OSLO, NORWAY: Norsk Titanium continues progress towards expansion in the commercial aerospace market. The company is awaiting final qualification approval of its RPD technology for serial production of titanium parts for delivery to tier-one suppliers of Airbus, which is expected in the first half 2023.
President and CEO Michael Canario will be hosting meetings today with investors in Oslo, as Norsk Titanium continues to evaluate strategic opportunities to secure additional long-term funding while the company begins to ramp up production during the first half of 2023.
“We are very pleased with our progress with Airbus. Upon final qualification approval of our technology, we could quickly expand our backlog with serial production of parts under multi-year contracts. The building of a backlog with Airbus and other commercial aerospace customers will represent significant de-risking of our business plans,” says Canario.
Upon successful final qualification, Norsk Titanium will supply up to a total of 300 parts across two part numbers to Airbus’ A350 program. In addition, there are ongoing discussions to initiate serial production in 2023 of two similar sized parts and one larger part on the same aircraft program.
Hittech, a critical supplier to the semiconductor industry, recently awarded the company an order for serial production of ASML carrier trays. This is another significant milestone supporting Norsk Titanium’s long-term vision of innovating the future of metal alloy manufacturing, and the transition from a strong technology position into large commercial opportunities across the commercial aerospace, industrial and defense industries.
The company reiterates its previously indicated revenue target of USD 150 million in 2026, with a capacity utilization of approximately 50% of existing production facilities. The scope of the contract with Hittech and the potential orders from Airbus tier-one suppliers indicate a revenue level of USD 7-15 million for this year, with the timing of the ramp up of production explaining the deviation from the previously indicated target of USD 15 million for 2023. Please find enclosed an updated corporate presentation which will be used in today’s investor meetings.