As part of the restructuring of its loss-making Carbon Fibers business unit, SGL Carbon has decided to close its production site in Lavradio (Portugal). Lavradio is one of seven sites in the Carbon Fibers business unit and currently employs around 250 people to manufacture acrylic fibers and precursors for carbon fibers.
SGL Carbon had already announced the restructuring of its Carbon Fibers business in a press release on February 18, 2025. The goal of the restructuring is to reduce the loss-making business activities and focus on a profitable core. Individual solutions are being developed for all sites in the Carbon Fibers business unit, including the closure of unprofitable sites.
The closure of the Lavradio site is necessary because demand for fiber products has fallen significantly in recent years. In addition, there is considerable global overcapacity for acrylic and carbon fibers, combined with an enormous drop in prices. This has led to high losses in the Carbon Fibers business unit. Due to higher manufacturing costs in Europe compared to Asia (including energy costs), products from Lavradio are particularly affected by competition and the decline in prices for fiber products. An improvement of the market situation and a significant reduction in manufacturing costs for fiber products in Europe are not expected in the future.
The closure of the Lavradio site will be carried out in several phases and in close consultation with all stakeholders. Production will be closed in June 2025. Final activities to complete the closure of the site should be fully implemented by the end of 2026, if everything proceeds as scheduled. SGL Carbon will comply with existing contracts and obligations.
The future prospects for European fiber production are poor. As one of the last acrylic fiber manufacturers in Europe, we have decided to close the Lavradio site. We informed our colleagues today about the closure steps. In the first step, the discontinuation of production, around 190 employees will be affected by redundancies , explained Dr. Stephan B hler, member of the SGL Carbon Management Board responsible for the Carbon Fibers business unit. CEO Andreas Klein added: The decision to close the Lavradio site was not an easy one for us given the long history of the plant. However, Lavradio has been making high losses for years, which have weighed on SGL Carbon as a whole heavily. There is no improvement in sight. As the Management Board, we must act in the interest of the entire SGL Carbon Group to prevent further damage.
SGL Carbon is working intensively on restructuring its Carbon Fibers business unit. Individual solutions are being developed for all sites and business activities, which will require time and comprehensive analysis. At this point in time, no further information on future measures can be provided.
More from SGL
08/05/2025
As expected, continued weak demand from key sales markets and declining economic...
05/05/2025
As part of the restructuring of its loss-making Carbon Fibers business unit, SGL Carbon has decided to close its production site in Lavradio (Portugal). Lavradi...
29/04/2025
Participants in the 2025 Research Camp at SGL Carbon and the Technische Hochschu...
25/03/2025
In the period from mid-January to mid-February, five young professionals success...
20/03/2025
Increasingly weaker demand from key sales markets over the course of 2024 is slo...
24/02/2025
Ten school students from Meitingen secondary school had the opportunity to gain ...
21/02/2025
On February 19, 2025, Julia Herting, the Site Manager of SGL Carbon in Bonn, signed a declaration of intent, marking an important step in contributing to climat...
18/02/2025
(05:02 PM) Wiesbaden, February 18, 2025. The Board of Management of SGL Carbon S...
18/02/2025
The Board of Management of SGL Carbon SE today decided, with the approval of the...
04/02/2025
As a technology-based company and one of the worlds leading companies in the development and production of carbon-based solutions, SGL Carbon opts for innovativ...
30/01/2025
The supply capability of SGL Carbon, a leading international supplier of carbon-...
13/12/2024
SGL CARBON SE
Wiesbaden
- ISIN DE00723501 -
Disclosure of material transactio...
19/11/2024
(11:18 AM) Wiesbaden, November 19, 2024. The Supervisory Board of SGL Carbon SE decided in its meeting today to appoint Andreas Klein as Chief Executive Officer...
19/11/2024
The Supervisory Board of SGL Carbon SE decided in its meeting today to appoint A...
07/11/2024
Weak demand in some of our customer markets is increasingly hindering SGL Carbons sales growth. After nine months in 2024, SGL Carbon generated sales of 781.9 ...
08/10/2024
In March 2024, SGL Carbon informed the public that CEO, Dr. Torsten Derr, will n...
