23 Apr 2012
Group Closes Majority Takeover of Fisipe
• Acquisition of 86 % stake in Portuguese company Fisipe S.A. com-plete
• Registration of mandatory offer to acquire the remaining stake re-quested
• Expansion of own supply of raw materials for carbon fiber manufac-ture
• Manufacture of acrylic fibers to continue
Shanghai, April 23, 2012. The SGL Group – The Carbon Company – has completed the acquisition of an 86% stake in the listed Portuguese company Fisipe – Fibras Sintéticas de Portugal S.A. – from the previous principal shareholder, Negofor, as planned. The final purchase price is forecasted to be in the range of €25 million. At the same time, the request for registration of a mandatory public offer has been submitted to the Portuguese securities commission for the remaining shares in Fisipe.
With this transaction, SGL Group expands its production network for carbon fiber raw materials by adding a production site for precursor. Certain textile fiber production lines at the site will be converted into precursor lines and gradually expanded. Precursor is the raw material for carbon fibers. At the same time, the facility will continue to manu-facture and sell acrylic fibers for special textile and technical applications.
Multi-Sourcing Strategy for Central Raw Material Supply for Carbon Fiber Pro-duction
With this backward integration, SGL Group – the only European integrated manufac-turer of carbon fibers – is expanding its technology and production base along the en¬tire value chain, from raw materials to carbon fibers through to the finished composite. SGL Group currently produces precursors in its multi-sourcing strategy in joint ventures with Lenzing AG in the Bavarian town of Kelheim (SGL Group stake: 44%) and Mitsubi¬shi Rayon Co. Ltd. (MRC) in Otake, Japan, (SGL Group stake: 33%). These joint ven¬tures focus on industrial grade carbon fibers (50K). With Fisipe, the company is tapping into an additional source of raw materials to produce other types of precursor, specifically the development of raw materials for low-tow carbon fibers (3K – 24K). SGL Group and Fisipe have collaborated successfully on development projects in the past.
Fisipe has an extremely well-qualified workforce, its production capacity has scope for expansion and it also offers well-developed logistics. Due to the company’s size and own energy supply, Fisipe also stands out for its high cost efficiency.
Precursor: The quality of the precursor – the carbon fiber raw material based on polyacrylonitrile fibers (PAN) – plays a significant role in both the material properties of the carbon fibers and the manufacturing cost. Depending on the fiber bundles, a distinction can be made between heavy tow 24,000 (24K) filaments per fiber bundle and more and low tow 12,000 (12K) filaments per fiber bundle and less. Standard carbon fibers for industrial use (industrial grade) are made up of fiber bundles containing 50,000 (50K) filaments.
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About Fisipe:
Fisipe – Fibras Sintéticas de Portugal S.A. (WKN 873959 / ISIN PTFSP0AE0004) – is a pro-ducer of acrylic fibers with a plant in Lavradio, Portugal and has almost 40 years experience in manufacturing acrylic fibers. The company (founded in 1973) has been listed on the Lisbon Stock Exchange since 1985. Fisipe has developed gradually from a company mainly specializ-ing in the production of standard textile fibers to a producer of special acrylic fibers, namely pre-dyed fibers, functional fibers and fibers for technical applications. In 2011, the company gener¬ated sales of approximately €130 million and employed around 330 people.
About SGL Group – The Carbon Company
SGL Group is one of the world’s leading manufacturers of carbon-based products and materials. 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 very good electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to industrialization in the growth regions of Asia and Latin America and increased substitution of traditional with innovative materials, there is a growing demand for SGL Group’s high-performance materials and products. Products from SGL Group are used predominantly in the steel, aluminum, automotive and chemical industries as well as in the semiconductor, solar and LED sectors and in lithium-ion batteries. Carbon-based materials and products are also being used increasingly in the wind power, aerospace and defense industries.
With 46 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 2011, the Company’s workforce of around 6,500 employees generated sales of €1,540 million. The Company’s head office is located in Wiesbaden.
Further information on the SGL Group can be found online at: www.sglgroup.com.
Important note:
This press release may contain forward-looking statements based on the information currently available to us and on our current projections and assumptions. By nature, forward-looking statements involve known and unknown risks and uncertainties, as a consequence of which actual developments and results can deviate significantly from these forward-looking statements. Forward-looking statements are not to be understood as guarantees. Rather, future developments and results depend on a number of factors; they entail various risks and unanticipated circumstances and are based on assumptions which may prove to be inaccurate. These risks and uncertainties include, for example, unforeseeable changes in political, economic, legal, and business conditions, particularly relating to our main customer industries, such as electric steel production, to the competitive environment, to interest rate and exchange rate fluctuations, to technological developments, and to other risks and unanticipated circumstances. Other risks that in our opinion may arise include price developments, unexpected developments connected with acquisitions and subsidiaries, and unforeseen risks associated with ongoing cost savings programs. SGL Group does not intend or assume any responsibility to revise or otherwise update these forward-looking statements.
Press Contact:
Corporate Communications / Rachel Wei
Phone +86 21 60976934 / Fax +86 21 5211 0155 / Mobile +86 138 1634 3570
E-mail: rachel.wei@sglcarbon.com.cn / www.sglgroup.cn
EMG China / Lea Zhang
Phone +86 21 5887 8007 - 126 / Fax +86 21 5887 8338 / Mobile +86 139 1776 8202
E-mail: LZhang@emgchina.com / www.emgchina.com