JEC COMPOSITES MAGAZINE - Issue #51 - September 2009 - 8

COMPANIES COMPANIES AGY’s expansion into Asia Pacific AGY announced on 18 March 2009 that it has entered into a sale and purchase agreement (SPA) with Grace THW Holding Limited to acquire a 70% controlling interest in Shanghai Grace Technology Company Limited, a producer of E-glass yarns, with the option and intent to purchase the remaining outstanding shares in the near future. he acquisition closed in June 2009 and has expanded AGY’s geographic manufacturing footprint, enabling it to better service its growing Asia-Pacific customer base. The Asia-Pacific region represents a large market for AGY products and technology due to its diverse manufacturing base and continued economic growth. “We see significant opportunities in the Asia-Pacific region for market expansion in the high-end electronics markets that require fine yarn capabilities. Additionally, other key markets to AGY, such as T aerospace, wind-energy and industrial applications, have experienced significant growth in Asia, and we are now in a position to service those requirements locally through the purchase of Shanghai Grace Technology,” commented Doug Mattscheck, AGY chief executive officer. The AGY-managed facility is a worldclass, state-of-the art operation with a current annual production capacity in excess of 18,000 MT of glass fibre and the capability for future expansion opportunities. “Our goal is to become the preeminent independent yarn manufacturer and what are your lines of technical development? J. D.: AGY has three different primary aspects of technical differentiation: First, there is glass chemistry. We produce multiple different types of glass, including several varieties of E-glass, our S family of high strength glasses, and now our low dielectric loss L-Glass™. We employ 3 different melting technologies including small melters which can produce 2-ton batches profitably and can effect a glass chemistry change in a matter of hours. We also have a fleet of more traditional direct melt furnaces for higher volume products. Secondly, we also specialize in sizing and binders. The fibre coating is extremely important for composites, and the fibre/matrix interface can have a dramatic impact on ultimate composite performance. For example, we have developed specific sizings which enhance ballistic protection. Lastly, AGY is an expert in the forming of fibres, with a core competency in the in Asia by offering E-glass products with a strong base of local support and manufacturing,” said Mattscheck. “We are currently building our sales, marketing and customer service teams to capitalize on the region’s significant growth opportunities.” Shanghai Grace Technology is a separately incorporated, independent entity from Shanghai Grace Fabric Company Limited, another company owned by Grace THW Holding Limited. AGY acquired no weaving operations in the transaction. AN INTERVIEW WITH JEFF DAVIS, PRESIDENT AND CHIEF OPERATING OFFICER, AGY, AIKEN, SC, USA manufacturing of fine, high-quality fibres with diameters smaller than 7µm. AGY’s fine yarns enjoy leadership positions in multi-layer circuit boards and in architectural textiles. 1,500 people work for AGY, 50 of whom are in product or process technology. JCM: What are your markets and how are your customers spread geographically? J. D.: Our business is distributed as follows: 40-45% outside the USA (half in Europe, half in the rest of the world) and 55-60% in the USA. We cater to the following sectors: aerospace and defence, electronics, construction and industrial applications. 2008 was a record year for AGY despite a slowdown at the end of the year. The defence and aerospace markets, particularly with ballistic armour for vehicles such as the Humvee and MRAP have been particularly buoyant. In the defence sector, we have done a lot of work with foreign militaries including the UK, and in aerospace we have specified content on all the major JEC Composites Magazine: How would you define AGY? JEFF DAVIS: We consider ourselves to be a supplier of enabling material technologies for high-performance composites. We have a strong focus on applications where we can secure end-user specifications for AGY’s material solutions. Several of our markets could be considered “niche” segments, with natural entry barriers driven by the difficulty of the manufacturing process and the size of the market in question. Our primary facilities are in South Carolina and Pennsylvania, USA, but we are becoming more and more global, notably through our recent acquisition in Shanghai. JCM: What special skills do you have, 8 jec composites magazine / No51 September 2009

JEC COMPOSITES MAGAZINE - Issue #51 - September 2009

Table of Contents for the Digital Edition of JEC COMPOSITES MAGAZINE - Issue #51 - September 2009