The inserts, made from high grade stainless steel, will be made at the company's state of the art facilities at Canning Vale.

The latest order follows on from an initial $500,000 contract awarded by Precision in October last year. At the time, SDS said it expected orders of $2 million per month by early 2003 from Precision.

Last year, SDS Corporation announced a friendly takeover of its Bassendean-based rival International Drill Quip. However, the "friendly" merger soon turned sour when SDS launched legal proceedings against IDQ over its failure to provide information for due diligence to be carried out.

Currently, SDS is launching defamation action against IDQ over an ad the fellow drill equipment maker took out in the local press.