REG - Surface Transforms - £100m New Business Award from OEM 10

Surface TransformsAnnouncement

16/10/2023 07:00

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RNS Number : 1509Q  Surface Transforms PLC  16 October 2023

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 16 October 2023

Surface Transforms plc

("Surface Transforms" or the "Company")

£100m new business award from OEM 10

Surface Transforms (AIM:SCE), manufacturers of carbon fibre reinforced
ceramic automotive brake discs, is pleased to announce that it has been
notified of its selection as a tier one supplier of a carbon ceramic brake
disc to its existing mainstream customer described previously as OEM 10, one
of the world's largest automotive OEMs.

The selection is for Surface Transforms to be the sole supplier of the
carbon ceramic brake disc on both axles of a range of new electric vehicles
with common axles. The award covers vehicles where the product is standard
fitment as well as vehicles where it is an option. The lifetime revenue on
this range of models is expected to exceed £100m with series production
planned for 7 years. The Company expects series production to commence in
2027. The contract is priced in GBP.

 

The vehicle range was part of the Company's substantial prospective contract
pipeline which having now converted increases the value of our awarded
lifetime contracts to over £390m.

 

This OEM 10 contract will require capacity beyond both the current factory
footprint and the phase 2 capacity investment program, forecast to provide
£75m per year sales capacity in 2025. The timing of this award gives the
Company sufficient time to implement the third phase of our capacity expansion
to provide £150m per year of total sales capacity. Planning for this third
phase continues to be actively progressed and updates will be provided in due
course.

Kevin Johnson, CEO commented: "This most welcome nomination, is the Company's
largest to date, deepening our relationship with the customer.  The selection
process was intensely competitive and set against the recent Surface
Transforms production ramp-up challenges. This success further illustrates the
advanced technical capabilities of our products. The trend for follow-on
awards with existing customers is something we have seen across all our
customers. Our healthy prospective contract pipeline is mainly made up of
existing customer programmes and is expected to continue to fuel our growth
and capacity expansion plans into the future".

For enquiries, please contact:

 Surface Transforms plc                                      +44 151 356 2141
 David Bundred, Chairman
 Kevin Johnson CEO

 Isabelle Maddock CFO

 Zeus (Nominated Adviser and Joint Broker)                   +44 203 829 5000
 David Foreman / Dan Bate / James Edis (Investment Banking)
 Dominic King (Corporate Broking)

 Cavendish Capital Markets (Joint Broker)                    +44 20 7220 0500
 Ed Frisby / Abigail Kelly (Corporate Finance)
 Andrew Burdis / Barney Hayward (ECM)

 

About Surface Transforms

Surface Transforms plc. (AIM:SCE) develops and produces carbon‐ceramic
material automotive brake discs. The Company is the UK's only manufacturer of
carbon‐ceramic brake discs, and only one of two mainstream carbon-ceramic
brake disc companies in the world, serving customers that include major OEMs
in the global automotive markets.

The Company utilises its proprietary next generation Carbon Ceramic Technology
to create lightweight brake discs for high‐performance road and track
applications for both internal combustion engine and electric vehicles. While
competitor carbon‐ceramic brake discs use discontinuous chopped carbon
fibre, Surface Transforms interweaves continuous carbon fibre to form a 3D
matrix, producing a stronger and more durable product with improved heat
conductivity compared to competitor products; this reduces the brake system
operating temperature, resulting in lighter and longer life components with
superior brake performance. These benefits are in addition to the benefits of
all carbon‐ceramic brake discs vs. iron brake discs: weight savings of up to
70%, longer product life, consistent performance, reduced brake pad dust and
corrosion free.

The Company is accredited with the London Stock Exchange "Green Economy Mark"

For additional information please visit www.surfacetransforms.com
(http://www.surfacetransforms.com/)

 

 

 

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