K-TIG enters carbon steel market, closes in on 52-week high
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Welding technology manufacturer K-TIG (ASX:KTG) is set to enter the US$800 billion carbon steel market, after successfully developing welding procedures for the A516 Grade 70 carbon steel.
A516 Grade 70 carbon steel is a versatile pressure vessel plate that’s well suited to low and moderate temperature applications. It’s one of the world’s most in-demand high strength, low alloy materials used in heavy industries such as petroleum, chemical and nuclear energy.
K-TIG said the new welding technology has been “independently verified and certified to globally recognized American Society of Mechanical Engineers (ASME) standards.”
K-TIG’s share price rose by 6.5% to 49.5c after the announcement, within reach of its 52-week high share price of 51.5c.
The certification will open up opportunities for K-TIG to begin tapping into the global market for carbon steel. According to reports, the carbon steel market is eight times the size of the stainless steel market – valued at US$887 billion in 2019 and will grow at 3.4% per year to 2027.
K-TIG said that today’s development is just the tip of the iceberg, with the company now poised to develop new welding procedures for other types of carbon steels.
“This independently verified A516 steel result proves that K-TIG technology can be successfully used to weld the many other carbon steels with similar chemistry that are prevalent in industry,” said K-TIG manager of Welding Research and Development Dr Zhenyu Fei.
Today’s development is also the first and crucial step towards the commercialisation of K-TIG’s advanced keyhole welding technology.
In January, the company has already signed a reseller agreement with US-based Key Plant to distribute its products to new clients across aerospace, defence and oil and gas industries.
Back home, K-TIG has also made significant progress – signing contracts last June with leading Australian defence contractors to participate in the Australian Defence procurements estimated to be worth $10 billion – $15 billion.
Investors have taken notice of K-TIG’s quick progress over the past year. Its share price has been riding on a momentum for the last 12 months, rising by around 170%.