Home › Forums › Coking › News: DCU, Upgrader › 1.Coker (registered users only) › Graftech purchase Seadrift – DOJ hold changes COP contract › RE: Graftech purchase Seadrift – DOJ hold changes COP contract
Here is update on Graftech (former UCAR Graphite Electrode producer) purchase of remaining portion (Graftech owns ~19% & trying purchase remaining 81%) Seadrift Needle coke producer a competitor to COP who supplies a large portion of needle coke Graftech has buy for electrodes (~80%) on long term contract.
DOJ has hold Graftech purchase of Seadrift until COP Needle coke contract is cleaned up & firewalls put in.
Could be nice out for COP because I am sure Graftech would have used purchased supply from Seadrift to hammer down price & details on existing (on evergreen basis now?) contract.
Other details on Seadrift sale ~ Confirmed that Seadrift only sold ~39kmt 2009 vs 148kmt 2008 (~cap 160 kmtpy). List of DOJ requirements on SEC reports – sale will likely happen since changes are not major. One Graftech SEC reports (Aug 10) has most details on DOJ requirements & sales number above – so no wonder Graftech pounced on them.
Others should object to the “firewall” as not being strong enough. If goes ahead the cosy COP-Graftech link firewall or no; has another overlooked aspect in COP-Phillips merger was that Phillips had essentially dominant position of all CBO preminum & Needle coker feedstock producers – became even more so with COP’s refineries…..