Manufacturing Industry
GLUT SENDS PREPREG MAKERS SEARCHING FOR NEW MARKETS.
Plastics News, May, 1999 by Renstrom, Roger
Faced with production overcapacity, makers of carbon fiber and pre- impregnated composite materials are scrambling to find new markets, reduce costs and move past a federal investigation. Carbon fiber suppliers are suffering through a market glut that is driving down prices and narrowing profit margins.
It's a far cry from the fiber shortage that existed around 1996 and prompted major investments in capacity that now are becoming available. The cyclical downswing in the aerospace market is exacerbating the problem. Boeing Co. and Airbus Industrie expect to build a total of 797 aircraft next year, down from 913 this year. Consolidation has narrowed the domestic prepreg industry to 13 firms, down from 17 players in 1993. Those suppliers sold structural...
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