GrafTech to Close Monterrey Plant, Cutting Capacity 29% to Save $25M Annually
EAF sits 46% above its 52-week low of $4.92.
Summary
GrafTech is permanently closing its Monterrey, Mexico graphite electrode plant, reducing annual capacity by about 51,000 metric tons to roughly 127,000 metric tons. The move is expected to generate $20-25 million in annual cash cost savings by 2028, cut capex by $5 million starting 2027, and release $20-25 million in working capital. One-time closure costs are estimated at $20-25 million, mostly through 2027, including severance. This follows a string of quarterly losses and a $50 million ATM offering earlier this year, so the cost cuts and working capital release directly address liquidity concerns. The company will shift production to France and Spain, and plans to sell the Monterrey property after wind-down, with proceeds earmarked for debt reduction. The closure is a significant restructuring that should improve long-term cash flow, but the full benefits won't materialize until 2028.
At the time of this announcement, EAF was trading at $7.20 on NYSE in the Manufacturing sector, with a market capitalization of approximately $187.9M. The 52-week trading range was $4.92 to $20.32. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: BusinessWire.