Samsung Forms Carbon Fiber Joint Venture; May Be Ditching Plastic for Future Devices

[dgstorm]

Samsung's smartphones have always pushed the envelope in both software and hardware innovation, but one valid complaint has always been their "Achilles Heel." That is their plastic casing. For the most part, Samsung fans ignore (or don't mind) the lower end plastic materials in their Samsung devices. Because Samsung packs so many quality software features and functions into their devices, it's easy to forgive them for cutting corners to keep the devices more affordable.

Still, that doesn't mean that Samsung fans wouldn't appreciate a new material for their devices. There is a new report out of Samsung about a business deal which may portend exactly that. Samsung just formed a new Joint Venture with the SGL Group for composite Carbon Fiber materials. The primary reason Samsung has always used plastics in their devices is because they are light, durable and affordable. This new strategic partnership with the SGL Group could allow them to affordably upgrade the materials in their smartphones and tablets to something much more intriguing than plastic, yet still keep their devices light and durable.

Of course, for now the idea of using Carbon Fiber in smartphones is just industry speculation, but that doesn't mean it won't turn out to be true. How does a new Carbon Fiber-built Samsung Galaxy S5 sound?

Here's the full presser,

SGL Group and Samsung establish joint venture for Carbon Composite Materials
• Strategic partnership with a Marketing & Sales JV for joint market development and distribution
• Target: Introduction of new industrial and electronic applications for carbon composite materials

Wiesbaden, June 20, 2013. Today, SGL Group – The Carbon Company – and Samsung established a strategic partnership for carbon fiber composite materials with the foundation of a Marketing & Sales joint venture. The joint venture partners, Samsung Petrochemical and SGL Group, will each hold a 50% share. The primary objective of the cooperation is to develop new industrial and electronic applications with carbon composite materials for Samsung and the Korean market. The joint venture will operate under the name “Samsung SGL Carbon Composite Materials”.

The cooperation is expected to provide a stable long-term supply of carbon fiber materials for Samsung and promote its use in various Samsung products and applications such as consumer electronics, medical devices and engineering applications. Carbon fiber materials from SGL Group will be preferred by the Joint Venture. In the mid-term, the joint venture will aim for business expansion over the rest of Asia.

Juergen Koehler, member of the Board of Management of SGL Group: “In this partnership with Samsung, we combine our strengths and promote the use of carbon fiber materials in fast growing markets such as digital media. Carbon fiber materials play an increasingly important role in the material substitution process towards lighter products. Our joint venture underlines our strategy to enter new markets and develop innovative applications for our high-performance materials. We are proud to partner with Samsung.”

Yoosung Chung, President & CEO of Samsung Petrochemical: “Our long-term cooperation with SGL Group will ensure the exclusive supply of carbon fiber composite materials to Samsung. We selected SGL Group as partner due to the company’s unique expertise along the entire value chain from carbon fibers to CFRP components. Lightweight materials have become an important factor not only in industrial applications but also the consumer end markets such as digital media. This partnership will position Samsung as a leading player in the development and application of carbon fiber-based products.”

Both companies will combine their core competencies in this marketing & sales joint venture. SGL Group contributes its know-how in high performance carbon fiber-based materials. Samsung Petrochemical shares its experiences from particular application development with the Samsung’s affiliates, which is expected to allow the company to successfully meet the requirements of new industrial products and solutions.

Following the signing of the joint venture contract, which took place today in Seoul, the closing of the transaction is scheduled for July, pending regulatory approvals. Operations of the joint venture are scheduled to begin immediately thereafter. The joint venture will be headquartered in Ulsan/South Korea, at a Samsung Petrochemical facility. The office of the Marketing & Sales joint venture will be located in Seoul/South Korea.

The joint venture targets applications in the markets for electronic products, wind blades, pressure vessels, automotive and household appliances in the Far East. The Asian carbon fiber market is expected to be sharply growing in Korea and China by over 20% per year. Currently the Korean market focuses on prepreg and sportive goods. In the future though, the market is to be expanded to a wider range of industries like wind energy, electronics, automotives and others.

