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Source: Surface Transforms announcement
KNOWSLEY, U.K. — Surface Transforms (AIM:SCE), manufacturers of carbon-fiber-reinforced-ceramic brake discs, announced 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 5. Prototype orders have been received and are being fulfilled. All terms and conditions have been carried over from the master purchase agreement with this customer signed in mid-2019.
The lifetime value of the contract is expected to be approximately €5 million spread over the five years from 2024 to 2028.
Last month the company revealed it had signed an agreement to be a tier-one supplier for an American auto manufacturer with a contract value at approximately £20 million during its 2024-28 lifetime.
Related post:
Surface Transforms Lands U.S. Tier 1 Deal
The car is a facelift to an existing internal-combustion-engine model with start of production in the first quarter of 2024 and Surface Transform’s brake discs will be fitted as an option to the front axle.
The contract will not have a significant impact on Surface Transforms production capacity and was part of the expectations outlined during the company’s February 2021 fund raising.
However, separately, the Company has been reviewing its manufacturing capacity strategy with a view to both reducing timescales and costs and a separate announcement is being made today on that subject.
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Kevin Johnson, Surface Transforms CEO, commented:
“The significance of this relatively small contract lies in it being the first example of the implementation of the multi-year “carry over” agreement concluded with OEM 5 at the time of the initial contract award in July 2019. This envisaged further awards, of varying sizes, over several years. A further award in 2020 did not happen because of a Covid induced programme cancellation by the customer. It is good to be now back on track. The engineers in both companies are now working on the next vehicle brake disc that is available for award over the next year. We are greatly enjoying working with this customer and look forward to further deepening our relationship.”
