Tekna receives major orders totalling CAD 5.2 million for titanium material
ARENDAL, NO / SHERBROOKE, QC. - Tekna (OSE: TEKNA), a world-leading provider of advanced materials and plasma systems to industry, is pleased to announce the receipt of three orders valued at a total of CAD 5.2 million for titanium powder used in metal injection molding (MIM).
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The orders involve the supply of titanium powder specifically designed for MIM applications, to Tier 1 component manufacturers based in Asia. This grade of titanium manufactured by Tekna is ideally suited for MIM. The customers will utilize the powder for mass-producing sub-components, such as digital watch cases, hinges, and buttons. Deliveries for these contracts are scheduled for 2025/26.
"These sales have historically been strong contributors to our cash flow, and it is reassuring to now have multiple customers for this material, signalling an increase in demand and potential for margin improvement,” said Luc Dionne, CEO of Tekna.
“These orders are for material consisting of smaller particles from our existing powder production, which is partly available in our inventory and partly from ongoing production. It plays a key role in our strategy to maximize sales from Tekna’s entire production yield. Through collaboration with our customers, we have successfully qualified this smaller cut size for MIM, improving resource efficiency, increasing sales yield, and significantly expanding our market share within the consumer electronics components industry” said Rémy Pontone, VP Sales and Marketing.
“Arendals Fossekompani is pleased to see the Tekna team’s efforts rewarded with these three newly secured contract orders for the smaller cut size. This both highlights the growing demand for tekna titanium powder as well as the company’s commitment to smart utilisation of their production,” says Ann-Kari Heier, EVP at Arendals Fossekompani and Tekna board member.
MIM is a manufacturing process that blends fine metal powders with a polymer binder to create a feedstock, which is then injected into a mold and sintered to form the desired shape. This process offers several advantages, including the ability to quickly manufacture complex shapes with high precision, while using considerably less raw material compared to traditional machining methods.
Metal powder production processes naturally result in a wide distribution of particle sizes *2. These powders are then separated into different cut sizes, each resulting in a distinct product.
*1: Tekna supplies additive materials to the consumer electronics market, which should be distinguished from its efforts to enter the microelectronics industry (“MLCC”) with nano materials
*2: For further information on the distribution of particle sizes, please refer to Tekna’s Q3 2023 interim report.