Business
Production, Capacity and Trading Update
Production, Capacity and Trading Update.
About this update from Surface Transforms Plc
[{"type":"text","content":"\n \n \n The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of \n UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.\n \n \n \n \n \n \n \n \n 3 April 2023\n \n \n \n \n \n Surface Transforms plc\n \n \n (\"Surface Transforms\" or \"the Company\")\n \n \n \n \n \n Production, Capacity, and Trading Update\n \n \n \n \n \n Surface Transforms plc (AIM:SCE) manufacturer of carbon fibre reinforced ceramic automotive brake discs provides the following update on previously reported technical issues, capacity installation, first quarter sales and its outlook for 2023.\n \n \n \n \n \n \n \n \n Resolution of production technical problems\n \n \n \n \n \n \n \n \n The Company is pleased to inform shareholders that the production issues (previously reported on 11 January 2023) have now been resolved. There are more than twenty complex production steps in the overall production process and all sub-processes are now achieving their individual Q1 2023 daily production targets.\n \n \n \n \n \n As previously reported, one furnace issue in particular, significantly affected output over the past six months, exacerbated by industry-wide supply chain problems for furnace insulation. The Company has subsequently made changes to that process in Q1 2023, including, but not limited to, use of more readily available materials. These changes were successful, and that sub process has now run, at target rates, for over a month. This was the last major impediment to meeting ongoing daily customer requirements.\n \n \n \n \n \n \n Progress with capacity increase\n \n \n \n \n \n \n Over the last 18 months the Company has been installing capacity to support contracted sales from £2m p.a. in 2020, to over £30m p.a. in 2024. Installation of this capacity increase is on track, with installed revenue capacity of £50m p.a. in place by September 2023.\n \n \n \n \n \n This increased capacity will be sufficient to meet Surface Transforms' growing customer demand for...