GrafTech to shutter Monterrey electrode plant

: Battery materials, Metals, Petroleum coke
26/09/01

GrafTech will permanently close its graphite electrode production facility in Monterrey, Mexico, to align capacity with market demand amid continued global overcapacity

The Brooklyn Heights, Ohio-based company will wind down operations at the Monterrey site in phases, with production to end early in the second quarter of 2027, GrafTech said.

The closure aims to improve manufacturing utilization, cut costs and concentrate output at GrafTech's larger and more efficient facilities.

Annual graphite electrode capacity will fall by 51,000 metric tonnes (t) to 127,000t following the shutdown. The decrease includes 35,000t from Monterrey and a 16,000t reduction at the firm's Pamplona, Spain, facility because of changes in its production mix to provide full pin stock requirements.

GrafTech will transfer pin stock production — currently centered in Monterrey — to its Pamplona facility. Remaining graphite electrode output will come from its Calais, France facility.

The company expects annual cost savings of $20mn-25mn, excluding one-off closure costs of $20mn-25mn for equipment relocation, facility closure and employee-related items.

The graphite electrode sector has experienced persistent overcapacity from China and India, outstripping demand growth and weighing on prices and profitability for several years. Greater supply discipline is required for a healthier industry and more balanced market conditions, GrafTech said.

Graphite electrodes are essential for electric arc furnace steelmakers because they conduct the electricity needed to melt scrap, other metallic feedstocks and non-ferrous metals.

GrafTech will maintain its North American footprint through vertically integrated petroleum needle coke operations in Seadrift, Texas, and its electrode machining and distribution site in Saint Marys, Pennsylvania.

The Saint Marys facility will continue to support GrafTech's carbon and graphite offerings for energy storage and battery markets, even though graphite electrode production there was idled in 2024 and will remain idle after the transition.

By Brad MacAulay

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