Showa Denko announced its plan to close a production site in Meitingen, Germany, for which the company started labor-management consultations. The site is a part of consolidated subsidiaries SDK Carbon Products Germany GmbH & Co. KG and SDK Carbon Germany GmbH.
The Meitingen site is currently producing connecting pins for graphite electrodes.
Once closed, Showa Denko’s connecting pin production will be concentrated at Omachi Plant in Japan. The Group has the leading share in the global ultrahigh power (UHP) graphite electrode market.
“Electric steelmakers are continuing to adjust their inventory of graphite electrodes since the second half of 2019. Thus, our operating rates have fallen in the European market, where economic slowdown is noticeable,” the company said in its statement.
When production at Meitingen is stopped, the Group’s global graphite electrode production capacity will decrease by 40,000 ton per year, to 210,000 ton per year.
In addition, the Group stated that labor-management consultations have started at Showa Denko Carbon Austria GmbH’s Steeg site concerning temporary idling for a limited period of time.
These two actions will result in a rebalancing of capacity in Europe in line with projected graphite electrode demand.