Press Releases 2005


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	Press Releases

January 31, 2005

SGL Carbon and Mitsubishi Rayon agree on co-operation in Carbon fiber

Wiesbaden, January 31, 2005. SGL Carbon and Mitsubishi Rayon Corp. of Tokyo Japan (MRC) have agreed on a strategic co-operation in carbon fiber. Having recently signed respective long-term contracts, SGL will receive certain technologies, special raw material and support from MRC. This will assist SGL to produce a highly improved Carbon fiber in its plant in Inverness/Scotland.

The unique performance potential of this new carbon fiber has already been proven in pilot plants at SGL and MRC. It combines the performance and high quality of regular small-tow carbon fiber with the efficient production capacities SGL has developed in its plant in Inverness. The new fiber will allow SGL to develop and capitalize on new applications including automotive, wind energy, infrastructure and concrete reinforcement applications, from 2006 onwards.

As part of the strategic alliance in technical and raw material areas MRC will receive in return up to 750 tons of this new carbon fiber from SGL under a long term supply agreement starting from Q1 2006 following further own investments of MRC. Both sides are viewing the co-operation on the development and production of the new carbon fiber as a first step together, and have expectations to further build the partnership. The strategic co-operation strengthens SGL Carbon’s global competitive position in the carbon fiber market especially for high quality products, in terms of technology, raw material and capacity utilization. Furthermore SGL Technologies’ own downstream business in prepreg- composite- and carbon/ceramic-materials (e.g. brake discs) will benefit from the new carbon fiber quality.

SGL’s Carbon Fibre business includes a 100 % owned modern facility of approx. 5000 tons capacity for oxidized and carbon fiber in Inverness, Scotland as well as a 50 % participation in Carbon Fiber Technology LLC (CFT), a Joint venture with Aldila Inc. San Diego/California with further 1000 tons carbon fiber capacity in Evanston, Wyoming, USA. Both plants were built up in recent years, and include state of the art large capacity production lines. In total SGL’s Carbon Fiber business has a turnover of approx. €m 35 million at present and is expected to grow in double digits over the next several years.

The agreement and cooperation with Mitsubishi, one of the world’s leading manufacturers of carbon fibers and especially of the carbon fiber raw material Polyacrylonitrile (PAN), represents a major stretegic step change in SGL’s worldwide carbon fiber business.

Forward-looking statements:
This press release contains forward-looking statements. These statements reflect the current belief of SGL Carbon’s management as well as assumptions made by, and information available to, the SGL Group. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual future results and developments could differ materially from those set forth in these statements due to various factors. These factors include changes in the general economic and competitive situation, particularly in SGL Carbon’s businesses and markets; changes resulting from acquisitions and the subsequent integration of companies; and changes resulting from restructuring measures. In addition, future results and developments could be affected by the performance of financial markets; fluctuations in exchange rates; changes in national and supranational law, particularly with regard to tax regulations; and other risks and uncertainties, including those detailed in SGL Carbon’s filings with the U.S. Securities and Exchange Commission. SGL Carbon assumes no obligation to update forward-looking statements.