Ohio Electrode Manufacturer Adjusts Organizational Chart, Launches Strategic Review
03/01/2016 - Graphite electrode manufacturer GrafTech International Ltd. plans to realign its two business units and is considering a sale of one of them, the Ohio-based company has announced.
In a statement, the company said it is moving its line of refractory products from its industrial materials unit to its engineered solutions business, of which it is undertaking a strategic review. The engineered solutions business also includes advanced graphite materials, advanced composite materials and advanced electronic technologies.
Graphite electrodes and needle coke products will remain with the industrial materials business.
The company that as part of the strategic review of the engineered solutions business, it has retained Fifth Third Securities as financial adviser and Withers LLP as legal counsel.
“There can be no assurance that the review of strategic alternatives will result in a transaction,” the company said in a statement.
GrafTech said the business, as it is now defined, accounted for 22 percent, or US$152 million, of pro forma company sales in 2015.
It said the realignment is meant to allow it to better focus its resources and simplify its operations.
“The industrial materials business segment will continue to focus on being the lowest-cost producer providing the best quality of graphite electrodes. The engineered solutions business segment will continue to leverage the intellectual property of carbon and graphite material science to innovate and commercialize advanced technologies and new products in high growth markets.”
In February, the company put workers at its St. Marys, Pa., facility on notice that it would idle most of the operations there due to low demand from the steel industry for graphite electrodes.
The move affects 85 employees, according to American Metal Market.
Graphite electrodes and needle coke products will remain with the industrial materials business.
The company that as part of the strategic review of the engineered solutions business, it has retained Fifth Third Securities as financial adviser and Withers LLP as legal counsel.
“There can be no assurance that the review of strategic alternatives will result in a transaction,” the company said in a statement.
GrafTech said the business, as it is now defined, accounted for 22 percent, or US$152 million, of pro forma company sales in 2015.
It said the realignment is meant to allow it to better focus its resources and simplify its operations.
“The industrial materials business segment will continue to focus on being the lowest-cost producer providing the best quality of graphite electrodes. The engineered solutions business segment will continue to leverage the intellectual property of carbon and graphite material science to innovate and commercialize advanced technologies and new products in high growth markets.”
In February, the company put workers at its St. Marys, Pa., facility on notice that it would idle most of the operations there due to low demand from the steel industry for graphite electrodes.
The move affects 85 employees, according to American Metal Market.
