Robotic technology company FBR Limited (ASX: FBR, OTCQB: FBRKF) has officially entered into an Engineering Service Agreement with Samsung Heavy Industries (SHI), marking the commencement of the first phase of a shipbuilding automation project aimed at revolutionising the global ship construction process.

This agreement represents a significant milestone in FBR’s expansion into new applications for its core technologies beyond its established construction robotics expertise. In this initial engagement, FBR will focus on developing, demonstrating, and validating a core technology module that will form part of a shipbuilding construction robot.

Phase 1 Scope and Timeline
Under the terms of the Engineering Service Agreement, Phase 1 will involve FBR delivering a physical demonstration and validation of a selected robotic technology solution tailored specifically to shipbuilding applications. This phase is expected to be completed within five months or less, underscoring the pace and efficiency of execution that both companies are targeting.

Financial Terms and Exclusivity
FBR will receive US$150,000 for the delivery of the first phase, in addition to reasonable expenses and any further fees that may be incurred on a time and materials basis, provided those are pre-approved by SHI. Importantly, the parties have also entered into a 10-year exclusive dealing relationship for the materials and technology to be delivered under Phase 1. This exclusivity arrangement signals strong confidence in FBR’s innovation capacity and a deepening commitment between the two companies.

Commercialisation Pathway in Parallel
While Phase 1 focuses on the technical proof of concept, FBR and SHI are concurrently working on commercialisation business models for the future deployment of the shipbuilding construction robot. These models are being developed in tandem with Phase 1 to ensure that the groundwork for potential subsequent phases is well prepared, should the initial proof of concept meet expectations.

This collaboration underscores the potential for automation and robotics to reshape the shipbuilding sector, one of the most complex and traditionally labour-intensive areas of heavy industry. By combining FBR’s advanced robotics capabilities with SHI’s shipbuilding expertise, the companies aim to unlock new efficiencies and capabilities in maritime construction.

Strategic Significance
The execution of this agreement marks a strategic step for both FBR and SHI. For FBR, it signifies entry into a new vertical with significant global demand and complexity. For SHI, one of the world’s largest shipbuilders, it reflects a proactive move toward integrating robotics and automation into core construction processes — potentially setting new benchmarks for productivity, precision, and safety in shipyard operations.

The outcome of Phase 1 will be closely watched by stakeholders in both the construction robotics and shipbuilding industries, with successful delivery opening the door to a scalable, commercial solution for automated shipbuilding.