As part of the restructuring of its loss-making Carbon Fibers business unit, SGL Carbon has decided to close its production site in Lavradio (Portugal). Lavradio is one of seven sites in the Carbon Fibers business unit and currently employs around 250 people to manufacture acrylic fibers and precursors for carbon fibers.
SGL Carbon had already announced the restructuring of its Carbon Fibers business in a press release on February 18, 2025. The goal of the restructuring is to reduce the loss-making business activities and focus on a profitable core. Individual solutions are being developed for all sites in the Carbon Fibers business unit, including the closure of unprofitable sites.
The closure of the Lavradio site is necessary because demand for fiber products has fallen significantly in recent years. In addition, there is considerable global overcapacity for acrylic and carbon fibers, combined with an enormous drop in prices. This has led to high losses in the Carbon Fibers business unit. Due to higher manufacturing costs in Europe compared to Asia (including energy costs), products from Lavradio are particularly affected by competition and the decline in prices for fiber products. An improvement of the market situation and a significant reduction in manufacturing costs for fiber products in Europe are not expected in the future.
The closure of the Lavradio site will be carried out in several phases and in close consultation with all stakeholders. Production will be closed in June 2025. Final activities to complete the closure of the site should be fully implemented by the end of 2026, if everything proceeds as scheduled. SGL Carbon will comply with existing contracts and obligations.
“The future prospects for European fiber production are poor. As one of the last acrylic fiber manufacturers in Europe, we have decided to close the Lavradio site. We informed our colleagues today about the closure steps. In the first step, the discontinuation of production, around 190 employees will be affected by redundancies”, explained Dr. Stephan Bühler, member of the SGL Carbon Management Board responsible for the Carbon Fibers business unit. CEO Andreas Klein added: “The decision to close the Lavradio site was not an easy one for us given the long history of the plant. However, Lavradio has been making high losses for years, which have weighed on SGL Carbon as a whole heavily. There is no improvement in sight. As the Management Board, we must act in the interest of the entire SGL Carbon Group to prevent further damage.”
SGL Carbon is working intensively on restructuring its Carbon Fibers business unit. Individual solutions are being developed for all sites and business activities, which will require time and comprehensive analysis. At this point in time, no further information on future measures can be provided.
