ASX-listed tech player, Aurora Labs’ 3D metal printing business strategy has pivoted from a manufacturing and distribution model to a less costly and lower risk partnership, licensing and royalty model. The major strategic shift follows the completion of a review of the company’s 3D metal printing technology to determine what is needed over the next 12 months to advance its fast RMP-1 printer in particular, towards commercial readiness within a year.
Aurora Labs made the decision to review its operations after a difficult period of restructuring and cost cutting exacerbated by the onset of the coronavirus pandemic restrictions’ and the subsequent economic fallout.
The strategic review of Aurora’s operations has led its board to the view that there is no need for it to be an engineering and manufacturing business given the significant infrastructure costs generally associated with that sector.
Instead it is looking to simply remain a technologist and will seek to achieve commercial success by forming strategic partnerships in the engineering, manufacturing and distribution sectors which represents a lower risk and lower capital pathway to market.
Aurora is now aiming to hook up with original equipment manufacturers or major industry players who may be eyeing the 3D metal printing sector but are lack the technology and IP required for commercialisation.
Aurora will seek to lever its partners’ capacity to assume or share the responsibility for printer manufacture, sales and distribution.
A3D Chairman, Grant Mooney said: “While there have been many learnings in this process, the restructured board and management team have a clear vision on what is needed to reach our objectives and we are equally excited by the challenges and goals that lay ahead in 2020-21.
“Our competitive advantage lies in the speed of our printer and our goal is to adopt a customer-centric approach, working directly with existing customers, and use their parts to further develop the RMP-1 technology, hardware and software.”
According to Aurora Labs, adopting this new partnering strategy has enabled the company to reduce a large part of its operational cost base such as sales and marketing, printer manufacturing capabilities and ancillary technology divisions.
The company said it will continue to cultivate and identify additional strategic partnership opportunities over the next 12 months, targeting international OEMs and others that can assume the production and sales and marketing responsibilities under licencing arrangements, once the technology is commercial ready.
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