123Business OverviewRespond to raw material price fluctuationsGraphite Electrodes DivisionTight raw material supplies will continue to constrain the supply of graphite electrodes. Establish a revenue base that will not be affected by raw material prices.Manufacturing facilities and equipment are aging and will be updated to maintain stable production and supply.Further cost savings will be achieved by optimizing the Japan-U.S.-Europe production organization, and attaining greater technical heights for the Group.Invest in renovating and maintaining manufacturing facilitiesLower the breakeven point by integrating North American locationsKey MeasuresT-2021 Key MeasuresBusiness ConditionsManagement Issues• Tight supplies of high-quality graphite electrodes• Growing demand for EAF steel over the medium-to-long term. Continued rise in EAF production as a percent of crude steel production.• Rising price of needle coke• Fulfillment of supply responsibilities• Integration of North American locations with the Group (Integrated operation of global Group locations)Kenji Enokidani General Manager of the Graphite Electrodes DivisionStructural reforms over the past three years have resulted in stable earnings. The tripolar (Japan, U.S., and Europe) business structure will enhance productivity and quality, further solidifying our reputation.22TOKAI CARBON ANNUAL REPORT 2018
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