SGL Group to raise carbon fiber production capacity

09 Oct '07

2 min read

The SGL Group – The Carbon Company – is rigorously continuing on its path to becoming one of the leading suppliers in the area of carbon fibers and carbon fiber composites and plans to triple its carbon fiber 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 fiber 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%.

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