ID :
184487
Thu, 05/26/2011 - 04:11
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Shortlink :
https://oananews.org//node/184487
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POSCO to buy ferrochrome from joint venture with Indian firm
SEOUL, May 26 (Yonhap) -- POSCO, South Korea's largest steelmaker, said Thursday that it has signed a deal to buy ferrochrome from a joint venture to be set up with an Indian firm later this year.
In January, POSCO and Indian Metals and Ferro Alloys (IMFA), India's largest ferrochrome manufacturer, inked a deal to set up a ferrochrome-producing joint venture.
POSCO said earlier it owns 24 percent of the joint venture, with the rest held by IMFA. The two firms are currently building an electric furnace in India that produces 35,000 tons of ferrochrome used in making stainless steel.
POSCO said it will be able to buy ferrochrome from the joint venture at below-market prices over the next 25 years from 2012, while IMFA will operate the plant.
IMFA produces around 150,000 tons of ferrochrome annually. So far, POSCO has been buying ferrochrome from IMFA on an annual contract basis.
Ferrochrome, an alloy of chromium and iron, is used mainly for manufacturing stainless steel. The bulk of the world's ferrochrome is produced in South Africa, Kazakhstan and India.
POSCO imports around 480,000 tons of ferrochrome a year. The company has another ferrochrome joint venture in South Africa that produces 60,000 tons annually.
In January, POSCO and Indian Metals and Ferro Alloys (IMFA), India's largest ferrochrome manufacturer, inked a deal to set up a ferrochrome-producing joint venture.
POSCO said earlier it owns 24 percent of the joint venture, with the rest held by IMFA. The two firms are currently building an electric furnace in India that produces 35,000 tons of ferrochrome used in making stainless steel.
POSCO said it will be able to buy ferrochrome from the joint venture at below-market prices over the next 25 years from 2012, while IMFA will operate the plant.
IMFA produces around 150,000 tons of ferrochrome annually. So far, POSCO has been buying ferrochrome from IMFA on an annual contract basis.
Ferrochrome, an alloy of chromium and iron, is used mainly for manufacturing stainless steel. The bulk of the world's ferrochrome is produced in South Africa, Kazakhstan and India.
POSCO imports around 480,000 tons of ferrochrome a year. The company has another ferrochrome joint venture in South Africa that produces 60,000 tons annually.
