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DITF: Modernized spinning plant for sustainable and functional fibres Photo: DITF
Bi-component BCF spinning plant from Oerlikon Neumag
06.03.2024

DITF: Modernized spinning plant for sustainable and functional fibres

The German Institutes of Textile and Fiber Research Denkendorf (DITF) have modernized and expanded their melt spinning pilot plant with support from the State of Baden-Württemberg. The new facility enables research into new spinning processes, fiber functionalization and sustainable fibers made from biodegradable and bio-based polymers.

In the field of melt spinning, the DITF are working on several pioneering research areas, for example the development of various fibers for medical implants or fibers made from polylactide, a sustainable bio-based polyester. Other focal points include the development of flame-retardant polyamides and their processing into fibers for carpet and automotive applications as well as the development of carbon fibers from melt-spun precursors. The development of a bio-based alternative to petroleum-based polyethylene terephthalate (PET) fibers into polyethylene furanoate (PEF) fibers is also new. Bicomponent spinning technology, in which the fibers can be produced from two different components, plays a particularly important role, too.

The German Institutes of Textile and Fiber Research Denkendorf (DITF) have modernized and expanded their melt spinning pilot plant with support from the State of Baden-Württemberg. The new facility enables research into new spinning processes, fiber functionalization and sustainable fibers made from biodegradable and bio-based polymers.

In the field of melt spinning, the DITF are working on several pioneering research areas, for example the development of various fibers for medical implants or fibers made from polylactide, a sustainable bio-based polyester. Other focal points include the development of flame-retardant polyamides and their processing into fibers for carpet and automotive applications as well as the development of carbon fibers from melt-spun precursors. The development of a bio-based alternative to petroleum-based polyethylene terephthalate (PET) fibers into polyethylene furanoate (PEF) fibers is also new. Bicomponent spinning technology, in which the fibers can be produced from two different components, plays a particularly important role, too.

Since polyamide (PA) and many other polymers were developed more than 85 years ago, various melt-spun fibers have revolutionized the textile world. In the field of technical textiles, they can have on a variety of functions: depending on their exact composition, they can for example be electrically conductive or luminescent. They can also show antimicrobial properties and be flame-retardant. They are suitable for lightweight construction, for medical applications or for insulating buildings.

In order to protect the environment and resources, the use of bio-based fibers will be increased in the future with a special focus on easy-to-recycle fibers. To this end, the DITF are conducting research into sustainable polyamides, polyesters and polyolefins as well as many other polymers. Many 'classic', that is, petroleum-based polymers cannot or only insufficiently be broken down into their components or recycled directly after use. An important goal of new research work is therefore to further establish systematic recycling methods to produce fibers of the highest possible quality.

For these forward-looking tasks, a bicomponent spinning plant from Oerlikon Neumag was set up and commissioned on an industrial scale at the DITF in January. The BCF process (bulk continuous filaments) allows special bundling, bulking and processing of the (multifilament) fibers. This process enables the large-scale synthesis of carpet yarns as well as staple fiber production, a unique feature in a public research institute. The system is supplemented by a so-called spinline rheometer. This allows a range of measurement-specific chemical and physical data to be recorded online and inline, which will contribute to a better understanding of fiber formation. In addition, a new compounder will be used for the development of functionalized polymers and for the energy-saving thermomechanical recycling of textile waste.

28.02.2024

SGL Carbon: New Head of Business Unit Carbon Fibers

As of March 1, 2024, Dr. Denis Hinz will become new Head of SGL Carbon's Carbon Fibers Business Unit. The previous Head, Roland Nowicki, will leave SGL Carbon on May 31, 2024 at his own request to pursue new professional challenges. He will be available to the company as a consultant until his leaving date to support a smooth transition.

Roland Nowicki took over as Head of Carbon Fibers in November 2020 and has successfully driven forward the realignment of the business unit over the past three years.  

Dr. Denis Hinz has been with SGL Carbon for more than six years and has held various management positions during this time, including Head of Operations of the Fuel Cell Components division and Managing Director of SGL Fuel Cell Components GmbH in Meitingen since December 1, 2021. The graduate engineer from the Technical University of Munich is an experienced manager who is well networked within SGL Carbon and has closely followed the development of Carbon Fibers in recent years.

As of March 1, 2024, Dr. Denis Hinz will become new Head of SGL Carbon's Carbon Fibers Business Unit. The previous Head, Roland Nowicki, will leave SGL Carbon on May 31, 2024 at his own request to pursue new professional challenges. He will be available to the company as a consultant until his leaving date to support a smooth transition.

Roland Nowicki took over as Head of Carbon Fibers in November 2020 and has successfully driven forward the realignment of the business unit over the past three years.  

Dr. Denis Hinz has been with SGL Carbon for more than six years and has held various management positions during this time, including Head of Operations of the Fuel Cell Components division and Managing Director of SGL Fuel Cell Components GmbH in Meitingen since December 1, 2021. The graduate engineer from the Technical University of Munich is an experienced manager who is well networked within SGL Carbon and has closely followed the development of Carbon Fibers in recent years.

More information:
SGL Carbon Dr. Denis Hinz
Source:

SGL Carbon

26.02.2024

SGL Carbon: Review of options for Business Unit Carbon Fibers

SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestment of the Business Unit. In a first step, potential interested parties shall be approached with the general data of the Business Unit to determine their interest in an acquisition. If there is sufficient interest, a structured transaction process will be carried out in a second step. Overall, a share of sales amounting to around € 179.6 million after nine months in 2023 (9M 2022: € 269.0 million) is therefore under review. The CF sales share corresponded to 21.9% of SGL Carbon's consolidated sales after nine months in 2023 (9M 2022: 31.5%). Adjusted EBITDA of the Business Unit excluding the result from joint ventures amounted to minus € 10,9 million after nine months in 2023 (9M 2022: € 27,9 million). Despite the operating loss of CF after nine months in 2023, SGL Carbon maintains its guidance for fiscal year 2023. This shows the positive development of the three other business units and the resilience of SGL Carbon's business model.

SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestment of the Business Unit. In a first step, potential interested parties shall be approached with the general data of the Business Unit to determine their interest in an acquisition. If there is sufficient interest, a structured transaction process will be carried out in a second step. Overall, a share of sales amounting to around € 179.6 million after nine months in 2023 (9M 2022: € 269.0 million) is therefore under review. The CF sales share corresponded to 21.9% of SGL Carbon's consolidated sales after nine months in 2023 (9M 2022: 31.5%). Adjusted EBITDA of the Business Unit excluding the result from joint ventures amounted to minus € 10,9 million after nine months in 2023 (9M 2022: € 27,9 million). Despite the operating loss of CF after nine months in 2023, SGL Carbon maintains its guidance for fiscal year 2023. This shows the positive development of the three other business units and the resilience of SGL Carbon's business model.

Carbon Fibers manufactures textile, acrylic and carbon fibers as well as composite materials at seven locations in Europe and North America. Following the temporary drop in demand for carbon fibers from the important wind industry market, the Business Unit's sales and earnings fell significantly in the course of fiscal year 2023. Due to the importance of the wind industry for the European Green Deal, SGL Carbon and many experts assumed that the wind industry recovers quickly. Unfortunately, this is currently not the case. Even if demand picks up, the company assumes that Carbon Fibers will need additional resources to remain competitive in the international market environment and to exploit market opportunities in the best possible way. Against this background, SGL Carbon is reviewing all possibilities to support a positive further development of the Carbon Fibers Business Unit.

