Surface Transforms awarded £20m US contract

Brake specialist Surface Transforms has won a £20m contract as a supplier to a major mainstream US automotive company.

The selection is specifically 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 so the company’s brake disc is replacing the existing supplier.

The lifetime revenue on this specific contract is estimated to be approximately £20m commencing in mid 2024.

Annual revenue is estimated to be approximately £5m per year from 2025 to 2027 inclusive, with approximately half that sum in 2024 and 2028.

CEO 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.”

He added: “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.”