Showa Denko (SDK) expand US graphite electrode production capacity

Showa Denko (SDK) to expand US graphite electrode production capacity

3:51 PM, 9th June 2011
Showa Denko (SDK) to expand US graphite electrode production capacity
SDK products.

TOKYO, JAPAN: Electric steelmaking (which melts iron scraps for recycling), which uses graphite electrodes, saw a temporary decline in 2008 and 2009 as the world’s crude steel production dipped due to the global recession. This has now increased as much as 16 per cent in 2010. The production is expected to increase at an annual rate of around 4 per cent in coming years, driven by economic growth in emerging countries. Catering to this demand, Showa Denko KK (SDK) has decided to expand graphite electrode production capacity at Showa Denko Carbon, Inc. (SDKC), a consolidated subsidiary located in South Carolina, USA. The capacity will increase from 45,000 t/y at present to 75,000 t/y by the end of 2013. Together with the graphite electrode production base in Omachi, Nagano Prefecture, Japan, the Showa Denko Group’s total production capacity will reach 135,000 t/y.

 

Electric steel production is also expected to increase steadily due to its environment-friendly features of iron resource recycling and low CO2 emissions. With the scheduled expansion at SDKC, the Group will be able to meet the recovering demand in the USA - the largest consumer of graphite electrodes - and serve the rapidly growing Latin American markets. Furthermore, the group will establish a flexible supply chain on a global scale by combining SDKC and Omachi, and serve the large EU market and the growing markets in Asia, Middle East and Russia.

 

SDKC will fully utilize its highly efficient plant design and give priority to the production of large-diameter (30- and 32-inch) graphite electrodes. Construction will begin by the end of this year and completion of work and start-up are scheduled for the first half of 2013.

 

Under the new medium-term consolidated business plan PEGASUS launched this year, the Showa Denko Group will aggressively expand the hard disk media and graphite electrode businesses as the Group’s main businesses. Demand for graphite electrodes will continue to grow, reflecting the need for environmental protection; effective use of resources; and development of infrastructure and improvement of living standards in emerging countries.  

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