Investment in manufacturing this year has seen a major increase in our capacity for direct product sales
Supported by payments for the US Customer, we built and commissioned a significant new production facility at our Runcorn site in the UK. The facility doubles the production area of our Runcorn site. More importantly, the new facility has the potential to generate revenue three to four times higher than the original CFQD® plant on its own (based on the current price and yield expectation, around £60.0 million p.a.).
In the fourth quarter of FY19, the US Customer agreed to waive the liability to return the £4.2 million of capital funding for the nanomaterials production facility.
This was to have been repaid through a discount against each unit shipped of commercial production material.
The plant is therefore now financially unencumbered and creates a significant potential for own manufactured direct material sales to customers.
On the CFQD® plant we have also been developing plans to expand our capacity for direct production. Subject to demand from customers we will be able to increase the capacity of the CFQD® plant by around 50% with investments in a number of small scale projects totalling approximately £2.0 million.