Strip Tinning Holdings secures £1.4 million funding

Strip Tinning Holdings secures £1.4 million funding

LONDON, UK: Strip Tinning Holdings plc (AIM: STG), a leading supplier of specialist connectors to the automotive sector, has successfully secured a share of government funding through the Advanced Propulsion Centre (“APC”) Scale-up Readiness Validation (“SuRV”) competition.

The Company has secured a grant of up to £1.4 million, which will be received via six quarterly drawdowns covering the period to end of January 2024.

The SuRV competition, in which only 22 UK-based projects have been awarded funding, forms part of the UK’s Automotive Transformation Fund (“ATF”), with recipients of grants working on projects which could grow to large-scale manufacturing projects. The funding is a clear endorsement of Strip Tinning’s capabilities and harnesses future growth ambitions.

With the ATF also pledging up to £1 billion towards high-value, end-to-end electrified automotive supply chain in the UK, today’s announcement underlines the significant market opportunity which lies within the fast-growing growing EV space in which the Company operates. Strip Tinning is well-positioned within the sector and is confident in its ability to exploit continued strong demand for EV production moving forwards.

The grant will be used in its totality towards the development and validation of a pilot production system for the manufacturing of our Cell Contacting and Management System (CCMS) product. The grant award must be drawn down by 31 January 2024 and in turn scale up the Strip Tinning ‘s production capabilities.

The CCMS product is an integral part of the power electronics system in battery electric vehicles, providing electrical connectivity and utilising an array of sensors and other surface mount electronics devices to monitor the performance and safety of batteries. The project will produce a pilot production line capable of 80,000 units per year, presenting a clear route to scale up and secure increased market share.

Julian Hetherington, Automotive Transformation Director, Advanced Propulsion Centre commented: “This announcement underlines the commitment to support the automotive sector, one of the UK’s strategically important industries, as it makes an unprecedented transition towards net zero. I am proud of the role the Automotive Transformation Fund is playing in unlocking opportunities for investment, and the projects chosen here all have real potential to scale-up to something significant. Through our support, we aim to encourage and de-risk subsequent private investment by demonstrating that these innovative products and technologies work at scale.”

Richard Barton, Group Chief Executive Officer of Strip Tinning, commented: “I would like to sincerely thank the Automotive Transformation Fund for recognising Strip Tinning’s expertise in the EV space and providing us with funding to take advantage of the market opportunity. The market continues to grow at an exponential rate, with the transition to electric vehicles inexorable and we are delighted that the Government is committed to ensuring Britain’s leadership in this field. Our longstanding, established reputation as a leading supplier of components to the automotive sector, alongside our proven capability in nascent EV technology positions us well for the future.”

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