Titomic leverages Australia’s untapped green tech potential
Titomic (ASX: TTT) is an additive manufacturing company that showcases Australia’s potential in advanced, green technology. Titomic specialises in 3D printing high-performance metals for the same cost of traditional manufacturing. As well as producing metals, Titomic conducts its own Research & Development.
Titomic (ASX: TTT) is an additive manufacturing company that showcases Australia’s potential in advanced, green technology.
Titomic specialises in 3D printing high-performance metals for the same cost of traditional manufacturing. As well as producing metals, Titomic conducts its own Research & Development.
“We can conduct that research in-house to a very high level of validation, but more importantly, we get to deliver it to industry not just as validation, but as actual, tangible improvements in affordability, productivity and performance” says MD Jeff Lang.
This blended model gives Titomic a unique advantage. It researches and develops long-term projects while it generates strong short-term revenue through sales and production.
Defence is a key revenue stream for Titomic. The bulk of its work is in titanium production for land vehicles, frigates and submarines.
At the start of this year, Titomic also signed a $25 million contract to build new machines for an international defense supplier. Titomic may soon have more opportunities in defence as the US shifts defence production out of China and into countries like Australia. To prepare for this growth, Titomic is working towards clearance for highly classified projects.
Due to international supply chain disruptions, Titomic has also seen growth in commercial interest from railways and mining.Titomic is using these circumstances to create a stronger link between Australia’s resources and the rest of the value chain.
“We export titanium dioxide at around $400 a tonne. Then we import titanium powder for 3d printing back in at $200,000 a tonne. Now if we’re producing that titanium powder in Australia, we could end up with hundreds of billions of dollars in potential revenue” says Jeff.
“We’ve got to focus on building value chains around our natural assets, better sustainable management of our resources, and most importantly, for future generation.”
Titomic’s technology reduces CO2 footprint by 60% compared to most metal production. This sustainable solution puts it in a good position to benefit, as Europe shifts $40 trillion out of oil and gas and into green tech.
But, as Jeff says, this rapid shift puts further pressure on an already stressed global supply chain. He says that’s why Titomic works with traditional industry to find practical green tech. Right now, that’s the kind of support the supply chain needs. As a result, business is better than usual for this Melbourne-based company.
“We’re looking at considerable growth. We are currently negotiating another $6 million worth of sales and we should close a few of them up in quarter 4 this year.”
“We’re seeing the foundational work we did over the last two and a half years coming to bear. We’re seeing a huge amount of interest coming towards us from multiple industry sectors. It’s not just building the immediate revenue returns, but also taking a long term strategic approach. We’ve built that robust structure and so now we have a very solid foundation to continue to grow our business.”
Watch a recent investor briefing with Jeff Lang below.
Recorded 12 August 2020 at 12pm.
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