Here's why the FBR (ASX:FBR) share price is rocketing 8% on Wednesday

The company's shares are on the move today…

The FBR Ltd (ASX: FBR) share price is accelerating to an 8-month high today. This comes after the robotics company announced plans to bring its Hadrian X to the United Arab Emirates.

During late morning trade, FBR shares are travelling 8.33% higher to 5.2 cents.

A young male builder with his arms crossed leans against a brick wall and smiles.

Image source: Getty Images

What did FBR announce?

The FBR share price is surging after investors appear to be upbeat about the company's future prospects.

In its announcement, FBR advised that it signed a Memorandum of Understanding (MoU) with the United Arab Emirates (UAE) Ministry of Energy & Infrastructure.

Under the framework, both parties will conduct a joint feasibility study of the Hadrian X in the UAE construction sector. Expected to take 12 months, the study will look at identifying opportunities for the adoption of FBR's robotic construction technology.

The long-term plan for FBR is to establish its 'Wall as a Service' (WaaS) offering to facilitate the introduction of Hadrian X. The WaaS adopts modern building methods, smart support systems and other construction technologies in the housing and construction industry.

FBR noted that the UAE government is looking to invest $4.7 billion for 23,000 new residential units within five years. Despite COVID-19, the residential construction market is said to remain resilient in the UAE.

FBR managing director and CEO, Mike Pivac commented:

This MOU reiterates our commitment to the GCC region by establishing a framework for cooperation with the United Arab Emirates Ministry of Energy & Infrastructure.

The innovative thinking and appetite for new technology in the UAE presents an ideal environment for the introduction of our robotic technology to a new market, and the work that we've been doing to achieve acceptance of the Hadrian X and the Fastbrick Wall System in the UAE over the past three years is beginning to yield results.

With our Gulf representative embedded in the Dubai market since 2018, we have a firm intention to offering our solution to the region's construction challenges.

Quick take on FBR

FBR is a robotic technology company that builds robotic arms to assemble structure walls. It is considered faster, safer, more accurate and with less wastage than traditional bricklaying methods.

Its flagship product, the Hadrian X is an automated bricklaying system that can lay an estimated 1,000 bricks per hour as opposed to an output of two human bricklayers for the whole day.

The Hadrian X provides a 'wall as a service' and can adapt quickly to builder demands.

FBR share price snapshot

Over the past 12 months, the FBR share price has provided shareholders with little gains, up 8% for the period. The company's shares hit a low of 3.5 cents in October, before reaching a high of 6 cents last week.

FBR commands a market capitalisation of around $114.72 million and has 2.20 billion shares on its books.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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