About Samsung and Samsung Petrochemical

Samsung is a South Korean multinational company headquartered in Seoul encompassing diverse businesses ranging from electronics, construction, petrochemicals, finance and more. Founded in 1938, Samsung has worked to make a better world through our products and services. With 2011 net sales of 247.5 billion US dollars (185.1 billion Euros), Samsung is also spearheading efforts to bring innovations in clean energy, healthcare and biotechnology. It comprises numerous subsidiaries and affiliated businesses in the world and most of them united under the Samsung brand. Samsung has a philosophy to devote its talent and technology to creating superior products and services that contribute to a better global society.

Samsung has 33 affiliates which are serving in Electronics, Machine and Heavy Industry, Chemical, Financial Services and other Industries. The total workforce of Samsung is around 369,000 and they are located over 70 countries. Last year, Interbrand announced that the value of Samsung brand was ranked as world 9th as estimated 33 billion US dollars.

More information:
http://www.samsung.com/us/aboutsamsung/corporateprofile/ourperformance/samsungprofil.html

Established in 1974, Samsung Petrochemical Co. (SPC) is one of Asia’s biggest producers of Purified Terephthalic Acid (PTA). It has also recently begun production of Formic Acid. Taking its expertise to the next level and expanding beyond the petrochemical business, SPC is seeking new opportunities in environment-friendly materials.

In June 2013, SPC set up the Joint Venture with SGL to start carbon composite materials business. This Joint Venture would be the stepping point to expand the new business into Carbon fiber integrated business in Samsung.

About SGL Group – The Carbon Company

SGL Group is one of the world’s leading manufacturers of carbon-based products and materials. It has a comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites. SGL Group’s core competencies are its expertise in high-temperature technology as well as its applications and engineering know-how gained over many years. These competencies enable the Company to make full use of its broad material base. SGL Group’s carbon-based materials combine several unique properties such as very good electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to industrialization in the growth regions of Asia and Latin America and increased substitution of traditional with innovative materials, there is a growing demand for SGL Group’s high-performance materials and products. Products from SGL Group are used predominantly in the steel, aluminum, automotive and chemical industries as well as in the semiconductor, solar and LED sectors and in lithium-ion batteries. Carbon-based materials and products are also being used increasingly in the wind power, aerospace and defense industries.

With 45 production sites in Europe, North America and Asia as well as a service network covering more than 100 countries, SGL Group is a company with a global presence. In 2012, the Company’s workforce of around 6,700 employees generated sales of €1,709 million. The Company’s head office is located in Wiesbaden.

Further information on the SGL Group can be found online at: Home : SGL Group ? The Carbon Company.

Important note:

This press release may contain forward-looking statements based on the information currently available to us and on our current projections and assumptions. By nature, forward-looking statements involve known and unknown risks and uncertainties, as a consequence of which actual developments and results can deviate significantly from these forward-looking statements. Forward-looking statements are not to be understood as guarantees. Rather, future developments and results depend on a number of factors; they entail various risks and unanticipated circumstances and are based on assumptions which may prove to be inaccurate. These risks and uncertainties include, for example, unforeseeable changes in political, economic, legal, and business conditions, particularly relating to our main customer industries, such as electric steel production, to the competitive environment, to interest rate and exchange rate fluctuations, to technological developments, and to other risks and unanticipated circumstances. Other risks that in our opinion may arise include price developments, unexpected developments connected with acquisitions and subsidiaries, and unforeseen risks associated with ongoing cost savings programs. SGL Group does not intend or assume any responsibility to revise or otherwise update these forward-looking statements.

 

[akhenax]

Motorola was on the right track with Carbon Fiber. I'm not sure if it was actually Carbon Fiber on their Droid Razr's but it did give a phone an attractive look.

 

[Iggy08]

Motorola was on the right track with Carbon Fiber. I'm not sure if it was actually Carbon Fiber on their Droid Razr's but it did give a phone an attractive look.

