ELG Carbon Fiber Company reported on December 14 that Mitsubishi Corporation and ELG Carbon Fiber International (ECFI) reached an agreement to acquire 25% of ELG Carbon Fiber Company from the latter. The acquisition still needs administrative approval from government departments and meets some other prerequisites. After the acquisition, Mitsubishi Corporation and ECFI will become joint shareholders of ELG Carbon Fibers. ECFI is a subsidiary of ELG Haniel GmbH, a German company specializing in material recycling.
ELG Carbon Fiber Co., Ltd. mainly engages in the recycling of carbon fiber composite waste. The company has patented technology and experience, and is the first company in the world to be able to recycle carbon fiber composites on a large scale and process them into recycled carbon fibers for the automotive, electronics and other market sectors.
According to the agreement reached between the two parties, Mitsubishi Corporation will provide a market distribution network for ELG Carbon Fiber products. The former channel plus the latter technology will effectively promote ELG's global business development and establish a stable recycled carbon fiber supply chain.
Taking the automotive industry as an example, Japanese car companies have sought solutions for lightweight advanced materials to reduce carbon emissions and increase the range of electric vehicles. Japanese companies have extensive global influence in the carbon fiber field, producing about 70% of the world's carbon fiber, but their recycling technology has not kept pace with the growth of their own businesses. The cooperation between Mitsubishi Corporation and ELG will solve the problem of mass production of recycled carbon fiber industry.
ELG Carbon Fibers General Manager Frazer Bames said, "ELG Carbon Fibers and Mitsubishi Corporation both attach great importance to the quality of products and services. This cooperation between the two parties will meet the actual needs of customers and generate huge economic and environmental benefits. It will help the company expand its business and help ELG enter many applications markets including transportation in Asia and North America. "
Mitsubishi Corporation commented: "With Mitsubishi Corporation's existing distribution network, ELG Carbon Fiber's sales channels will be greatly expanded. The cooperation between the two parties will also promote the sustainable development of the composite materials industry and the establishment of a low-carbon society. "