Titomic Signs $25M Sales Contract with Global Defence Manufacturer
26th February, Australian Industrial Scale Additive Manufacturing Company, Titomic Limited (ASX: TTT) (“Titomic or “Company”), has entered into a binding agreement with Composite Technology, an Australian R&D and commercialisation division of a global defence product manufacturer. This contract will generate AUD$25.5* million in sales for Titomic from the provision of two Titomic Kinetic Fusion® (“TKF’’) Systems for industrial scale metal additive manufacturing. Under this agreement, Composite technology provides products and component parts with certification for the defence related products (NATO Replacement Parts) for quality assurance related to the design, development and production process.
The TKF manufacturing process will be certified in conformance with approval for Composite Technology to deliver defence products to the global defence market. Composite Technology required two years of extensive research and prototyping by Titomic to guarantee the fulfilment of quality assurance requirements for the design, development and production capability of the TKF manufacturing system. Titomic is now pleased to announce the commercialisation of these R&D efforts, as previously announced, establishing Titomic by these measures as the global leader in the industrial scale metal additive manufacturing process. This AUD$25.5* million sales contract for TKF Systems and certification for Titomic Kinetic Fusion will open up further large revenue opportunities with strong industry partnerships in high-margin industries such as the defence sector.
Composite Technology will receive 7.5 million Titomic options1 upon entering into a Joint Cooperation Agreement (JCA) that will develop certified manufacturing processes for defence related products with the TKF manufacturing systems for industrial scale metal additive manufacturing. In addition, as part of the JCA, Composite Technology and Titomic will jointly develop new material technology and manufacturing process IP, exclusively utilising Titomic’s Kinetic Fusion manufacturing systems for defence products. Composite Technology will receive an additional 7.5 million Titomic options2 for providing certification for the quality assurance requirements for the design, development and production of defence related products (NATO Replacement Parts) manufactured using Titomic TKF Manufacturing Systems.
Commenting on the agreement, Managing Director of Titomic, Mr. Jeff Lang, stated: This is a significant milestone for Titomic, on signing this sales contract with Composite Technology further validates the exceptional work the staff at Titomic have achieved in creating the world’s largest and fastest metal additive manufacturing TKF systems. I would like to thank the Composite Technology team, and Founder Mr. Anthony Khouri, for partnering with Titomic to purchase and implement our TKF systems for the sustainable metal manufacturing of their products for the global defence market. I am very proud to see the commercial realisation of TKF as an Australian advanced technology that’s leading the world in industrial scale metal additive manufacturing.a
Commenting on the agreement, the Founder of Composite Technology, stated:
“Composite Technology is pleased to partner with Titomic to introduce Titomic Kinetic Fusion manufacturing systems into its current manufacturing process. This partnership will enable more effective, efficient and sustainable manufacturing solutions and will increase capacity in the area of defence related product and component development that will provide significant revenue opportunities for both parties.”
* Based on USD$.16.8 million (USD: AUD FX rate as of 24 February 2020 (Bloomberg)).