This paper presents the development of a new technique for the production of abrasive turbine blade tips by direct laser processing. This superalloy cermet component is an integral part of the low-pressure turbine sealing system in a demonstrator engine. Direct laser fabrication of this component from a bed of loose powder results in significant cost savings and improved performance over the currently employed production technique. The technology has been demonstrated by fabricating a prototype lot of 100 blade tips, which will be subjected to an engine test. This is the first instance of a direct fabrication method applied to the production of functional engine hardware.