The Titomic Ltd (ASX: TTT) share price has started the week very strongly.
In morning trade the digital manufacturing solutions company’s shares rocketed 13% higher to 91.5 cents.
Why did the Titomic share price rocket higher?
Investors were buying the company’s shares this morning after it announced an agreement with global technology company Thales.
According to the release, the agreement will see Titomic develop advanced additive manufacturing methods in Australia to support Thales’s development of next-generation soldier weapons systems for the Australian Defence Force.
Under the agreement, Titomic will use its Titomic Kinetic Fusion (TKF) additive manufacturing process to manufacture lighter, stronger, and better performing soldier system components. This is expected to deliver a decisive capability advantage for the next generation Australian soldier.
This has the potential to be a big positive for the company. The Australian Government is aiming to be one of the top 10 defence exporters globally. Management believes this means Titomic is fast becoming a leader in advanced manufacturing technologies for Titanium and other super alloys, utilising its TKF process.
Furthermore, with the extensive research and development previously undertaken by the company for soldier systems now being commercialised with defence primes such as Thales. It feel it validates the unique capabilities of TKF and the potential value chain of titanium from Australian resources.
The company’s managing director, Jeff Lang, was pleased with the agreement.
He said: “We are proud to be partnering with Thales, a global technology leader, in the critical design and manufacture of military products for Australian and UK Defence Forces. This next generation of soldier system products will ensure our armed forces have the latest cuttingedge equipment that is lighter, stronger and higher performing enabling them to deliver mission success in demanding and dangerous environments.”
This sentiment was echoed by Graham Evenden, the director of Soldier Weapons Systems at Thales.
He said: “Partnering with Titomic, to industrialise research outcomes in the development and manufacture of lighter and stronger soldier systems equipment, continues to demonstrate Thales’s commitment to deliver capability advantage to the Australian soldier. While developing a resilient Australian Sovereign Industrial Capability that will pave the way for future export opportunities.”
The post Why this small cap ASX tech share rocketed 13% higher today appeared first on Motley Fool Australia.
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