Source: Surface Transforms announcement
LIVERPOOL, U.K. – Surface Transforms, which manufactures next-generation carbon ceramic brake discs for the automotive and aircraft industries, has raised £20m in funding to expand its manufacturing capacity and meet growing demand from automotive customers in a financing round led by Zeus Capital.
The funding follows a successful 18 months for Surface Transforms in which it has secured contracts to supply brake discs for five new vehicles from four major automotive manufacturers, providing an expected revenue pipeline of £43m. The company is also increasingly confident of securing at least two new contracts in the near future.
Based in Knowsley, Liverpool, Surface Transforms will use the monies raised to construct a new production cell at its 55,000-sqare-foot manufacturing facility, enabling it to fulfil demand from new and existing customers.
Revenues Set to Soar at Surface Transforms
It will also use the funds to improve machinery at its existing production cell and invest in working capital, giving the manufacturer the flexibility to respond to new opportunities and requirements quickly.
With manufacturers including Audi, BMW, Jaguar, Nissan and Volkswagen now offering carbon ceramic brake discs on selected vehicles, the market is set for major growth. Surface Transforms estimate the target market to be worth approximately £2 billion and is subject to multiple drivers including technological and environmental benefits compared to traditional iron discs, and the desire of automotive manufacturers to increase competition in a market that is currently dominated by SGL Brembo.
David Bundred, Non-Executive Chairman of Surface Transforms, commented, “this funding will enable the Company to move to the next stage of its development – the building of OEM Production Cell Two will provide revenue capacity of £35 million at Knowsley from 2022, and enabling us to fulfil contracts we are confident of being awarded in the near future.”
Kevin Johnson, Chief Executive Officer of Surface Transforms, added, “this decision to invest ahead of contract award reflects both our confidence in the strength of our pipeline – and our realisation that the new disruptive OEMs operate to different timescales than our other customers. The automotive industry is changing with electric vehicles central to this, and we are delighted to be a part of it.”