Amaero secures three-year titanium feedstock supply agreement with Perryman
December 2, 2024
Amaero International Limited, based in McDonald, Tennessee, USA, has signed a three-year Supply Agreement for US-melt and forged titanium alloy bar with The Perryman Company. For the term of the contract, Perryman will be Amaero’s preferred and primary supplier of high quality, reliable and scalable US-melt and forged titanium alloy bar feedstock for its atomisation of premium spherical powder.
The agreement provides a baseline price in CY2025. For the subsequent years of the contract, the base price increases annually by an agreed-upon fixed percentage and includes a variable raw material surcharge that’s based on a reference index market price for Ti64.
Amaero has provided non-binding estimates of minimum annual demand and will provide Perryman with updates on a quarterly basis. Amaero has not provided a take or pay guarantee; however, the stipulated pricing is based on achieving a minimum annual order threshold of 45 metric tonnes for CY2025 and 100 metric tonnes for CY2026 and CY2027.
The contract does not provide a maximum volume, and it is understood that Amaero may increase volume to meet its order demand.
Hank J Holland, Amaero Chairman and CEO commented, “Amaero aims to be the premium C103, refractory and titanium spherical powder producer with a vertically-integrated US domestic supply chain. Securing a long-term US-sourced supply agreement for titanium bar from a global leader in titanium melt and forging is an important milestone for Amaero and an important step towards securing a U.S. domestic supply chain for additive / advanced manufacturing of titanium end-parts.”
“Amaero has taken bold actions and made decisive investments to commission the largest US domestic atomisation capacity for C103, refractory and titanium alloy powders. After decades of offshoring manufacturing, we have atrophied our manufacturing capabilities, we have created critical vulnerabilities in the domestic supply chain and we have lost approximately 40% of the domestic manufacturing workforce. Acting with a sense of urgency to improve the resiliency and the scalability of the US domestic manufacturing and supply chain ecosystem is an imperative for both national security and for economic prosperity,” Holland added. “We are excited to establish a strategic partnership with Perryman and look forward to growing the breadth and the scale of the preferred supplier relationship.”
www.amaero.com.au
www.perrymanco.com
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