Dongbu Metal Starts New Electric Furnace as Part of Expansion

South Korean largest ferromanganese maker, Dongbu Metal announced on Friday the firm started new electric furnace with 50 mega volt ampere. The firm moves commercial production in mid-November after 2-month hot run. The firm adds 2 more electric furnaces by December under the 300 billion won expansion program to increase the ferromanganese output capacity to 500,000 tonnes per year from current 230,000 tonnes. The firm tries to increase the volume and quality eyeing future 1 million tonnes of capacity. The firm tries to start commercial production of ultra low phosphorus carbon (ULPC) grade ferromanganese through the expansion. The firm succeeded the development of material, which is indispensable for high tensile steel products including automotive flat steel, at world second after Nippon Denko. Dongbu Metal tries to shift to such high valued products along with the capacity expansion.

The firm started operation of the new electric furnace with annual 95,000 tonnes of output capacity for ferromanganese. The firm adds 2 refining furnaces to make ULPC grade products by December to secure 270,000 tonnes of additional capacity. After the expansion, the firm has total 10 furnaces including 3 furnaces with 10 MVA, 3 furnaces with 20 MVA, a furnace with 40 MVA and 3 furnaces with 50 MVA.

The firm makes annual 230,000 tonnes of ferromanganese with 30% of South Korean market share. Ferromanganese represents 70% of the production with balance for silicomanganese. The firm posted 44.3 billion won of operating profit in January-June, which was 295% higher than same period of 2009, while the sales increased by 26% to 242.7 billion won.