Shanghai Baosteel Chemical Co. Ltd has signed a agreement with Fangda Carbon New Material Technology Co. Ltd and for jointly setting up a 100,000 MTPA High Power Graphite Electrode production line at the Honggu District in the Lanzhou City , situated at the Gansu Province of China, according to ICCarbon China.
The electrode market in China has been profitable due to the prices going up due to supply tightness and stronger demand. This has also triggered a new wave of capacity expansion in China. In 2017 alone, nearly 30 Graphite Electrode companies were built, according to the available statistics.
Fangda Carbon New Material Technology Co. Ltd is the largest electrode manufacturer in China, and Shanghai Baosteel Chemical Co. Ltd is a wholly-owned subsidiary of Baosteel Co., Ltd. The project, to be implemented in two phases, will entail an investment of Yuan 2.7 billion.
The joint venture has also brought in a market buzz that Graphite Electrode over-capacity will again return to the market. In view of this, it is noteworthy that the inherent capabilities of both the companies in the carbon and raw materials sphere will go hand in hand by making full use of their individual advantages in carbon materials and raw materials to jointly promote the development of the carbon-based materials industry in China.
At present, Fangda Carbon has become the largest graphite electrode manufacturer in China, and it has formed a profit-sharing relationship with Baosteel Chemical, which has developed relatively well in the field of needle coke. The partnership between Baosteel and Fangda could be a win-win situation for both as they can share resources and develop together.
Leave a Reply