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China Carbon Graphite to Open New Facility

which includes baking and dipping plants, will become fully operational by September 2011. Once the facility is completely up and running, China Carbon anticipates that it will have an annual production capacity of 30 kt, which would double the company’s current annual production capacity. When compared to the first quarter of 2010, the company’s sales more than doubled in the first quarter of 2011, with 80 % of its revenues coming from sales of its higher margin products. Accordingly, China Carbon plans to primarily manufacture its higher margin products, such as ultra high power graphite electrodes for Chinese steel plants as well as fine grain and high purity graphite products, at its facility. Currently, the margin for large size, ultra high power graphite electrode is high due to the shortage of supply to demand. In an effort to take advantage of this trend, the company is striving to become China first domestic producer of 800 mm diameter ultra high power graphite electrodes (Source: China Carbon Graphite Group, Inc.; 8/2011).

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