Why the FBR (ASX:FBR) share price surged 10% higher today

The FBR Ltd (ASX: FBR) share price shot up 10.4% in early trade following the company's announcement of a pilot program agreement.

| More on:
robot dab indicating a rocketing ASX share price

Image source: Getty Images

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 shot up 10% in early trade today after the robotics company announced a new pilot program agreement.

At the time of writing, the FBR share price has retreated slightly to 5.1 cents, up 6.25%.

What did FBR announce?

In today's release, FBR advised that it has signed a pilot program contract with Xella Technologie- und Forschungsgesellschaft mbH (Xella).

Based in Germany, Xella specialises in developing, manufacturing and marketing building and insulation materials. The company is known to be one of the world's leading suppliers of Ytong autoclaved aerated concrete (AAC) and Silka calcium silicate blocks (CSU).

Under the agreement, Xella will supply AAC and CSU blocks to FBR in order to build two houses using its Hadrian X bricklaying robot. 

Building blocks

Ytong AACs are a lightweight, precast, foam concrete building material comprising of sand, water and air. Much larger than the traditional bricks, the masonry block is extremely versatile because of its load-bearing capacity.

Silka CSUs on the other hand are known to be environmentally friendly, sound absorbent, low compression, fire-resistant, weatherproof building blocks. The latter are already in use across the world in care homes, student accommodation, hotels, apartments, schools, and other structures.

Once the structures have been completed, both companies will review the work and see if any improvements can be made. This will include any changes to the blocks themselves, the adhesives used, or any potential Hadrian X modifications.

The partnership will be used to lay groundwork for a European pilot building program, in hopes to lead to commercialisation. FBR said both companies will seek to understand the capabilities of each other's products and COVID-19 logistical constraints.

Management commentary

FBR managing director and CEO Mike Pivac welcomed the partnership, saying:

We are very pleased to be working with another high-quality block supplier with global reach as we continue to commercialise our automated bricklaying technology. Xella are known for their innovative products, and we are looking forward to working with them to progress the global scaling of the Hadrian X.

FBR share price snapshot

The FBR share price has had a rollercoaster run over the past 12 months.

The company's shares hit a low of 1 cent in March, before reaching a high of 10.5 cents in August. However, the FBR share price has since fallen to level at the same point as this time last year.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another shaky day for ASX shares this Tuesday.

Read more »

forklift holding boxes next to upward trending arrow signifying share price lift

If you don't own this ASX stalwart stock, you're missing some serious stability

This stock is riding strong tailwinds, I really like its outlook.

Read more »

ETF spelt out on cube blocks with rising arrows.

Are these record-breaking ASX ETFs now too expensive to buy?

Should you ever buy an ETF at an all-time high?

Read more »

Two parents and two children happily eat pizza in their kitchen as a top broker predicts a 46% upside for the Domino's share price
Consumer Staples & Discretionary Shares

Buy Domino's shares for a 50% return and attractive dividend yield

Morgan Stanley believes investors should be grabbing a slice of this stock.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today

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

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why DroneShield, Healius, Newmont, and Paragon Care shares are pushing higher

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

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Why are ASX lithium shares like Pilbara Minerals crashing on Tuesday?

Lithium stocks are getting another whack today.

Read more »

two colleagues high five each other as they sit side by side at a long desk in front of their laptop computers in an office environment.
Mergers & Acquisitions

Guess which ASX small cap stock is rocketing 27% on 'transformative' merger

Investors are liking the look of this merger plan.

Read more »