By Cameron Chai
SGL Group, a carbon company, and ArcelorMittal, a steel manufacturer, are continuing their long-term association with a new long-term supply contract spanning five years for the supply graphite electrodes.
According to this inked agreement, SGL Group will continue to be a key supplier of high-performance graphite electrodes for ArcelorMittal.
According to SGL Group’s Member of the Board of Management heading Business Area Performance Products, Armin Bruch, this contract is a significant single contract in SGL Group’s history and is the base for long-term partnership with ArcelorMittal. The management has helped in the company’s growth from the very beginning. Since 1980s, SGL Group has been the main provider of graphite electrodes. This contract has resulted in the close collaboration with ArcelorMittal, he added.
SGL Group and ArcelorMittal have approved for rigorous technical cooperative efforts in Total Cost of Ownership (TCO) works that will decrease expenditure for the two contracting parties.
ArcelorMittal’s Senior Executive Vice President, Member of the Group Management Board, Davinder Chugh commented that the company has entered into an ambitious program to make use of its association with strategic vendors for added value for both companies. This long-term agreement with SGL Group will offer a suitable platform for cost optimization. The focus of ArcelorMittal will be the usage of specific electrode, energy, and inventory carrying expenses, according to him.
Recycling of steel scrap in electric arc furnaces utilizes graphite electrodes, which are the key product of Business Area Performance Products. There is an increase in the ratio of electric arc furnace steel in global steel manufacturing. Usage of these electrodes lasts from six to eight hours. The electrodes are replaced continuously in the current production process in the steel furnace. There is a demand for electric arc furnace steel due to the rise of present infrastructure in Latin America and Asia.