Nippon Denko Increases Ferroalloy Output Capacity in 2008

Nippon Denko of Nippon Steel group increases annual capital expenditure to 6 billion yen in 2008, up by 2.7 times from 2007. The firm builds up the production of high carbon ferromanganese, extremely-low phosphorus-ferromanganese, manganese acid lithium and ferro-boron. The firm increases capex to 9.7 billion yen for 3 years until 2008 from 7.9 billion yen as originally planned. The firm responds to strong demand for ferroalloy while builds up other businesses except ferroalloy. The firm considers rebuilding of overseas business or silicon-manganese, which connect to growing strategy in next midterm plan after 2009.The firm expanded volume of no.2 electric furnace for high carbon ferromanganese in Tokushima plant by 10% and upped the electric transformer of the furnace to 50,000 kVA from 40,000 kVA. The capacity increased by 10,000 tonnes per year by these expansion and the expanded facilities will start operation in March. The firm plans to expand volume of no.1 electric furnace in 2009, up by 10% to 220,000 tonnes.As to extremely-low phosphorus-ferromanganese, the firm will construct a 3,000kVA furnace and expand the output capacity from current 18,000 tonnes to 30,000 tonnes per year within 2008 to increase the supply to Nippon Steel group.As for high carbon ferro-boron for amorphous metal used electric transformer, the firm doubled the production capacity to 7,000 tonnes per year at Hokuriku plant in 2007 and plans additional expansion to 14,000 tonnes within 2008.As for manganese acid lithium for large battery cell, the firm increases the capacity to 500 tonnes per year within this year, starting construction of a new plant with capacity at 1,800 tonnes per year in 2008.