English Top>News Releases>2013>SDK Establishes Graphite Electrode Subsidiary in China

News Releases

SDK Establishes Graphite Electrode Subsidiary in China

Showa Denko K.K.
March 26, 2013

 

Showa Denko K.K. (SDK) has completed its procedure for acquiring a controlling stake in Sinosteel Sichuan Carbon Co., Ltd. (Sichuan Carbon), an integrated manufacturer of graphite electrodes in China.  Following the ratification by related government organizations on March 18, SDK made Sichuan Carbon its subsidiary, renaming the company as Showa Denko Sichuan Carbon Inc. (Showa Denko Sichuan Carbon).  

SDK will introduce its graphite electrode manufacturing technology into Showa Denko Sichuan Carbon to improve product quality, and serve the growing markets in China and other Asian countries.

Graphite electrodes are used for electric steelmaking, which melts iron scrap for recycling.    Electric steelmaking is expected to grow due to its environment-friendly features of iron resource recycling, and lower CO2 emissions compared with blast-furnace steelmaking.  The growth of electric steelmaking will also be supported by the increase in supply of iron scrap in emerging economies in Asia and other regions, following the proliferation of cars and the progress in urban development.

SDK has so far been supplying high-quality graphite electrodes mainly to the markets in advanced countries, from its Omachi Plant in Nagano Prefecture, Japan, and Showa Denko Carbon, Inc. (SDKC) located in South Carolina, U.S.A.

With the establishment of its Chinese subsidiary Showa Denko Sichuan Carbon, SDK is now ready to supply “volume-zone” products for emerging markets.  Thus, SDK will steadily promote its strategy of “being active on two fronts,” serving both the high-end and volume-zone product markets. 

 Outline of Showa Denko’s graphite electrode operations

Site

Annual production capacity
(in 2013)

Annual production capacity
(at the end of 2014)

Omachi Plant

60,000t/y

60,000t/y

Showa Denko Carbon

45,000t/y

75,000t/y

Showa Denko Sichuan Carbon

22,000t/y

22,000t/y

Total

127,000t/y

157,000t/y

Outline of Showa Denko Sichuan Carbon Inc.

Location : Guangyuan, Sichuan Province, China
Start of operation  : March 18, 2013
Capital : RMB 350 million
Shareholders :Showa Denko K.K. :67%
 Sinosteel Corporation :30%
 Tokai Trade Co., Ltd. :3%
Chairman : Yoshiharu Mizuno
irector & General Manager : Yoshiaki Yoshida
Scope of business : Production and sale of graphite electrodes
Number of employees : Approximately 400

For further information, contact:

Public Relations Office (Phone: 81-3-5470-3235)