Lenzing Enters Carbon-fiber Field

Austrian fibers maker Lenzing will invest about $65 million in a partnership with German carbon-fiber company SGL Carbon for the production of carbon fiber and its precursor. A joint venture, European Precursor, will start operations later this year. The partners will build a plant for the precursor polyacrylonitrile at Lenzing's Kelheim, Germany, facility. A second venture will build a carbon-fiber production line next year. Overall, SGL Carbon plans to triple its carbon-fiber capacity to 6,000 metric tons per year by 2008. Lenzing says the global market for carbon fibers, which are finding increasing use in commercial aircraft, is growing at a 10% annual rate.