In a bid to develop new industrial and electronic applications, German SGL Group and South Korea-headquartered Samsung are entering a partnership for carbon fibre composite materials with the set up of a Marketing & Sales joint venture. The joint venture partners, Samsung Petrochemical and SGL Group, will each hold a 50% share. To be known as Samsung SGL Carbon Composite Materials, the cooperation will develop new applications with carbon composite materials for Samsung and the South Korean market.

The cooperation is expected to provide a stable long-term supply of carbon fibre materials for Samsung and promote its use in various Samsung products and applications such as consumer electronics, medical devices and engineering applications. Carbon fibre materials from SGL Group will be the preferred supplier for the joint venture. In the mid-term, the joint venture will aim for business expansion over the rest of Asia.

Said Juergen Koehler, member of the Board of Management of SGL Group, “In this partnership with Samsung, we combine our strengths and promote the use of carbon fibre materials in fast growing markets such as digital media. Carbon fibre materials play an increasingly important role in the material substitution process towards lighter products. Our joint venture underlines our strategy to enter new markets and develop innovative applications for our high-performance materials. We are proud to partner with Samsung.”

Yoosung Chung, President & CEO of Samsung Petrochemical, said, “Our long-term cooperation with SGL Group will ensure the exclusive supply of carbon fiber composite materials to Samsung. We selected SGL Group as partner due to the company’s unique expertise along the entire value chain from carbon fibers to CFRP components. Lightweight materials have become an important factor not only in industrial applications but also the consumer end markets such as digital media. This partnership will position Samsung as a leading player in the development and application of carbon fibre-based products.”

Both companies will combine their core competencies in this marketing & sales joint venture. SGL Group contributes its know-how in high performance carbon fibre-based materials. Samsung Petrochemical shares its experiences from particular application development with the Samsung’s affiliates, which is expected to allow the company to successfully meet the requirements of new industrial products and solutions.

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 fibre market is expected to sharply grow in South Korea and China by over 20% per year. Currently, the South Korean market focuses on prepreg and sporting goods. In the future though, the market is to be expanded to a wider range of industries like wind energy, electronics, automotive and others.