XTEK Ltd (ASX:XTE) has today officially opened its new, advanced state-of-the-art ballistic manufacturing centre in Adelaide, South Australia.
The investment in the manufacturing centre ensures XTEK is on track to capitalise on the significant upside value opportunities of its high-margin ballistic armour and advanced composite solutions.
This opportunity is further enhanced by XTEK’s recent expansion into the US market through the acquisition of HighCom Armour, with well-established networks and relationships that can be leveraged globally.
“Significant milestone and value inflection point”
Managing director Philippe Odouard said: “I am delighted to share this event with the industry and put our new centre on show.
“The completion marks a significant milestone and value inflection point for XTEK, enabling us to produce commercial quantities of our high-quality ballistic products.
“This is a huge opportunity to distribute our high-margin ballistic solutions in Australia and export globally, by leveraging our well-established US distribution network.”
Strong demand expected for ballistic armour plates
Odouard continued: “We continue to work towards commercial-scale orders, progressing the long-standing relationships we have developed with potential major customers globally as they near the end of the testing and validation process.
“The reception we received from the launch of two XTclave™ manufactured products earlier this year at SHOT Show® in the US was incredibly pleasing and we expect a strong demand for our market-leading ballistic armour plates and helmet shells from global customers.”
XTclave™ US product delivery expected shortly
The XTclave™ manufactured armour plates and helmet shells are undergoing comprehensive testing and validation processes with potential major customers.
Some of these testing and validation processes are nearing completion, which provides a clear commercialisation pathway with large contracts and strong margins.
XTEK is targeting production capacity of up to around A$20 million in revenue, ramping up in the next few months.
The first delivery of products for US customers is expected shortly.