High-speed welding technology developer K-TIG (ASX: KTG) has boosted its presence in the prime US market via a distribution agreement with DT Gruelle Group (DTGruelle) which will manage K-TIG’s supply chain in the country.
Under the agreement, Pennsylvania-based logistics provider DTGruelle will manage warehousing and inventory of K-TIG’s welding systems and spare parts packages.
The Pennsylvania company will also handle importation of K-TIG’s equipment into its warehouses and dispatch to US customers upon request.
According to K-TIG, this will reduce delivery times and importation complications by enabling its welding units and critical spare parts to be delivered to US customers in as little as 24 hours.
K-TIG managing director Adrian Smith said the ability to sell ExWorks US is a key milestone for the company.
“Our market is telling us that they want quick delivery of new systems and need access to spare parts same or next day.”
“Our partnership with DTGruelle allows us to deliver on this need and we anticipate that this initiative will allow the company to fully capitalise on the significant opportunities K-TIG has in the US market,” Mr Smith added.
Leasing agreement to complement sales force
As well as the deal with DTGruelle, K-TIG has inked an agreement to lease Westmore Community College’s state of the art Advanced Technology Centre facilities in Pennsylvania.
K-TIG is leasing about 1,600 square feet of workshop and office space, which will become the company’s demonstration and support facility in the US.
The company noted establishing this facility was the precursor to expanding its presence in the US further and securing more distribution agreements.
It is expected these two key agreements will underpin growth and enable “significant opportunities” to be more easily converted into sales.
K-TIG describes its welding technology as “transformative” and “industry disrupting” – changing the economics of manufacturing.
The company says its precision technology welds 100 times faster than traditional processes and operates twice as fast than plasma welding.
It works across a “range of applications” and is suited to corrosion resistant materials including stainless steel, nickel alloys, titanium alloys and most exotic materials.