Mitsubishi Rayon buys US carbon fibre plant from Germany's SGL

Deal will strengthen MRC's position in composites, especially for application in wind turbine blades

BS B2B Bureau Irvine, California (USA)

Last Updated : Jan 18 2017 | 2:38 PM IST

Mitsubishi Rayon Co (MRC) decided to acquire SGL Carbon Fibers LLC, the carbon fibre production base of the German SGL Group, in order to expand its carbon fibres business in the North American market. MRC’s wholly-owned subsidiary Mitsubishi Rayon Carbon Fiber and Composites (MRCFAC) plans to acquire all the shares of the said fibre production company from its present parent company SGL Technologies North America, incorporating it into MRCFAC, by the beginning of April 2017.

MRC has developed ‘high-performance large tow’, a unique carbon fibre that supports high productivity in the moulding of large components whilst exhibiting the physical and quality properties equivalent to regular-tow carbon fibres. It has been cultivating applications in fields such as the aircraft industry and compressed gas tanks since the launch of operation in its Otake Production Center in July 2011.

Given the increasing demand for large tow especially for application in wind turbine blades, MRC has been strengthening its business operation in this area having founded a joint venture manufacturing and distributing carbon fibre composite laminates for window turbine blades in October last year. Furthermore, inquiries for various intermediary materials using high-performance large tow in light-weighted materials for automobiles is increasing. As a result, the utilization rate of MRC’s production facilities has remained high.

MRC decided to acquire SCF to increase its carbon fibre capacity in order to meet the growing demand for large tow. This addition will increase MRC’s carbon fibre production capacity by 1,000 tonnes. Combined with the expansion of capacity of regular-tow carbon fibre at MRCFAC’s plant in Sacramento in the US, commercial operation of which will commence shortly, and the expansion of production capacity at MRC’s Otake Production Center scheduled in 2017, MRC’s carbon fibre production capacity will increase from 10,100 tonnes per year to 14,300 tons within 2017.

Additionally, MRC will consider to add further carbon fibre and intermediate material production facilities on the current premises of SCF based on the requirements and growth of the carbon fibre market.