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| HOME >> Topics List >> September, 2008 >> 22 (Mon) |
| Sinosteel / China Cooperates With Guangxi Bayi Ferro Alloy |
| = Manganese Ferro-Alloys, Planned To Expand Capacity To Produce 1,000,000 Tons / Year |
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Sinosteel Corp. of China has built up the frame to cooperate with Guangxi Bayi Ferro Alloy on an expansion of businesses. At present, Guangxi Bayi Ferro Alloy has been producing 300,000 tons per annum of manganese ferro-alloys. The contents of this cooperation agreed upon between these two companies in China are currently under investigation and plans on a long run are (1) to expand the capacity to a scale to be able to produce 1,000,000 tons per annum of manganese ferro-alloys and (2) as new projects, to construct a plant to produce 80,000 tons per annum of nickel in ferro-nickel and also a plant to produce stainless steel on a scale of 500,000 tons per annum. In order to industrialize these projects, it is estimated to invest CNY10,400 million (US$1,500 million). Sinosteel has already taken over in 2006 Jilin Ferroalloy, which is the largest producer of ferro-alloys in China (to produce 500,000 tons / year in total of chrome and manganese ferro-alloys) and is now enlarging this plant. Sinosteel has aimed to produce ferro-alloys on a scale of 1,0000,000 tons per annum at the Jilin plant on the final phase. Also, Sinosteel has acquired 60% of the shares of Zunyi Ferro Alloy. On the other hand, Eurasian Natural Resources Corp. (ENRC) of Kazakhstan has acquired 50% of the shares of Zinjing Taihang Ferro Alloy in July of 2008, which is a company under control of Sinosteel and has been located in Xinjiang Uygur Aut. Region to produce 120,000 tons per annum of ferro-chrome. Through this acquisition, Sinosteel is expected to be able to ensure a stable supply of chrome ore as raw material from ENRC. In order to weed out medium and small producers of ferro-alloys in China, the Central Government of China has enforced from several years ago various regulations to control the facilities for production of ferro-alloys. On the other hand, like the case of Sinosteel which is a private company based on the former China Metallurgical I/E Corporation in Beijing, the Central Government of China has been positively financing to Chinese enterprises, which are endeavoring to consolidate operations and to enlarge its scale, and has aimed at enlargement and consolidation of the ferro-alloy industry in China as a whole. Guangxi Bayi Ferro Alloy has been developing the joint venture with Comilog of Gabon, the parent company of which is Eramet of France, on manganese ore and it is thought that, from this point of view, an importance has been attached to the relationship between Guangxi Bayi Ferro Alloy and Comilog. |
| last modified : Fri 26 Sep, 2008 [11:43] |
