|  | 30/07/2004 |
|
Nippon Denko to Produce Silicomanganese in China
Nippon Denko announced on Thursday it signed joint venture agreement with Jinzhou Ferroalloy to produce silicomanganese. The JV constructs silicomanganese plant with 50,000 tonnes of annual capacity in Jinzhou Ferroalloy’s plant in Jinzhou of Liaoning starting production in August 2005. The JV exports up to 40,000 tonnes to Japan. Nippon Denko closes Hidaka plant. It is the first Japanese ferroalloy transplant in China. Nippon Denko tries to develop growing Chinese market from core production site of Jinzhou eyeing expansion from trans plant of silicomanganese to more capacity for silicomanganese and high carbon ferromanganese and other products.
They establishes joint venture, Jinzhou Nichiden Ferroalloy in August. Nippon Denko has 94.2% of the JV with 70 million yuan of capital balance is Jinzhou Ferroalloy. They start construction working to build plant with 2 electric furnaces with each 16,500 kilovolt ampere of capacity. They expend around 900 million yen for facilities totaling 1.6 billion yen of investment.
Nippon Denko supplies annual 12,000-15,000 tonnes of high quality silicomanganese from Hidaka for Japanese users including Nippon Steel. Jinzhou Ferroalloy closes small electric furnaces with less than 5,000 kilovolt ampere of capacity. The JV’s 50,000 tonnes of annual capacity is just more than capacities, which they will close. They try to increase sales in Japan, China and Asian market with quality and cost competitiveness of the JV.
The JV has advantage of electricity, which is crucial for electricity consuming ferroalloy maker. The location has enough electricity because coal firing power generation is prevailing in Liaoning while southern part of China heavy relies on hydroelectric power, which could become unstable in dry season.
 |
 
 | Nippon Denko to Produce Silicomanganese in China
| | Nippon Steel Concluded the Rights Increase of Hail Creek with Rio Tinto
| | Japan Domestic Carbon Steel Stock Decreases by 2.5% in June
| | Tokyo's H-beam Price Keeps Strong Tonne
| | High Grade Ferrous Scrap Price is continuing to Increase
|
|
|
 |
