PSA seeks closer carbon fiber ties with BMW

French carmaker PSA Peugeot Citroen (PEUP.PA) is considering expanding its cooperation with German peer BMW (BMWG.DE) in carbon fibers, the German business daily Handelsblatt reported.

"We are looking for technical solutions which can be put to use both at premium producers and at generalists," Handelsblatt quoted PSA chief executive Philippe Varin as saying in abstracts of a story due to be published in its September 27 issue.

Carbon fiber is a composite material which offers the same strength as steel at lighter weight, which is useful in car body structures, but it is still relatively expensive.

Varin did not give further details and BMW would not comment to Handelsblatt, the story said.

Handelsblatt went on to cite car industry sources saying that BMW and PSA might be talking about the possibility of PSA taking supplies of carbon fiber in future from a BMW/SGL Carbon (SGCG.DE) joint venture firm set up in 2009.

The joint venture is setting up a plant in the U.S. to make lightweight parts for electric cars.