Resonac Holdings slashes workforce, closes sites in graphite electrode business overhaul

Resonac Holdings Corporation announced rationalization measures for its graphite electrode business due to a deteriorating environment marked by sluggish demand and aggressive competition. Its consolidated subsidiary, Resonac Corporation, and sub-subsidiary, Resonac Graphite Germany GmbH, are undertaking these steps, which include workforce reductions at the German site.

The German site will see 41 employees depart from a total of 65 as of September 30, 2025, with retirements commencing sequentially from fiscal year 2026. This decision, agreed upon with the Works Council on November 10, 2025, aims to reduce fixed costs. Globally, the rationalization plan includes the closure of sites in Malaysia and China, workforce reductions in North America, and other measures.

These initiatives are expected to reduce annual fixed costs for the graphite electrode business by approximately JPY 11.7 billion compared to fiscal year 2024, with a total headcount reduction of about 40% (approximately 700 employees) by the end of fiscal year 2024. The total incurred cost for these measures is estimated at JPY 6.2 billion, with most costs projected for fiscal year 2025. The company's fiscal year 2025 earnings forecast already incorporates these costs and effects, with no changes to the current outlook.