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Aldila JV member to buy Carbon Fiber Technology
26 Dec '07
3 min read
Mr. Mathewson continued, “The shift to premium branded and lighter weight shaft designs over the last several years is resulting in a change in the mix of the types of carbon fiber used.
We have also observed the new capacity being installed in the carbon fiber industry and the past volatile movements in that market.
We have been only a small player in carbon fiber manufacturing, which is becoming dominated by integrated global companies.
Given the flexibility afforded us by the five year Supply Agreement and the good price we received for our interest in CFT, now is the right time for us to exit the carbon fiber manufacturing business.”
“Our Board will be evaluating how to use the proceeds of this sale. Since 2004 we have paid cash dividends of more than $19,670,000 and spent more than $8,240,000 to repurchase over 534,000 shares of our stock. We will continue to look for ways to bring value to our shareholders,” said Mr. Mathewson.
CFT's predecessor began operations in 1998 in Evanston, Wyoming. In late 1999 Aldila sold 50% of CFT to SGL. Following the sale, CFT operated as a limited liability company selling carbon fiber to AMTC and SGL at cost plus an agreed mark-up.
AMTC and SGL have each been responsible for 50% of the fixed costs to operate the facility, and have shared profits and losses of CFT equally.
Aldila is a leader among manufacturers of high performance graphite golf shafts used in clubs assembled and marketed throughout the world by major golf club companies, component distributors and custom clubmakers. Aldila also manufactures composite prepreg material for its golf shaft business and external sales.
We have also observed the new capacity being installed in the carbon fiber industry and the past volatile movements in that market.
We have been only a small player in carbon fiber manufacturing, which is becoming dominated by integrated global companies.
Given the flexibility afforded us by the five year Supply Agreement and the good price we received for our interest in CFT, now is the right time for us to exit the carbon fiber manufacturing business.”
“Our Board will be evaluating how to use the proceeds of this sale. Since 2004 we have paid cash dividends of more than $19,670,000 and spent more than $8,240,000 to repurchase over 534,000 shares of our stock. We will continue to look for ways to bring value to our shareholders,” said Mr. Mathewson.
CFT's predecessor began operations in 1998 in Evanston, Wyoming. In late 1999 Aldila sold 50% of CFT to SGL. Following the sale, CFT operated as a limited liability company selling carbon fiber to AMTC and SGL at cost plus an agreed mark-up.
AMTC and SGL have each been responsible for 50% of the fixed costs to operate the facility, and have shared profits and losses of CFT equally.
Aldila is a leader among manufacturers of high performance graphite golf shafts used in clubs assembled and marketed throughout the world by major golf club companies, component distributors and custom clubmakers. Aldila also manufactures composite prepreg material for its golf shaft business and external sales.
Aldila Inc
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