Surface Transforms plc (LON:SCE), manufacturers of carbon fibre reinforced ceramic brake discs, has announced that it has been formally notified of its selection as a tier one supplier of a carbon ceramic brake disc to a major mainstream US automotive company. All terms and conditions have been agreed. Hence forth, this new OEM customer will be described by the Company as “OEM 10”.
Specifically, the selection is for Surface Transforms to be the tier one sole supplier of the carbon ceramic brake disc as standard fit on both axles of a new edition to an existing internal combustion engine car. The previous model already uses carbon ceramic discs and thus the Company’s brake disc is replacing the existing supplier. The lifetime revenue on this specific contract is estimated to be approximately £20 million commencing in mid 2024. Annual revenue is estimated to be approximately £5 million per year from 2025 to 2027 inclusive, with approximately half that sum in 2024 and 2028. The contract is priced in pounds sterling.
The Company expects to publish its half year results for the six months ended 30 June 2021 on 13 September 2021.
Kevin Johnson, CEO commented:
“This is a very significant win for Surface Transforms. The customer is one of the most respected names in the industry and provides a further key reference point for other OEMs. The contract win was one of those anticipated in the recent fund raise, and thus remains within our previously stated capacity requirements. We look forward to further extending our relationship with this new customer.”
Moreover, it is particularly encouraging to note that this award primarily reflects the advanced technical capabilities of our product and provides further validation of our 15 years of technical development.”
We look forward to making further contract award announcements over the next few months.”