An annular cutter is a special drill used to drill through steel. Like a hole saw for wood, the annular cutter only cuts the outer edge of the hole.It can produce precise burr-free holes to close tolerances without pre-drilling or step drilling. It can drill larger holes with less force and time than a standard twist drill bit. As it rotates, the tool produces chips from the outer cutting edge, and after cutting the hole, the "chips" (round pieces of steel in the center of the tool) fall off.
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