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Restructuring and Related Activities
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure Rationalization Expenses
In the first quarter of 2024, we announced a set of initiatives designed to reduce our cost structure and optimize our manufacturing footprint. As part of these initiatives, we indefinitely suspended production activities at our St. Marys, Pennsylvania facility, with the exception of graphite electrode and pin machining. In addition, we indefinitely idled certain assets within our remaining graphite electrode manufacturing footprint. As a result, our graphite electrode production capacity has been reduced to approximately 178 thousand metric tons (“MT”) in 2024. In parallel, we adopted measures for additional overhead reductions to reduce our selling and administrative expenses. Collectively, these initiatives resulted in a reduction of our global headcount by approximately 130 employees, or 10% of our workforce. Rationalization charges of $3.2 million related to severance and contract terminations will be paid in cash and we expect the substantial majority to be paid by the end of the second quarter of 2025. Rationalization-related charges of $2.7 million represent the non-cash write-off of inventory and fixed assets. Substantially all charges relative to this plan were recorded during the first quarter of 2024 and wind-down activities were completed by the end of the second quarter of 2024.
The following table summarizes costs incurred related to these initiatives:
Year Ended
December 31,
20242023
(Dollars in thousands)
Recorded in Cost of Goods Sold
Inventory write-offs$2,202 $— 
Fixed asset write-offs453 — 
Total rationalization-related expenses$2,655 $— 
Recorded in Rationalization Expenses
Severance and related costs$2,814 $— 
Contract terminations342 — 
Total rationalization expenses$3,156 $— 
The following table presents a roll-forward of the liability incurred for employee termination benefits and contract termination costs incurred in connection with the rationalization initiatives described above.
Balance Sheet Line Item
Other Accrued LiabilitiesOther Long-Term Obligations
(Dollars in thousands)
Balance as of December 31, 2023$— $— 
Charges incurred2,479 677 
Payments and settlements(2,161)(15)
Adjustments367 (370)
Balance as of December 31, 2024$685 $292