Press Releases 2007


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	Press Releases

May 24, 2007

SGL Group expands Graphitized Cathode Capacity

Strong participation in expected quantum leap in aluminum growth
Expansion of market leadership
Significant profitable growth potential starting 2008

Wiesbaden, May 24, 2007. The SGL Group – The Carbon Company – will expand its graphitized cathode capacity anticipating the expected quantum leap in aluminum growth from the historical average of 2% to an expected mid-term growth of 5% per year. The SGL Group will support its customer’s growth requirements in two phases. Phase one consists of an investment to optimize the existing infrastructure yielding a 50% increase in graphitized cathode production. Initial product will be available as early as the first half of 2008. Phase two will be the construction of a state of the art grass roots cathode plant at a location to be determined by mid 2007. This plant will be on stream by 2011/2012 and its capacity will be defined by customer requirements which are currently under discussion.

“We have a short list of sites, including our recently announced Malaysian hub, and our decision will be based on a relentless drive to reduce costs and our dedication to regional growth”, stated Robert Koehler, CEO of the SGL Group.

The dynamics of the Aluminium market have changed reflecting the global paradigm shift for light weight and high strength materials in an energy constrained environment. This will not only result in significantly higher growth rates but also a sustainable increase in market share for Aluminium versus other metals on a global basis with Asia as the major driver.

Graphitized Cathodes are a leading high tech component in Aluminium manufacture for melting cells operating under the most rigorous high electrical currents and temperatures to convert Alumina to Aluminium. SGL Group is the global market leader providing the benchmark cathode in this graphite business segment.

The cathode business, currently representing 15% of the sales for the Performance Products Business Unit, will be a major driver of growth for the SGL Group.

About SGL Group – The Carbon Company
The SGL Group is one of the world’s leading manufacturers of carbon-based products. It has a comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites. SGL Group’s core competencies are its expertise in high-temperature technology as well as its applications and engineering know-how gained over many years. These competencies enable the Company to make full use of its broad material base. SGL Group’s carbon-based materials combine several unique properties such as electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to the paradigm shift in the use of materials as a result of the worldwide shortage of energy and raw materials, there is a growing demand for SGL Group’s high-performance materials and products from an increasing number of industries. Carbon and graphite products are used whenever other materials such as steel, aluminum, copper, plastics, wood etc. fail due to their limited properties. Products from the SGL Group are used predominantly in the steel, aluminum, automotive, chemical and glass/ceramics industries. However, manufacturers in the semiconductor, battery, solar/wind energy, environmental protection, aerospace and defense industries as well as in the nuclear energy industry also figure among the Company’s customers.

With around 30 production sites in Europe, North America and Asia as well as a service network covering more than 100 countries, the SGL Group is a company with a global presence. In 2006, the Company’s workforce of 5,250 generated sales of € 1.2 billion. The Company’s head office is located in Wiesbaden/Germany.

Important note:
This press release contains statements on future developments that are based on currently available information and that involve risks and uncertainties that could lead to actual results deviating from these forward-looking statements. The statements on future developments are not to be understood as guarantees. The future developments and events are dependent on a number of factors, they include various risks and unanticipated circumstances and are based on assumptions that may not be correct. These risks and uncertainties include, for example, unforeseeable changes in political, economic and business conditions, particularly in the area of electrosteel production, the competitive situation, interest rate and currency developments, technological developments and other risks and unanticipated circumstances. We see other risks in price developments, unexpected developments relating to acquired and consolidated companies and in the ongoing cost optimization programs. SGL Group does not intend to update these forward-looking statements.