European Precursor GmbH (EPG), a joint venture between SGL Group and Lenzing Group, received a €1.5-million (US$2.1-million) grant from the Bavaria FIT program under the Bavarian undersecretary of the state of Katja Hessel to fund the development of a novel carbon-fiber precursor with revised properties.
Due to their unique properties, carbon fibers are in even greater demand as substitutes for traditional materials because of the rising cost of raw materials and energy. Precursors comprised of polyacrylonitrile (PAN) fibers are the raw material needed for carbon fiber production and important for determining quality.
EPG, based in Kelheim (Donau/Germany), was founded at the end of 2006 as a joint venture between SGL Group and Lenzing Group. The objective of the company is to develop and supply carbon fiber precursor exclusively for SGL Group and European production. Since the establishment of the joint venture, both parties have jointly invested approximately €25 million (US$34.2 million) in a production facility that serves industrial applications, particularly for use in the automotive engineering and wind energy sectors. This joint venture secures SGL Group’s long-term supply of raw materials for carbon fiber production for these applications.
SGL Group is one of the world’s leading manufacturers of carbon-based products. It has a portfolio ranging from carbon and graphite products to carbon fibers and composites. In 2009, SGL Group and BMW Group formed a 51:49 joint venture to manufacture carbon fibers and fabrics for the automotive industry. (Earlier post.)