SGL acquires BMW’s 49 pc stake in carbon fibers JV

SGL acquires BMW’s 49 pc stake in carbon fibers JV

4:57 AM, 27th November 2017
SGL acquires BMW’s 49 pc stake in carbon fibers JV
Carbon fibers are a modern high-performance material. They are used in applications where components need to be mechanically robust but still lightweight.

WIESBADEN/MUNICH, GERMANY: SGL Carbon SE has signed an agreement to acquire BMW Group's 49 percent equity investment in the joint ventures SGL Automotive Carbon Fibers GmbH & Co KG (Germany) and SGL Automotive Carbon Fibers LLC (US) – together referred to as SGL ACF.

Once the deal has been finished, SGL will be the sole owner of SGL ACF.

Carbon fibres and carbon fibre materials are at the core of SGL Group's corporate strategy. By acquiring SGL ACF now, SGL Group is forging ahead with its strategy to consolidate all key activities in the value chain – from carbon fibres and materials to components – within the SGL, giving it overall responsibility.

BMW Group has entered into an agreement with SGL Group to continue to work together on future projects involving the use of carbon.

The existing supply agreements for the continued procurement of carbon products from SGL ACF for the BMW i3, the BMW i8, and the BMW 7 series into the next decade are unaffected by the transaction. Likewise, BMW Group's CFRP-stacks production unit in Wackersdorf will not be affected. Furthermore, the transaction will not impact BMW AG's 18.3 percent shareholding in SGL Carbon SE.

The agreement between SGL and BMW provides for the acquisition of the two SGL ACF companies in stages. In the first step, SGL Automotive Carbon Fibers GmbH & Co KG (Germany) will be transferred to SGL Group. This transaction will probably be completed in January 2018.

The second step will involve SGL Automotive Carbon Fibers LLC (US) being transferred to SGL Group, with this transaction expected to be completed by the end of 2020 at the latest.

The acquisition gives SGL Group the opportunity to expand its activities at the site relating to fibres and composites for the North American market.

"We are proud of the pioneering work that we have carried out with BMW Group on lightweight construction for the automotive sector. The carbon fibres made at our plant in Moses Lake and the fabrics that are produced from them at the Wackersdorf site have proven very successful. It is now time to fully integrate this expertise into SGL Group's value chain," said Jürgen Kohler, CEO of SGL Group.

“BMW Group will continue to rely on lightweight construction and an intelligent mix of materials, with carbon remaining a significant component. SGL Group is and will remain a major supplier and strategic partner in this regard,” added Markus Duesmann, member of the board of management at BMW AG with responsibility for purchasing and supplier network.

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