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. –
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.
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