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[October 2007]
SGL Group Plans To Triple Carbon Fibre Capacities
SGL Group – The Carbon Company (Wiesbaden, Germany) announces it is rigorously continuing on its path to becoming one of the leading suppliers in the area of carbon fibres and carbon fibre composites and plans to triple its carbon fibre production capacity to as much as 12,000 metric tons by 2012.
In addition to the announced expansion of the Inverness location (Scotland) to an annual production of approximately 4,000 metric tons by the end of 2008, there are also plans to expand the Evanston location (Wyoming, USA) and to establish a new carbon fibre production site at Meitingen (Germany) with similar production capacities. The group intends to invest a total of around €300 million in these measures over the coming five years.
These capacity increases should give even greater impetus to the profitable growth track announced by the company. For the Carbon Fibers & Composites (CFC) business unit, SGL Group plans to increase sales in the four business lines Carbon Fibers, Composite Materials, Composite Components and Brake Disks by considerably more than 15% per annum. The sharp increase in sales is also expected to lead to a significant improvement in return on sales (ROS).
Whilst the ROS for the previous fiscal year remained negative at -4% as a result of development and start-up costs, a positive return is already expected in 2007. The company expects an ROS in the high single digits for 2008. An ROS exceeding 10% is expected by 2011. Against the 2006 figures, total sales of SGL Group should increase by 40% to 50% by 2011. Over the whole period, the ROS should be at least in the range between 12% and 16%.
In years to come, said SGL, the Carbon Fibers & Composites business unit will profit particularly strongly from the substitution process of basic materials. The carbon fibres and carbon fibre composites produced by CFC are in increasing demand as replacements for traditional materials due to their unique properties such as light weight and stiffness. As the only European company with its own raw material supply, carbon fibre technology and an integrated value added chain right up to the finished component, SGL Group deploys its core competences in high temperature technology, carbonisation and graphitisation. The company is currently benefiting particularly from a strong demand upturn in the aerospace industry, the automotive sector and alternative energy sources such as wind power.
There are currently only eight producers of carbon fibres world-wide. SGL Group is the only European producer, three are based in Japan, three in the USA and one in Taiwan. Demand for carbon fibres has been steadily increasing since 2000. According to conservative estimates, world-wide demand which is currently at 30,000 tons is expected to double to 60,000 tons between now and 2012. The capacity increases announced so far barely cover this increased demand.
In the next production stage, composite materials are produced from carbon fibres which are then turned into composite components. At present, the world-wide market volume for composite materials is some €1.8 billion, that of carbon composites approximately €13 billion. Both markets are growing by more than 10% per annum.
SGL Group’s objective is to establish a leading position in raw materials (precursor), carbon fibres and composite materials. With respect to the Composite Components business line, SGL Group is strengthening its core competences in the materials field by means of strategic alliances and joint ventures with end component manufacturers. One example of this is the joint venture agreed upon in July 2007 with the automotive supplier Benteler for the development, production and marketing of components for the automotive industry based on carbon fibre reinforced composites. In the field of carbon fibre brake disks, SGL Group has been working successfully with Audi and Porsche for a long time. Thanks to the most recent investments in automation technology, the US subsidiary HITCO is expected to play a similar role with regard to aircraft construction. The order from Boeing for floor beams made of composite materials for the Boeing 787 Dreamliner is an example of this.
ENDS