More information:
SGL Carbon carbon fibers
Source:

SGL Carbon SE 

STFI: Lightweight construction innovations at JEC World in Paris (c) silbaerg GmbH and STFI (see information on image)
23.02.2024

STFI: Lightweight construction innovations at JEC World in Paris

At this year's JEC World, STFI will be presenting highlights from carbon fibre recycling as well as a new approach to hemp-based bast fibres, which have promising properties as reinforcement in lightweight construction.

Green Snowboard
At JEC World in Paris from 5 to 7 March 2024, STFI will be showcasing a snowboard from silbaerg GmbH with a patented anisotropic coupling effect made from hemp and recycled carbon fibres with bio-based epoxy resin. In addition to silbaerg and STFI, the partners Circular Saxony - the innovation cluster for the circular economy, FUSE Composite and bto-epoxy GmbH were also involved in the development of the board. The green snowboard was honoured with the JEC Innovation Award 2024 in the “Sport, Leisure and Recreation” category.

At this year's JEC World, STFI will be presenting highlights from carbon fibre recycling as well as a new approach to hemp-based bast fibres, which have promising properties as reinforcement in lightweight construction.

Green Snowboard
At JEC World in Paris from 5 to 7 March 2024, STFI will be showcasing a snowboard from silbaerg GmbH with a patented anisotropic coupling effect made from hemp and recycled carbon fibres with bio-based epoxy resin. In addition to silbaerg and STFI, the partners Circular Saxony - the innovation cluster for the circular economy, FUSE Composite and bto-epoxy GmbH were also involved in the development of the board. The green snowboard was honoured with the JEC Innovation Award 2024 in the “Sport, Leisure and Recreation” category.

VliesComp
The aim of the industrial partners Tenowo GmbH (Hof), Siemens AG (Erlangen), Invent GmbH (Braunschweig) and STFI united in the VliesComp project is to bring recycled materials back onto the market in various lightweight construction solutions. The application fields "Innovative e-machine concepts for the energy transition" and "Innovative e-machine concepts for e-mobility" were considered as examples. On display at JEC World in Paris will be a lightweight end shield for electric motors made from hybrid nonwovens - a mixture of thermoplastic fibre components and recycled reinforcing fibres - as well as nonwovens with 100% recycled reinforcing fibres. The end shield was ultimately manufactured with a 100% recycled fibre content. The tests showed that, compared to the variant made from primary carbon fibres using the RTM process, a 14% reduction in CO2 equivalent is possible with the same performance. The calculation for the use of the prepreg process using a bio-resin system shows a potential for reducing the CO2 equivalent by almost 70 %.

Bast fibre reinforcement
To increase stability in the plant stem, bast fibres form in the bark area, which support the stem but, in contrast to the rigid wood, are very flexible and allow slender, tall plants to move in the wind without breaking.A new process extracts the bast bark from hemp by peeling.The resulting characteristic values, such as tensile modulus of elasticity, breaking strength and elongation, are very promising in comparison with the continuous rovings made of flax available on the market.The material could be used as reinforcement in lightweight construction.At JEC World, STFI will be exhibiting reinforcing bars that have been processed into a knitted fabric using a pultrusion process based on bio-based reinforcing fibres made from hemp bast for mineral matrices.

Source:

Sächsische Textilforschungsinstitut e.V. (STFI)

Long-lived lamellas for reinforcing buildings Image: Pixabay
08.01.2024

Long-lived lamellas for reinforcing buildings

Carbon fiber-reinforced polymer lamellas are an innovative method of reinforcing buildings. There are still many unanswered questions regarding their recycling, however. A research project by Empa's Mechanical Systems Engineering lab is now set to provide answers. Thanks to the support from a foundation, the project could now be launched.

The construction sector is responsible for around 60 percent of Switzerland's annual waste. The industry's efforts to recycle demolition materials are steadily increasing. Nevertheless, there are still end-of-life materials that, for the time being, cannot be reused as recycling would be too time-consuming and expensive. One of these are carbon fiber-reinforced polymer (CFRP) lamellas.

Carbon fiber-reinforced polymer lamellas are an innovative method of reinforcing buildings. There are still many unanswered questions regarding their recycling, however. A research project by Empa's Mechanical Systems Engineering lab is now set to provide answers. Thanks to the support from a foundation, the project could now be launched.

The construction sector is responsible for around 60 percent of Switzerland's annual waste. The industry's efforts to recycle demolition materials are steadily increasing. Nevertheless, there are still end-of-life materials that, for the time being, cannot be reused as recycling would be too time-consuming and expensive. One of these are carbon fiber-reinforced polymer (CFRP) lamellas.

Making buildings "live" longer
The reinforcing method developed by Urs Meier, former Empa Director at Dübendorf, has been used in infrastructure construction for 30 years. CFRP lamellas are attached with epoxy adhesive to bridges, parking garages, building walls and ceilings made of concrete or masonry. As a result, the structures can be used for 20 to 30 years longer. The method is increasingly being applied worldwide – mainly because it massively improves the earthquake resistance of masonry buildings.

"By significantly extending the lifespan of buildings and infrastructure, CFRP lamellas make an important contribution to increasing sustainability in the construction sector. However, we need to find a way how we can further use CFRP lamellas after the buildings are being demolished," explains Giovanni Terrasi, Head of the Mechanical Systems Engineering lab at Empa. To achieve this, he wants to develop a method for recycling CFRP lamellas. Convinced by this idea, a foundation supported it with a generous donation. The project officially launched in October.

Gentle separation
First, a mechanical process will be developed to detach the CFRP lamellas from the concrete without damaging them. Initial tests at Empa are encouraging: After the lamellas were separated from the concrete, they still had a strength of 95 percent – even if they had already been used for 30 years.

Then, the demolished CFRP lamellas shall be used to produce reinforcement for prefabricated components. Terrasi's goal: saving thousands of tons of CFRP lamellas from ending up in landfills after the demolition of old concrete structures and reuse them in low-CO2 concrete elements. After completion of the project, Giovanni Terrasi and his team – consisting of Zafeirios Triantafyllidis, Valentin Ott, Mateusz Wyrzykowski and Daniel Völki – want to produce railroad sleepers from recycled concrete, which will be reinforced and prestressed with demolition CFRP lamellas. This would give the "waste-to-be" material a second life in Swiss infrastructure construction.

Source:

Empa

04.01.2024

The climate-friendly carbon fiber - up to 50% less CO2 emissions

SGL Carbon relies on climate-friendly manufacturing processes in the production of its own carbon fibers. By using renewable energy, the carbon footprint of SGL fiber can be reduced by up to 50% compared to a conventional fiber.  

SGL carbon fiber is produced at the Lavradio (Portugal) and Moses Lake (USA) sites. When the Moses Lake site was selected in the 1990s, the use of hydropower as an energy source played a particularly decisive role. As a result, around 75,000 tonnes of CO2 can be saved in Moses Lake by purchasing electricity from hydropower plants compared to a fossil fuel-based electricity mix.

As part of the consistent implementation of its climate strategy, SGL Carbon will be using a CO2-neutral biomass system to generate energy from the beginning of 2024, which will make the production system, which was previously based on natural gas, more flexible and climate-friendly. At full capacity, the biomass system in Lavradio can save more than 90,000 tons of CO2.

The raw material used is wood pellets, which are sourced from a radius of 250 kilometres via short transport routes.

SGL Carbon relies on climate-friendly manufacturing processes in the production of its own carbon fibers. By using renewable energy, the carbon footprint of SGL fiber can be reduced by up to 50% compared to a conventional fiber.  

SGL carbon fiber is produced at the Lavradio (Portugal) and Moses Lake (USA) sites. When the Moses Lake site was selected in the 1990s, the use of hydropower as an energy source played a particularly decisive role. As a result, around 75,000 tonnes of CO2 can be saved in Moses Lake by purchasing electricity from hydropower plants compared to a fossil fuel-based electricity mix.

