Welding technology developer K-TIG’s (ASX: KTG) expansion plans in the US are progressing with the company revealing its had secured its first distribution partner.
The formal five-year distribution agreement follows a memorandum of understanding with automatic welding and robotics welding provider Key Plant Automation.
Key Plant provides welding solutions to more than 45 countries across pressure vessel, aerospace, defence and oil and gas sectors.
Under the deal, Key Plant and K-TIG will establish a demonstration facility to showcase K-TIG’s disruptive welding technology.
High speed precision welding
K-TIG claims its high speed precision technology welds up to 100 times faster than traditional processes and is up to two times faster than plasma welding.
Australia’s CSIRO originally developed the technology, which can be used across a range of applications and is “well suited” to corrosion resistant metals including stainless steel, nickel alloys, titanium alloys and the “most exotic” materials.
K-TIG owns all the rights, title and interest relating to the proprietary and patented technology.
The technology has also been awarded Australian Industrial Product of the Year and secured the DTC Defence Industry Award.
The agreement with Key Plan combines K-TIG’s technology with Key Plant’s capabilities to create turn-key solutions for customers.
K-TIG managing director Adrian Smith said the jointly developed facility will enable physical demonstration of K-TIG’s technology to new customers across aerospace, defect and oil and gas sectors in the US.
The plant will be built at Key Plant’s head office in Houston, Texas.
“The agreement with Key Plant helps to build K-TIG’s on the ground sales force as well as our US-based spare parts and technical support capability,” Mr Smith said.
“K-TIG sees enormous potential for growth in the US market and our partnership with Key Plant is a way of fast-tracking our expansion in the world’s largest economy,” he added.
Meanwhile, Key Plant US director of automation Michael Keith said the company sees “significant potential” in the US working with K-TIG.