This order from CPE Production Oy for use by the Finnish Defence Forces represents a key milestone in XTEK’s ballistic armour commercialisation strategy.
It follows an extensive validation and testing process for qualification purposes by the Finnish Army.
XTEK managing director Philippe Odouard said: “This purchase order represents a key milestone for XTEK in the commercialisation of its proprietary XTclave™ technology.
“The qualification process undertaken, followed by a large order, is a clear execution of our strategy.”
Investors have responded positively with shares more than 12% higher to 67.5 cents intra-day and are up from 39.5 cents at close on March 23.
CPE Production Oy is a supplier of high-performance lightweight ballistic protection solutions to the Finnish Defence Forces and other European defence customers.
In late 2017, XTEK received a small purchase order for samples of its proprietary XTclave™ manufactured Small Arms Protective Insert (SAPI) plates for qualification purposes by the Finnish Army.
Progression through testing
The successful progression through intensive testing and validation has led to this commercial-scale order, providing significant external validation of the quality of the product.
This order demonstrates external validation of the quality and demand for XTEK’s state-of-the-art technology and places the company in a strong position to receive further orders.
XTEK chairman Uwe Boettcher said: “The external validation of our ballistic products and XTclaveTM manufacturing technology demonstrates international demand.
“XTEK has rapidly progressed through key milestones relating to the commercialisation of its ballistic armour products and is in active discussion with other potential customers.”
Well-placed to serve growing demand
XTEK is well-placed to service the growing demand for new generation armour and helmets from domestic and international customers with its new XTclave™ manufacturing centre in Adelaide, providing a commercial-scale manufacturing capability using its advanced composite technology.
Odouard added: “We have worked very hard to ensure that the long customer cycles have progressed in parallel with the construction of the new manufacturing centre in Adelaide, to ensure that the manufacturing capability is utilised as soon as possible – and we are now very pleased to see this strategy successfully executed.”
Since September 2019 XTEK has made a number of key ballistic armour achievements and has a strong outlook:
- September 2019: Acquisition of US armour manufacturer;
- January 2020: Launch of new armour products in the US;
- February 2020: Official opening of the XTclave™ manufacturing centre in Adelaide;
- March 2020: Achieved first Australian order of XTclave™ new generation armour;
- April 2020: Part delivery of XTclave™ new generation armour to Australian customer;
- May 2020: First international order of XTclave™ new generation armour for Finnish Defence Force; and
- By mid-2020: First order for new generation XTclave™ helmets for international customers expected.
XTEK continues discussions with other potential customers and expects to begin exporting of ballistic products to the US in the near-term.