Carbon Revolution to inaugurate Mega-line in 2022

Carbon fibre road wheel manufacturer Carbon Revolution is to inaugurate its Mega-line wheel manufacturing line at its Geelong factory this calendar year, the company has revealed.

Carbon Revolution told investors in its rep[ort for the first half year that construction of the Mega-line which will substantially increase output is on time and on budget.

CEO Jake Dingle said: “During the half the Mega-line infrastructure design was finalised and construction commenced.

“We anticipate the first wheels off the Mega-line to be produced in the second half of CY22.”

In April Carbon Revolution raised $95 million from investors to fund the Mega-line development, which automates much of the manufacturing and finishing process.

Highlights of the first half were a 39 per cent increase in underlying revenue, a record 15 active wheel programmes being pursued including 4 EVs, and three new wheel programmes reaching production.

Dingle said the long-term sales outlook and pipeline of new programs is strong, with eight programmes awarded and seven in the detailed design and engineering phase.

“During the first half, General Motors launched the Chevrolet C8 Corvette Z06 and Z07 featuring Carbon Revolution’s carbon fibre wheels. Production for that programme has now commenced.

“The production ramp is proceeding to plan for the Ferrari 296GTB and 812 Competizione programmes after the launches in Q4 FY21.

“The pull forward of sales by Ford for the GT500 delivered a stronger first half weighting of FY22 sales than anticipated.”

Revenue for the half of $17.6 million, up 2.3 per cent on a previous corresponding period which was affected by the Covid-19 pandemic.

A total of 6,497 wheels were sold, up 1.6 per cent on the previous corresponding period.

Net loss after tax for the half year was $21.8 million, up from $14.8 million.

“The FY22 key focus areas continue to be – driving sales growth from new programs in production, delivering operational efficiencies & COGS reduction, progressing the Phase 1 Mega-line project and continued cash management focus.”

Picture: Carbon Revolution

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