunities defence suppliers would be provided as part of the AUKUS deal, the agreement had put Australian companies on the US radar.

“AUKUS hasn’t opened the door for this (US Navy programs) but certainly I think it greased the wheels from their side of things – the US government being open to looking at Australian technology,” he said.

K-TIG opened an office in Pittsburgh a couple of years ago, and also has an office in the UK, where it is finalising a £16.5m ($32m) deal to acquire Graham Engineering, which manufactures large-scale metal fabrications – such as vessels to contain nuclear waste – for the UK’s nuclear decommissioning industry.

Mr Smith said the acquisition was part of the company’s strategy to undertake its own manufacturing in niche areas of the defence and nuclear waste industries.

“It’s almost the perfect sweet spot for our technology, it’s a fabulous application of it,” he said.

“We looked at that and the company has decided that we want to get into a couple of areas of very specialist niche fabrication. So we’ll be the fabricator as well as the supplier of technology to other companies.”

Originally published as AML3D, K-TIG among Australian companies chasing US defence work