Based in Knowsley, Surface Transforms is a specialist manufacturer of carbon fibre reinforced ceramic brake discs for high performance cars and has secured a new £20m deal in the US. Tony McDonough reports
Merseyside automotive supplier Surface Transforms (ST) has secured a £20m with a major US carmaker to supply its carbon fibre brake discs.
Based in Knowsley, ST has established a niche as a specialist manufacturer of carbon fibre reinforced ceramic brake discs for high performance cars. One of the models its supplies brake discs for is the Aston Martin Valkyrie.
In July, the company reported a 34% rise in revenues to £1.2m for the first half of 2021. And, following a string of new contract wins, the business expects profits and revenues to grow significantly over the next five years. As of April its order book stood at £43m.
Now the firm has been informed by a major, but unnamed, US automotive giant that it is to be a tier one supplier of a carbon ceramic brake discs. All terms have been agreed and the customer will now be called OEM (original equipment manufacturer) 10 by ST.
Specifically, the selection is for ST to be the supplier of the carbon ceramic brake discs 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 £20m starting in mid-2024. Annual revenue is estimated to be approximately £5m a year from 2025 to 2027 inclusive, with approximately half that sum in 2024 and 2028.
Earlier this year ST completed a successful £19m fund raising as well as securing a £1m Liverpool City Region Combined Authority loan as it looks to expand its production capacity and create more jobs. It said on Tuesday that is expects to announce further contract wins in the coming months.
Chief executive Kevin Johnson said: “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.”