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SGL Group and ArcelorMittal conclude a 5-year supply agreement

News International-French

17 Apr 2012

SGL Group – The Carbon Company – and worldwide leading steel producer ArcelorMittal are continuing their long-standing successful cooperation and have concluded a new long-term supply agreement for graphite electrodes with a term of five years. With this agreement SGL Group will maintain its position as a strategic supplier for the supply of high-performance graphite electrodes for ArcelorMittal Group.

Armin Bruch, Member of the Board of Management of SGL Group in charge of the Business Area Performance Products stated: “This agreement is the biggest single contract in the history of SGL Group and the basis for continuing our long-standing successful cooperation with ArcelorMittal. We have supported the growth of the Group since the very beginning. SGL Group has been the primary supplier of graphite electrodes since the 1980s. This agreement is thus the result of our close partnership with the largest steel producer in the world today.”


ArcelorMittal and SGL Group have also agreed to intensive technical cooperative efforts in TCO (Total Cost of Ownership) activities, which will reduce costs for both of the contracting parties.


Davinder Chugh, Senior Executive Vice President, Member of the Group Management Board of ArcelorMittal stated: “We have embarked upon an ambitious program of leveraging our relationship with strategic vendors to create added value for both. This long term contract with SGL Group is an example of that and will provide an ideal platform for optimising costs on SGL’s as well as on our side. We will focus on energy usage, specific electrode consumption and inventory carrying costs.”



About ArcelorMittal

Graphite electrodes are the core product of the Business Area Performance Products and are used to recycle steel scrap in electric arc furnaces which is the world’s largest recycling process. The proportion of electric arc furnace steel in worldwide steel production is growing and has currently a share of approximately 30%. Graphite electrodes are consumer goods which are expended after six to eight hours of use and are continuously replaced in the steel furnace’s ongoing production process. The ongoing infrastructure build-up in the emerging countries in Asia and Latin America drives the demand for electric arc furnace steel.

ArcelorMittal is the world’s leading steel and mining company. Guided by a philosophy to produce safe, sustainable steel, it is the leading supplier of quality steel products in all major markets including automotive, construction, household appliances, and packaging. ArcelorMittal operates in 60 countries and employs about 260,000 people worldwide.


About SGL Group

SGL Group is one of the world’s leading manufacturers of carbon-based products and materials. It has a comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites. SGL Group’s core competencies are its expertise in high-temperature technology as well as its applications and engineering know-how gained over many years. These competencies enable the Company to make full use of its broad material base. SGL Group’s carbon-based materials combine several unique properties such as very good electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to industrialization in the growth regions of Asia and Latin America and increased substitution of traditional with innovative materials, there is a growing demand for SGL Group’s high-performance materials and products. Products from SGL Group are used predominantly in the steel, aluminum, automotive and chemical industries as well as in the semiconductor, solar and LED sectors and in lithiumion batteries. Carbon-based materials and products are also being used increasingly in the wind power, aerospace and defense industries.

With 46 production sites in Europe, North America and Asia as well as a service network covering more than 100 countries, SGL Group is a company with a global presence. In 2011, the Company’s workforce of around 6,500 employees generated sales of €1,540 million. The Company’s head office is located in Wiesbaden.


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