The Titomic Ltd (ASX: TTT) share price is surging to incredible highs on Wednesday following a positive company announcement.
At the time of writing, the metal additive manufacturing company's shares are up 19.44% to 21.5 cents.
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What did Titomic announce?
Investors are driving up the Titomic share price on the back of the company's latest collaboration.
According to its release, Titomic has signed a joint venture agreement with United Kingdom-based engineering group, Neos International.
Under the deal, Neos will provide it services in creating an advanced joint-manufacturing facility in Halesowen, England.
Notably, this will become the world's first large-scale additive manufacturing facility to produce and sell Invar36 faceplate.
Containing 64% iron and 36% nickel, Invar is used in a variety of applications such as aircraft controls and electronic devices.
In order to build the facility, Titomic will sell a Titomic Kinetic Fusion (TKF) System to Neos for $2.4 million.
The TKF uses a supersonic cold gas dynamic spray of metal powders to create industrial-scale metal components. An Invar tooling-specific TKF includes the following benefits:
- Additive manufacture instead of subtractive manufacture of tooling from billet, which reduces material waste by 80%
- Repair of existing tools which significantly cut maintenance and replacement costs
- Reduced porosity compared to tooling manufactured by casting leading to an increased product lifespan
- Improved lead times
Commenting on the partnership agreement, Titomic managing director, Herbert Koeck said:
The Neos Titomic Joint Venture will provide world-leading Invar tooling manufacturing capability through additive manufacturing. It is the culmination of years of research and development, dedication, and focussed commercial execution.
Since late 2020, we've worked diligently alongside Neos to develop best-in-class technology – technology that will redefine the possibilities for tooling manufacture and cold spray.
This is one of many partnerships we look to scale, as we establish ourselves as the only global supplier of low, medium and high-pressure cold spray systems, opening up new opportunities across the aerospace, space, defence, automotive, and nuclear industries.
Titomic share price snapshot
Despite today's gains, the Titomic share price is down almost 60% when compared to this time last year.
The company's shares touched an all-time low of 16 cents late last month before recovering some lost ground.
On valuation metrics, Titomic presides a market capitalisation of around $34.32 million.
