Home Manufacturer fund Carbon Revolution will inaugurate Mega-line in 2022

Carbon Revolution will inaugurate Mega-line in 2022

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Carbon fiber road wheel maker Carbon Revolution is set 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 first-half report that construction of the Mega-line, which will dramatically increase production, is on time and on budget.[ortforthefirsthalfyearthatconstructionoftheMega-linewhichwillsubstantiallyincreaseoutputisontimeandonbudget[ortforthefirsthalfyearthatconstructionoftheMega-linewhichwillsubstantiallyincreaseoutputisontimeandonbudget

CEO Jake Dingle said: “During the semester, the Mega-line infrastructure design was finalized and construction began.

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

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

Highlights of the first half were a 39% increase in underlying revenue, a record number of 15 active wheel programs underway, including 4 electric vehicles, and three new wheel programs reaching production.

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

“During the first half, General Motors launched the Chevrolet C8 Corvette Z06 and Z07 equipped with carbon fiber wheels from Carbon Revolution. Production of this program has now begun.

“The production ramp continues as planned for the Ferrari 296GTB and 812 Competizione programs following launches in the fourth quarter of FY21.

“Ford’s increased sales of the GT500 generated a stronger than expected FY22 sales weighting in the first half.”

Revenue for the semester of $17.6 million, up 2.3% from a prior corresponding period which was impacted by the Covid-19 pandemic.

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

Net loss after tax for the six months was $21.8 million, compared to $14.8 million.

“Key areas of focus for FY22 continue to be: growing sales from new production programs, improving operational efficiencies and reducing COGS, advancing the Phase 1 Mega -line and continued focus on cash management.”

Image: Carbon Revolution

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