May 25 2007
The Carbon Company – will expand its graphitized cathode capacity anticipating the expected quantum leap in aluminum growth from the historical average of 2% to an expected mid-term growth of 5% per year. The SGL Group will support its customer’s growth requirements in two phases. Phase one consists of an investment to optimize the existing infrastructure yielding a 50% increase in graphitized cathode production.
Initial product will be available as early as the first half of 2008. Phase two will be the construction of a state of the art grass roots cathode plant at a location to be determined by mid 2007. This plant will be on stream by 2011/2012 and its capacity will be defined by customer requirements which are currently under discussion.
“We have a short list of sites, including our recently announced Malaysian hub, and our decision will be based on a relentless drive to reduce costs and our dedication to regional growth”, stated Robert Koehler, CEO of the SGL Group.
The dynamics of the Aluminium market have changed reflecting the global paradigm shift for light weight and high strength materials in an energy constrained environment. This will not only result in significantly higher growth rates but also a sustainable increase in market share for Aluminium versus other metals on a global basis with Asia as the major driver.
Graphitized Cathodes are a leading high tech component in Aluminium manufacture for melting cells operating under the most rigorous high electrical currents and temperatures to convert Alumina to Aluminium. SGL Group is the global market leader providing the benchmark cathode in this graphite business segment.
The cathode business, currently representing 15% of the sales for the Performance Products Business Unit, will be a major driver of growth for the SGL Group.