SGL And BMW Form Carbon Fiber Pact

The German carbon fiber maker SGL is forming joint ventures with automaker BMW and chemical maker Mitsubishi Rayon to make carbon fiber, the fiber’s precursor, and downstream fabric. One venture, to be owned 51% by SGL and 49% by BMW, will spend $133 million to build a carbon fiber plant in North America and a carbon fiber fabric plant in Germany. Investment could eventually total $340 million. BMW plans to use fabric-reinforced plastic in its Megacity Vehicle, a hybrid-electric vehicle that it plans to launch early in the next decade. To secure feedstock for the carbon fiber plant, SGL is also forming a joint venture with Mitsubishi Rayon to expand polyacrylonitrile capacity. Mitsubishi Rayon will own two-thirds of this partnership, which will be based in Otake, Japan.