German headquartered carbon fibre group SGL and Korea’s Samsung have announced the establishment of a strategic partnership for carbon fibre composite materials with the foundation of a Marketing & Sales joint venture. The joint venture partners, Samsung Petrochemical and SGL Group, will each hold a 50% share and the primary objective of the cooperation is to develop new industrial and electronic applications with carbon composite materials for Samsung and the Korean market. The joint venture will operate under the name Samsung SGL Carbon Composite Materials.

According to a press statement this morning, the cooperation is expected to provide a stable long-term supply of carbon fibre materials for Samsung and promote its use in various Samsung products and applications such as consumer electronics, medical devices and engineering applications. Carbon fibre materials from SGL Group will be preferred by the joint venture company and in the medium term, the new company will aim for business expansion over the rest of Asia.

Juergen Koehler, member of the Board of Management of SGL Group commented: “In this partnership with Samsung, we combine our strengths and promote the use of carbon fibre materials in fast growing markets such as digital media. Carbon fibre materials play an increasingly important role in the material substitution process towards lighter products. Our joint venture underlines our strategy to enter new markets and develop innovative applications for our high-performance materials. We are proud to partner with Samsung.” 

Yoosung Chung, President & CEO of Samsung Petrochemical said: “Our long-term cooperation with SGL Group will ensure the exclusive supply of carbon fibre composite materials to Samsung. We selected SGL Group as partner due to the company’s unique expertise along the entire value chain from carbon fibres to CFRP components. Lightweight materials have become an important factor not only in industrial applications but also the consumer end markets such as digital media. This partnership will position Samsung as a leading player in the development and application of carbon fibre-based products.”

Both companies will combine their core competencies in this marketing and sales joint venture. SGL Group contributes its know-how in high performance carbon fibre-based materials and Samsung will share its experiences from particular application development with the its affiliates, which is expected to allow the company to successfully meet the requirements of new industrial products and solutions.

Following the signing of the joint venture contract, which took place today in Seoul, the closing of the transaction is scheduled for July, pending regulatory approvals. Operations of the joint venture are scheduled to begin immediately thereafter. The joint venture will be headquartered in Ulsan/South Korea, at a Samsung Petrochemical facility and the office of the Marketing & Sales joint venture will be located in Seoul/South Korea. 

The joint venture targets applications in the markets for electronic products, wind blades, pressure vessels, automotive and household appliances in the Far East. The carbon fibre market is expected to grow sharply in Korea and China by over 20% per year in the coming years. Currently the Korean market focuses on prepreg and sportive goods but in the future the market is to be expanded to a wider range of industries like wind energy, electronics, automotives and others.

www.sglgroup.com