SGL Carbon
Encyclopedia
SGL Carbon is one of the world's leading manufacturers of products from carbon
. The company portfolio ranges from carbon and graphite
materials to carbon fibers and composites. A broad base of materials, the deployment of the relevant technologies and many years of application and engineering expertise are the basis of the company's success.
With 38 production sites across the globe (20 in Europe, 12 in North America and 6 in Asia), as well as a service network in over 100 countries, the SGL Group is a globally operating company. In the course of the company's realignment the organization structure was realigned to February 1, 2007 and streamlined from what used to be three business segments to two. Three globally aligned business units operate within these segments. The company headquarters is Wiesbaden
, Germany
.
The SGL share has been included in the German MDAX
since 1995. In 2007, on sales revenus of €1,373.0 million, the company generated net income of €130.9 million. To the end of the 2007 fiscal year, the company employed 5,249 staff worldwide.
SIGRI traced back to Gebr. Siemens & Co (Gesco), founded in Berlin as a subsidiary of Siemens
AG in 1878. The company originally produced carbon. In 1920, the company set up a plant in Meitingen
(Bavaria) and in 1928 merged with Planiawerke AG für Kohlefabrikation in Ratibor (Upper Silesia) to form the new Siemens Planiawerke AG für Kohlefabrikate. After the Second World War, the Meitingen plant of the Siemens Planiawerke AG für Kohlefabrikate merged with Chemische Fabrik Griesheim to form Siemens Plania Chemisches Werk Griesheim, the majority of which was acquired by Hoechst AG
in 1953. In 1967, as a result of the merger with electrode manufacturing at Hoechst AG, Siemens Planiawerke AG für Kohlefabrikate also became a majority holding of the chemical company. There it was amalgamated with the Siemens Plania Chemisches Werk Griesheim and other enterprises of Hoechst AG. In 1985 it was renamed SIGRI GmbH and finally Hoechst AG acquired total ownership in 1989.
After the merger with Great Lakes Carbon, Hoechst AG retained a 50 percent stake in the new company. The remaining participation was sold in 1996 as part of restructuring of the Hoechst Group. Since then SGL Carbon AG has been widely held.
The function of the Board of Management follows the principle of a management holding which acts as a legally independent entity (SGL Carbon AG).
The operating business is divided into the two areas "Advanced Materials" and "Performance Products" and is operated by three global business units: Graphite Materials & Systems (GMS), Carbon Fibers & Composites (CFC) and Performance Products (PP).
The Carbon Fibers & Composites product portfolio covers carbon fibers, braking and clutch components as well as composite materials and components. The focus of the business unit is the development and market launch of innovative materials, products and solutions for rapidly expanding markets. Currently there is a high demand, particularly for composite materials, which feature low weight on the one hand and can withstand high loads on the other. In addition, they are corrosion-resistant and only expand slightly when exposed to heat. For this reason, there is an increasing demand in the aerospace and aeronautic industry, in mechanical engineering and process equipment, medical technology as well as in the sports industry and energy generation (wind turbines).
The Performance Products business unit primarily produces high-quality graphite electrodes which are used as a source of energy in steel production in electric arc furnaces. In addition, carbon electrodes are manufactured which are used in melting processes for other metallurgic applications (e.g. silicon metal, phosphorus). This product portfolio is rounded off with cathodes, primarily required for use in aluminum production and furnace linings for pig iron production.
- the company has a total of eight production facilities, three of these are located in Meitingen (near Augsburg), in Bonn
and in the Frankfurt suburb of Griesheim
.
In addition, the SGL Group has an extensive service and distribution network with which it supplies its customers in approximately 100 countries worldwide. By opening further locations, e.g. the construction of the most state-of-the-art carbon and graphite hub in Banting
/Selangor
(Malaysia), where the foundations were laid at the end of March 2007, the company will further optimize service on a local basis.
s, SGL Carbon was one of eight companies that operated a cartel
and fixed prices between July 1992 and June 1997. The primary purpose of the cartel was to fix the price and allocate the volume of graphite electrodes sold in the United States and elsewhere.
SGL Carbon was among the companies accused and fined for operating as a cartel and price fixing
in the carbon electrode business. This was initially discovered in the US but later the European commission added their own case and fine.
Eight companies were fined under the EEC action, the largest were Germany's SGL Carbon AG and UCAR International (Now Graftech International Ltd. of the United States). In the finding the EEC states:
SGL Carbon received the highest fine of the eight conspirators, amounting to €80.2 million in Europe in addition to the $135 million in the United States.