It's was real, but it was kevlar. I assume kevlar is either a form of carbon fiber or related to it though because they look similar

 

[mountainbikermark]

It's was real, but it was kevlar. I assume kevlar is either a form of carbon fiber or related to it though because they look similar

Both are overkill for cellphone cases but carbon fiber will break upon impact faster than Kevlar BUT Kevlar will break down when exposed to direct sunlight faster than carbon fiber. Under normal conditions either will be much better than the current plastics used but neither is going to be perfect. In either case the phone will suffer internal damage from impact long before either case will fail.

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[Asgard]

They are not the same, but they are slightly related.
Kevlar is the material used in bulletproof vests, and it has a great tensile strength.
Carbon fiber is the coating used for sports cars hoods, or other parts, it's flexible and lightweight.

Personally I like kevlar better, because the phone can in theory stop a 9mm bullet (I've been tempted to shoot an arrow to the back cover of my galaxy nexus to prove it) but the carbon fiber would allow the phone to be lighter and it's more resistant against falls instead of piercing impacts like kevlar.

 

[dfcfu342]

They are not the same, but they are slightly related.
Kevlar is the material used in bulletproof vests, and it has a great tensile strength.
Carbon fiber is the coating used for sports cars hoods, or other parts, it's flexible and lightweight.

Personally I like kevlar better, because the phone can in theory stop a 9mm bullet (I've been tempted to shoot an arrow to the back cover of my galaxy nexus to prove it) but the carbon fiber would allow the phone to be lighter and it's more resistant against falls instead of piercing impacts like kevlar.

I hate to burst your bubble but that thin layer of kevlar on your phone will not stop anything its just decoration like it is on Moto devices.
I think carbon fiber will be pretty cool but it has the problem of not being very resilient and very inconsistent with impacts. There is no deformation or "give" in carbon fiber; it either survives unscathed or shatters into a million pieces there really isn't a middle ground. Crash a metal car and you can pound it back out straight enough to continue, crash a carbon fiber car and its useless junk.

 

[smalltowngirl13]

Lots of great Samsung news today ...maybe they could showcase this on the Note 3 since production may not start for a while...

 

[acousticshade]

Yup, same with bike frames. Carbon fiber is very lightweight, but crash a carbon bike and you are more than likely buying a whole new frame. Crash an aluminum frame & it can be fixed.

+1 on the bullet/arrow thing also. The Kevlar needs multiple layers to be effective at even stopping small caliber weapons. Plus, it is ruined once you shoot it and the force would still be transferred to the phones internal parts.

 

[TatDroid]

I'm a little surprised to see the reference to "lower end plastic materials" in the first paragraph. There certainly lots of lower end plastics out there, but I'm not sure I would classify poly carbonate (the type of plastic Samsung uses on their flagship phones) as a "lower end plastic". As has been discussed many, many times in many, many discussion forums, poly carbonate is used for such things as: Bulletproof glass, Jet canopies, Riot shields, and Safety goggles. It is a lightweight and extremely durable material that allows for extreme deformation without cracking or breaking.

Samsung's problem here is one of perception: Plastic is perceived by the masses (and by vocal Samsung haters) as cheap. And for this they are forced to make a change to a material that is perceived as being of higher quality. There are a slew of available alternatives. There are all different types of metals and high tech man made materials. All of them have advantages and disadvantages. Every single one of them will be either: Heavier, Less Durable, or More Expensive than poly carbonate (maybe ALL THREE!)

But the detractors won't be able to call Samsung phones "cheap plastic" anymore.

 

[Asgard]

Yeah, I know the kevlar on the back of my phone is just the top layer, that's why I haven't shoot the arrow at it yet, also the mere impact would mess with the phone so I plan to do it only on the cover without the rest of the phone and with a round tipped arrow.

Regarding the crash or a bike or a car, it only gets destroyed if you go beyond the elastic deformation region, if the impact is below that, it would go back to the way it was and you wouldn't notice.
So for a phone, this might mean that dropping it from 5' wouldn't damage it, but if you go higher than that, say goodbye to it. It might be interesting to see how this comes out.

 

[Narsil]