As part of the consistent implementation of its climate strategy, SGL Carbon will be using a CO2-neutral biomass system to generate energy from the beginning of 2024, which will make the production system, which was previously based on natural gas, more flexible and climate-friendly. At full capacity, the biomass system in Lavradio can save more than 90,000 tons of CO2.

The raw material used is wood pellets, which are sourced from a radius of 250 kilometres via short transport routes.

The climate-friendly energy supply at the site in Moses Lake (USA) combined with the new biomass plant in Lavradio (Portugal) lead to a reduction in CO2 emissions of up to 50% in the production of SGL's own carbon fibers compared to conventional fibers. With the investment in the biomass system, SGL Carbon is pursuing its climate strategy. The target is to save 50% CO2 emissions by the end of 2025 compared to the base year 2019 and to be climate-neutral by the end of 2038. In the period 2019 to 2022, SGL Carbon has reduced its CO2 emissions by 17%.

Source:

SGL Carbon SE

Graphic Toray
20.12.2023

Recycled carbon fiber: When a Boeing 787 turns into a Lenovo ThinkPad

Toray Industries, Inc. announced the successful development of recycled carbon fiber (rCF) derived from the production process of the Boeing 787 components using Toray’s advanced carbon fiber, TORAYCA™. The rCF, which is based on pyrolysis recycling process, has been integrated into the Lenovo ThinkPad X1 Carbon Gen 12 as reinforcement filler for thermoplastic pellets. Toray and Lenovo will continue to collaborate to expand the usage of rCF in other Lenovo products.

Toray rCF is the outcome of Boeing and Lenovo’s shared commitment to minimize their environmental impact. Boeing’s objective is to reduce solid waste going to landfill and produce recyclable materials, while Lenovo has been exploring materials to reduce the carbon footprint of their products. Toray rCF connects these visions by repurposing Toray’s high-performance carbon fiber from the Boeing aircraft production process into Lenovo’s ultra-light laptop PC.

Toray Industries, Inc. announced the successful development of recycled carbon fiber (rCF) derived from the production process of the Boeing 787 components using Toray’s advanced carbon fiber, TORAYCA™. The rCF, which is based on pyrolysis recycling process, has been integrated into the Lenovo ThinkPad X1 Carbon Gen 12 as reinforcement filler for thermoplastic pellets. Toray and Lenovo will continue to collaborate to expand the usage of rCF in other Lenovo products.

Toray rCF is the outcome of Boeing and Lenovo’s shared commitment to minimize their environmental impact. Boeing’s objective is to reduce solid waste going to landfill and produce recyclable materials, while Lenovo has been exploring materials to reduce the carbon footprint of their products. Toray rCF connects these visions by repurposing Toray’s high-performance carbon fiber from the Boeing aircraft production process into Lenovo’s ultra-light laptop PC.

TORAYCA™ is an established aerospace material known for its high strength, stiffness, and lightweighting properties. These qualities have led to its adoption in other applications such as electrical and electronic equipment housings, sports equipment, and other industrial applications.

A key advantage of carbon fiber is the ability to retain its primary mechanical properties even after the recycling process. Toray is actively advancing recycling technologies and establishing a strategic business model for rCF. Given that the carbon footprint of rCF is lower than that of virgin carbon fiber, Toray is proactively recommending the adoption of rCF to reduce the environmental impact of customers’ products. This commitment aligns with Toray’s dedication to fostering a circular economy, thereby reducing landfill waste.

Source:

Toray Industries

Prof. Dr Tae Jin Kang (Seoul National University), Dr Musa Akdere (CarboScreen), Dr Christian P. Schindler (ITMF), from left to right. Source: ITMF
Prof. Dr Tae Jin Kang (Seoul National University), Dr Musa Akdere (CarboScreen), Dr Christian P. Schindler (ITMF), from left to right.
01.12.2023

Faster and cheaper carbon fibre production with CarboScreen

Faster and more cost-effective carbon fibre production - the technology of the start-up CarboScreen comes a good deal closer to this dream. The founders Dr. Musa Akdere, Felix Pohlkemper and Tim Röding from the Institut für Textiltechnik (ITA) of RWTH Aachen University are using sensor technology to monitor carbon fibre production, thereby doubling the production speed from the current 15 to 30 m/min in the medium term and increasing turnover by up to €37.5 million per year and system. This ground-breaking development also impressed the jury at the ITMF at their Annual Conference in Keqiao, China, and was honoured with the ITMF StartUp Award 2023 on 6 November 2023.

Dr. Musa Akdere accepted the award on behalf of the CarboScreen founding team.

Carbon fibres can only develop their full potential if they are not damaged during production and further processing. Two types of fibre damage occur more frequently during fibre production: Superficial or mechanical damage to the fibres or damage to the chemical structure.

Faster and more cost-effective carbon fibre production - the technology of the start-up CarboScreen comes a good deal closer to this dream. The founders Dr. Musa Akdere, Felix Pohlkemper and Tim Röding from the Institut für Textiltechnik (ITA) of RWTH Aachen University are using sensor technology to monitor carbon fibre production, thereby doubling the production speed from the current 15 to 30 m/min in the medium term and increasing turnover by up to €37.5 million per year and system. This ground-breaking development also impressed the jury at the ITMF at their Annual Conference in Keqiao, China, and was honoured with the ITMF StartUp Award 2023 on 6 November 2023.

Dr. Musa Akdere accepted the award on behalf of the CarboScreen founding team.

Carbon fibres can only develop their full potential if they are not damaged during production and further processing. Two types of fibre damage occur more frequently during fibre production: Superficial or mechanical damage to the fibres or damage to the chemical structure.

Both types of damage cannot be optimally detected by current means or only become apparent after production, to name just two examples. This leads to higher production costs. In an emergency, faulty production can even lead to plant fires. For this reason, and to ensure good production quality, the system is run at 15 m/min below its production capacity for safety reasons. However, 30 m/min or more would be possible. With the sensor-based online monitoring of CarboScreen, the production capacity can be doubled to 30 /min. This would lead to higher production, resulting in lower manufacturing costs and wider use of carbon fibres in mass markets such as automotive, aerospace and wind energy.

More information:
carbon fibers sensors Startup
Source:

ITA – Institut für Textiltechnik of RWTH Aachen University
 

Gerhard Lettl (AVK Board Member, C.F. Maier Europlast GmbH & Co. KG), Felix Pohlmeyer (ITA), Prof. Dr Jens Ridzewski (AVK Board Member, IMA Materialforschung und Anwendungstechnik GmbH), Tim Röding (ITA), from left to right © AVK
Gerhard Lettl (AVK Board Member, C.F. Maier Europlast GmbH & Co. KG), Felix Pohlmeyer (ITA), Prof. Dr Jens Ridzewski (AVK Board Member, IMA Materialforschung und Anwendungstechnik GmbH), Tim Röding (ITA), from left to right
23.11.2023

CarboScreen: Sensor monitoring for complex carbon fibre production

Felix Pohlkemper and Tim Röding from Institut für Textiltechnik (ITA) of RWTH Aachen University are developing a technology with their start-up CarboScreen GmbH that makes complex carbon fibre production controllable through sensor monitoring. With the help of CarboScreen technology, it should be possible to double the production speed from the current 15 m/min to 30 m/min in the medium term. The doubling of production speed alone could result in an increase in turnover of up to €37.5 million per year and production plant. Felix Pohlkemper and Tim Röding were awarded third place in the AVK Innovation Award 2023 in the Processes and Procedures category for this ground-breaking development. The award ceremony took place during the JEC Roof Forum in Salzburg, Austria.

