SGL Carbon SE, the lightweight-materials maker backed by BMW, will e-book a writedown and lower 500 jobs because the slumping auto and aerospace sectors rely much less on carbon fiber.
Structural modifications in some markets mixed with COVID-19 imply SGL Carbon’s mid-term prospects are lagging behind expectations, the German firm stated in a statement Thursday.
The provider will e-book an impairment of as a lot as 100 million euros ($118 million) within the fourth quarter.
Torsten Derr has had a tumultuous begin to his marketing campaign as CEO on the firm. Appointed simply because the pandemic hit, the previous Lanxess and Bayer govt is looking for to pare prices at an organization that has recurrently disenchanted buyers together with BMW and Volkswagen Group. Its shares have plunged 74 p.c for the reason that begin of 2018.
When BMW invested in SGL Carbon in 2011, it was eager to safe a provide of carbon fiber-reinforced plastics to trim the load of fashions such because the i3 full-electric hatchback.
However whereas the fabric is lighter and stronger than metal, it is also expensive and cumbersome to work with and recycle.
In 2017, BMW introduced it will exit a three way partnership with SGL.
The automaker’s upcoming iX electrical SUV, which fits into manufacturing subsequent 12 months, won’t rely as closely on carbon fiber because the i3.