In 2023, we continued to make progress regarding our environmental, social, and governance (“ESG”) initiatives. As a leading provider of a product that is mission critical to our customers, GrafTech is proud of our ongoing contributions towards the sustainability of steel. As we continued to execute our ESG strategy in 2023, key initiatives included investments to capture heat to reduce fuel consumption at our production facilities and a significant expansion of our engagement within local communities in the areas where we operate. Further, in 2023, GrafTech joined the United Nations Global Compact, a voluntary leadership platform for the development, implementation, and disclosure of responsible business practices.
Timothy K. Flanagan, Chief Executive Officer and President
GrafTech is proud to be a leader in the manufacturing of high-quality graphite electrodes, operating three of the
most efficient and highest capacity graphite electrode manufacturing facilities in the world. The recent full re-start of our facility in St. Marys, Pennsylvania, further enhances our capabilities to support our customers’ decarbonization efforts. Our products are
essential to the production of electric arc furnace (“EAF”) steel, which is the
fastest-growing segment of the global steel market and, importantly, more environmentally friendly than blast furnace
steelmaking. In fact, EAF steelmaking generates significantly less carbon dioxide emissions compared to a blast
furnace facility. It also directly supports the circular economy, as EAF steelmaking recycles scrap-based raw materials into new steel that is infinitely recyclable. Combined with our strides towards heat recovery and our ongoing transition to green electricity at our facilities,
we are making significant progress—directly and indirectly—towards the decarbonization of steel.
GrafTech’s success is only possible through the hard work of our global team and their commitment to upholding our core values
of Safety, Environment, and Quality (“SEQ”). Our people have demonstrated this commitment, as well as determination and resilience,
as we navigated through what proved to be a challenging year in 2022. In addition to the impacts of geopolitical conflict, high
levels of inflation, and ongoing supply chain and economic uncertainty, the unanticipated suspension of our operations in Monterrey,
Mexico, in late 2022 significantly affected our business.
Despite these challenges, we made important ESG progress in 2022. We made key investments in our heat recovery program, spending more than $13 million in 2022 and 2023. We expanded our safety initiatives, undertook new several community engagement programs, and embarked on new collaborations with universities to expand our R&D capabilities.
We are proud of our progress and of our ongoing contributions towards the sustainability of steel. We continue to identify
and pursue opportunities to drive sustainability performance and increase transparency on ESG issues. In May 2023, GrafTech joined the United Nations Global Compact, a voluntary leadership platform for the development, implementation, and disclosure of responsible business practices. Looking forward, we remain fully committed to advancing our sustainability efforts across our global organization. Ultimately, we believe that this work supports
our industry-leading position and competitive advantage, optimally positioning GrafTech for long-term growth and benefits for all stakeholders.
As always, I welcome your questions and comments on our sustainability efforts and look forward to engaging with you on these topics.
Sincerely,
Marcel Kessler,
Chief Executive Officer