NEW YORK IBC Advanced
Alloys Corp. will expand its beryllium aluminum alloy
production by year-end and plans to finance the investment
through a company stock offering, chief financial officer Simon
Anderson told AMM.
Beryllium aluminumone of
the Vancouver, British Columbia-based producers specialty
alloysis often used in military applications. The
military has been focusing on retrofitting older airplanes and
remotely piloted aircraft, or drones, prompting IBC to plan an
investment in its beryllium aluminum production.
IBC announced Jan. 29 that it
will offer up to 16.7 million units of company stock at 12
cents per share, with the aim of raising $2 million.
The company plans to invest some
of the money to upgrade the furnace at its Wilmington, Mass.,
operation, and will expand beryllium aluminum production in the
next 12 months, Anderson said. He declined to offer specific
"Even though military spending
is cutting back, (they are) making performance advances and
retrofitting older planes with new targeting systems," Anderson
said. "(Personal computer) sales may have gone down, but iPad
sales are up. People are substituting their clunky PCs with a
portable iPad. Its the same thing in the military right
Beryllium is very useful in
radar and targeting applications as it dampens vibrations,
Anderson said. "When (youre using) radar or need a
visual, you dont want vibrations. People have found
(that) over time, beryllium is an excellent material for these
applications," he said.
While the military will be an
important end-consumer for IBCs beryllium aluminum
production in the near future, IBC is anticipating growth in
other areas, including the commercial aerospace sector.
"The thing about commercial
airlines, they are justifiably conservative about adopting new
methods," Anderson said. "We certainly have our sights set on
the commercial sector but acknowledge its a much longer
The company also operates a
copper alloy facility in Franklin, Ind. "The copper side of our
business is stable and generates positive cash flow all the
time. It doesnt need financing (now)," he said.
IBC also serves the nuclear
power, automotive, oil and gas, and electronics