- Welding technology company K-TIG (KTG) has signed an agreement with Singapore-based Steel-Ti Precision Welding
- The 8-year Welding-as-a-Service Licence Agreement gives access to K-TIG’s high speed welding technology and ongoing cloud support
- Steel-Ti Precision is constructing a manufacturing facility for tankers, vehicles and piping, due to be complete in 2020
- K-TIG is up 5.17 per cent, with shares trading for 30.5 cents apiece
Welding technology company K-TIG has signed an agreement with Singapore-based Steel-Ti Precision Welding.
The 8-year Welding-as-a-Service (WaaS) Licence Agreement gives Steel-Ti Precision Welding access to K-TIG’s high speed welding technology.
The K-TIG technology is up to 100 times faster than traditional TIG welding and can complete a weld that would otherwise take six hours in under three minutes.
In addition, the gas tungsten arc welding process uses only 10 per cent of the gas normally required. Combined with the improved time efficiency, the reduction in gas contributes to reduced costs.
Steel-Ti Precision will use the technology in a manufacturing facility in Singapore, where it will make tanks and vessels for the oil and gas, aviation and shipping industries, as well as piping for the liquified natural gas industry.
The facility, due to be complete in 2020, will supply these products to markets in South East Asia and Japan.
Steel-Ti Precision is owned by the Teo family who operate several businesses in South East Asia, including Pacific International Lines and Singamas.
Steel-Ti Precision Managing Director, Michael Teo has indicated plans to use these networks to expand Steel-Ti Precision in the region.
“We are strategically located in one of the world’s highest-growth regions, we have exceptional commercial networks throughout SE Asia and Japan, and plan to leverage this to grow our welding business exponentially,” he said.
The WaaS model was launched by K-TIG earlier this year and the agreement marks the first for the company in South East Asia.
Under the agreement, the K-TIG technology automatically records utilisation and adjusts the licensing fees in line with production. Steel-Ti Precision will also have access to ongoing cloud support.
K-TIG is up 5.17 per cent, with shares trading for 30.5 cents apiece at 2:50pm AEDT.