Ormet Signs Agreement to Purchase Carbon Anode Facility

Ormet Corp., an aluminum producer headquartered in Hannibal, Ohio, has entered into a purchase and sale agreement for the purchase of a carbon anode facility in Mead, Wash. If the purchase is completed, the carbon anode facility would be used to supply the company’s Hannibal smelting operation.

The Mead carbon plant has the potential of supplying part of or nearly all of the anode needs for Ormet, depending on the amount of capital invested. The carbon anode facility would allow the company greater flexibility in the sourcing of this key raw material since the company could balance internal production versus import requirements, based on price, quality and risk. The next step will be to conduct detailed due diligence leading to a final purchase decision near the end of the second quarter of this year.

“Carbon anodes are a strategic raw material for our operation,” says Mike Tanchuk, Ormet’s president and CEO. “Developing a domestic source would allow us to fully recycle carbon residues, reduce our cost and better control price risk depending on global market conditions.”