Laying of foundation stone for new plant in Malaysia
SGL Group laid the symbolic foundation stone at a 20-hectare site of their new carbon and graphite plant in Banting/Selangor, Malaysia. The construction which was announced in August 2006 and on which fieldwork started in November is set to begin with the first part of the multi-level graphite electrode production facility as soon as the middle of 2008. As SGL stated, the beneficial South-East Asian location of Malaysia offers favorable energy and labor costs, attractive tax and infrastructure advantages as well as quick official approval processes and a central geographical starting point for the on-site supply to the rapidly growing electric steel industry in Malaysia and other countries in South-East Asia. The first stage in expansion of the integrated carbon and graphite plant includes the construction of a graphite electrode production facility with an annual capacity of 30,000 tons, for which a total capital expenditure of EUR 50 million is planned for 2007 and 2008. In the medium-term, the Company anticipates a total capital expenditure of up to EUR 200 million over several years.