Felix Pohlkemper and Tim Röding from Institut für Textiltechnik (ITA) of RWTH Aachen University are developing a technology with their start-up CarboScreen GmbH that makes complex carbon fibre production controllable through sensor monitoring. With the help of CarboScreen technology, it should be possible to double the production speed from the current 15 m/min to 30 m/min in the medium term. The doubling of production speed alone could result in an increase in turnover of up to €37.5 million per year and production plant. Felix Pohlkemper and Tim Röding were awarded third place in the AVK Innovation Award 2023 in the Processes and Procedures category for this ground-breaking development. The award ceremony took place during the JEC Roof Forum in Salzburg, Austria.

The production of carbon fibres is highly complex. In the current state of the art, however, the manufacturing process is only monitored manually by semi-skilled workers. However, even minimal fibre damage during production leads to a reduction in the quality of the carbon fibre. In extreme cases, it can also lead to plant fires. To ensure production quality, the production speed is currently limited to a maximum of 15 m/min. In fact, the production speed of the systems could be higher. The sensor-based online monitoring of Carbo-Screen makes it possible to increase the production speed to 30 m/min in the medium term. As a result of the increased production volume per system, the specific production costs of the carbon fibre are reduced, which can result in lower prices.

A reduced sales price would make it possible to use carbon fibres and their composite materials even more widely in traditional markets such as aerospace technology and wind energy, as well as for mass production in the automotive industry.

The CarboScreen online monitoring system is currently being developed for industrial use. It is to be validated at an industrial plant in 2024. CarboScreen GmbH was founded as part of EXIST funding and offers AI-supported sensor systems for carbon fibre production. The sensor technology continuously monitors the fibre throughout the entire production process. Deviations are detected automatically.

The winners of the AVK Innovation Award are honoured annually by the AVK Industrievereinigung Verstärkte Kunststoffe. Companies, institutes and their partners are honoured in three categories: products and applications, processes and procedures, and research and science.

11.10.2023

Toray expands French Carbon Fiber Production Facilities

Toray Industries, Inc. will expand the French subsidiary Toray Carbon Fibers Europe S.A.’s production facilities for regular tow medium- and high-modulus carbon fibers (up to 24,000 filaments). This move will increase annual capacity at the Abidos plant (South-West France) from 5,000 metric tons annually, to 6,000 metric tons. Production is expected to start in 2025.

Demand for medium- and high-modulus carbon fibers is rising in Europe, driven by a push to move towards a net-zero society. This growth is mainly due to higher build rates for commercial aircrafts (secondary structures and engines), as well as centrifuge for energy production, satellites, and high-end automobiles. By boosting carbon fiber production capacity in Europe, Toray is responding to its customers’ demand for medium and high-modulus carbon fibers, as befits the market leader.

Toray Industries, Inc. will expand the French subsidiary Toray Carbon Fibers Europe S.A.’s production facilities for regular tow medium- and high-modulus carbon fibers (up to 24,000 filaments). This move will increase annual capacity at the Abidos plant (South-West France) from 5,000 metric tons annually, to 6,000 metric tons. Production is expected to start in 2025.

Demand for medium- and high-modulus carbon fibers is rising in Europe, driven by a push to move towards a net-zero society. This growth is mainly due to higher build rates for commercial aircrafts (secondary structures and engines), as well as centrifuge for energy production, satellites, and high-end automobiles. By boosting carbon fiber production capacity in Europe, Toray is responding to its customers’ demand for medium and high-modulus carbon fibers, as befits the market leader.

Source:

Toray Industries

Bac Mono Photo Hypetex
22.09.2023

Hypetex: Coloured carbon fibre replacing paint coating

•    First production supercar created with Hypetex coloured carbon fibre
•    Paint-replacement technology reduces weight to enhance performance

British car manufacturer Briggs Automotive Company (BAC) has created a unique Hypetex coloured carbon fibre version of its Mono R, reducing the weight by removing the need for paint.  

The original BAC Mono R was created to be lighter and more powerful than the standard model, with 343bhp and 555kg total weight, equating to a power-to-weight ratio of 618bhp-per-tonne. By removing the need for paint coatings in this version, the net weight of the exterior is reduced compared to a painted shell, resulting in a further improved overall performance.

The car’s body was created using Hypetex’s titanium carbon fibre twill, and finished with a crystalized lacquer, offering a unique aesthetic finish. The ultra-lightweight supercar can accelerate from zero to 60mph in less than 2.5 seconds.  

•    First production supercar created with Hypetex coloured carbon fibre
•    Paint-replacement technology reduces weight to enhance performance

British car manufacturer Briggs Automotive Company (BAC) has created a unique Hypetex coloured carbon fibre version of its Mono R, reducing the weight by removing the need for paint.  

The original BAC Mono R was created to be lighter and more powerful than the standard model, with 343bhp and 555kg total weight, equating to a power-to-weight ratio of 618bhp-per-tonne. By removing the need for paint coatings in this version, the net weight of the exterior is reduced compared to a painted shell, resulting in a further improved overall performance.

The car’s body was created using Hypetex’s titanium carbon fibre twill, and finished with a crystalized lacquer, offering a unique aesthetic finish. The ultra-lightweight supercar can accelerate from zero to 60mph in less than 2.5 seconds.  

Hypetex’s paint-replacement technology retains the visible weave, allowing for a bold design and a choice of colours without technical compromises, perfectly aligning with BAC’s initiatives to maximise performance whilst creating bespoke supercars. Paint generally adds 138 grams per metre squared, whereas Hypetex adds just 17 grams for the same area, offering an 8x weight saving.
This bespoke version of BAC’s single-seater Mono R was subject to BAC’s renowned BAC Bespoke programme, which ensures that no two Monos are the same. The client, a US-based collector, worked with BAC’s design team to design the car to their personal taste.   

Born out of Formula 1 technology, Hypetex offers manufacturers sustainable aesthetic materials with technical and efficiency benefits. This collaboration is an all-British success story, with the Hypetex carbon fibre body built by Formaplex, a leading UK-based manufacturing company who manufacture lightweight engineered solutions for top tier customers in Automotive, Aerospace and Defence markets. BAC’s supply chain is 95% UK-based.  

Hypetex continues to expand its growing portfolio of the use of coloured carbon fibre to add personalisation to the automotive field, with its material recently featured on the 2024 Ford Mustang Dark Horse.  

 

More information:
HYPETEX® carbon fibers
Source:

Hypetex

Brembo SGL Carbon Ceramic Brakes expands production capacity (c) SGL CARBON SE
13.09.2023

Brembo SGL Carbon Ceramic Brakes expands production capacity

SGL Carbon and Brembo agreed to expand production capacities for the joint venture Brembo SGL Carbon Ceramic Brakes (BSCCB). Both companies have been working together with BSCCB on the conditions and implementation plans for this in the preceding months. BSCCB will invest around €150 million until 2027 to expand by more than 70% production capacities at the sites in Meitingen (Germany) and Stezzano (Italy).

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 m² and the installation of new production machinery. The groundbreaking in Meitingen will take place this fall.

At the Stezzano site, production areas will be extended by around 4.000 m² to existing buildings and investments will be made in new production machinery.

SGL Carbon and Brembo agreed to expand production capacities for the joint venture Brembo SGL Carbon Ceramic Brakes (BSCCB). Both companies have been working together with BSCCB on the conditions and implementation plans for this in the preceding months. BSCCB will invest around €150 million until 2027 to expand by more than 70% production capacities at the sites in Meitingen (Germany) and Stezzano (Italy).

