SGL Carbon To Shut Down Portuguese Production Site Amid Business Restructuring

SGL Carbon

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(RTTNews) - SGL Carbon (SGLFF), a German carbon and graphite product maker, announced that it has decided to close its production site in Lavradio, Portugal, as part of the restructuring of its loss-making Carbon Fibers business unit.

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.

The company noted that 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.

According to the company, 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.

The company stated that 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.