K-TIG sets sights on US$800b global carbon steel market with disruptive welding technology

K-TIG (ASX: KTG) is geared up to shoulder into the US$800 billion global carbon steel market after successfully developing welding procedures for the material.

Using its disruptive keyhole welding technology, K-TIG has created welding processes for A516 Grade 70 carbon steel, which is a high-strength, low-alloy steel plate used globally to make critical components for heavy industries.

It is used in industries such as petroleum, chemical and nuclear energy to make heavy duty components such as gas tanks, nuclear pressure shells and turbine volutes.

To work with the carbon steel material, K-TIG adapted its technology for single pass butt welding and multi pass welding using A516 material.

Results were independently verified and certified to globally recognised American Society of Mechanical Engineers (AMSE) standards.

K-TIG managing director Adrian Smith said A516 was one of the most commonly used carbon steels worldwide – particularly in the US.

“Demonstration of K-TIG achieving AMSE Code certified welds is an exciting milestone that further expands the market opportunity for our technology.”

Carbon steel market

AMSE certification paves the way for K-TIG to tap into the global carbon steel market.

K-TIG claims the global carbon steel market is eight times the size of stainless steel and was valued at US$887.7 billion in 2019.

The market is predicted to have a compound annual growth rate of 3.4% between 2020 and 2027.

To secure entry into the broad global market, K-TIG’s strategy is to move into the carbon steel pipe and vessel sectors which are worth about U$60 billion and US$43 billion, respectively.

With the success of welding A516 material, K-TIG manager of welding research and development Dr Zhenyu Fei said the company will look to apply its technology to other carbon steels with similar chemistry and are also prevalent in the industry.

According to K-TIG, the successful welding of A516 carbon steel is a “crucial step forward for commercialisation of K-TIG’s advanced keyhole welding technology”.

Key Plant Automation agreement

As part of its commercialisation plans, K-TIG secured a distribution agreement with US-based automatic welding and robotics provider Key Plant Automation – followed by its first sale into the US nuclear decommissioning sector.

Under the deal with Key Plant, the companies will establish a demonstration facility to showcase K-TIG’s disruptive welding technology.

K-TIG claims its technology welds up to 100-times fast than traditional processes and two-times faster than plasma welding.