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 m² and the installation of new production machinery. The groundbreaking in Meitingen will take place this fall.

At the Stezzano site, production areas will be extended by around 4.000 m² to existing buildings and investments will be made in new production machinery.

The extensive expansion of production capacities will enable Brembo SGL Carbon Ceramic Brakes (BSCCB) to meet the high market demand and to cover the increasing customer requests in the future. The need for carbon ceramic brake discs from BSCCB increased worldwide. This is mainly due to the high product quality and performance of carbon ceramic brake discs, which meet the specific requirements of automotive manufacturers, especially in the premium and luxury segments, where high braking performance is needed.

Source:

SGL CARBON SE

07.08.2023

SGL Carbon: Confirmation of the full-year guidance for 2023

  • Sales up 1.9% year-on-year to €560.5 million with stable adjusted EBITDA of €88.0 million
  • Strong business performance of the Graphite Solutions, Process Technology and Composite Solutions businesses
  • Sales and earnings decline at Carbon Fibers due to weakness of wind market
  • Impairment at Carbon Fibers of €44.7 million

Despite the increasingly difficult economic environment, SGL Carbon was able to increase sales in H1 2023 from €549.8 million in the previous year to €560.5 million. Adjusted EBITDA (EBITDApre) remained almost unchanged at €88.0 million (H1 2022: €87.9 million). The expected good business performance of the Graphite Solutions business unit and the better-than-expected sales and earnings development of Process Technology and Composite Solutions compensated the drop in demand in Carbon Fibers.

  • Sales up 1.9% year-on-year to €560.5 million with stable adjusted EBITDA of €88.0 million
  • Strong business performance of the Graphite Solutions, Process Technology and Composite Solutions businesses
  • Sales and earnings decline at Carbon Fibers due to weakness of wind market
  • Impairment at Carbon Fibers of €44.7 million

Despite the increasingly difficult economic environment, SGL Carbon was able to increase sales in H1 2023 from €549.8 million in the previous year to €560.5 million. Adjusted EBITDA (EBITDApre) remained almost unchanged at €88.0 million (H1 2022: €87.9 million). The expected good business performance of the Graphite Solutions business unit and the better-than-expected sales and earnings development of Process Technology and Composite Solutions compensated the drop in demand in Carbon Fibers.

In particular, the Graphite Solutions (GS) business unit contributed to the stable development of the Company with a 15.3% increase in sales to €280.6 million (H1 2022: €243.4 million) and a 20.6% improvement in adjusted EBITDA to €65.1 million (H1 2022: €54.0 million). GS benefited especially from the high demand of the semiconductor industry. The semiconductor and LED market segment now accounts for around 45% of GS revenue (H1 2022: around 35%).

With a 30.9% increase in sales to €64.4 million (H1 2022: €49.2 million) and a significant rise in adjusted EBITDA from €4.1 million to €11.9 million, the business performance of Process Technology (PT) was significantly above the original planning. Composite Solutions (CS) also reported a higher-than-forecast sales increase of 14.4% to €79.6 million in H1 2023 (H1 2022: €69.6 million) and an improvement in adjusted EBITDA of 26.8% to €12.3 million (H1 2022: €9.7 million). By contrast, the business performance of the Carbon Fibers (CF) unit was not in line with expectations, with a 28.9% decline in sales to €125.1 million (H1 2022: €176.0 million) and a 78.4% drop in earnings to €6.1 million (H1 2022: €28.2 million).

An important market segment for 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 current estimates, the expected recovery in demand in H2 2023 will not materialize. SGL Carbon expects customer demand from the wind industry to pick up in 2024.

As already announced in the ad hoc release of July 24, 2023, an impairment loss of €44.7 million was recognized on the assets of Carbon Fibers as of June 30, 2023.

Results situation
SGL Carbon's adjusted EBITDA (EBITDApre) remained almost stable in a half-year comparison at €88.0 million (H1 2022: €87.9 million). Due to the lack of demand from wind industry, CF's production capacity utilization decreased and idle capacity costs weighed on adjusted EBITDA. By contrast, higher margins from product mix and volume effects in the other three business units had a positive impact on adjusted EBITDA.

Non-recurring items and one-off effects not included in adjusted EBITDA totaled minus €46.9 million in the first half of 2023, of which €44.7 million resulted from an impairment loss in the CF business unit.

In addition to the above-mentioned effects and nearly unchanged depreciation and amortization of €29.1 million (H1 2022: €28.9 million), the decline in EBIT resulted in particular from the impairment loss already described (€44.7 million). After €69.6 million in H1 2022, EBIT amounted to €12.0 million in the reporting period.

Taking into account the slightly improved financial result of minus €15.8 million (H1 2022: minus €16.6 million), consolidated net income for the first six months of the current financial year amounted to minus €10.0 million, compared to €48.8 million in the first half of the previous year.

Net financial debt and equity
To complete its refinancing, SGL Carbon issued convertible bonds with a volume of €118.7 million in June 2023 and drew an existing term loan facility of €75 million in July 2023, which was used together with cash of the Company on July 28, 2023 to repay the corporate bond (outstanding as of June 30, 2023: €237.4 million). Accordingly, cash and cash equivalents increased to €310.5 million as of June 30, 2023 (€227.3 million as of December 31, 2022) and financial debt temporarily increased to €480.4 million (€398.1 million as of December 31, 2022). Net financial debt remained nearly unchanged at €169.9 million as of June 30, 2023 (Dec. 31, 2022: € 170.8 million).

Despite the impairment loss of €44.7 million in Carbon Fibers, shareholders' equity amounted to €565.2 million as of June 30, 2023, only slightly lower than at the end of 2022 (Dec. 31, 2022: €569.3 million). This corresponds to an equity ratio of 36.1% (Dec. 31, 2022: 38.5%).

Source:

SGL CARBON SE

26.07.2023

SGL Carbon SE confirms full-year guidance 2023

According to preliminary figures for H1 2023, SGL Carbon's Group sales increased year-on-year from €549.8 million to €560.5 million, with EBITDApre1 almost unchanged at €88.0 million (H1 2022: €87.9 million). The expected good business performance of the Business Unit Graphite Solutions and the better-than-expected sales and earnings development of the segments Process Technology and Composite Solutions compensated the drop in demand in the Business Unit Carbon Fibers.

According to preliminary figures for H1 2023, SGL Carbon's Group sales increased year-on-year from €549.8 million to €560.5 million, with EBITDApre1 almost unchanged at €88.0 million (H1 2022: €87.9 million). The expected good business performance of the Business Unit Graphite Solutions and the better-than-expected sales and earnings development of the segments Process Technology and Composite Solutions compensated the drop in demand in the Business Unit Carbon Fibers.

Graphite Solutions (GS) 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 (PT) was significantly ahead of the original budget. Composite Solutions (CS) 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 last year. By contrast, the business performance of the Carbon Fibers (CF) 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 1st 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 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.

SGL Carbon's equity ratio after the impairment as of June 30, 2023 is approximately 36% (December 31, 2022: 38.5%).

Further information on the first six months of fiscal year 2023 can be obtained from the half-year report, which will be published on August 3, 2023.

1The definition of key figures used in this release is aligned to the Annual Report 2022.

