Japan's Mitsubishi Rayon acquired a U.S. carbon fibre production plant from SGL Carbon for an undisclosed price to meet growing demand for composite materials for wind turbine blades and cars.

The deal will add 1,000 tonnes to Mitsubishi Rayon's carbon fibre output capacity. When combined with an upgrade at its Sacramento plant, output capacity will increase to 14,300 tons from 10,100 this year, the Japanese group said.

The transaction will have a "non-material" positive impact on SGL's financial results, mainly to be booked for 2016, SGL said, without elaborating.

Mitsubishi Rayon agreed to pay a low double-digit million euro (dollar) amount for the asset, a person close to SGL said. SGL declined to comment while officials at Mitsubishi Rayon were not immediately available for comment outside of regular business hours.

The Wyoming plant with 50 staff was the smallest of its three global carbon fibre production sites and the transaction was part of SGL's effort to consolidate sites to cut costs and would not constitute a withdrawal from markets, SGL added.

Production capacity will be moved to SGL's upgraded Muir of Ord site in Scotland.

 

Source: uk.reuters.com

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