MPW signs its first Long-Term Agreement with Embassy
Metal Powder Works Limited (ASX: MPW) has executed a two-year long-term agreement (LTA) to supply Embassy Powdered Metals Inc with pure copper powder for copper infiltration applications, converting the relationship that began with a first purchase order announced in August 2026 into contracted, recurring revenue. The agreement is valued at approximately US$300,000 per annum, representing approximately US$600,000 in contracted revenue over the two-year term, with supply scheduled to commence in January 2027.
When MPW announced Embassy’s initial order in August, the company described it as the expected start of an ongoing relationship. This LTA is the direct follow-through on that commitment, converting what was then its largest order to date into a multi-year supply arrangement.
Embassy’s initial order, a US$200,000 pure copper powder purchase announced in August 2026, represented MPW’s first commercial entry into the copper infiltration segment and its largest single order at the time, setting the foundation for the contracted arrangement that followed.
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What copper infiltration is and why it matters
Copper infiltration is a well-established powder metallurgy process in which copper powder is used to fill the natural pores that exist in press-and-sintered (P&S) components. The result is a denser, stronger part with improved dimensional precision, making it a standard technique across industries that demand tight tolerances and reliable mechanical performance.
Press-and-sinter is itself a high-volume industrial manufacturing method used widely in automotive, tooling, and industrial components. A metal part is formed by compressing metal powder into a mould, then heating it (sintering) until the particles bond together. Copper infiltration is one of several processes used to refine the output of that method.
For MPW, this LTA marks an entry into a second distinct sub-segment of the P&S market. The company already supplies pure copper powder for add-mix copper applications within P&S. With Embassy now contracted for copper infiltration, MPW operates across two separate P&S sub-segments from the same core product. Each sub-segment represents an independent revenue channel, which reinforces the commercial scalability of the company’s copper powder offering without requiring a fundamentally different product.
Agreement terms and what the pipeline signals
The key commercial terms of the LTA are summarised below.
| Agreement Detail | Specification |
|---|---|
| Agreement type | Long-term agreement (LTA) with standard commercial and industry-standard clauses |
| Duration | Two years |
| Product | Pure copper powder |
| Annual value | Approximately US$300,000 |
| Commencement date | January 2027 |
Supply under the LTA is scheduled to commence in January 2027, ahead of MPW’s previously announced accelerated DirectPowder™ capacity expansion program. The company noted that the capacity expansion program was designed alongside its recently onboarded sales team and commercial strategy, with contracted wins of this type precisely the anticipated outcome. The Embassy LTA now forms part of the contracted demand base underpinning that capacity rollout.
The accelerated capacity expansion program pulled MPW’s 800 MT installed capacity target forward from CY2028 to 1H CY2027, funded entirely from existing cash across a committed eight-machine build-out at a total capital cost of approximately US$2.0 million.
MPW also noted that the velocity of Embassy’s conversion from first order to LTA, combined with the size and momentum of its current pipeline, validates the rationale for the capacity expansion program.
John Barnes, Founder and Managing Director
“When we announced Embassy’s first order in August, we said it was the start of what we expected to be an ongoing relationship. This agreement is that expectation being realised: a two-year contract, in a segment we’ve only recently entered. We are doing what we said we would do. Agreements like this are exactly the kind of demand our accelerated capacity is being built to support.”
Building a contracted revenue base across multiple segments
The strategic significance of this LTA sits beyond the contract value itself. MPW now holds contracted supply arrangements across two distinct sub-segments of the P&S market, specifically add-mix copper and copper infiltration. That dual presence demonstrates repeatability in its commercial model rather than reliance on a single application or customer type.
The pattern is worth noting for investors tracking the company’s commercial progress: qualification, followed by an initial order, followed by a long-term agreement. The Embassy timeline is the clearest executed example of this conversion model to date.
Central to MPW’s commercial position is its patented DirectPowder™ process, a non-thermal powder production method that converts premium bar stock into specification-grade powder without melting. The process is designed to improve yield, flexibility, and affordability, and has produced more than 30 specification-grade metals and alloys across aluminium, copper, titanium, and specialty material families.
The company operates its manufacturing base in Pittsburgh, USA, and targets applications across both additive manufacturing and advanced industrial end markets. With contracted demand now established across two P&S sub-segments and capacity expansion underway, the Embassy LTA adds a concrete data point to the company’s progress toward a broader contracted revenue base.
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