ENERGOPROM Group takes part in a discussion of prospects for development of the coal and graphite industry in Russia

Moscow, April 3, 2018 – ENERGOPROM Group took part in the round table “Development of graphite industry in the Russian Federation. Measures to support domestic producers in the process of import substitution and improvement of raw materials security” on the site of the Federation Council of the Russian Federation under the leadership of Alexey Mayorov, First Deputy Chairman of the Committee on the Economy of the Federation Council of the Russian Federation.

The reduction in Chinese capacities for the production of graphite electrodes (hereinafter referred to as “GE”) in the first half of 2017 and, as a consequence, an increase in global prices for these products has revealed a serious problem of import dependence of Russian metallurgy on foreign producers. Two-thirds of the domestic GE market is currently occupied by foreign companies.

In this regard, the ENERGOPROM Group has embarked on a large-scale investment program to expand its production facilities, most of which is planned for 2018–2020. Its implementation will make it possible to provide more than 50% of the needs of Russian metals companies. The company is ready to assume the obligations to implement the planned investment measures, which will be established in a special investment contract, stipulated by the Federal Law “On Industrial Policy”.

The main conditions for implementation of the company’s investment program, which provides the guarantee and protection of the Russian GE manufacturer, are the conclusion of long-term contracts with mutual obligations for the supply and selection of products with Russian metals manufacturers and keeping of import customs duties and anti-dumping duties on large diameter GE against producers from India. 

In addition, round table participants noted that in order to create a self-sufficient coal and graphite industry in Russia, it is necessary to produce its own needle coke (the main raw material for GE production), which is currently absent.

“We see the solution to the problem of raw material security of the industry, first and foremost, in creating our own production of raw materials – needle coke – in Russia. If the government and our metallurgical consumers are interested in this, it is up to practical actions that will provide the domestic market with its own raw materials and will allow us to increase the production of graphite electrodes and stop dependence by implementing import substitution in our industry,” said Viktor Nechuyatov, CEO of ENERGOPROM Group.

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