RFX 0.00% 9.7¢ redflow limited

Sorry but that's just not correct. There is no logical linkage...

  1. 68 Posts.
    lightbulb Created with Sketch. 109
    Sorry but that's just not correct.

    There is no logical linkage between Redflow leasing some additional space, and all the inferences you have drawn that suggest (to you) a massive leap in production rate and capital expenditure.

    The second space is right beside the existing factory floor, under the same overall roof in the same industrial campus. It is not an entire new building!

    The space became available and it made huge sense to lease it - because of the obvious benefit of having more space literally on the other side of the wall.

    That space is being used to let Redflow more effectively and efficiently manage our supply chain - we are using it for holding and managing raw materials and components for our battery production 'on site'.

    We have previously been having to hold and manage our supply chain materials in another location that is a significant driving time away, and that is in a different Thai free trade zone. The latter point means there has been a need to do some fairly complex administrative paperwork every time we have moved supply chain materials into the factory floor, plus transport cost, plus logistical work.

    So - leasing some more space next door and staging our supply chain materials right next door to our factory machines is an obvious and sensible thing - so we did this obvious and sensible thing.

    This isn't a sign of massive increases in capital expenditure - quite the reverse in fact!... its just a routine move to increase our operational efficiency by locating our supply chain materials right next door to our factory machines. Nothing more, nothing less.
    Last edited by SimonHackett: 10/08/18
 
watchlist Created with Sketch. Add RFX (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.