Brazilian side withdraws from the management of Nova Era Silicon SA, which was established as a joint venture company between Japan and Brazil to produce ferro-silicon at the plant located in Minas Gerais state of Brazil. The shares of the capital of Nova Era Silicon have consisted of 49% by CVRD of Brazil and 25.5% each by JFE Steel and Mitsubishi Corporation of Japan, and Nova Era Silicon has been producing ferro-silicon from the end of 1985.
Brazilian side already informed Japanese side of their intention to withdraw from Nova Era Silicon and it is anticipated that Japanese side will take over 49% of the shares of this Brazilian producer acquired by CVRD. JFE Steel said that Japanese side has been now proceeding the final adjustment of this matter.
Nova Era Silicon has held the capacity to produce 45,000 tons per annum of ferro-silicon by three electric furnaces. The reason, why Brazilian side withdraws from Nova Era Silicon, is not known yet but, while there are two choices to place Nova Era Silicon under a 100% owned subsidiary of CVRD or to sell the shares of Nova Era Silicon acquired by CVRD, it is supposed that Brazilian side has chosen the latter. It seems that, in case that CVRD owns 100% of the shares of Nova Era Silicon, CVRD shifts to produce manganese ferro-alloys instead of ferro-silicon. |
