Gov support Zoltek to raise acrylic & carbon fiber output

03 Apr '06

3 min read

Textile-type acrylic fibers maker Zoltek Companies Inc and the Hungarian Government announced their joint commitment to a major expansion plan to turn Zoltek's facility 30 miles west of Budapest into the world's largest carbon fiber production facility. Through the expansion, Zoltek is committed to adding 600 new employees in Hungary over the next few years.

As part of the agreement, the Hungarian Government has pledged a grant of 29 billion HUF (approximately $14.5 million) to Zoltek's Hungarian subsidiary for use in modernizing its facility, establishing a research and development center there, and supporting a rapid buildup of manufacturing capacity for both acrylic fiber precursor raw material and carbon fiber.

By the end of 2009, Zoltek expects rated annual carbon fiber production in Hungary to reach at least 8,000 tons (18 million pounds), compared to 800 tons (2 million pounds) at the beginning of 2005.

“We are extremely grateful to the Hungarian Government for their generous and steadfast support,” said Zsolt Rumy, Zoltek's Chairman, President and Chief Executive Officer. “This grant is a critical element supporting modernization and expansion of the facility.”

“We believe that our Hungarian plant, in turn, will play a leading role in the production of carbon fibers used in commercial and industrial applications in European and world markets.”

“Zoltek's strategic goal is to position the facility to stand at the epicenter of the next great revolution in building materials in every important sense – from technological as well as marketing and manufacturing perspectives.”

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