WIESBADEN (dpa-AFX) - SGL Carbon (SGLFF.PK), a manufacturer of carbon-based products and materials, and Samsung (SSNNF.PK, SSNLF.PK) established a strategic partnership for carbon fiber 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.
SGL Carbon said 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 SGL Carbon, the cooperation is expected to provide a stable long-term supply of carbon fiber materials for Samsung and promote its use in various Samsung products and applications such as consumer electronics, medical devices and engineering applications. Carbon fiber materials from SGL Group will be preferred by the Joint Venture. In the mid-term, the joint venture will aim for business expansion over the rest of Asia.
The companies signed the joint venture contract 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. 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 Asian carbon fiber market is expected to be sharply growing in Korea and China by over 20% per year. Currently the Korean market focuses on prepreg and sportive goods. In the future though, the market is to be expanded to a wider range of industries like wind energy, electronics, automotives and others. SGL Carbon said.
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