SGL Fibers Narrows General Contractor Selection for Plant in Washington

---

Researched by Industrial Info Resources (Sugar Land, Texas)--With plans to break ground on its $100 million carbon fiber manufacturing plant in Moses Lake, Washington, by early July, SGL Automotive Carbon Fibers LLC, a joint venture of SGL Carbon SE (ETR:SGL) (Wiesbaden, Germany) and Bayerische Motoren Werke AG (ETR:BMW) (BMW) (Munich, Germany) expects to have a general contractor awarded by the end of the month.

SGL Carbon Fibers is entertaining bids from five pre-selected general contractors: R&O Construction (Ogden, Utah); Big-D Construction (Ogden); Lydig Construction Incorporated (Spokane, Washington); Turner Construction Company (Seattle, Washington); and Ferguson Construction (Seattle).

BMW and SGL Group established their joint venture company in October 2009, and in April 2010, they had selected a 60-acre site in Moses Lake's ASPI Technology Park as the location to build a 150,000-square-foot, state-of-the-art carbon fiber manufacturing facility, mainly because of the availability of less expensive hydroelectric power and a skilled workforce in the area.

During the initial phase, $100 million will be invested and 80 local jobs will be created. The project is expected to be completed by May 2011, but may take another six to 12 months for full commissioning.

The carbon fiber plant will enable both companies to manufacture ultra-light-weight, carbon fiber-reinforced plastics for use in future vehicle concepts like the BMW Group's upcoming Megacity vehicle, which is BMW's hybrid-electric car, announced in February this year. BMW plans on using carbon fiber-reinforced plastic throughout the entire vehicle because the material is both light and strong. The vehicles, set to be launched before 2015, will be assembled in Leipzig, Germany.

"This new plant in Moses Lake is a milestone in the use of carbon fibers for large-scale production in the automotive industry," SGL Group Chief Executive Officer Robert Koehler said in an April 6 company press release. "It will be the world's most cost-efficient carbon-fiber plant, using state-of-the-art technologies. This significant investment further underscores our commitment to the U.S., where we already operate carbon-fiber and composite-materials plants. The manufacture of carbon fibers is a core business for SGL Group, and together with our partner BMW Group, we will ensure that carbon fibers play a revolutionary role in lightweight automotive construction."

IIR has been tracking this project since in April 2010.

View Plant Profile - 3004448
View Project Report - 300010486

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.