Specialty metals developer and manufacturer IBC Advanced Alloys (TSXV:IB,OTCQX:IAALF) and Nu-Cast, an aluminum investment casting company, signed a memorandum of understanding (MoU) that "outlines the framework for increasing manufacturing capacity and improving production efficiencies of IBC's proprietary near-net-shape beryllium-aluminum castings." The MoU will see the two companies collaborate on new beryllium-aluminum investment casting projects for the aerospace industry. IBC has a family of beryllium-aluminum alloys — Beralcast® alloys — that overcome the limitations of pure beryllium and existing aluminum alloys. According to the company, these alloys can be used in most high-performance applications that require complex, lightweight and high-stiffness parts. They can also be used as a lower-cost replacement material for cast aluminum, magnesium, titanium, other metal matrix and non-metallic composites, as well as pure beryllium or powder metallurgy beryllium-aluminum. IBC has a successful casting history with over 250,000 castings produced to date. Having identified significant growth opportunities in the aerospace market, among others, the agreement with Nu-Cast will make use of each company's skills to take advantage of opportunities in both sector and application growth. Per IBC's latest press release, both companies have "identified opportunities to improve manufacturing and marketing efficiencies for beryllium aluminum castings to support future growth. Nu-Cast has extensive experience with aluminum investment castings that will complement IBC's beryllium aluminum casting expertise." Nu-Cast's president, Don McKitterick, discussed the individual strengths of both companies and how their synergies complement each other. "Nu-Cast has successfully served the aerospace sector for almost three decades and is an excellent complement to IBC's technology, team and corporate vision," he said, adding that "[b]eryllium aluminum alloys have a long history of superior performance in aerospace sector," and that "[b]y combining IBC's propriety and cost effective castings with Nu-Cast's manufacturing and marketing experience, we believe there is enormous potential for growth and we look forward to working with IBC on this opportunity."
Echoing McKitterick's statement, Anthony Dutton, president of IBC, said "[t]here are many immediate synergies between IBC and Nu-Cast where we can share our respective know-how to better serve the aerospace industry." He also noted, "[w]e are delighted to work with Nu-Cast, who has a long and distinguished track record in the aerospace business, and to mutually increase opportunities for Beralcast® in the aerospace sector and other industries requiring high performance precision castings."On the back of today's news, shares of IBC Advanced Alloys rose 34.48 percent, to $0.195. Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned. PROJECT UPDATE: IBC Advanced Alloys Signs MoU with Nu-Cast from Aluminum Investing News