Boeing expands contract with AML3D; latter eyeing approval for fly-ready 3D printed parts

Industrial-scale 3D printing player AML3D’s (ASX:AL3) share price is up 19% in early afternoon trade as the company reveals Boeing has stepped up its interest in the proposed inclusion of AML3D’s printed metal components into some of its planes.

Boeing and AML3D already held a contract minted in July this year which saw the former sussing out the latter’s printed aluminium test components. 

Less than three months later, Boeing has now decided to continue this relationship, evidently satisfied with the Australian player’s results. 

Today’s contract extension, AML3D notes, increases its value by 150%.  The original contract in July saw Boeing commit to purchasing $140,000 worth of parts from AML3D; putting the expanded contract at roughly $350,000.

Boeing will continue to commission AML3D’s lab techs to produce prototypical printed aluminium components towards a long-term view of low cost aeroplane manufacturing.

US engineering society accreditation 

The company says its contract expansion with Boeing is a step towards more extensive contracts in the future.

At the same time, AML3D is also progressing its ability to satisfy industry standards it needs to enter aerospace and defence markets—namely, international standard AS9100D:2016. 

While incredibly technical, it’s worth noting that AS9100D is not an international standard certified by the International Standards Organisation (ISO), but is in fact certified by the Society of Automotive Engineers (SAE) International, a US-based private engineering regulatory body. 

AML3D is seeking accreditation under the standard to be able to legally produce ‘fly parts’ for use in aircraft, the ultimate benefit AS9100D accreditation awards. 

If it can meet the standard, it will be a significant moment for the smallcap—there is only one other wire feedstock additive 3D printing firm in the world at this time with approval to produce fly parts. 

Embedded in Boeing’s supply chain: Management 

“This expanded contract with Boeing demonstrates growing momentum in our relationship with one of the world’s largest aerospace companies,” AML3D MD Andrew Sales said. 

“AML3D has already demonstrated to Boeing our 3D metal printing technology produces high quality parts on time and to specification…the contract is strategically important as it moved AML3D towards being embedded into Boeing’s supply chain.” 

AML3D impressing big names 

Back in late June, AML3D revealed it had won a 3D printing contract from oil and gas supermajor Exxon to produce parts for the latter’s offshore assets. 

Not long after, AML3D became the first wire-feedstock based 3D metal printer in the world to win accreditation from marine and industrial classification society DNV, which gives it unique access to DNV’s client base. 

In mid-late May, the company won a contract from an undisclosed power plant operator in Australia to print parts for it, as well as create a digital library of all parts needed for future replacements. 

The shape of AML3D's three month charts