From conference call, Could not find this ….. I think Gauzy is < 10% capacity for GERMANY SPD plant
And we have a question from Leonard Lietzow of Private Investor. Your line is open, sir.
Leonard Lietzow
Joe, since they raised their $75 million and since in their notes in their S1 where they had contracts on all of the SPD film for this year that they could make. I would assume that they're expanding their line. I think they could put a second line right next to the one they got right now.
Joe Harary
That's exactly right. They've laid out the second line if they wanted it to be in Germany right next to the first one in the Stuttgart area. Or they may decide they're going to do it in Asia near the other customer or the U.S. depending on where the need is logistically, but film is pretty easy to ship wherever it needs to be in the world. So if it was all done in Germany and shipped worldwide, there's plenty of companies that successfully do that with even harder things to ship and film is relatively light and easy to ship. So it could be anywhere, but they have the ability to do that.
Leonard Lietzow
With architects and that coming on and with autos and airplanes using everything that they can make right now, I would think that they have to get something up and running pretty good if they're going to be sell, that's a big number?
Joe Harary
We saw this --we've seen this now twice, where large capable companies develop SPD production lines, first Hitachi and now Gauzy. And once you know what to build, and that's part of the know-how, and how to configure it, which is another part of it, because there's a whole system of rollers and other things and tension that you put on the film and things like that that becomes very important in keeping yields up. Once you know how to do all that stuff, it's not hard to replicate it. And assuming you had the building permits or the factory line or the warehouse was already there, it doesn't take more than I would say six to eight months to get another line up.
Leonard Lietzow
Okay. Because that's the only way we can continue to grow revenue is to be able to sell more film.
Joe Harary
Right. And as long as Gauzy is making money on that film, they have every incentive to keep making more and more factories.
Leonard Lietzow
Okay. Thank you. |
