Business Strategies - Graphite Electrodes

Mission
Strengths and Competitive Advantages
Strategies for the Long-Term Vision
Vision for 2030 and Roadmap
TOPICS 2024
Solution of Social Issues

Mission of Graphite Electrodes

Resonac Graphite Business Unit delivers world-class graphite products and technologies with a strong focus onsustainability. We play a vital role in the efficient and environmentally friendly recycling of steel. We believe ourpeople are our strongest asset, and our mission is to drive the sustainable advancement of society acrossmultiple global graphite markets through talented people, strong partnerships, and innovative technologies.

Strength and Cmpetitive Advantages for the Achivement of the Long-Term Vision

We will make use of Resonac’s strengths and competitive advantages to become a world-class functional chemical company and a company that can compete on the world stage by 2030.

Global decarbonization will continue to drive increases in electric arc furnace (EAF) steelmaking, which will also increase the demand for larger diameter graphite electrodes
Our global production platform has six sites and a business continuity framework where we keep significant inventories of key components and raw materials to ensure we can always fulfill our commitments

To maximize supply chain reliability, minimize our carbon footprint, and achieve shorter lead times, Resonac Graphite produces “in the region, for the region”

Resonac Graphite’s recent acquisition of AMI Automation underscores its dedication to technological advancement and industry leadership. This strategic move enables Resonac to accelerate its internal digital transformation initiatives, while offering technological solutions to enhance customer optimization
Resonac Graphite has been a partner to the electric steelmaking community for more than 80 years. As the first company to produce 750mm and 800mm electrodes, Resonac has grown side by side with the sustainable steel industry
Our business plan and production facilities have achieved the status of “Highly Protected Risk” from our regional insurance providers based on our strategy to reduce or eliminate the probability of a business interruption

What are graphite electrodes?

Steel is familiar and indispensable in our lives. It is used to make appliances, cars, machinery, bridges, and buildings. It is also the most reused material in the world and can be recycled infinitely without losing its properties. Graphite electrodes are an integral part of this recycling process. To do this, an electric arc furnace (EAF) transfers electric current through the graphite electrode to the scrap steel inside. The current creates an arc that melts the solid steel into reusable liquid steel. The molten steel temperature in the furnace reaches temperatures of 1600°C, and the tip of the electrode reaches more than 3000°

Strategies of Graphite Electrodes Business for the Achievement of the Long-Term Vision

In a shift from the use of blast furnaces to electric furnaces with lower CO₂ emissions in the steelmaking industry, we will steadily supply our products to meet the demand for large-diameter graphite electrodes, thereby establishing a global top brand that provides high-quality graphite electrodes and electric furnace operation optimization services.

Vision for 2030 and Roadmap to Achieve It

Vision for the future(2030)	issues to Be Addressed	Results in 2023	Plans for 2024
We supply industry-leading graphite electrodes and electric arc furnace (EAF) optimization services tosteelmakers around the world, supporting the transformation to sustainable steel production and economic growth We promote decarbonization in the manufacturing process and supply synthetic graphite products foruse in multiple industrial applications	Achieving a stable profit structure Transforming our traditionally cyclical business model by concluding win-win Strategic Supply Partnership (SSP) contracts Optimizing product mix in response to expansion of electric furnace market Plans for new electric arc furnaces are increasing worldwide and those furnaces typically require larger diameter electrodes. Resonac Graphite is uniquely positioned to meet this growing demand Evolution to a business model of providing electric furnace optimization services By combining Resonac’s industry-leading graphite electrodes with AMI’s	Due to the impact of the global economic downturn, demand for steel and graphite electrodes softened Successfully promoted ladle furnace offerings (ΩMEGA), increased the number of SSPs, and further decarbonized our manufacturing processes Completed acquisition of 100% of AMI shares to accelerate the transformation toward a solutions business	Continue business transformation to ensure stability despite industry cyclicality Promote end-to-end (E2E) strategic partnerships with customers & suppliers Achieve cost reductions and diversify raw material sources Expand solutions that package Resonac products with AMI optimization services

TOPICS 2024 of Graphite Electrodes Business

Evolving value proposition throughsynergies with AMI

AMI Automation is an international automation and control solutions company. Recognized as a world leader in EAF automation technology, the combination of Resonac products and AMI services can provide value-added solutions to unique customer needs.
■Examples of added valueprovided
・Reduction of energyconsumption・Reduction of waste and GHG emissions ・Increased productivity・Improved profitability, etc.

Solution of Social Issues through Business Operations

Business/Product	How to contribute to society	Related SDGs
Graphite electrodes	Reduce CO₂emissions from steelmaking Promote recycling for the creation of a sustainable recycling-based society Increase the global use rate of electric furnaces from the present roughly 30% to 35% Reduce CO₂ emissions through the advancement of electric furnace operation technology in the steelmaking process	9、12