GrafTech International concentrates its production of graphite connection pins at its factory in Monterrey, Mexico.

Graphite connection pins are threaded parts that connect two graphite electrodes. They are screwed together at their ends, creating a continuous column. This allows for stable electrical conduction in electric arc furnaces used to produce steel.

Graphite connection pins

GrafTech is a leading manufacturer of high-quality graphite electrodes and other ferrous and non-ferrous metals, which are essential for steel production in electric arc furnaces and various industrial applications.

Graphite electrodes are conductive parts made of pure carbon. They are used in electric arc furnaces to melt scrap metal and produce steel. They conduct electricity at high temperatures, generating the heat necessary for the process.

At its plant in Monterrey, GrafTech produces both graphite connection pins and graphite electrodes.

The company produces graphite connection pins. Its customers use them to join and secure graphite electrodes in columns for electric arc furnaces.

In recent years, all production has come from its plant in Monterrey. However, GrafTech has expanded capacity at its plant in Pamplona, Spain. Even so, it remains heavily dependent on a single facility for this key component.

If the Monterrey plant is unable to meet the required volumes, quality standards, or costs, the company would have to move production to Pamplona, Spain. In addition, it would have to find and contract alternative manufacturing suppliers.

Graphite electrode market

GrafTech has graphite electrode manufacturing facilities in Calais, France; Pamplona, Spain; Monterrey, Mexico; and St. Marys, Pennsylvania (closed in 2024). 

At the end of 2024, the global graphite electrode industry (excluding China) had a nominal capacity to produce approximately 786,000 metric tons of graphite electrodes. 

The industry shows a high level of consolidation. The five largest global producers, excluding China—GrafTech, Resonac Holdings Corporation, HEG Limited, Tokai Carbon Co., Ltd., and Graphite India Limited—account for about 82% of the world’s graphite electrode capacity outside China.

As of December 31, 2024, GrafTech reported a production capacity of 178,000 metric tons at its plants in Calais, Pamplona, and Monterrey. This represented about 23% of global capacity, also excluding China.

At the end of 2024, the company had 1,072 direct employees. Of these, 629 were hourly workers. By location, 401 were in Mexico, 405 in Europe, 230 in the United States, 32 in Brazil, three in Asia-Pacific, and one in the Middle East.