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[June 2006]
SGL Carbon and Tokai Sign Joint Venture for Process Technology in Asia
SGL Carbon AG (Wiesbaden, Germany) and Tokai Carbon Co Ltd (Tokyo, Japan) have further expanded their cooperation in Asia. After the foundation in Shanghai in 2002 of a joint venture for graphite electrodes for the Chinese market, both companies have signed a joint venture contract on the production and sales of process technology products for the Asian market, in particular for China, Japan and Korea.Both companies will merge their existing activities in the region. SGL Carbon brings in its subsidiaries in China and Korea. Tokai brings in all related activities from its subsidiary in Japan. The objective of both parties is to increase economies of scale and to participate in the growing demand of this region at considerably lower costs. Already today, the sales volume in Euro million is in the range of a low double-digit number.
In the joint venture SGL TOKAI Process Technology Ltd, SGL Carbon will take a 51% majority stake and Tokai 49%. The operational management will reside in Shanghai from which also all activities of the joint venture in Asia will be led. In preparation for this, SGL has already invested in a new plant in Shanghai where the joint venture plans to take full advantage of cost and efficiency benefits.
Process Technology belongs to SGL's 'Specialties' business area and principally has its applications in the field of technical solutions for corrosive processes in the chemical industry including production, repair service as well as the maintenance of heat exchangers, columns and pumps.
www.sglcarbon.de
ENDS