SGL to Expand Carbon Fiber Capacity in Wyoming

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Researched by Industrial Info Resources (Sugar Land, Texas)--SGL Group (Wiesbaden, Germany) announced in November 2007 that it had signed definitive agreements to acquire ownership of Carbon Fiber Technology LLC (Evanston, Wyoming), which was a joint venture between SGL and Aldila Incorporated (Poway, California). This joint venture was created in 1999 between SGL and Aldila, who produces composite golf shafts; each held a 50% stake in the joint venture. Carbon Fiber Technology LLC (CFT) has entered into a five-year agreement with Aldila to continue to supply carbon fiber. SGL's acquisition is part of its recently announced growth plan to expand its total production of carbon fibers to 12,000 metric tons by 2012.

SGL will expand CFT's Evanston plant, which currently operates one carbon fiber line, to four carbon fiber lines by 2012. The project will be done in three phases; each of the phases will add a new carbon fiber line producing 1,000 metric tons per year. Once all of the phases are complete, the total production of the plant is expected to increase to 4,000 metric tons per year. The first phase will include the construction of a building approximately 150 feet by 680 feet that will house all three of the new carbon fiber lines. Construction for the first phase is expected to begin in the second quarter of 2008 and will cost about $27 million. Phase II and III will begin shortly after the previous phase is complete at a cost of approximately $18 million to $20 million. Case Lowe & Hart Incorporated (Ogden, Utah) will provide architectural, engineering and procurement services for the project.

In addition to the growth at the Evanston site, SGL has announced as part of its growth plan that it will also expand production of carbon fibers in Inverness, Scotland, and Meitingen, Germany. The Inverness plant will add two new lines to bring its annual production to 4,000 metric tons. Meitingen will be of similar production capacity and both should be complete by 2012.

The fiber industry within North America has several companies that have announced large investments in new fiber capacity. Cytec Industries Incorporated (Tempe, Arizona), Toray Carbon Fibers America Incorporated (Decatur, Alabama) and Hexcel Corporation (Stamford, Connecticut) are among the largest of these. For more information, view related September 4, 2007, article - Domestic Investments in Fiber Capacity Expected to Increase in 2008.

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