Source:

SGL CARBON SE

Professor Dr Thomas Gries with the award winner Flávio André Marter Diniz Hanns-Voith-Stiftung, Oliver Voge
Professor Dr Thomas Gries with the award winner Flávio André Marter Diniz
11.07.2023

Future cost reduction through ultra-thin PE carbon fibres

  • ITA Master's graduate wins Hanns Voith Foundation Award 2023

In his Master's thesis, Flávio André Marter Diniz, a graduate of the Institut für Textiltechnik of RWTH Aachen University (ITA), developed ultra-thin polyethylene (PE) carbon fibres with a filament diameter 2-3 times smaller than usual. In addition, the use of PE-based precursors will make it possible to reduce the price of carbon fibres by 50 per cent in the future, thus opening up a wide range of other possible applications in key industries such as wind power, aerospace and automotive. For this groundbreaking development, Marter Diniz was awarded the Hanns Voith Prize with the Hanns Voith Foundation Award in the category "New Materials". The prize is endowed with € 5,000 in prize money.

Flávio André Marter Diniz won the prize in the category "New Materials" for his master thesis entitled "Investigation of the stabilisation and carbonisation process for the production of ultra-thin polyethylene-based carbon fibres".

  • ITA Master's graduate wins Hanns Voith Foundation Award 2023

In his Master's thesis, Flávio André Marter Diniz, a graduate of the Institut für Textiltechnik of RWTH Aachen University (ITA), developed ultra-thin polyethylene (PE) carbon fibres with a filament diameter 2-3 times smaller than usual. In addition, the use of PE-based precursors will make it possible to reduce the price of carbon fibres by 50 per cent in the future, thus opening up a wide range of other possible applications in key industries such as wind power, aerospace and automotive. For this groundbreaking development, Marter Diniz was awarded the Hanns Voith Prize with the Hanns Voith Foundation Award in the category "New Materials". The prize is endowed with € 5,000 in prize money.

Flávio André Marter Diniz won the prize in the category "New Materials" for his master thesis entitled "Investigation of the stabilisation and carbonisation process for the production of ultra-thin polyethylene-based carbon fibres".

The use of carbon fibres in highly stressed lightweight construction solutions, such as today's growth applications of wind turbines or pressure tanks, has become indispensable due to their excellent mechanical properties and low density. High manufacturing costs of conventional PAN precursor-based carbon fibres make the material very cost-intensive. In addition, it is not sufficiently available. New manufacturing approaches that develop alternative raw materials and manufacturing processes can be a key and growth engine for further industrial composites applications.

The aim of the work was to develop a new and cost-effective manufacturing process for high-quality ultra-thin carbon fibres using a polyethylene precursor. For this purpose, the sulphonisation process, which is time-consuming today, was to be significantly shortened. As a result, Mr. Marter Diniz produced novel ultra-thin polyethylenebased carbon fibres with a filament diameter < 3 μm with an excellent surface quality of the fibres without detectable structural defects. The fibre diameter is 2-3 times smaller than that of conventional PANbased CF. This provides the basis for mechanically high-quality material properties. At the same time, Mr. Marter Diniz was able to reduce the sulphonisation time by 25 percent. The developed material and technology set important milestones on the way to cheaper carbon fibres. With PE-based precursors, the price of CF can be reduced by 50 percent compared to conventional PAN-based CF.  

A total of five other young scientists were awarded in six categories (Drive Technology, Innovation & Technology/Artificial Intelligence, New Materials, Paper, Hydropower and Economic Sciences. This year, for the 10th time, the Hanns Voith Foundation awarded the Hanns Voith Prize to outstanding young scientists.

Source:

ITA Institut für Textiltechnik of RWTH Aachen University

05.05.2023

SGL Carbon: Business Development in Q1 2023

  • Sales increase by 4.7% to €283.7 million in Q1 2023
  • Adjusted EBITDA improves by 9.0% to €40.1 million
  • Growth based in particular on strong demand from the semiconductor industry

SGL Carbon generated Group sales of €283.7 million in Q1 2023 (Q1 2022: €270.9 million). This corresponds to an increase of €12.8 million or 4.7% compared to the same period of the previous year. Increased demand for specialty graphite components for the semiconductor industry from the Graphite Solutions business unit contributed in particular to the pleasing increase in sales. But also the Process Technology and Composite Solutions business units continued their positive business development.

Accordingly, adjusted EBITDA (EBITDApre) improved by 9.0% to €40.1 million in the reporting period (Q1 2022: €36.8 million).

  • Sales increase by 4.7% to €283.7 million in Q1 2023
  • Adjusted EBITDA improves by 9.0% to €40.1 million
  • Growth based in particular on strong demand from the semiconductor industry

SGL Carbon generated Group sales of €283.7 million in Q1 2023 (Q1 2022: €270.9 million). This corresponds to an increase of €12.8 million or 4.7% compared to the same period of the previous year. Increased demand for specialty graphite components for the semiconductor industry from the Graphite Solutions business unit contributed in particular to the pleasing increase in sales. But also the Process Technology and Composite Solutions business units continued their positive business development.

Accordingly, adjusted EBITDA (EBITDApre) improved by 9.0% to €40.1 million in the reporting period (Q1 2022: €36.8 million).

Sales development
In the first three months of fiscal year 2023, the business unit Graphite Solutions was the main driver of SGL Carbon's growth with an increase in sales of €21.3 million or 17.8%. This is due in particular to the reallocation of production capacities from the solar industry market segment to the semiconductor industry. The Process Technology (+€6.6 million) and Composite Solutions (+€4.0 million) business units also contributed to the increase in sales.

The Carbon Fibers (CF) business unit recorded a decline in sales of €24.0 million in the reporting period. The decline is mainly due to the scheduled expiry of the attractive supply contract for the BMW i3 in the middle of last year. Freed-up production capacities were compensated by orders from the wind industry in the 2nd half of 2022. But the necessary construction of wind turbines in Europe is currently stalling. Low building permits and high manufacturing costs are temporarily hampering the construction and expansion of wind parks and therefore the necessary increase in renewable energy.

Earnings development
In line with the sales development combined with higher capacity utilization and positive product mix effects, adjusted EBITDA (EBITDApre) improved from €36.8 million to €40.1 million in Q1 2023, representing a quarter-on-quarter increase of 9.0%.

Taking into account depreciation and amortization of €14.3 million (Q1 2022: €14.1 million) as well as one-off effects and non-recurring items of minus €0.1 million, EBIT in the reporting period amounted to €25.7 million (Q1 2022: €31.2 million). It should be noted that Q1 of the previous year was positively impacted by one-off effects and and non-recurring items amounting to €8.5 million. Accordingly, net profit for the period of €15.3 million was lower than in the same quarter of the previous year (€21.5 million).

Debt, equity and capitel expenditure
Net financial debt increased slightly to €174.2 million as of March 31, 2023 (Dec. 31, 2022: €170.8 million). The leverage ratio remains unchanged at 1.0. Due to the positive consolidated net income, the equity ratio increased again slightly compared to the end of fiscal 2022 to 39.5% (Dec. 31, 2022: 38.5%).

Looking at the capital expenditure in Q1 2023, it amounted to €19.0 million, which is higher than the average values of the previous quarters. "At the beginning of 2023, we had already announced the expansion of our investment activities to expand production capacities in the Graphite Solutions business unit. In previous years, our capital expenditure was in line with depreciation and amortization. In addition to these approximately €60 million, we will invest further €20 to €30 million in 2023, which will be financed by advance payments in the context of long-term supply contracts from our customers in the semiconductor industry. Our semiconductor customers secure future production capacities for graphite components, which are needed for their own growth. In return, SGL Carbon's long-term supply contracts will enable future profitable growth," said Dr. Torsten Derr, CEO of SGL Carbon.

Outlook
In line with the business performance in the first three months of 2023, the company confirms the sales and earnings guidance issued on March 23, 2023.

