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

robot dab indicating a rocketing ASX share price
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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.

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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.

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