On 8 February 2019, Titomic Limited (ASX: TTT) announced that it had executed an Exclusive License Agreement with Australian scientific research body, the Commonwealth Scientific and Industrial Research Organization (CSIRO), for production of pipe and pipe components.
Intellectual Property (IP) exclusively licensed from CSIRO has granted global rights to two patents for Titomic to produce Pipe as well as Continuous Pipe using Titanium and Titanium Alloys in manufacturing. With this agreement, the company has a significant opportunity to derive revenue from major sectors particularly in the Defense, Oil and Gas, Marine and Mining industries.
Titomic Managing Director, Mr Jeff Lang, stated: “Addition of these two patents marks a substantial expansion of company’s IP that can potentially broaden the Titomic’s market share in Titanium Alloys and Titanium additive manufacturing space.”
Under the agreement, Titomic will reportedly receive over eight years of exclusive, innovative additive manufacturing techniques, Know-How for the manufacturing of Pipe Component and Pipe, and background IP. Titomic has also inked an acquisition agreement with Titanium Technologies for Pipe Technologies.
Without the profile and size constraints as in conventional pipe production techniques, Titomic can now additively manufacture Pipe using Titomic Kinetic Fusion (TKF). Titomic told that its TKF manufactured metal pipe has better wear and corrosion resistant characteristics compared to the traditional wrought metal pipe.
The company eyes sub substantial short, mid and long-term revenue opportunities on the back of more than $300 billion markets in mining, oil & gas, and marine industries towards cost-effective and sustainable AM manufacturing. It also visions new global revenue opportunities in the $264 Billion Pipeline Industry and $88.4 Billion Valve and Fittings Industry.
In December 2018, the company secured an exclusive supply of new price point HDH metal powders with Lasting Titanium, opening up new commercial opportunities for commercially viable titanium products across multiple industry sectors. Titomic has also secured aerospace grade PREP metal powders with Sino-Euro to develop for TKF systems. Now, Sino-Euro will reportedly be the distributor of TKF systems in China.
As per the company’s information, Phase II with TAUV commenced delivering prototypes and feasibility reports for five products (soldier systems & sensors category) manufactured using Titomic Kinetic Fusion. Upon successful completion of Phase II will begin Phase III for five products’ production trials.
Titomic will be exhibiting its latest applications at international aerospace and defence exposition of Australia, Avalon 2019. The company believes Avalon will provide a valuable platform to own TKFs unique additive manufacturing capabilities for the aerospace industry and further ongoing customer discussions towards revenue opportunities.
Titanium is the reportedly considered as fourth most abundant metal on earth. It has many characteristics that make it highly desirable for use in industrial production, however, issues with its cost, supply, and fulfilment has meant the adoption of Titanium for general manufacturing has been limited to high-value products, for example, Aerospace and Defense.
On 8 February, TTT stock price surged by 6.28% to last trade at $2.220 on 8 February 2019. The stock has massively moved up by 60.58% over the past 12 months.
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