SGL Group acquires carbon fiber manufacturer epo

06 Nov '07

3 min read

Another major application are wind power generators – a key area in the alternative energy sector. Given the growing diameters of rotor blades and the resulting strong mechanical loads, rotors are increasingly built with carbon fiber-based materials.

The acquisition of epo represents a further important milestone in SGL Group's Carbon Fibers and Composites strategy and is a major extension of its core CFC activities. These include own production capacities of raw material ( precursor ), the manufacturing of carbon fibers in diverse qualities, strengths and specifications, as well as the next stage along the value added chain, where carbon fibers are processed into fabrics, preforms, or prepregs (composite materials).

In this context, epo GmbH will reinforce SGL Group's existing investment in a state-of-the-art prepreg plant at its Meitingen site, as well as SGL Kümpers GmbH & Co. KG, which was established in January 2007 following an acquisition.

SGL Group plans to increase sales of its Carbon Fibers & Composites (CFC) Business Unit by at least 15% p.a. until 2011. CFC's nine-month figures for 2007 already indicate a sales growth of 28%, up from € 96.8 million during the same period of 2006, to € 123.7 million.

Whilst the ROS for the previous fiscal year remained negative at -3 % as a result of development and start-up costs, a positive return is already expected in 2007. The company expects an high single digit ROS for 2008. An ROSexceeding 10% is expected by 2011.

The SGL Group

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