Following a demonstration of disruptive welding technology, one of South Korea’s largest defence manufacturers has quickly appointed K-TIG (ASX: KTG) as their preferred supplier for a major project covering artillery and fighting vehicles.
The Memorandum of Understanding links Hanwha Defence Australia Pty Ltd and Hanwha Defence Corporation with K-TIG which will enable the Aussie welding company to demonstrate its welding technology for advanced steel for military vehicles, including Hanwha’s Huntsman self-propelled howitzer.
“Partnering with Hanwha to create crucial equipment for Australia’s defence is a significant opportunity for K-TIG to deploy the speed, efficiency and effectiveness of our advanced keyhole welding technology, all while helping to create local jobs, develop strategically vital manufacturing skills for the nation, and provide the Australian Army with the self-propelled artillery capability it’s desired for many years,” said K-TIG Managing Director, Adrian Smith.
The agreement will also see Hanwha collaborate with K-TIG to develop automatic welding procedures which would improve Huntsman manufacturing capabilities. This will take place at Hanwha’s facility in Geelong, Victoria.
Altogether, Hanwha will produce 60 of the self-propelled artillery systems locally, along with 15 ammunition supply vehicles.
At present, Hanwha is on a shortlist to win a supplier contract for the Australian Army’s Land 400 Phase 3 project. The contract is estimated to be worth between AUD$18 to $27 billion. Should the South Korean manufacturer be successful in their bid with K-TIG being their preferred supplier for defence tech welding, global opportunities would also be on the agenda with Hanwha being a major player in the global defence market.
For the Half-Year ended 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.
- Universal Biosensors enters collaboration to diagnose cancer from a finger prick - April 13, 2021
- How Bitcoin is assisting this ASX listed eCommerce player - April 12, 2021
- Novatti adds RippleNet processing to digital payment revenue streams - April 9, 2021