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Home | Green Cars News | Business | BMW, SGL Forms JV to Make Carbon Fibers for Lightweight Vehicles

BMW, SGL Forms JV to Make Carbon Fibers for Lightweight Vehicles

29 October, 2009 05:15:00

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The BMW Group and the SGL Group have agreed on the establishment of a joint venture for the production of carbon fibers and textile semi-finished products (CFRP) for advanced lightweight vehicles.

The total investment volume is € 90 million in the first development phase, the two companies stated on Thursday.

The joint venture will be operated through two companies, one based in North America (SGL Automotive Carbon Fibers LLC), and the other in Germany (SGL Automotive Fibers GmbH & Co KG). The BMW Group holds 49% of the shares, and the SGL Group 51%. The two groups will be equally represented in the management of the two companies; major corporate decisions must be made unanimously by both partners. The joint venture will initially create around 180 new jobs in North America and Germany. Its establishment is subject to approval by the cartel authorities.

Lightweight design has been one of the core skills of the BMW Group for decades – after all, reducing weight is a major factor in cutting fuel consumption. In the use of high-tech Carbon fiber reinforced plastic (CFRP), the company is also able to draw on its many years of experience. CFRP not only plays an important role in motor sports; the material is also used in series vehicles, such as in the roof of the BMW M6 Coupe.

In the Megacity Vehicle, which will be launched under a BMW sub-brand in the first half of the next decade, the high-strength yet ultra-light material will make up a significant proportion of the materials used. The combination of the advanced CFRP fibers developed by the SGL Group and the BMW Group's expertise in the industrial manufacture of CFRP components is making it possible, for the first time, to install CFRP on a large scale in a series vehicle at a competitive cost.

With the joint venture, the BMW Group is underlining its position as the most sustainable vehicle manufacturer. This claim is reflected throughout the entire value creation chain, from component purchasing to recycling. Producing CFRP in a way that protects resources is therefore a high priority. The high energy requirement for the production of carbon fibers is to be met completely by environmentally friendly hydropower. This is one of the preconditions for the production site of carbon fibers in North America. The raw material is then processed into a carbon fiber fabric at the second location in Germany. Parts and components will then be made from this light-weight durable fabric within the BMW Group.

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