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  • ArKeh
    Auto demand (Magna) suggests better ZOLT capacity use and pricing power in future. Will Magna underpin business relationship with stake?
    4/18/12
    Reply (13)
    • 1980XLS-2.0: Interesting, Ford has been exploring ways to increase Carbon Fiber use, to save weight for CAFE compliance.
      4/18/12
    • ArKeh: Sorry, I am in Germany. What does CAFE stand for?
      4/18/12
    • 1980XLS-2.0: Corporate Average Fuel Economy regulations in the US. (Fuel Mileage regulations)
      4/18/12
    • ArKeh: Building all BMW cars on CF instead of steel would absorb about the global CF production capacity. Very theoretical and 20 years out...
      4/18/12
    • ArKeh: This is why BMW and SGL opted for a JV -a small CF producer cannot shoulder the investment risk and a large OEM wants backward integration
      4/18/12
    • ArKeh: And when VW was starting to build a stake in SGL-Carbon they it ended with a battle for control (pushing the share price from 27 to 47)
      4/18/12
    • 1980XLS-2.0: CF monocoque chassis years out. They will start with Body panels and interior components ASAP.
      4/18/12
    • ArKeh: Forget DCF valuation, etc; U have only some Jpn players, SGL Carbon, Cytec, HXL, Formosa. IF Auto or Part OEM can cut competitor off from
      4/18/12
    • ArKeh: CF supply and be earlier to end market, the economic benefit is huge relative to the pure CF turnover. ZOLT gets strategic! While GE or Ford
      4/18/12
    • ArKeh: may be relaxed to give non exclusive business to JPN, Volkswagen would probably not buy from a supplier that is dependent on Toyata etc.
      4/18/12
    • ArKeh: or controlled by BMW. ZOLT sits in Hungary (low cost Europe) and Mexico low cost NA - nice geographic fit for some auto OEMS and Magna.
      4/18/12
    • 1980XLS-2.0: Agree with some of your ideas. Have traded A ZOLT a few time over the years with some success. http://bit.ly/J1n3F0
      4/18/12
    • 1980XLS-2.0: http://reut.rs/INz0HM
      4/18/12