Ukraine’s only graphite producer ceases operations
18 December 06:22
Ukraine’s only graphite enterprise, Zavallivskyi Graphite (Zavallia village, Kirovohrad region), has suspended operations. This was reported by the National Association of Mining Industry of Ukraine, Komersant ukrainskyi reports
“Ukraine’s only graphite enterprise, Zavallia Graphite, which has been mining natural graphite since 1934, has suspended operations. This will be a serious blow to the national industry, given the strategic role of graphite in many industries, including electrode production, the automotive industry, and the latest technologies, including the country’s defense industry,” the association said.
The company needed significant modernization and suspended operations amid a number of challenges, including the increase in electricity tariffs by the National Energy and Utilities Regulatory Commission and freight tariffs by Ukrzaliznytsia.
The industry association states that these factors have significantly increased production costs, which, combined with other economic constraints, has made it impossible to maintain stable operations.
The situation on international markets has also deteriorated: product prices have fallen to levels that do not allow Zavalivsky Graphite to maintain the required profitability. One of the reasons for this is China’s deliberate dumping policy, which the country is pursuing to overcome competition in the markets for critical raw materials.
“This shutdown will affect many industries that were dependent on local production of natural graphite. Now Ukraine will have to look for alternative sources of graphite supply, which may further affect the access and cost of products in key sectors of the economy,” the NAPU said.
According to the association, the recent events are a clear signal of the need to review not only the tariff policy of the state, but also to implement more effective strategies to support strategic enterprises and international investment partnerships.
Reference
“Zavallivsky Graphite has been extracting natural graphite from local ores since 1934. According to the plant’s website, it produced more than 25 main grades of graphite with a carbon content of 85% to 99.5% and a size of 10 to 200 microns. The company was one of the ten largest graphite producers in the world.
Its products were exported to countries such as Germany, France, Belgium, the United Kingdom, Turkey, Spain, Italy, Poland, Switzerland, the Czech Republic, Romania, Slovakia, Serbia, Bulgaria, Greece, Norway, Japan, South Korea, Belarus, Moldova, and the United States.
