SGL to build carbon graphite plant in Malyasia

28 August 2006 09:40  [Source: ICIS news]

LONDON (ICIS news)--SGL Carbon is to build a 30,000 tonnes/year graphite electrodes plant in Banting Selangor, Malaysia as part of a €150m-200m ($191m-255m) investment in a carbon and graphite hub in the Southeast Asian country, the German company said on Monday.

Construction work on the plant, which will cost €50m, is due to begin at the end of 2006, with initial production scheduled for late 2008.

Production capacity could be doubled to 60,000 tonnes, said SGL Carbon, adding that it would be the first new graphite electrode production plant to be built by one of the industry’s leading manufacturers in 25 years.

It said that Malaysia was chosen as the plant location due to the growing demand by the steel industry in Asia for graphite electrodes, as well as its position as market leader in the ASEAN region. SGL said the new factory would be the most cost efficient production plant in the world.

“We have large, growing, and loyal customers in the region," said SGL Carbon chief executive Robert Koehler. "We want to move closer to them and grow with them. This will result in benefits in logistics and current assets on both sides.”

As part of the overall investment of €150m to €200m, SGL Carbon said it was planning to develop the Malaysian hub to
manufacture its entire carbon and graphite product portfolio.

By: Neil Sinclair
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly