The company expects to start Nuclear Graphite production in 2014, and generate 2,000 MT in 2014 and 4,000 MT in 2015. The only other competitor is Fangda Carbon with 4 plants and 180,000 MT capability..I'm not sure how a tiny company like this can compete against a giant like that..Seems like this company still has a long road ahead to prove itself as a competitor.
wud do u mean expects to start in 2014??? According to chump from Seeking Alpo . they ALREADY are China's LEADING PRODUCER of NUCLEAR. AND from chgi's own POWERPOINT - NUCLEAR in 2012. Am i missing something or???
Emmylou is correct. Fangda is primarily a producer of commodity electrodes for steel mill blast furnaces--which are gradually being replaced by electric arc furnaces. Electric arc furnaces use an ultra-high electrode that is a completely different product from the commodity electrodes.
It is important to realize that virtually all graphite companies produce little but commodity electrodes for steel plant blast furnaces. There are actually hundreds of such graphite companies in China. Most are small but some, such as Fangda, are quite large. CHGI is opting out of that market and concentrating on the so far smaller but higher price tag and higher profit market of ultra-high electrodes. That market requires a refinement of graphite and a technological skill that just about nobody but CHGi has in China.
As to nuclear. Only CHGI and possibly Fangda have the ability to produce nuclear graphite among Chinese firms. Currently all nuclear graphite is imported. Fangda does produce some isostatic graphite and nuclear is a type of isostatic but they have not yet been able to produce the needed purity or size for nuclear. CHGI has done some in small amounts and says it can do so in quantity now. It says it needs only the orders from China.
Lastly, there will be more than enough demand for nuclear with the new plants China will be bringing on line [China will continue with its current suppliers for already on-line reactors] for both CHGI and Fangda. The new plants will need more than 300,000 tons per year, which is way more than CHGI and Fangda can supply without huge expansions, even if they produced only nuclear and jettisoned all other products.