The PPK (ASX:PPK) share price and 1 other surge on joint venture news

The PPK share price surged up today after it announced a joint venture with Amaero. Amaero share price also rose 14% after the news.
The post The PPK (ASX:PPK) share price and 1 other surge on joint venture news appeared first on Motley Fool Australia. –

ASX share price rise represented by two investors high fiving

Industrial equipment manufacturer PPK Group Limited (ASX: PPK) has announced a joint venture (JV) today with Amaero International Ltd (ASX: 3DA) and Deakin University.

The plan is to develop a new super strength aluminium alloy that can be used in industries seeking materials that are lighter, stronger, and more durable.  These industries include sporting goods, auto racing, aerospace, and defence.

How did the market react?

Both PPK Group and Amaero International’s share prices have surged up amid a broader market rise in the ASX today.

The PPK Group share price was up 8.17% to $5.69 at the time of writing. Meanwhile, the Amaero International share price surged up by 14.05% to 69 cents. At these prices, the companies command a market cap $452 million and $55 million respectively. 

Details of the joint venture

PPK Group says that a new legal company called Strategic Alloys Pty Ltd will be incorporated to undertake this advanced materials project. The new entity will be owned 45% by PPK Group, 45% by Amaero Alloys Pty Ltd (a subsidiary of Amaero International), and 10% by Deakin University.

The new super strength aluminium alloy will include boron nitride nanotubes (BNNT) in its formulation. This acts as a nano-reinforcement in certain metals, significantly improving mechanical properties.

PPK Group said this project would create new intellectual property – along with employment, sales, and exports – for years to come. The research will be undertaken at Amaero’s laboratories in Notting Hill, Victoria, and also at Deakin University in Geelong. 

What did management say?

Commenting on the news, PPK Group executive chair Robin Levison, said:

We are looking forward to working with Amaero on this project, it is an important step in demonstrating the benefits of BNNT additions to alloys that will provide valuable data for clients interested in the unique properties that can be delivered. 

Amaero International CEO Barrie Finnin also welcomed the joint venture, saying:

The joint venture between Amaero, PPK and Deakin University is a new partnership in materials development that will give rise to new intellectual property and create opportunities for high end applications across the aerospace and defence industries as well as some other high performance markets.

The joint venture aims to develop this revolutionary technology in Australia and create new industry, employment, products and exports for many years to come.

The project will start in November 2020, with initial material validation expected in early 2021. 

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post The PPK (ASX:PPK) share price and 1 other surge on joint venture news appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!