Industrial automation company K-TIG (ASX: KTG) has received a handy confidence boost in their welding technology with its core partner in the defence industry securing $1 million in Government funding for plate armour made possible by K-TIG’s keyhole welding tech.
The funding comes from Australia’s Centre for Defence Industry Capability (CDIC) and has been granted to K-TIG partner Axiom Precision Manufacturing which constructs a range of Defence Force products including parts for F-35 Joint Strike Fighters and plate armour.
Already a major client of K-TIG’s welding tech, Axiom now has the funding to scale its manufacturing capacity where K-TIG is expected to be a key beneficiary and a critical supplier in the production of armour for the Australian Army’s Land 400 programme – the next generation of armoured fighting vehicles
“The awarding of this federal government grant is a significant step towards developing the advanced welding capabilities needed in the global defence industry,” said K-TIG Managing Director, Adrian Smith.
“This is an opportunity for K-TIG to demonstrate its revolutionary keyhole welding process on a large scale, delivering strategically vital and technically complex defence projects for Australia while showing the global defence market the speed, strength and efficiency we can deliver to demanding projects.”
As the Land 400 programme rolls out, the total project contract is valued upwards of $15 billion where K-TIG is confident that their exposure to the Defence Industry can create further commercial opportunities within the sector.
Last month, K-TIG also confirmed their entry into the carbon steel market following tech developments that confirmed their existing tech could be rolled out across A516 Grade 70 Carbon Steel which is one of the world’s most in-demand high strength, low alloy materials.
For the Half-Year ending 31 December 2020, K-TIG reported a 1294% increase in revenue on the previous corresponding period to $533k as the Company’s tech has advanced from development to scalable monetisation.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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