Sgl Inc

Photo Credit: SGL Carbon SGL Carbon (Wiesbaden, Germany) and automotive braking systems manufacturer Brembo S.p.A. (Curno, Italy) have agreed to expand production capacities for the joint venture Brembo SGL Carbon Ceramic Brakes (BSCCB), founded in 2009. Both companies have been working together with BSCCB on the agreement’s conditions and implementation plans in the preceding months. BSCCB will invest around €150 million until 2027 to expand production capacities at the Meitingen, Germany and Stezzano, Italy sites by more than 70%. The capacity enlargement includes the construction of two new production facilities at the SGL Carbon Meitingen site with a total area of around 8,500 square meters and the installation of new production machinery. The groundbreaking in Meitingen is taking place fall 2023. The Stezzano site’s production areas will be extended by around 4,000 square meters and investments will also be made in new production machinery. The extensive expansion of production capacities will enable BSCCB to meet high market demand for carbon ceramic brake discs and cover increasing customer requests in the future. Carbon ceramic brake discs meet the specific requirements of automotive manufacturers, especially in the premium and luxury segments, where high braking performance is needed. “I am proud of our joint venture and the fruitful collaboration of the two shareholders,” Dr. Martin Gruhlke, chairman of the board of directors BSCCB S.p.A., says. “The development shows that the combination of knowledge and capabilities of both shareholders pays off. Furthermore, we have a great BSCCB team that works hard. With this expansion, we continue to be a reliable partner and meet future customer demand for our high-quality products.”

Photo Credit: Getty Images According to preliminary figures for H1 2023, SGL Carbon’s (Wiesbaden, Germany) sales increased year-on-year from €549.8 million to €560.5 million, with EBITDApre almost unchanged at €88.0 million (H1 2022: €87.9 million). The expected positive business performance of the company’s Graphite Solutions business unit and the better-than-expected sales and earnings development of the Process Technology and Composite Solutions segments compensated the drop in demand in the Carbon Fibers business unit. Graphite Solutions increased sales by 15.3% year-on-year to €280.6 million and EBITDApre by 20.6% to €65.1 million. With a 30.9% rise in sales (€64.4 million) and a significant improvement in EBITDApre from €4.1 million to €11.9 million, the business performance of Process Technology was reported to be significantly ahead of the original budget. Composite Solutions also reported a higher-than-expected sales increase of 14.4% to €79.6 million in H1 2023 and an increase in EBITDApre of 26.8% to €12.3 million compared to H1 2022. By contrast, the business performance of the Carbon Fibers unit was not in line with expectations, with a 28.9% decline in sales to €125.1 million and an EBITDApre contribution of €6.1 million (-78.4% compared to the first half of the previous year). An important market segment of the Carbon Fibers business unit is the wind industry. Demand for carbon fibers for the wind industry has declined sharply since the beginning of the year. According to SGL Carbon’s current estimates, the expected recovery in demand in H2 2023 will not materialize for the time being. SGL Carbon expects customer demand from the wind industry to pick up in 2024. Based on this, an impairment loss of between €40-50 million will be recognized on the assets of the Carbon Fibers business unit as of June 30, 2023. The impairment relates exclusively to Carbon Fibers; the operating business of the other business units is not affected. Further information on the first six months of fiscal year 2023 can be obtained from the half-year report, which will be published on Aug. 3, 2023.

Carbonized rayon fabric. Photo Credit: SGL Carbon SGL Carbon (Valencia, Calif., U.S. and Wiesbaden, Germany) announces the development of temperature-resilient carbonized rayon fabric used to produce carbon fiber cloth composites. These composite materials protect structural components from heat by functioning as ablative materials due to their extreme temperature resilience. In addition, carbon fiber fabrics show optimal thermal stability, mechanical properties (including high strength, high quality and purity) and are lightweight and chemically inert. At SGL Carbon’s center of competence in Valencia, California, the company produces its carbon fiber fabrics using a state-of-the-art PLC-controlled carbonization process that transforms 100% rayon-based continuous filament rayon cloth into high-quality carbon fiber fabric at temperatures above 1,200°C (approximately 2,220°F). With more than four decades of experience in manufacturing carbon fiber fabrics for demanding and extreme applications, SGL Carbon is committed to delivering unparalleled quality and reliability. “We began our involvement in rayon-based carbon [fiber] fabric production in 1976. SGL Carbon was an important supplier to the aerospace industry, producing, among others, material for the NASA Space Shuttle program,” Brian Green, managing director of SGL Technic LLC, says. “Our carbon [fiber] fabrics have played a crucial role in protecting structural components from heat in solid rocket motor nozzles and other demanding aerospace applications.”