Aug 29 2006
SGL Carbon will initiate construction of a carbon and graphite hub in Malaysia at the end of 2006. The Company anticipates a total investment of €150 million to €200 million over several years. The first step will be a 30,000 tons graphite electrodes plant for which the initial phase will involve €50 million investment which is included in the already communicated capital expenditure program of SGL Carbon from 2006 to 2008. The start up of the first production stages will begin late 2008. Construction is about to commence following final contractual clarification of some issues with local authorities and suppliers. This is the first new construction of a graphite electrode production plant in 25 years by one of the industry’s leading manufacturers.
SGL Carbon decided on the Malaysia location due to the growing demand by the steel industry in Asia for graphite electrodes, as well as its position as market leader in the ASEAN region. The new factory in Banting Selangor will be the most cost efficient production plant in the world with the highest state-of-the-art technology in the industry based on SGL Carbon's best practices worldwide. The Company is thereby optimizing its global production infrastructure for carbon and graphite products and thus continuing to expand its position as a global cost leader. SGL Carbon is committed to its main objective of margin improvement whilst continuing to maintain its high market share in the region.
“We have large, growing, and loyal customers in the region. We want to move closer to them and grow with them. This will result in benefits in logistics and current assets on both sides,” said Robert Koehler, CEO of SGL Carbon.
The graphite electrode capacity in Malaysia can be expanded up to 60,000 tons as required by the market. As part of the overall investment of €150 million to €200 million, SGL Carbon is in the planning stage to develop the Malaysian hub to manufacture its carbon and graphite product portfolio.