AML3D hits jackpot with Chevron contract

Metal additive manufacturing company AML3D has snared a $215,000 contract with gas producer Chevron to manufacture two subsea pipeline fittings, marking the company’s entry into a lucrative new market.

The deal follows AML3D successful 3D metal printing the world’s largest, at eight tonnes, certified high pressure, subsea piping spool for another Tier One Oil and Gas Client.

While the order for the company’s Wire Additive Manufacturing metal parts is relatively small, investors reacted immediately with the company’s shares closing last night on the ASX up 21 percent to 8.6 cents.

AML3D has recently won prototyping and other contracts in the defence naval market, aerospace and oil and gas sectors.

Chief Executive Ryan Millar said: “This Chevron subsea pipeline fittings order demonstrates continuing delivery against AML3D’s growth strategy, which includes building out contract and embedded, point of need manufacturing technology solutions in the global oil and gas markets.”

The company will manufacture large-scale steel pipeline fittings that meet the American Society of Mechanical Engineers and American Petroleum Institute’s standards.

The components will feature materials to improve corrosion resistance in extreme marine environments.

Once complete the fittings will undergo rigorous testing to validate their use in subsea programmes.

Millar said: “WAM can produce higher quality components, faster than traditional manufacturing, that meet stringent industry standards.”

Editor’s note: This story has been edited to correct AML3D’s share price

Picture: AML3D