FBR share price rockets 30% higher on Brickworks joint venture announcement

The FBR Ltd (ASX:FBR) share price has rocketed higher after announcing a joint venture with Brickworks Limited (ASX:BKW)…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The FBR Ltd (ASX: FBR) share price has been a positive performer this morning.

In early trade the robotics company's shares have rocketed 30% higher to 9.5 cents.

Why is the FBR share price on the rise today?

This morning FBR, formerly known as Fastbrick Robotics, announced that it has commenced its incorporated joint venture with Brickworks Limited (ASX: BKW) subsidiary Brickworks Building Products.

According to the release, the two companies have established Fastbrick Australia as a special-purpose joint venture company with 50/50 ownership between the parties.

The joint venture will provide Wall as a Service to the Australian market and is expected to commence operations shortly with a focus on residential construction.

How does the joint venture work?

Management advised that Brickworks will provide valuable block development services to develop blocks suitable for laying with the Hadrian X bricklaying robot and will have the exclusive right to supply those blocks to Fastbrick Australia within Australia.

Whereas FBR will have the exclusive rights to supply laying services to Fastbrick Australia within Australia through the use of the Hadrian X robot.

In addition to this, Fastbrick Australia will engage with builders to provide Wall as a Service for residential homes in Australia via commercial building contracts.

These Wall as a Service activities are expected to generate the first operating revenues from the commercialisation of FBR's innovative robotic bricklaying technology.

FBR's chief executive officer, Mike Pivac, was very pleased to have a joint venture partner of Brickworks' calibre and appears optimistic on its prospects.

He said: "We are very pleased to have a joint venture partner in Australia with the reputation and scale of Brickworks to jointly offer Wall as a Service to the Australian market. Fastbrick Australia provides FBR with an opportunity in Australia to demonstrate the capabilities of the Hadrian X with the new optimised blocks developed with Brickworks and also to demonstrate and test our business model for the commercialisation of Wall as a Service, which we intend to scale on a global basis. We are looking forward to commencing our first builds on residential sites with the Hadrian X."

Should you invest?

I think this is great news for the company and so I'm not surprised to see its shares race higher today.

However, it is still early days and a touch too soon for an investment for me. I would suggest investors keep their powder dry and see how the joint venture develops over the next 12-18 months before considering an investment.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Brickworks. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Here are the top 10 ASX 200 shares today

It was a horrible way to end the trading week today for ASX investors.

Read more »

Female miner smiling at a mine site.
Share Gainers

Up 834% in a year, guess which ASX mining stock is hitting new all-time highs today

The ASX mining stock has gone from strength to strength over the past year.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Fiducian Group, Northern Star, Paradigm, and Santos shares are charging higher

These shares are avoiding the market selloff.

Read more »

Man pointing at a blue rising share price graph.
Financial Shares

How is this ASX 200 financial stock popping 6% today?

This lucky company has just swung into the green in 2024...

Read more »

a man raises his fists to the air in joyous celebration while learning some exciting good news via his computer screen in an office setting.
Share Gainers

Why BHP, Challenger, Rio Tinto, and Telix shares are pushing higher today

These ASX shares are having a strong session. But why?

Read more »

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 kept up the selling this Wednesday, with another day in the red.

Read more »

Green arrow going up on a stock market chart, symbolising a rising share price.
Share Gainers

Why Bank of Queensland, DroneShield, Evolution Mining, and Lynas shares are storming higher today

These ASX shares are having a very strong session on hump day.

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was mayhem on the markets today, with one of the worst days in a long time for ASX shares.

Read more »