Flyguy:
If you were talking about a stagnant industry I would agree with you about overcapacity in the industry being a problem. But it is not. The market for Carbon Fiber is expanding exponentially. "We ain't seen nothin' yet." Take for instance this latest release from Cannondale - a maker of high quality, mass market bicycles:
As part of their innovation strategy, Cannondale will introduce its proprietary Super V Raven bicycle this spring. The Raven is composed of lightweight carbon fiber skins bonded to an aluminum that is both lighter and more efficient than competing products out on the market. And with the technology patented this time-in 1983 Cannondale introduced aluminum frame bicycles that have since become the industry standard-the company is giddy about how it easy it will be to meet its targeted growth rate. They say that the Raven line will account for 5% to 25% of revenues by the turn of the century. (Cannondale is a good buy BTW)
This type of use for carbon fiber will be repeated in many major industries: automobiles, aircraft, boats, trucks, etc. Truly the only thing holding back the phenomenal growth for this stuff is factory capacity. So, in reality, more capacity coming on line will enhance its acceptance in the marketplace.
Of all of the players, Zoltek is by far the lowest cost producer. They are below 9 cents/lb., aiming for a nickle per. Noone else is close. Lots of growth forthcoming - awaiting plant expansion. |
