A Ross-shire factory that makes carbon fibre for the aerospace, automotive and electrical industries has started a £7million expansion that will create 16 jobs.
Work is beginning this week on a machinery upgrade at SGL Carbon Fibers, boosted by a £1.7million grant from Highlands and Islands Enterprise.
Burkhard Straube, business unit chairman of SGL and Alex Paterson, chief executive of the economic development agency cut the first turf to start the project at the factory which has been at Muir of Ord for more than 30 years.
German-owned SGL is the only carbon fibre producer in the UK and a major employer in the Highlands. Its products are used where very strong light weight material is crucial, such as in the automotive, aerospace and wind energy industries.
HIE approved the grant to help the firm improve its buildings, plant and equipment over the next two to three years. The remainder of the cost will be met by inward investment from the firm’s Wiesbaden -based parent group.
The move will allow SGL to compete in new global markets including growing demand for new carbon fibre-based composites used for products such as compressed natural gas tanks for vehicles.
The company’s expansion will also strengthen job security for the firm’s existing 200 employees.
The company’s turnover is expected to increase significantly during the next years; 80% of which will be from export sales.
Mr Paterson said: “SGL is an excellent example of a Highland based business with ambitions to grow and service new global markets; something we are very keen to support. Moves like this help create jobs, attract new people to the area and encourage inward investment. This particular project will bring significant investment into the region from SGL’s parent company, creating several well paid jobs and strengthening the security of the existing workforce.”
SGL site director Jim Park said: “With the planned modernisation we will enhance the product portfolio and as a result the competitiveness and flexibility of SGL Group’s Muir of Ord facility. We are glad to be supported by HIE in this project”.