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|Hanwa To Invest Yen2.6 Billion In OMH|
|= Hanwa's first investment to manganese resources =|
Hanwa Co., Ltd. ("Hanwa") announced on March 1, 2011 that it entered into an agreement with OM Holdings Limited ("OMH") on February 28 that Hanwa would buy 25,000,000 new ordinary shares of OMH for A$9,767,500.- and underwrite 25,000,000 OMH's convertible notes for A$21,450,000.-, totaling approximately Yen2.6 billion.|
Hanwa's intention through this investment is to add a new overseas supply source of ferrosilicon and manganese group alloys and to strengthen its position as a major global scale ferroalloy supplier based on this strategic partnership with OMH. This is Hanwa's third investment to resource companies following the first investment to Samancor through Kermas South Africa, and the second to Ruukki Group (Finland).
A US$500-million ferroalloy smelting plant project by OMH is ongoing in Sarawak, Malaysia to produce, according to the current plan, 310,000 tons of ferrosilicon and 290,000 tons of manganese group alloys annually. Start-up is scheduled in the second quarter of 2014. Hanwa is to, jointly with OMH, market the products to Japanese and overseas customers. This investment will, Hanwa expects, create a future core for its silicon and manganese ferroalloy business and establish a stable supply channel of the alloys beside China.
According to OMH, its trading subsidiary OM Materials (S) Pte Ltd. has agreed with Hanwa under a Marketing Agreement in which the two parties will market annually 80,000 tons of ferrosilicon and 80,000 tons of silico-manganese produced at the Sarawak smelting plant as mentioned above.
|last modified : Wed 07 Mar, 2012 [09:58]|