Can old fashioned wire and 3D printing make millions?

AML3D company product shot

There seems no doubt that 3D additive printing is going to revolutionise the global manufacturing scene.

The materials used, huge waste reductions, big savings in turnaround times from months to just days make it a compelling alternative to traditional manufacturing.

But for many companies, the processes and materials are so new and exotic that getting industry acceptance along with quality and regulatory approval is sometimes slower than some investors would like.

While patience should pay off for the ground breaking companies, a recently listed 3D additive printing business hopes it will have a much faster result thanks to an ironic advantage.

AML3D technology is based on a 130 year old process and uses old fashioned wire as its feed stock.

Things have come a long in arc welding

AML3D [ASX:AL3] is the first Wire Arc Additive Manufacturing facility in the world to receive an “Additive Manufacturing Facility Qualification” from Lloyds Register.

Essentially, this means AML3D meets the international standards for additive manufacturing processes under ISO 9001 and the American Welding Society Standards.

AML3D runs a manufacturing facility out of Adelaide and sells machines on a lease to buy deal and gains recurring revenue as the provider o wire feed stock.

The company also announced recently that its printed high strength steel has been independently demonstrated to be 30% stronger than applicable global standard.

I recently caught up with Founder and CEO of AML3D, Andy Sales to get a better idea of just how competitive the business might be.

DISCLAIMER AND IMPORTANT INFORMATION I do own shares in AML3D at the time of writing this post. I also do not accept any payment from this or any other companies I cover. Nor is my interview or blog in any way a recommendation and should not be seen as a form of financial advice. Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.

The latest ASX announcement from AML3D:

AML3D’s WAM® printed high strength steel independently demonstrated to have Ultimate Tensile Strength (‘UTS’) 30% higher than applicable global standard.

Results highlight AML3D’s ability to disrupt conventional manufacturing within the global and domestic Defence, Resources and Automotive sectors

Testing was driven by inbound interest and results will be provided to existing and potential customers

Demonstrates ‘ready for market’ nature of AML3D’s technology

Limited

(‘AML3D’ or ‘the Company’) (ASX:AL3), the provider of commercial large-scale ‘Additive Metal Layering’ 3D printing services to a wide range of industry sectors, is pleased to provide exceptional results from independent, third party testing of its proprietary WAM® (Wire Additive Manufactured) 3D printing technology.

NATA1 accredited group, Intertek, conducted the testing on behalf of AML3D following enquiries from a number of parties interested in how WAM® printed high strength steel components would perform compared to more conventionally manufactured parts. This testing regime met all applicable global standards typically used by the Defence, Resource and Automotive sectors. This testing involved printing of a series of geometrically shaped specimens that are of standardised dimensions allowing direct comparisons of metals produced by conventional methods.

In a clear demonstration of the potential for AML3D’s WAM® process to disrupt the flexible manufacturing space, the products manufactured had c. 10% higher UTS than the same steel components made using conventional forging techniques and more than 30% higher UTS than the applicable global standard. As a result, the potential for the WAM® process to deliver significantly greater strength on a like-for-like basis or potentially offering the same strength with less material usage is of particular interest in the Defence, Resource and Automotive sectors.

The results of this testing will be used in the context of further discussions with existing customers as well as outlining the benefits of AML3D’s WAM® technology to new parties.