Member Info for Netzeroready

Any other word from the shop floor?

If it is a pilot for Tesla then very encouraging.

Still no TR1 sales...

If you visit site it looks like it is going flat out - OEM 8 worth £100 m over its life (believed to be Tesla) is in production so I imagine they are trying to ramp this up to offset GM.

Remember still not had an update on GM - may be transitional arrangements agreed which would help

So what is happening on the shop floor Billy?

Why cant they reprogramme OEM 8 to take up the production slack?

Site looks very busy at the moment?

OEM 8 is a lifetime contract in production and worth £100 m as much as GM so I imagine they are looking to ramp this up to offset.

Silence and no TR1s selling yet is inteteresting.

Seems the factory is still fully operational, no TR1 movement, no updates as yet.

Sure lots going on behind the scenes..

Hi Bagpuss - are you still holding here and do you see any prospect of a turnaround, is there a possibility that the other OEMS step in, surely this would be a big headache for them as well if ST went?

Useful info Billy - I assume the new furnace would of dealt with that?

It seemed also that they had turned it around in terms of yields and production ie close to 80% now so why did GM terminate if they have turned the corner?

Billy - what you have omitted to say is that it has been removed and the new furnace is close to completion in the new housing.

No TR1 movement here as yet.

I can't imagine the other OEMs want this to do down, still a way to go imo.

Keep an eye on OEM 6 and 8 contracts.

£145 m revenue there, imagine these will ne accelerated now..

There is £290 m of contracts there, GM are only £100 m of it or c 33%.

Also £400 m in pipeline.

All to play for.

Other companies being these... (from advfn).

In February 2017, Aston Martin nominated ST as a tier 2 supplier for its limited production Valkyrie and again nominated them for the Valhalla with its larger production run in June 2019. In December 2021, carry-over contracts were announced for SOP 2023 on three models with ST this time nominated as a tier 1 supplier. Contract value GBP 45m over six years.

In July 2019, a German OEM, referred to as OEM 5, nominated ST to supply carbon-ceramic discs for the option available to one of its premium models with SOP 2021. Contract value GBP 5m over five years. In September 2021, a carry-over contract was announced with SOP 2024 for the facelift of an existing model again as an option. Contract value GBP 5m over five years

In September 2020, a global OEM, referred to as OEM 8, nominated ST as a tier 1 supplier of carbon-ceramic discs for a high performance model with SOP 2021. Contract value GBP 27.5m over 4 years. In September 2021, a delay to this contract with SOP mid 2022 was announced but with news that the contract value would be significantly higher. In March 2022, ST announced that due to high demand, OEM 8 had extended the supply contract through to 2027 and increased the quantum from GBP 27.5m to GBP 100m. SOP however was delayed until March 2023 due to supply chain issues elsewhere.

In August 2021, a US OEM, referred to as OEM 10, nominated ST as a tier 1 supplier of carbon-ceramic discs for a high performance model with SOP 2024. Contract value GBP 20m over 4 years. In November 2022, OEM10 further nominated ST as a tier 1 supplier to replace Brembo as the existing supplier for two model variants with SOP early 2025. Contract value GBP 100m over 6 years.

In August 2022, a US EV OEM, referred to as OEM 9, nominated ST as a tier 1 supplier of carbon-ceramic discs for a model with SOP in early 2024. Contract value GBP 13m over 5 years.

GM is only 30% of the total committed revenue of £300 m so there are £200 m of contracts that could move into GM's place now.

They also have another £400 m pipeline so I imagine they are busy unlocking that now.

They have cracked the production issues so can ramp up across the other 5 OEM contracts now.

Looks like a termination for convenience as says they are re-sourcing (as opposed to terminatipn for cause) ie faulty goods.

SCE would have claim entitlement if this is the case, chat GPT reckons £32- 48 m over remainder of contract.

Assume others get brought forward now as GM was only 30% of committed order book?

Agreed - looks like some news has leaked as big buys going to last week and today.

Set up for a big move up next week.

Operational update shortly which should provide update on furnace, possibility it is nearing completion and ready to go operational hence buying imo.

More than fizz me thinks...

Update soon.

Good question - it is very very undervalued at the moment.

April update should show increased yields and the new furnace coming on line which will significantly bump up revenues.

Should start moving up shortly imo.