For the financial year 2023, Group sales are expected to be at the prior-year level and  EBITDApre between €160 - 180 million. Taking into account depreciation and amortization, EBITpre is forecast to be between €100 - 120 million. Furthermore, free cash flow at the end of fiscal 2023 is expected to be at the prior-year level and return on capital employed (ROCE) between 10% and 12%.

Source:

SGL CARBON SE

(c) Hypetex
26.04.2023

Hypetex: Coloured Carbon Fibre Bike Wheels launched at The Cycle Show

The first set of coloured carbon fibre bike wheels made a debut public appearance at The Cycle Show at Alexandra Palace.

Developed in partnership with leading wheel brand Parcours, the Chrono carbon fibre wheels feature a gold finish made of Hypetex’s Zlatan uni-directional material and offer a lighter and higher-performance product than the traditional painted alternative.

Hypetex is a sustainable colouring technology for advanced materials, such as carbon fibre. Born out of Formula 1 racing, its patented paint-replacing process is a key step in advancing the lightweight revolution. Combining water-based eco-resins with a sustainable curing process, Hypetex materials are made with bold, colourful aesthetics as well as technical and cost-saving benefits.

Parcours is a leading wheel brand that offers high-performance, premium wheelsets that employs the latest advancements in aerodynamic technology. The Parcours X Hypetex gold wheels were featured at The Cycle Show in London on a bespoke Handsling A1R0evo, which was nominated for the Jaw Droppers trophy - a competition for the industry’s most striking designs.

The first set of coloured carbon fibre bike wheels made a debut public appearance at The Cycle Show at Alexandra Palace.

Developed in partnership with leading wheel brand Parcours, the Chrono carbon fibre wheels feature a gold finish made of Hypetex’s Zlatan uni-directional material and offer a lighter and higher-performance product than the traditional painted alternative.

Hypetex is a sustainable colouring technology for advanced materials, such as carbon fibre. Born out of Formula 1 racing, its patented paint-replacing process is a key step in advancing the lightweight revolution. Combining water-based eco-resins with a sustainable curing process, Hypetex materials are made with bold, colourful aesthetics as well as technical and cost-saving benefits.

Parcours is a leading wheel brand that offers high-performance, premium wheelsets that employs the latest advancements in aerodynamic technology. The Parcours X Hypetex gold wheels were featured at The Cycle Show in London on a bespoke Handsling A1R0evo, which was nominated for the Jaw Droppers trophy - a competition for the industry’s most striking designs.

Source:

Hypetex

23.03.2023

SGL Carbon reports for 2022 best operating result in more than ten years

  • Sales increase of 12.8% to €1,135.9 million
  • EBITDApre improves by 23.4% to €172.8 million
  • Net financial debt reduced from €206.3 million to €170.8 million
  • Fiscal 2023 expected to be investment and stabilization year

SGL Carbon was again able to improve sales and earnings in fiscal year 2022 following 2021. All four business units contributed to this success.
Sales in fiscal 2022 increased by 12.8% year-on-year to €1,135.9 million (previous year: €1,007.0 million). The rise in sales was mainly due to both volume effects and the successful implementation of pricing initiatives to compensate higher raw material, energy and transport prices. At 23.4%, adjusted EBITDA (EBITDApre) improved at a higher rate than sales and amounted to €172.8 million in fiscal 2022 (previous year: €140.0 million). Increased sales and the associated higher capacity utilization also contributed to the improvement in earnings, as well as focusing on market segments with higher margin potential.
 
Earnings development of SGL Carbon

  • Sales increase of 12.8% to €1,135.9 million
  • EBITDApre improves by 23.4% to €172.8 million
  • Net financial debt reduced from €206.3 million to €170.8 million
  • Fiscal 2023 expected to be investment and stabilization year

SGL Carbon was again able to improve sales and earnings in fiscal year 2022 following 2021. All four business units contributed to this success.
Sales in fiscal 2022 increased by 12.8% year-on-year to €1,135.9 million (previous year: €1,007.0 million). The rise in sales was mainly due to both volume effects and the successful implementation of pricing initiatives to compensate higher raw material, energy and transport prices. At 23.4%, adjusted EBITDA (EBITDApre) improved at a higher rate than sales and amounted to €172.8 million in fiscal 2022 (previous year: €140.0 million). Increased sales and the associated higher capacity utilization also contributed to the improvement in earnings, as well as focusing on market segments with higher margin potential.
 
Earnings development of SGL Carbon
The increase in EBITDApre by €32.8 million to €172.8 million was mainly driven by the Graphite Solutions business unit (+€30.6 million). The Composite Solutions (+€7.9 million) and Process Technology (+€5.2 million) business units also contributed to the improvement in profitability. Although the Carbon Fibers business unit was able to offset the loss of a lucrative supply contract with an automotive customer in terms of sales with new orders from the wind energy sector, but these sales showed a significantly lower margin level. Accordingly, EBITDApre of this business unit decreased by €11.2 million to €43.2 million (previous year: €54.5 million).

Taking into account net one-off effects and non-recurring items of €8.9 million (previous year: €30.7 million) and depreciation and amortization of €60.8 million (previous year: €60.3 million), reported EBIT amounted to €120.9 million (2021: €110.4 million). This corresponds to an increase of 9.5%.
As a result of the pleasing business performance, the successes of the transformation and non-operating one-off effects and non-recurring items (€8.9 million), a positive Group’s net profit of €126.9 million (previous year: €75.4 million) was achieved in 2022. It should be noted that consolidated net income includes tax income of €31.3 million (previous year: minus €6.2 million). This development is mainly due to valuation adjustments on deferred tax assets amounting to €41.8 million, based on the good business development combined with positive earnings prospects in the USA. Current tax expenses amounted to €11.4 million in 2022 (previous year: €11.9 million).
 
Net financial debt and equity
In fiscal 2022, net financial debt was reduced significantly by 17.2% to €170.8 million compared with the end of 2021 (€206.3 million). The main reason for the decrease is the repayment of financial liabilities in the amount of €29.0 million. Free cash flow decreased from €111.5 million to €67.8 million in 2022. In this context, it should be taken into account that in the previous year, free cash flow included cash inflows of €30.6 million from the sale of land not required for operations.
After 2021, the equity ratio increased again to 38.5% at the end of 2022 (previous year: 27.0% I 2020: 17.5%). Due to the significantly improved earnings situation, the return on capital employed (ROCE) also rose from 8.0% in the previous year to 11.3% in 2022.
 
Development of the business units
As the largest business unit with a share of Group sales of around 45%, Graphite Solutions contributed €512.2 million to Group sales in 2022 (previous year: €443.6 million). The 15.5% increase in sales is based in particular on the positive development of the important market segments Semiconductor & LED and Industrial Applications. Compared to the previous year, sales to customers in the semiconductor & LED industry increased by 49.6%, driven in particular by increasing demand of materials and components for the production of silicon carbide-based high-performance semiconductors. Combined with the increase in sales, GS EBITDApre improved by 34.8% to €118.5 million (previous year: €87.9 million). Accordingly, the EBITDApre margin increased from 19.8% to 23.1%. Volume effects due to higher sales as well as margin effects from the product and customer mix had a positive impact.  Especially the higher sales with customers from the semiconductor industry should be taken into account.

In fiscal 2022, the Process Technology (PT) business unit benefited from the good order situation in recent months and increased its sales by 21.9% to €106.3 million. The main clients of the PT business unit are customers from the chemical industry. The positive development of PT is also reflected in EBITDApre which rose from €4.7 million in the same period of the previous year to €9.9 million. Higher capacity utilization and the successful passing on of increased raw material costs led to an improvement in the EBITDApre margin from 5.4%  to 9.3% in 2022. Energy costs play only a minor role at PT.

