SGL Carbon evaluates strategic options for the carbon fibers and appoints Dr. Denis Hinz as new head of the business unit

Overall, a share of sales amounting to around € 179.6 million after nine months in 2023 (9M 2022: € 269.0 million) is therefore under review. The CF sales share corresponded to 21.9% of SGL Carbon's consolidated sales after nine months in 2023 (9M 2022: 31.5%). Adjusted EBITDA1 of the Business Unit excluding the result from joint ventures amounted to minus € 10,9 million after nine months in 2023 (9M 2022: € 27,9 million). Despite the operating loss of CF after nine months in 2023, SGL Carbon maintains its guidance for fiscal year 2023. This shows the positive development of the three other business units and the resilience of SGL Carbon's business model.

"After the restructuring from 2020 to 2022 and the stabilization year 2023, SGL Carbon is preparing for the next step of profitable growth. We have positioned SGL Carbon in such a way that the four operating business units can be successful independently in their markets. In order to best exploit the development potential of our Carbon Fibers, we are currently evaluating all options, including a complete divestment. We are looking for a partner or new owner who can provide the necessary resources to further develop the Carbon Fibers business and position it successfully for the future," explains Dr. Torsten Derr, CEO of SGL Carbon SE.

Carbon Fibers manufactures textile, acrylic and carbon fibers as well as composite materials at seven locations in Europe and North America. Following the temporary drop in demand for carbon fibers from the important wind industry market, the Business Unit's sales and earnings fell significantly in the course of fiscal year 2023. Due to the importance of the wind industry for the European Green Deal, SGL Carbon and many experts assumed that the wind industry recovers quickly. Unfortunately, this is currently not the case. Even if demand picks up, the company assumes that Carbon Fibers will need additional resources to remain competitive in the international market environment and to exploit market opportunities in the best possible way. Against this background, SGL Carbon is reviewing all possibilities to support a positive further development of the Carbon Fibers Business Unit.

"As the Board of Management, it is our responsibility to make the best possible use of the company's resources in the interests of all stakeholders to create the conditions for future profitable growth and an increase in the company's value," explains Thomas Dippold, CFO of SGL Carbon SE.

As of March 1, 2024, Dr. Denis Hinz will become new Head of SGL Carbon's Carbon Fibers Business Unit. The previous Head, Roland Nowicki, will leave SGL Carbon on May 31, 2024 at his own request to pursue new professional challenges. He will be available to the company as a consultant until his leaving date to support a smooth transition.

Roland Nowicki took over as Head of Carbon Fibers in November 2020 and has successfully driven forward the realignment of the business unit over the past three years. "We would like to take this opportunity to thank Roland Nowicki for the exemplary cooperation and his extraordinary achievements for SGL and wish him all the best for his future, both professionally and privately. At the same time, we would like to congratulate Dr. Denis Hinz on his new position," emphasizes Dr. Torsten Derr, CEO of SGL Carbon SE.

Dr. Denis Hinz has been with SGL Carbon for more than six years and has held various management positions during this time, including Head of Operations of the Fuel Cell Components division and Managing Director of SGL Fuel Cell Components GmbH in Meitingen since December 1, 2021. The graduate engineer from the Technical University of Munich is an experienced manager who is well networked within SGL Carbon and has closely followed the development of Carbon Fibers in recent years.

"The Carbon Fibers Business Unit has great and innovative products for attractive and sustainable markets. Unfortunately, our largest market, the wind industry, is currently in a serious crisis, which has also affected Carbon Fibers. We are facing a number of challenges in the coming months, and I am looking forward to tackling these with my colleagues," explains Dr. Denis Hinz, new Head of Business Unit Carbon Fibers.

1 The use of key figures in this release is analogous to the definition in the 2022 Annual Report (page 195).