To protect itself against damage payments for price fixing, SGL Carbon sought Chapter 11 protection in the United States. The Third Circuit adopted a "good faith
" test and rejected a bankruptcy
petition filed only because of the magnitude of anticipated antitrust
claims.
Carbon
Carbon is the chemical element with symbol C and atomic number 6. As a member of group 14 on the periodic table, it is nonmetallic and tetravalent—making four electrons available to form covalent chemical bonds...
. The company portfolio ranges from carbon and graphite
Graphite
The mineral graphite is one of the allotropes of carbon. It was named by Abraham Gottlob Werner in 1789 from the Ancient Greek γράφω , "to draw/write", for its use in pencils, where it is commonly called lead . Unlike diamond , graphite is an electrical conductor, a semimetal...
materials to carbon fibers and composites. A broad base of materials, the deployment of the relevant technologies and many years of application and engineering expertise are the basis of the company's success.
With 38 production sites across the globe (20 in Europe, 12 in North America and 6 in Asia), as well as a service network in over 100 countries, the SGL Group is a globally operating company. In the course of the company's realignment the organization structure was realigned to February 1, 2007 and streamlined from what used to be three business segments to two. Three globally aligned business units operate within these segments. The company headquarters is Wiesbaden
Wiesbaden
Wiesbaden is a city in southwest Germany and the capital of the federal state of Hesse. It has about 275,400 inhabitants, plus approximately 10,000 United States citizens...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
.
The SGL share has been included in the German MDAX
MDAX
The MDAX is a stock index which lists German companies. The index is calculated by Deutsche Börse.It includes the 50 Prime Standard shares from sectors excluding technology that rank immediately below the companies included in the DAX index...
since 1995. In 2007, on sales revenus of €1,373.0 million, the company generated net income of €130.9 million. To the end of the 2007 fiscal year, the company employed 5,249 staff worldwide.
Company history
SGL Carbon AG originated in 1992 from a merger between SIGRI GmbH (Germany) and Great Lakes Carbon (USA) to share a company according to German law. Since March 2007, SGL Carbon AG has operated on the market as SGL Group - The Carbon Company.SIGRI traced back to Gebr. Siemens & Co (Gesco), founded in Berlin as a subsidiary of Siemens
Siemens
Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...
AG in 1878. The company originally produced carbon. In 1920, the company set up a plant in Meitingen
Meitingen
Meitingen is a market town in the district of Augsburg, in Bavaria, Germany. It is situated on the left bank of the Lech, south of Donauwörth, and north of Augsburg....
(Bavaria) and in 1928 merged with Planiawerke AG für Kohlefabrikation in Ratibor (Upper Silesia) to form the new Siemens Planiawerke AG für Kohlefabrikate. After the Second World War, the Meitingen plant of the Siemens Planiawerke AG für Kohlefabrikate merged with Chemische Fabrik Griesheim to form Siemens Plania Chemisches Werk Griesheim, the majority of which was acquired by Hoechst AG
Hoechst AG
Hoechst AG was a German chemicals then life-sciences company that became Aventis Deutschland after its merger with France's Rhône-Poulenc S.A. in 1999...
in 1953. In 1967, as a result of the merger with electrode manufacturing at Hoechst AG, Siemens Planiawerke AG für Kohlefabrikate also became a majority holding of the chemical company. There it was amalgamated with the Siemens Plania Chemisches Werk Griesheim and other enterprises of Hoechst AG. In 1985 it was renamed SIGRI GmbH and finally Hoechst AG acquired total ownership in 1989.
After the merger with Great Lakes Carbon, Hoechst AG retained a 50 percent stake in the new company. The remaining participation was sold in 1996 as part of restructuring of the Hoechst Group. Since then SGL Carbon AG has been widely held.
Group structure
The company has the following structures:The function of the Board of Management follows the principle of a management holding which acts as a legally independent entity (SGL Carbon AG).
The operating business is divided into the two areas "Advanced Materials" and "Performance Products" and is operated by three global business units: Graphite Materials & Systems (GMS), Carbon Fibers & Composites (CFC) and Performance Products (PP).