In the reporting year, sales of the Carbon Fibers (CF) business unit increased by 3.0% to €347.2 million (previous year: €337.2 million). It should be noted that CF had to absorb the scheduled expiry of a supply contract with an automotive customer at the end of June 2022. These sales were offset by orders from the wind industry and Industrial Applications. However, EBITDApre in the CF division decreased by 20.7% year-on-year to €43.2 million (previous year: €54.5 million). This earnings development is mainly attributable to the expiry of the high-margin automotive contract. In addition, a special effect from energy derivatives in the amount of minus €9.2 million impacted CF earnings in the 1st quarter of 2022. However, the implemented energy price hedges enabled the business unit to maintain its production capability throughout the entire fiscal year, that the weakening of earnings was mitigated.
The Composite Solutions (CS) business unit confirmed its upward trend in fiscal 2022 with a 25.0% increase in sales to €153.1 million (previous year: €122.5 million). The most important market segment for the CS business unit is the automotive industry. In line with the highly positive business performance, EBITDApre of CS increased by 65.3% to €20.0 million (previous year: €12.1 million). This figure also includes non-recurring positive effects of €3.7 million from compensation payments received from automotive customers for premature project terminations.

The non-operating Corporate segment contributed €17.1 million to Group sales (previous year: €16.5 million). In line with continued strict cost management as part of the transformation, EBITDApre improved slightly to minus €18.8 million (previous year: minus €19.2 million).

Outlook
"If we summarize our expectations for the 2023 financial year, it can be summed up under the guiding principle: -invest and stabilize," CFO Thomas Dippold comments on the forecast for 2023.
For the fiscal year 2023 we continue to expect solid demand for our materials and products. In particular, we expect that the demand for special graphite products for high-temperature processes, e.g. in the semiconductor, solar and LED industries, will continue to increase. On the other hand, the first-time full-year effect from the expiry of a supply contract with an automotive customer in the carbon fiber segment and the sale of our business in Gardena (USA) will burden sales development.

"The increasing demand for high-performance semiconductors for electromobility or renewable forms of energy will also boost the demand of components made of graphite for the production of these semiconductors. To benefit from the related opportunities, we will expand our production capacities in this segment and invest a double-digit million amount in 2023 . Based on existing supply relationships, we will implement this investments partly together with our customers," explains CEO Dr. Torsten Derr.
On the cost side, we expect energy and raw material prices to remain at a high level in 2023, along with significant wage increases. Our forecast implies that higher factor costs can be partially passed on to customers through price initiatives.
Based on the assumptions described, we expect Group sales to be at prior-year level and EBITDApre to be between €160 million and €180 million in the financial year 2023.
In the medium term (until 2027), we anticipate a further improvement in our EBITDApre margin between 18% and 19%.

Source:

SGL CARBON SE

(c) Hypetex
15.03.2023

Michael Dowse joins Hypetex Board

UK advanced materials and technology firm Hypetex, a manufacturer of coloured carbon fibre, has appointed Michael Dowse as a Non-Executive Director and Board Member.

Dowse brings experiences across sport and retail, following leadership roles at some of the biggest sports organisations and companies in the world. He was a Global Director for Nike before becoming President and General Manager Outdoor Americas for Amer Sports, managing brands such as Salomon, Arc’Teryx and Suunto.

As President of Wilson Sporting Goods (2013-2019), Dowse led 1,500+ colleagues in delivering the company’s global strategy, corporate operations, and manufacturing across more than 160 countries. He then took up the position of Chief Executive Officer and Executive Director of the United States Tennis Association (2020-2022).

Dowse will join a group of advisors at Hypetex, which includes Board Chairman Neil MacDougall and former Diageo Chief Financial Officer Nick Rose. They will support CEO Marc Cohen and Chief Technology Officer Nigel Dunlea as they continue to expand the company’s presence in sport and other sectors worldwide.

UK advanced materials and technology firm Hypetex, a manufacturer of coloured carbon fibre, has appointed Michael Dowse as a Non-Executive Director and Board Member.

Dowse brings experiences across sport and retail, following leadership roles at some of the biggest sports organisations and companies in the world. He was a Global Director for Nike before becoming President and General Manager Outdoor Americas for Amer Sports, managing brands such as Salomon, Arc’Teryx and Suunto.

As President of Wilson Sporting Goods (2013-2019), Dowse led 1,500+ colleagues in delivering the company’s global strategy, corporate operations, and manufacturing across more than 160 countries. He then took up the position of Chief Executive Officer and Executive Director of the United States Tennis Association (2020-2022).

Dowse will join a group of advisors at Hypetex, which includes Board Chairman Neil MacDougall and former Diageo Chief Financial Officer Nick Rose. They will support CEO Marc Cohen and Chief Technology Officer Nigel Dunlea as they continue to expand the company’s presence in sport and other sectors worldwide.

Source:

Hypetex

06.09.2022

SGL Carbon increases sales and earnings guidance again for 2022

Due to the continued good business development, especially in the Carbon Fibers Business Unit, SGL Carbon SE is increasing its Group sales and earnings guidance for the current fiscal year and now expects Group sales of approximately €1.2 billion (previously: approximately €1.1 billion). The company expects to achieve adjusted EBITDA (EBITDA pre = earnings before interest, taxes, depreciation and amortization before one-off effects and non-recurring items) of €170 - €190 million (previously: €130 - €150 million) in 2022.

Based on lower prices for acrylonitrile as main raw material of the Business Unit Carbon Fibers as well as higher than expected customer demand for acrylic and carbon fibers combined with consistently good production capacity utilization and capability, the management of SGL Carbon SE assumes an improved earnings development of this Business Unit.

Due to the continued good business development, especially in the Carbon Fibers Business Unit, SGL Carbon SE is increasing its Group sales and earnings guidance for the current fiscal year and now expects Group sales of approximately €1.2 billion (previously: approximately €1.1 billion). The company expects to achieve adjusted EBITDA (EBITDA pre = earnings before interest, taxes, depreciation and amortization before one-off effects and non-recurring items) of €170 - €190 million (previously: €130 - €150 million) in 2022.

Based on lower prices for acrylonitrile as main raw material of the Business Unit Carbon Fibers as well as higher than expected customer demand for acrylic and carbon fibers combined with consistently good production capacity utilization and capability, the management of SGL Carbon SE assumes an improved earnings development of this Business Unit.

SGL Carbon assumes that the factors mentioned will continue at least until the end of the year and that the earnings situation of the Business Unit Carbon Fibers will exceed previous expectations. Combined with the continued good business development of the other three Business Units (Graphite Solutions, Process Technology and Composite Solutions), an improvement in the sales and earnings situation at Group level is expected.

In line with the forecast increase for adjusted EBITDA (EBITDA pre) to between €170 and €190 million (previously: €130 - €150 million), the company is forecasting adjusted EBIT (earnings before interest and taxes and before one-off effects and non-recurring items) of between €110 and €130 million (previously: €70 - €90 million). The forecast for return on capital employed (ROCE) of originally 7% - 9% has been raised to 10% to 12% corresponding to the development of earnings. The expectations for free cash flow (significantly below previous year's level of €111.5 million) remain unaffected by the expected improvement in sales and earnings.

The updated forecast for fiscal 2022 has been prepared on the basis of the currently prevailing market environment and assumes no deterioration in the general conditions, in particular due to the war in Ukraine and its consequences for the global economy.
 
The definition of key figures used in this release is aligned to the Annual Report 2021. There were no changes in the scope of consolidation or accounting methods compared with the previous guidance.

Source:

SGL CARBON SE