$95m Carbon Revolution plan

CARBON Revolution will raise $95m and has signed off on building a new manufacturing line in Geelong that will almost double its rate of wheel production once complete.

The Waurn Ponds-based company said it had secured formal agreements to start detailed design and engineering programs for four third-party manufacturing programs, “a significant proportion of which are for electric vehicles’’.

CARBON Revolution will raise $95m and has signed off on building a new manufacturing line in Geelong that will almost double its rate of wheel production once complete.

The Waurn Ponds-based company said it had secured formal agreements to start detailed design and engineering programs for four third-party manufacturing programs, “a significant proportion of which are for electric vehicles’’.

“Following extensive collaboration with these customers, Carbon Revolution believes it will require additional capacity of circa 75,000 wheels per annum in order to deliver these programs,” the company said.

Founded in 2007 at Deakin University’s campus, Carbon Revolution makes lightweight carbon fibre wheels, initially focused on high-performance vehicles. The company now has several relationships with original equipment manufacturers around the world.

The company said the demand from its customers allowed it to sign off on building Phase 1 of its “Mega-line” production line, which will boost capacity to 155,000 wheels per year and reduce labour time to less than 10 hours per wheel.

This compares with a nearterm target of about 17 hours per wheel currently.

While the new production line will be heavily automated, the company said the investment would nonetheless mean an increase in its Geelong workforce. It is also the first of a possible four new production lines.

“Phase 1 of the Mega-line is anticipated to provide a stepchange improvement in Carbon Revolution’s production process,’’ the company told the ASX.

“Once complete, Carbon Revolution expects it to provide additional capacity of circa 75,000 wheels per annum, and at full production, the labour hours per wheel is expected to reduce from circa 17 hours to below 10 hours.

“Notwithstanding the improved labour productivity of the Mega-line, the growth in production ahead will see an increase in the workforce at our Geelong facility.

“Importantly, the increased levels of automation will drive a shift to higher skills reflecting truly modern and advanced manufacturing.

“This first Mega-line is the first of four Mega-lines that are expected to be developed at Carbon Revolution’s Geelong facility.’’

So far the company has sold 40,000 wheels.