Perth-based high-speed welding technology company K-TIG (ASX: KTG) has signed a five-year agreement with British welding automation manufacturer and integrator Key Plant Automation to distribute its products in the UK.
The agreement follows on from a similar deal signed between the strategic partners in January to fast-track K-TIG’s US expansion.
Under that deal, the companies agreed to work closely together to develop and pilot an integrated sales model using K-TIG’s direct sales team and Key Plant’s business development resources to target the US market.
Under the terms of the today’s announcement, K-TIG and Key Plant will establish an advanced manufacturing demonstration facility with in-house capabilities to showcase a turnkey solution for the world’s nuclear decommissioning efforts.
In 2019, K-TIG signed on as a member of the UK’s Nuclear Advanced Manufacturing Research Centre and will be an active participant in the $1.39 trillion spend on the decommissioning of nuclear facilities through to 2050.
Key Plant will agree to distribute K-TIG’s welding products to customers across the UK as part of its turnkey solutions offering; and K-TIG will provide those same customers with sales leads.
K-TIG will establish a UK-based direct sales force which will work with all distribution partners to enhance brand awareness and create new sales opportunities.
The new distribution arrangement will provide a strong platform for K-TIG’s growth in the UK and wider European Union markets.
Advanced welding benefits
K-TIG managing director Adrian Smith said the UK distribution agreement will allow customers to see the benefits of the company’s advanced welding technology.
“This is an important step in growing our network of quality partners within the UK and Europe,” he said.
“[We believe] K-TIG welding technology paired with Key Plant automation systems will offer unparalleled quality, cost savings and increased output capacity for customers.”
Mr Smith said agreement would be supported by the recent appointment of a general manager for the company’s UK and European business as well as a direct sales force to be established in coming months.