As part of its business resumed operations, shares of GrafTech International Ltd. (NYSE: EAF) were up 22.51% to trade at $5.17 at the most recent check.
Which operation has the EAF resumed?
GrafTech (EAF) stated that the provisional suspension notice pertaining to the Company’s activities in Monterrey, Mexico, has been lifted conditionally. As a result, GrafTech will be able to start using the facility once more right away. The suspension notice was removed on November 17, 2022, subject to the accomplishment of specific predetermined tasks, by the State Attorney’s Office for the Secretary of Environment of the State of Nuevo León, Mexico (the “State Attorney”). Along with that, EAF is required to submit an analysis of the facility’s activities’ environmental effects. According to EAF’s Current Report on Form 8-K submitted on September 16, 2022, the State Attorney issued the interim suspension notice on September 15, 2022.
GrafTech will be able to continue operations in Mexico right away thanks to receiving that order, continuing its commitment to being a good corporate citizen, and contributing positively to the communities in which it operates. For many years to come, EAF will increase its involvement with the Monterrey community. The diligent efforts of the EAF team, especially those of all of its Monterrey employees, enabled them to fix the issue and maintain their commitment to helping consumers and advancing their business.
According to its prior prognosis given on November 4, 2022, EAF continues to predict that the temporary suspension will have an impact on its capacity to complete between 10,000 and 12,000 metric tons (“MT”) of client orders during the fourth quarter of 2022. When GrafTech releases its fourth quarter 2022 financial results, it aims to give an update on the anticipated effect of the suspension on its 2023 forecast.
What is the EAF meant by that facility?
The Monterrey facility, which employs about 550 people and has a manufacturing capacity of over 60 thousand MT annually, has been run by GrafTech (EAF) since 1959. Excluding Company’s factory in St. Marys, Pennsylvania; the manufacturing capacity of Monterrey accounts for 30% of EAF’s total yearly production capacity.