GrafTech Announces Planned Closure of Monterrey Graphite Electrode Facility
Strategic Action Aligns Manufacturing Capacity with Market Conditions, Reduces Costs and Strengthens Long-Term Competitiveness
Company Will Maintain Sufficient Capacity to Support Current Customer Demand and Benefit from Anticipated Demand Growth
BROOKLYN HEIGHTS, Ohio, August 31, 2026--GrafTech International Ltd. (NYSE: EAF) today announced its decision to permanently close its graphite electrode manufacturing facility in Monterrey, Mexico. The Company plans to wind down operations at the Monterrey facility in phases, with production expected to conclude early in the second quarter of 2027.
The planned closure is intended to better align the Company's manufacturing capacity with current market conditions. The Company expects the planned closure to improve manufacturing utilization, reduce the Company's cost structure and capital requirements, and concentrate production at GrafTech's larger and more efficient manufacturing facilities, while preserving the product capabilities required to serve its customers.
The global graphite electrode industry continues to face significant structural overcapacity, driven in large part by substantial capacity expansion in China and India that has outpaced demand growth in those markets. Increased exports from those countries into key regions, including imports that are the subject of ongoing trade proceedings, have further contributed to the challenging competitive environment. These factors have weighed on graphite electrode pricing and industry returns for several years. While GrafTech and certain other industry participants have taken steps to reduce capacity, the Company believes that further supply discipline is necessary to support a healthier industry and a more sustainable supply-demand balance.
"Today's announcement represents a disciplined and decisive action to support the long-term success of GrafTech," said Timothy Flanagan, Chief Executive Officer and President. "Given the persistent imbalance between global graphite electrode supply and demand, maintaining underutilized capacity that requires ongoing capital investment is neither economically sustainable nor in the long-term interests of GrafTech or our stakeholders."
"Following a comprehensive assessment of our manufacturing network, we determined that closing Monterrey provides the best combination of capacity alignment, operational reliability and sustainable cost improvement, while preserving the capabilities necessary to serve our customers," continued Mr. Flanagan. "The closure of Monterrey is a difficult decision but is consistent with the strategy we have communicated to strengthen our competitive position, optimize our operational footprint and create greater long-term value. Importantly, this action builds on the broad set of initiatives we have implemented over the past several years, including cost reductions and capacity rationalization, and complements our previously announced pricing initiatives and our support for ongoing trade proceedings related to graphite electrode imports in key regions. We remain confident that these actions, taken together, will improve market conditions, enhance the effectiveness of our commercial strategy and strengthen GrafTech's long-term competitive position."