Defence industry company XTEK has received two Department of Defence grants totalling $800,000 intended to purchase new advanced manufacturing equipment and accelerate product development.
The funds, worth $164,268.50 and $658,209.20, were made through the Defence Global Competitiveness programs and the Sovereign Industrial Capability Priority program, respectively.
The ASX-listed company said the funding from the DGC program will be used to purchase a new CNC Virtual Machining Centre to replace outdated equipment.
The new hub will also allow for safer and more complex machining, while reducing the costs of outsourcing and improving productivity.
The company added that this move will streamline new product development and prototyping, as well as support maintenance and production activities at XTEK’s Adelaide site.
Meanwhile, the SICP grant will aid in speeding up product development and prototyping of the company’s “rifle rated” Rifle Combat Helmet (RCH).
The investment, according to XTEK, will be used to buy, install, and commission a new custom helmet pre-forming press, which will double output at this point.
XTEK said the projects will be completed by October 29 this year and May 29, 2024, respectively.
“We are a proud sovereign Australian defence industry manufacturer with a growing global business footprint, said XTEK Group CEO Scott Basham.
“These grants will significantly help us to remain at the forefront of global lightweight and high performance ballistic armour innovation, and importantly to also double the existing production capacity of our unique “rifle rated” Rifle Combat Helmet (RCH), which is now receiving a lot of interest and attention from all around the world,” the CEO added.
In addition to the receipt of the two grants, XTEK announced it just finished work on modifying some crucial elements of its XTclaveTM production equipment and apparatus, which will enable a notable 60 per cent boost in yield per helmet cycle.
