FBR signs $7.8m Hadrian X robotic bricklayer deal with Habitat as NT housing shortage continues

FBR (ASX: FBR) will supply its Hadrian X mobile robotic bricklaying system to Northern Territory builder Habitat (NT) to help speed up construction of new-build housing in the region.

Habitat has placed an initial purchase order for one Hadrian X unit at a cost of $7.8 million, with a deposit of $780,000 due within 14 days of a definitive agreement and the remainder payable within 30 days of factory acceptance testing.

Habitat will use the system in constructing Besser block structures for new homes and defence infrastructure to supplement the capacity of manual bricklayers and accelerate the overall rate of construction in the NT.

Agreement terms

Under the terms of the agreement, FBR will provide Habitat with licensed access to its proprietary architectural software, which is core to the Hadrian X system.

It will also provide operations and maintenance training to Habitat personnel in Perth and remote information technology support under a future service level agreement.

Habitat is a construction and development company based in Darwin with a substantial pipeline of building work comprising residential and defence projects.

Meeting demand

FBR chief executive officer Mark Pivac said the company’s flagship construction robot would help the industry meet demand.

“It is exciting to be selling our world-first Hadrian X robot into the NT market to help solve the housing crisis,” he said.

“Habitat is an innovative and proactive builder that is well positioned to operate this system, and I look forward to a successful long-term relationship.”

Housing shortage

The NT is experiencing a significant housing shortage and a substantial deficit in its capacity to supply new housing at the rate required to meet forecast needs.

Analysts believe the HomeGrown Territory Grant — launched this year to offer first home buyers $50,000 towards building or buying a residence — has boosted demand.

Major infrastructure upgrades at the Robertson Barracks located 15 kilometres east of Darwin and Bradshaw Training Base, 600km to the south, have placed added demands on the local construction industry.

Shipbuilding agreement

FBR has also signed an engineering service agreement with Samsung Heavy Industries to deliver Phase 1 of a shipbuilding automation project.

FBR will receive US$150,000, plus reasonable expenses and any additional fees incurred on a time and materials basis, to develop and conduct a physical demonstration and validation of a core technology module of a shipbuilding construction robot.

Mr Pivac said the companies would collaborate on commercialisation business models for the shipbuilding robot in preparation for potential subsequent phases.