Products/applications and markets
The Graphite Materials & Systems business unit operates primarily in the areas of process technology, graphite specialties and expanded graphite. The main customer industries of the varied products and applications are process equipment, the automotive and the chemical industry, electronics, energy, the semiconductor industry, industrial furnace construction and mechanical engineering, medical technology and pharmacy as well as nuclear technology and environmental protection.The Carbon Fibers & Composites product portfolio covers carbon fibers, braking and clutch components as well as composite materials and components. The focus of the business unit is the development and market launch of innovative materials, products and solutions for rapidly expanding markets. Currently there is a high demand, particularly for composite materials, which feature low weight on the one hand and can withstand high loads on the other. In addition, they are corrosion-resistant and only expand slightly when exposed to heat. For this reason, there is an increasing demand in the aerospace and aeronautic industry, in mechanical engineering and process equipment, medical technology as well as in the sports industry and energy generation (wind turbines).
The Performance Products business unit primarily produces high-quality graphite electrodes which are used as a source of energy in steel production in electric arc furnaces. In addition, carbon electrodes are manufactured which are used in melting processes for other metallurgic applications (e.g. silicon metal, phosphorus). This product portfolio is rounded off with cathodes, primarily required for use in aluminum production and furnace linings for pig iron production.
Locations
At the end of 2007, the SGL Group had a total of 38 production sites (20 in Europe, 12 in North America and 6 in Asia). In Germany - in addition to its headquarters in WiesbadenWiesbaden
Wiesbaden is a city in southwest Germany and the capital of the federal state of Hesse. It has about 275,400 inhabitants, plus approximately 10,000 United States citizens...
- the company has a total of eight production facilities, three of these are located in Meitingen (near Augsburg), in Bonn
Bonn
Bonn is the 19th largest city in Germany. Located in the Cologne/Bonn Region, about 25 kilometres south of Cologne on the river Rhine in the State of North Rhine-Westphalia, it was the capital of West Germany from 1949 to 1990 and the official seat of government of united Germany from 1990 to 1999....
and in the Frankfurt suburb of Griesheim
Griesheim
Griesheim is a town in the Darmstadt-Dieburg district, in Hessen, Germany. It is situated approx. 7 km west of Darmstadt.-History:...
.
In addition, the SGL Group has an extensive service and distribution network with which it supplies its customers in approximately 100 countries worldwide. By opening further locations, e.g. the construction of the most state-of-the-art carbon and graphite hub in Banting
Banting
Banting is a principal town in the district of Kuala Langat, Selangor in Malaysia. Banting has a population of 48,240. It is situated on the banks of Langat River . It is a Rest Town or Bandar Persinggahan of Federal route . The historical Bandar Jugra, a former royal town of Selangor is situated...
/Selangor
Selangor
Selangor also known by its Arabic honorific, Darul Ehsan, or "Abode of Sincerity") is one of the 13 states of Malaysia. It is on the west coast of Peninsular Malaysia and is bordered by Perak to the north, Pahang to the east, Negeri Sembilan to the south and the Strait of Malacca to the west...
(Malaysia), where the foundations were laid at the end of March 2007, the company will further optimize service on a local basis.
Sponsorship
SGL Carbon was the main sponsor to the German Cycling team at the 2008 Olympics in Beijing.Electrode cartel and antitrust litigation
In the field of graphite electrodes for electric arc furnaceElectric arc furnace
An electric arc furnace is a furnace that heats charged material by means of an electric arc.Arc furnaces range in size from small units of approximately one ton capacity up to about 400 ton units used for secondary steelmaking...
s, SGL Carbon was one of eight companies that operated a cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
and fixed prices between July 1992 and June 1997. The primary purpose of the cartel was to fix the price and allocate the volume of graphite electrodes sold in the United States and elsewhere.
SGL Carbon was among the companies accused and fined for operating as a cartel and price fixing
Price fixing
Price fixing is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand...
in the carbon electrode business. This was initially discovered in the US but later the European commission added their own case and fine.
Eight companies were fined under the EEC action, the largest were Germany's SGL Carbon AG and UCAR International (Now Graftech International Ltd. of the United States). In the finding the EEC states:
- The Commission's decision comes after a thorough investigation, which established that the eight producers, which together account for the quasi totality of the production world-wide, operated a secret cartel during most of the 90s resulting in considerably higher prices than if the companies had competed against each other.
SGL Carbon received the highest fine of the eight conspirators, amounting to €80.2 million in Europe in addition to the $135 million in the United States.
To protect itself against damage payments for price fixing, SGL Carbon sought Chapter 11 protection in the United States. The Third Circuit adopted a "good faith
Good faith
In philosophy, the concept of Good faith—Latin bona fides “good faith”, bona fide “in good faith”—denotes sincere, honest intention or belief, regardless of the outcome of an action; the opposed concepts are bad faith, mala fides and perfidy...
" test and rejected a bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
petition filed only because of the magnitude of anticipated antitrust
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
claims.