XTEK has had a busy week as the company received two orders for its body armour products that are together worth $56.3 million.
The first order, worth $9.5 million, is for the 'rapid supply' of HighCom body armour to an 'undisclosed regional customer'. CEO Scott Basham told ADM that the product will come out of existing inventory, enabling the company to respond to the client's order at little to no notice.
The second order, worth $46.8 million, is for the supply of around 30,000 body armour kits to an 'undisclosed international customer'.
Interestingly, the contract was conditional on pre-payment of the entire $46.8 million (US$33.21 million) - an unusual step that suggests the company perceived a great degree of risk in invoicing the customer after delivery.
XTEK's body armour has previously been sent to Ukraine, according to an April report in the Weekend Australian.
"XTEK can delivery 40 per cent of the order volume for the international customer before the end of June," Basham said to ADM. "We're working overtime to manufacture 2000 plates and 500 helmets per day, with two ten hour shifts taking place five days per week at our factory in Columbus, Ohio. Our ability to meet the order quickly is one reason why the customer chose XTEK."
The company's logistics team is also working to secure the raw materials necessary for the order.
"We want to make sure this manufacturing effort is sustainable for our staff in the coming weeks and months," Basham said.
Basham also disclosed that the company is working on a tender for the Finnish military, where it is an incumbent supplier.