The Quandts buying world's largest carbon / graphite product maker

[EnI]

BMW heiress to buy almost 25 percent of SGL


By Joseph Mapother, Bloomberg

March 16 (Bloomberg) -- SGL Carbon SE, the world’s largest maker of carbon and graphite products, rose the most in more than five months in Frankfurt trading after German billionaire Susanne Klatten took a 7.9 percent stake with plans buy more.

Klatten plans to raise her stake in the Wiesbaden, Germany- based company to just under 25 percent, said Joerg Appelhans, a spokesman for her SKion GmbH investment company. SKion has enough cash-settled swaps to meet that goal, Appelhans said in an interview. “We expect to exercise these options.” The options are not legally binding, he said.
Klatten, an heiress of the Quandt family, which holds 47 percent of carmaker Bayerische Motoren Werke AG, last year increased her stake in German chemical maker Altana AG from 50.1 percent to 88.3 percent. With a net worth of $10 billion, Klatten ranks 35th on Forbes magazine’s list of the world’s richest people.

“There appears to be a tendency to look for stable, long- term investors,” said Christian Obst, an analyst at UniCredit SpA in Munich. “It prevents someone from the outside stepping in that the company really can’t stand,” Obst said, who recommends buying SGL Carbon stock.
SGL gained as much as 22 percent to 20.80 euros, the largest percentage increase since Oct. 13.

Atomic, Formula 1

The company’s products include graphite bricks for nuclear reactor cores and electrodes for the steel industry. It also developed the carbon-on-carbon brakes used in Formula 1 racing.

SGL is attractive because carbon fibers “are being used more and more in the automobile and other industries,” as substitutes for traditional materials, said Appelhans.

“We welcome the new anchor investor SKion,” SGL Chief Executive Officer Robert Koehler said in a statement. “It has been our strategy for some time to obtain long-term oriented shareholders due to the high volatility of equity markets.”

Appelhans declined comment on which banks are involved in the purchase. SKion will talk to SGL about a seat or seats on management boards, he said.

Klatten, who held 50.1 percent of Altana when it sold its drug unit for 4.5 billion euros in 2006, has since turned the company into the world’s largest maker of additives for coatings and plastic parts. Last year, she also bought 20 percent of wind-turbine maker Nordex AG. The financial terms weren’t disclosed. Klatten owns 12.6 percent of BMW as of January, according to Bloomberg data.




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Interesting move. What's next? Some aluminium company? Battery company? Opel? Daimler?

 

[Tarek]

Very clever move,CF is being moving down more and more mainstream into cars.Soon Cf won't be exclusive to supercars only.

I'm interested in how that is gonna affect other car makers with CF usage and manufacturing.

 

[EnI]

BMW Group establishes joint venture with SGL Group

• 29.10.2009
• Press Release

Cooperation for the manufacture and processing of carbon fibres for new vehicle concepts

Munich/Wiesbaden. The BMW Group and the SGL Group have agreed on the establishment of a joint venture for the production of carbon fibres and textile semi-finished products (CFRP) for use in vehicle construction. The total investment volume is € 90 million in the first development phase, the two companies stated on Thursday.

The joint venture will be operated through two companies, one based in North America (SGL Automotive Carbon Fibers LLC), and the other in Germany (SGL Automotive Fibers GmbH & Co KG). The BMW Group holds 49% of the shares, and the SGL Group 51%. The two groups will be equally represented in the management of the two companies; major corporate decisions must be made unanimously by both partners. The joint venture will initially create around 180 new jobs in North America and Germany. Its establishment is subject to approval by the cartel authorities.

"This joint venture is designed to be a classic win-win situation. We are acquiring pioneering future technologies and raw materials that we need for our Megacity Vehicle on competitive terms. The SGL Group is moving into the automobile business with us as a strong partner", BMW AG Management Board Chairman Norbert Reithofer emphasised in Munich. "With our concepts within project i, we are breaking new ground when it comes to vehicle architecture, lightweight design and the use of materials", Reithofer continued.

