BMW to sign joint venture regarding carbon fiber

In an effort to get a leg up on the competition, BMW has just announced that it has paired up with SGL Group to produce carbon fiber and textile semi-finished products for “vehicle construction… to install [carbon fiber reinforced plastic] on a large scale in a series vehicle at a competitive cost.” Sources confirm the existence of this initiative. We also offer the press conference transcript below.

BMW Carbon Fiber

Generally, Carbon fiber (alternatively calledcarbon fibre, fiber, carbon graphite or CF) is a material consisting of extremely thin fibers about 0.005–0.010 mm in diameter and composed mostly of carbon atoms. Though the material is already used in small-scale models like the M6 Coupe, BMW says its upcoming Megacity car will be the first model to employ CFRP in “significant proportions.”

SGL Carbon (SGL) 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.

Carbon Fiber Detail

The plan is to invest around 90 million euros in a first cycle of this colllaboration, and to form two companies: one in North America and one back in Germany, BMW’s home country. BMW’s goal is manage the entire process from creation of the carbon fibers using clean hydropower to weaving them into fabrics in Germany and, finally, recycling the material to ensure environmental sustainability.

Interesting Trivia: Carbon Fiber isn’t only used on cars bodywork! Brian Eno [ click for WikiPedia article] underwent extensive surgery in early 2009 which complemented a regular skin graft on his arm with carbon fiber threads. Being carbon based, doctors were able to fuse together his skin cells with the carbon fiber.

[ PRESS RELEASE: BMW Group establishes joint venture with SGL Group ]

Cooperation for the manufacture and processing of carbon fibres for new vehicle concepts

Munich/Wiesbaden. The BMW Group and the SGL Group have agreed on the establishment of a joint venture for the production of carbon fibres and textile semi-finished products (CFRP) for use in vehicle construction. The total investment volume is € 90 million in the first development phase, the two companies stated on Thursday.

The joint venture will be operated through two companies, one based in North America (SGL Automotive Carbon Fibers LLC), and the other in Germany (SGL Automotive Fibers GmbH & Co KG). The BMW Group holds 49% of the shares, and the SGL Group 51%. The two groups will be equally represented in the management of the two companies; major corporate decisions must be made unanimously by both partners. The joint venture will initially create around 180 new jobs in North America and Germany. Its establishment is subject to approval by the cartel authorities.

“This joint venture is designed to be a classic win-win situation. We are acquiring pioneering future technologies and raw materials that we need for our Megacity Vehicle on competitive terms. The SGL Group is moving into the automobile business with us as a strong partner”, BMW AG Management Board Chairman Norbert Reithofer emphasised in Munich. “With our concepts within project i, we are breaking new ground when it comes to vehicle architecture, lightweight design and the use of materials”, Reithofer continued.

Robert Koehler, CEO of the SGL Group, stated: “This joint venture with the BMW Group is a milestone for the use of carbon fibres on an industrial scale in the automobile industry. For the first time, carbon fibres are taking on an important role in series vehicle manufacture. This confirms our strategy and shows that carbon fibre technology is becoming increasingly important in the materials substitution process to lighter material. This material will help to reduce CO2 emissions and save our natural resources”.

Lightweight design has been one of the core skills of the BMW Group for decades – after all, reducing weight is a major factor in cutting fuel consumption. In the use of high-tech Carbon fiber reinforced plastic (CFRP), the company is also able to draw on its many years of experience. CFRP not only plays an important role in motor sports; the material is also used in series vehicles, such as in the roof of the BMW M6 Coupé.

In the Megacity Vehicle, which will be launched under a BMW sub-brand in the first half of the next decade, the high-strength yet ultra-light material will make up a significant proportion of the materials used. The combination of the advanced CFRP fibres developed by the SGL Group and the BMW Group’s expertise in the industrial manufacture of CFRP components is making it possible, for the first time, to install CFRP on a large scale in a series vehicle at a competitive cost.

With the joint venture, the BMW Group is underlining its position as the most sustainable vehicle manufacturer. This claim is reflected throughout the entire value creation chain, from component purchasing to recycling. Producing CFRP in a way that protects resources is therefore a high priority. The high energy requirement for the production of carbon fibres is to be met completely by environmentally friendly hydropower. This is one of the preconditions for the production site of carbon fibres in North America. The raw material is then processed into a carbon fibre fabric at the second location in Germany. Parts and components will then be made from this light-weight durable fabric within the BMW Group.