SGL Group and BMW Group announced in Seattle that their joint venture, SGL Automotive Carbon Fibers LLC, will build a state-of-the-art carbon fiber manufacturing plant in Moses Lake, WA. During the initial phase, US$ 100 million will be invested and 200 construction jobs and 80 permanent jobs will be created. The new facility is an important element of both companies' strategy to commercialize viable manufacturing of ultra light weight carbon fiber reinforced plastics for use in future vehicle concepts. The decision to build the carbon fiber plant in Moses Lake was based primarily on the availability of renewable clean hydropower and competitive energy costs in the state of Washington. Favorable infrastructure conditions, existing utilities, a skilled labor force and ease of working with the local government were also contributing factors in selecting Moses Lake as the location.
Gov. Chris Gregoire participated in the announcement and stated: "I want to thank BMW and the SGL Group for their confidence in Washington, and welcome them to our state's business community. This is a great day, and a big win for Moses Lake and our state as a whole. A new carbon fiber manufacturing plant in Moses Lake means new jobs for our people. It means growth for our state. And it means we will continue to lead in the green economy."
"This new plant in Moses Lake is a milestone in the use of carbon fibers for large scale production in the automotive industry," said Robert Koehler, CEO SGL Group. "It will be the world's most cost efficient carbon fiber plant using state-of-the-art technologies. This significant investment further underlines our commitment to the U.S., where we already operate carbon fiber and composite materials plants. The manufacture of carbon fibers is a core business for SGL Group and together with our partner BMW Group, we will ensure that carbon fibers play a revolutionary role in lightweight automotive construction."
The entire value chain is global and involves several work stages. The raw material needed to manufacture carbon fibers, a polyacrylonitrile (PAN) based precursor, will be produced by a joint venture between SGL Group and the Japanese company Mitsubishi Rayon (MRC) in Otake, Japan. In the next step, the facility in Moses Lake will convert the polyacrylic fibers into the actual carbon fibers. These fibers are then processed into light weight carbon fiber fabrics at a second joint venture site in Wackersdorf, Germany. Parts and components will then be made from these fabrics at the BMW Group Plant Landshut, Germany. The assembly of the Megacity Vehicle will take place at the BMW Group plant in Leipzig, Germany where currently a range of BMW 1 Series and the BMW X1 are being made.
Egils Milbergs, executive director, Washington Economic Development Commission commented: "This is another exciting step for the Washington Innovation Economy (www.wedc.wa.gov). The project demonstrates the competitive advantage we have in renewable energy and positions the state as a global player in new forms of automotive technology and mobility. "
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Kevin Bender
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