| 10:57 AM EST

CEO at Carbon Fiber Supplier SGL Resigns

#Volkswagen #tech #BMW


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Juergen Koehler, the CEO of carbon fiber supplier SGL Group, will leave the company at the end of August after the supplier scrapped its business plan and slashed its outlook.

Last year SGL sold €1 billion in carbon fiber, primarily to BMW and Volkswagen Group. The material is used in lithium-ion battery anodes and ultra-light panels vehicular structural and body panels. The company employs more than 5,000 people in Asia, Europe and North America.

SGL says it now expects its pretax earnings this year will be roughly €5 million compared with its previous estimate of €21 million. The company blames the sharp decline on a slump in orders for industrial applications and “erroneous” assumptions about a supply contract for windmill components.

The company has withdrawn its guidance for 2020-2022 and plans to issue a new business plan by January. The company, once valued at more than €3 billion, saw its market value shrink earlier today to less than €450 million ($500 million).

SGL is 28% owned by BMW heiress Susanne Klatten. BMW and VW hold smaller stakes in the company.