GrafTech International (NYSE: EAF) has been cleared to resume production at its Mexican facility, resolving a major issue that had hung over the shares of the graphite electrode maker. The company's shares spiked higher as a result, trading up as much as 23% on Monday morning.

GrafTech is responsible for one of the key components in electric-arc steelmaking, which is a fast-growing part of the steel industry because it is costs less and requires less energy. The company makes the graphite electrodes that power electric-arc furnaces.

But GrafTech's ability to supply the industry came into doubt in September, when Mexican regulators suspended production at its Monterrey facility due to alleged noncompliance with regulations. GrafTech shares plunged on the news. The Mexican operation represents about 60,000 metric tons of production annually, or about 30% of GrafTech's total annual production.

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Source Fool.com