Robert Koehler, CEO of the SGL Group, stated: "This joint venture with the BMW Group is a milestone for the use of carbon fibres on an industrial scale in the automobile industry. For the first time, carbon fibres are taking on an important role in series vehicle manufacture. This confirms our strategy and shows that carbon fibre technology is becoming increasingly important in the materials substitution process to lighter material. This material will help to reduce CO2 emissions and save our natural resources“.

Lightweight design has been one of the core skills of the BMW Group for decades – after all, reducing weight is a major factor in cutting fuel consumption. In the use of high-tech Carbon fiber reinforced plastic (CFRP), the company is also able to draw on its many years of experience. CFRP not only plays an important role in motor sports; the material is also used in series vehicles, such as in the roof of the BMW M6 Coupé.

In the Megacity Vehicle, which will be launched under a BMW sub-brand in the first half of the next decade, the high-strength yet ultra-light material will make up a significant proportion of the materials used. The combination of the advanced CFRP fibres developed by the SGL Group and the BMW Group's expertise in the industrial manufacture of CFRP components is making it possible, for the first time, to install CFRP on a large scale in a series vehicle at a competitive cost.

With the joint venture, the BMW Group is underlining its position as the most sustainable vehicle manufacturer. This claim is reflected throughout the entire value creation chain, from component purchasing to recycling. Producing CFRP in a way that protects resources is therefore a high priority. The high energy requirement for the production of carbon fibres is to be met completely by environmentally friendly hydropower. This is one of the preconditions for the production site of carbon fibres in North America. The raw material is then processed into a carbon fibre fabric at the second location in Germany. Parts and components will then be made from this light-weight durable fabric within the BMW Group.

Source: BMW AG





Edit: (WSJ.com) BMW will initially be the only customer and guarantees certain minimum purchasing volumes of the carbon fiber fabrics. The deal is subject to approval from the antitrust authorities.

 

[Mr Robert]

Where does this fit into the current "lets make all cars big" direction?

 

[EnI]

Where does this fit into the current "lets make all cars big" direction?

As you can see this JV is Project i - centered. Other products will follow later. Initially ultra-light weight will be selling point of Project i cars.

Mind the whole Project i car architecture solutions are completely new. Designed from scratch - fitting new hybrid / electro tech much better than current architecture.

 

[Deleted member 25]

So the toyota talk about the platform sharing was BS ?

 

[jack]

i think we just need to turn our heads to the peugeot BB1 - it uses heavily carbon fiber.

 

[EnI]

i think we just need to turn our heads to the peugeot BB1 - it uses heavily carbon fiber.

Sure. So it does the BMW Vision ED Concept.

But:

The combination of the advanced CFRP fibres developed by the SGL Group and the BMW Group's expertise in the industrial manufacture of CFRP components is making it possible, for the first time, to install CFRP on a large scale in a series vehicle at a competitive cost.

 

[klier]

^ They said exaxtly the same when the M3 got the carbon roof

Nevertheless, this can't be anything but good news. Thanks for the update Eni

 

[EnI]

^ They said exaxtly the same when the M3 got the carbon roof

Not exactly. At that time the words "on a large scale" wasn't used.

 

[Mr Robert]

There is always some way to turn it to make it a first

 

[S'Pimp]

New Era in Automotive Lightweight Construction

Press-Release SGL:

SGL Group and BMW Group Establish Carbon Fiber-Joint Venture


- Milestone in the serial application of carbon fibers in the automotive industry
- Construction of two production sites in Germany and North America with 180
new jobs
- € 90 million investment volume in the first stage of development
- Precursor joint venture agreed with Mitsubishi Rayon
Wiesbaden / Munich, October 29, 2009. SGL Group (51%) and BMW Group (49%) announced today the foundation of a joint venture to manufacture carbon fibers and fabrics for the automotive industry. Within this joint venture, the construction of two new sites, one in North America for the carbon fiber production and the other in Germany for the subsequent fabrics, is planned. The investments in the first stage of development for both production sites will be € 90 million. The joint venture will create more than 180 jobs. In the final stage of development, annual carbon fiber and fabric consumption is expected in the range of several thousand tons p.a. Construction of the production facilities will begin in 2010. Production is expected to start in the first half of the next decade. The transaction is subject to the approval of the relevant antitrust authorities.
Robert Koehler, CEO of SGL Group: ”This joint venture with the BMW Group is a milestone for the use of carbon fibers on an industrial scale in the automobile industry. For the first time, carbon fibers are taking on an important role in series vehicle manufacture. This confirms our strategy and shows that carbon fiber technology is becoming increasingly important in the materials substitution process to lighter material. This material will help to reduce CO2 emissions and save natural resources.”
Norbert Reithofer, BMW AG Management Board Chairman: "This joint venture is designed to be a classic win-win situation. We are acquiring pioneering future technologies and raw materials that we need for our Megacity Vehicle on competitive terms. The SGL Group is moving into the automobile business with us as a strong partner. With our concepts within project i, we are breaking new ground when it comes to vehicle architecture, lightweight design and the use of materials.”
Both companies will combine their core competencies in this joint venture. SGL Group contributes its know-how in high performance materials and its experience with carbon fiber based materials. As the only European carbon fiber and composite materials manufacturer, the company covers the entire value chain. Both partners have cooperated for many years in the area of carbon fiber composites.

New Era in Automotive Lightweight Construction

Through this joint venture, BMW Group will secure access to key technologies and raw materials that will be used in the ‘Megacity Vehicle’ currently being developed. For the first time, carbon fiber composites will be used in an unprecedented dimension in the large scale production of automobiles and will take a leading role in the material mix. The large scale use of high performance materials like carbon fiber based fabrics developed for use in automotive applications has clear weight advantages and helps to lower CO2 emissions.

Sustainability and Recycling

Environmental, social, and economic aspects will be aligned along the entire supply chain. Carbon fibers and fabrics will be manufactured with careful consideration to environmental resources. Within the context of the joint venture, processes are being developed to recycle carbon fibers and fabrics. The North American production site will use hydropower as its energy source.

Financing and Contract Design

The joint venture will be structured as follows: SGL Group holds 51%, BMW Group 49% of the shares with both partners nominating management on an equal basis. Essential decisions require unanimous approval. In the build-up phase the joint venture will be consolidated at equity by both companies with investments totaling € 90 million. BMW Group will use its favorable access to the capital markets to ensure the funding of the debt financing for the joint venture. Both companies will each contribute initial equity of € 18 million.
The overall investment for the joint venture will amount to approximately € 230 million subject to BMW Group confirming all stages of development. BMW Group – as initially the only customer - guarantees certain minimum purchasing volumes at contractual agreed conditions in the context of safeguarding the overall project.

Precursor Joint Venture Agreed with Mitsubishi Rayon

Simultaneously, SGL Group and the Japanese company Mitsubishi Rayon (MRC) will establish a joint venture for the production of polyacrylonitrile (PAN) based precursor, which is the raw material required to manufacture carbon fibers. This joint venture will further strengthen SGL Group’s longstanding strategic alliance with MRC to secure the long term supply of precursor for the production of specific carbon fibers for the automotive industry. Therefore an agreement in principle to form a joint venture with MRC 2/3 and 1/3 SGL Group shareholding was signed securing SGL Group essential supervision and minority rights. The contract closing is targeted for the end of 2009. The joint venture will be operated by Mitsubishi and located at their Otake site.
The intended separate joint ventures with the BMW Group and MRC do not restrict or limit any of the existing strategies and activities of SGL Group in their Business Area Carbon Fibers & Composites and have no impact on its main customers in the automotive, wind energy, industrial, and aerospace/defense areas.



About SGL Group – The Carbon Company

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 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 40 production sites in Europe, North America and Asia as well as a service network covering more than 100 countries, SGL Group is a company with a global presence. In 2008, the Company’s workforce of around 6,500 generated sales of €1.6 billion. The Company’s head office is located in Wiesbaden/Germany.


imho: probably beginning of next decade