Titomic (ASX:TTT), thinks it has the technology to revolutionise metals manufacturing.

Recent progress has been slow, but the company has made a deal with the CSIRO which it says is cause for optimism.

In exchange for a fee, Titomic will gain exclusive global rights to two patents for the production of metal pipes.

The patents will give Titomic more opportunity to leverage its manufacturing technology, which includes the world’s biggest 3D printer.

Following the announcement, shares in Titomic are up more than seven per cent in early trade at $2.22. The company went into a trading halt on Wednesday ahead of this morning’s update.

Kinetic Fusion

Titomic’s 3D printer is impressive — it can whip up a metal bike frame in 25 minutes.

And the company says that gives it a huge opportunity in metals manufacturing — specifically, titanium-based metals.

When combined with different metals, titanium becomes significantly stronger than many types of steel.

And Titomic says that’s where its Kinetic Fusion process — the fusion of different metals types into one product — comes into play.

“TKF produced metal pipe has superior wear and corrosion resistant properties in comparison to traditional wrought metal pipe,” the company said.

Helpfully, the 3D printer technology means you no longer need a huge production and processing plant to do it.

As a result, the company says it’s well placed to compete for market share in the $264 billion market for global pipeline construction.

Patently obvious

In that sense, gaining access to exclusive patents for pipe manufacturing looks like a positive step.

As part of the deal, Titomic will also gain access to CSIRO intellectual property — the result of eight years worth of research, stemming from a 2010 government funding agreement to assist the Victorian manufacturing industry.

To get the patents, Titomic will pay the CSIRO $125,000 up front, as well as a royalty on gross revenues derived from sales of any products made with the licensed patents.

Titomic CEO Jeff Lang told Stockhead that he was unable to comment on the exact nature of the royalty payments, but added that the company will be making “lots of announcements” over the next 6-12 months.

Lang said Titomic will continue to take a patient approach as it validates its proof-of-concept and moves towards commercialisation.

That approach included a “12-month due diligence process on titanium powder quality, which triggered interest among government organisations,” he said.

As it aims to tap into the huge global pipeline market, Titomic says it’s already had interest from companies in the oil & gas, mining and marine industries.

“By adding these two new patents we are broadening our footprint in the Titanium and Titanium Alloys Additive Manufacturing space to firmly secure our future market segments,” Titomic MD Jeff Lang said.

Lang stepped back into the top job in October when the previous CEO, Gilbert Michaca, departed after just six months in the role.

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