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Zoltek Companies, AŞ Message Board

  • singhlion2001 singhlion2001 Jul 17, 2013 2:42 PM Flag

    WHY BMW producing its own Carbon Fibre? New Carbon Manfacturing equipment is now a commodity and any one can produce

    Carbon fibres

    Question here

    Debt to cash is almost break even

    So what upside value we can see in the stock now?

    Some suggest here, break up and sell piece by piece?

    Seems right idea
    but will Mr. Zolt buzz?

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    • scott2536 Jul 17, 2013 3:36 PM Flag

      ZOLT makes it's own machinery in house. It has done this for years. It also has 2 in-house sources for precursor. One in Hungary and one in Mexico.

      • 2 Replies to scott2536
      • Zoltec, promotes two things that lead them to believe they are the low cost CF producer;

        1. They designed in-house, their production line process and equipment specifications and then subcontract out to multiple equipment manufacturers, sections of the equipment to make, this keeps the CAPEX lower than traditional CF manufacturers and also reduces the time required to install a line.

        2. Having in-house precursor supply helps keep the Raw Mat cost lower than buying on the open market, it also prevents from having shortages if there is any market shortage issues.

        The Equipment required for the BMW project was a large weaving machine that can process Carbon Fiber. The equipment required was contracted out to the major specialized equipment manufacturers to make for this project that Zoltec originally was a partner on with BMW. Unfortunately, Zoltec could not close and secure the deal with BMW and get the supply contract, SGL (A German CF supplier) won the award and I am sure their total CF costs are the same or very close to Zoltec's.

        This company makes very little in house machinery if any at all.

      • scott2536 Jul 17, 2013 3:40 PM Flag

        Can a company make C/F for $9 a pound using "commodity equipment' and commodity precursor " ?