12/09/2024
SGL Carbon is committed to training its own junior staff. At the Meitingen, Bonn and Willich sites, a total of 34 apprentices have started their careers in rece...
08/08/2024
Q2 2024 confirms SGL Carbons solid business development in an increasingly volatile market environment. After 272.6 million in Q1 and 265.4 million in Q2, SGL...
26/07/2024
Nine talented young professionals completed their vocational training at SGL Carbon in Meitingen from the beginning of June to mid-July, achieving an overall gr...
26/06/2024
In the voting rights notification published today, Dr. Susanne Klatten informed ...
11/06/2024
On June 8, we celebrated the 90th anniversary of Dr. Schnabel GmbH at our Limbur...
27/05/2024
It will soon be that time again: ACHEMA, the worlds most important trade show fo...
15/05/2024
On May 15th, we celebrate the 80th anniversary of the SGL Carbon site in Morganton, North Carolina. The entire SGL Morganton family came together to celebrate t...
08/05/2024
SGL Carbon had a solid start to the first quarter of 2024. Despite the slight decline in sales of 3.9% to 272.6 million (Q1 2023: 283.7 million), adjusted EBI...
26/04/2024
Once again this year, SGL Carbon opened its doors to interested children and young people. On the occasion of the German Girls and Boys Day, which took place on...
22/03/2024
In fiscal year 2023, SGL Carbon achieved the sales and earnings targets set at the beginning of the year despite the drop in demand from the important wind mark...
21/03/2024
(10:15 AM) Wiesbaden, March 21, 2024. The CEO of SGL Carbon SE, Dr. Torsten Derr...
21/03/2024
The CEO of SGL Carbon SE, Dr. Torsten Derr, informed the Chairman of the Supervisory Board today that he will not extend his contract, which expires on May 31, ...
18/03/2024
Seven young professionals completed their vocational training at SGL Carbon in M...
06/03/2024
The sale of the so-called angel curls once again proved to be a big seller at th...
28/02/2024
As of March 1, 2024, Dr. Denis Hinz will become new Head of SGL Carbons Carbon F...
23/02/2024
(06:11 PM) Wiesbaden, February 23, 2024. The Board of Management of SGL Carbon S...
23/02/2024
SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestmen...
06/02/2024
In cooperation with the Bavarian leading-edge cluster MAI Carbon of Composites U...
31/01/2024
The supply capability of SGL Carbon, a leading international supplier of carbon-...
18/01/2024
The Munich-based company E-Works Mobility, which specializes in the development ...
04/01/2024
SGL Carbon relies on climate-friendly manufacturing processes in the production of its own carbon fibers. By using renewable energy, the carbon footprint of SGL...
22/11/2023
This years prestigious G nter Schwank Prize goes to our former apprentice Janine Kretzschmar. She completed her training at the Meitingen site as a process mech...
20/11/2023
SGL Carbon took second place in the Products and Applications category at the AV...
02/11/2023
Due to the better-than-expected sales and earnings development of the business u...
25/10/2023
The expansion of production capacities is a significant milestone for the Brembo...
12/09/2023
SGL Carbon and Brembo agreed to expand production capacities for the joint ventu...
07/09/2023
SGL Carbon continues to focus on training its own junior staff and welcomes 32 n...
05/09/2023
As the health of employees is a top priority at SGL Carbon, the second global Safety Day was held at all sites at the end of August. To raise awareness of safet...
10/08/2023
With an overall grade point average of 2.0, ten apprentices completed their vocational training at SGL Carbon in Meitingen this summer. The young skilled worker...
03/08/2023
Despite the increasingly difficult economic environment, SGL Carbon was able to ...
27/07/2023
On July 21, 2023, a 500 m logistics hall was inaugurated at SGL Carbons Austrian site in Ort im Innkreis, including an adjoining hall of approximately 150 m f...
24/07/2023
(04:40 PM) Wiesbaden, July 24, 2023. According to preliminary figures for H1 202...
As part of the restructuring of its loss-making Carbon Fibers business unit, SGL Carbon has decided to close its production site in Lavradio (Portugal). Lavradio is one of seven sites in the Carbon Fibers business unit and currently employs around 250 people to manufacture acrylic fibers and precursors for carbon fibers.
