Amaero pays up over cancelled powders factory

Additive manufacturing business Amaero International has announced two settlements, cumulatively worth $730,000, related to its aborted plans to build a metal powders plant in Melbourne.

In a statement to the ASX on Wednesday morning, Amaero said it had settled a dispute with MTAA Superannuation Fund and JG Service “relating to the Agreement for Lease of a facility in Victoria”. 

The facility was to have hosted the titanium alloy atomisation plant, announced by Amaero in July 2021. The company then told investors in September last year that the plan had been dumped following a strategic review.

Amaero later announced in November that it would instead build a new powders factory in the United Arab Emirates, lured there by a defence offsets program.

The full and final settlement involves Amaero paying MTAA and JGS the sum of $415,000. 

The statement also included news that Amaero and its subsidiaries have settled a dispute with Air Liquide Australia, “related to a Supply Agreement for the above facility and dated 28 March 2022” and which involves Amaero paying Air Liquide $315,000.

As with the dispute with MTAA and JGS, it was resolved prior to proceedings being issued. 

“In November 2022, the Board announced restructuring charges that totalled $2.9 million which included a reserve of approximately $1.2 million for potential settlement liabilities associated with cancelling the Victoria titanium powder project,” Amaero said.

“The above settlement payments in the amount of $730,000 follow the recent settlement with AmPro whereby Amaero received a cash payment of $750,000.”

Picture: credit Amaero

Further reading

AMAERO REVAMPS LEADERSHIP, DUMPS PLANNED VICTORIAN FACTORY

UPCOMING MELBOURNE TITANIUM POWDER FACTORY ON TRACK: AMAERO

AMAERO LURED TO UAE – VICTORIA LOSES OUT ON NEW PLANT