KTEK Aerosystems secures initial US$200,000 Israeli defense order

• KTEK Aerosystems has received a binding US$200,000 order, part of a larger US$994,100 quoted work package.
• The company's share price rose following the contract announcement.
• The contract enters KTEK Aerosystems into an engineering programme with potential future manufacturing scope.

KTEK Aerosystems (ASX:KTK) has received a binding initial purchase order of US$200,000 from an Israeli defence prime contractor to develop an airframe component.

The agreement marks the company's first contract with the customer for a work package valued at up to US$994,100.

The initial US$200,000 purchase order covers preliminary design work over an expected three-month period.

Dekel Keisar, Founder and Managing Director, said, “This initial order is an important step for KTEK. It gives us the opportunity to work with a major aviation prime and demonstrate the design, engineering and manufacturing capabilities we can bring to a complex aircraft programme."

The remaining scope includes US$591,400 for design, US$201,300 for documentation, and US$201,400 for production and testing support over a planned 30-month period.

The company stated that successful delivery may position the business for subsequent airframe manufacturing orders.

Following the announcement, the KTEK Aerosystems share price was up at $0.20.

KTEK Aerosystems specialises in the design, engineering, and manufacture of composite structures and electromechanical sub-assemblies for aerospace applications.

The business previously secured a UAV design and prototype contract with Vestal alongside obtaining a United States export licence.