This capacity expansion, which is part of its 5-year strategic plan and related to the SMC lightweighting initiative, begins immediately. This expansion, in two phases, will contribute $2M in incremental revenues during calendar 2024 and once fully scaled-up, is expected to contribute $8M to $10M annually beginning in calendar 2025.
Moreover, a significant part of the capacity expansion costs will be assumed by the customer. Our customer has committed to purchase the additional equipment required for this program and consequently, the previously announced SMC lightweighting initiative capex of $30M to $35M will now be in a range of $25M to $30M.
Soroush Nazarpour, President and Chief Executive Officer, said: “Demand is very strong for our graphene-enhanced composite products, up to the level that customers are covering capital costs to access larger production volumes. This expansion is the first step in increasing our graphene-enhanced SMC parts manufacturing capabilities and a big step towards achieving our 5-year plan in SMC lightweighting.”
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