Surface Transforms (AIM:SCE) jumped 15% as it announced a £100 million contract for its carbon ceramic brake discs.
AIM-listed Surface Transforms (AIM:SCE) never gives the names of its customers, but it did say this contract is with one of the world’s largest carmakers and an existing client.
The deal will see Surface Transforms (AIM:SCE) be the sole supplier of carbon ceramic brake discs for a range of new electric vehicles with common axles to be fitted as a standard option on some vehicles and also as an upgrade option.
Lifetime revenue on this range of models is expected to exceed £100 million with series production planned for seven years starting in 2027, said the statement.
Surface Transforms added it will have to double sales capacity to meet the contract to around £150 million a year.
Kevin Johnson, chief executive, added it was its largest contract award to date and won against the recent production ramp-up challenges.
“The trend for follow-on awards with existing customers is something we have seen across all our customers.”
Shares rose 3.75p to 28.5p.