The joint venture will operate under the name Samsung SGL Carbon Composite Materials.
The agreement 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. Carbon fibre materials from SGL Group will be preferred by the joint venture.
|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.|
|Yoosung Chung, President & CEO, Samsung Petrochemical|
In the mid-term, the joint venture will aim for business expansion over the rest of Asia.
The joint venture will target applications in the markets for electronic products, turbine wind blades, pressure vessels, automotive and household appliances in the Far East.
According to SGL, the Asian carbon fibre market is expected to grow in Korea and China by over 20% per year. Currently the Korean market focuses on prepreg and sporting goods, but in future it is expected to expand to a wider range of industries like wind energy, electronics, and automotive.
The closing of the transaction is scheduled for July, pending regulatory approvals.
The joint venture will be headquartered in Ulsan, South Korea, at a Samsung Petrochemical facility. The office of the marketing and sales joint venture will be located in Seoul, South Korea.