Ferrochrome firms to up output on high demand
Sep 24, 2006
Business Standard

Leading ferrochrome manufacturers – Indian Metals & Ferro Alloys (IMFA), Tata Steel, Facor and Ispat Alloy, which control about 70 per cent of the total ferro chrome production in the country, are expanding their current capacities, citing a surge in the demand for the commodity. IMFA and Tata Steel have plans to almost double their capacities by 2009.

Ferrochrome is an alloy used for converting ordinary steel into stainless steel.

IMFA, India's largest ferrochrome manufacturer with a market share of more than 30 percent, will nearly double its capacity to 4,50,000 tonne per annum (tpa) from 2,35,000 tpa on completion of expansion of its furnace capacities by another 75 mva by 2009. IMFA's existing furnace capacity stands at 157 mva.

Tata Steel is planning to double production to 1 lakh tpa by 2009 at its plant in Bamanipal in Odisha. The company will spend Rs 200 crore for the expansion.

Owing to the strong overseas demand, the companies have been exporting more than 50 per cent of the produce.

"There is a tremendous demand for stainless steel, both domestically and internationally. The per capita consumption of stainless steel in the country is 1 kg, compared to China's 5 kg and 10 to 18 kg in the West. Our immediate focus will be on exporting the commodity," said Subhrakant Panda, Managing Director, IMFA Group.

Ferro Alloy Corporation (Facor), another leading manufacturer, is planning to adequately increase capacity at its two plants in the next three years. The company plans to enhance chrome ore production at the company's mining complex and plans to establish and commission a new power plant, said senior company officials. In the last two years, Facor has increased its production by 10 per cent at 1,22,500 tpa.

Balasore Alloy, formerly Ispat Alloy, would also increase its ferrochrome manufacturing capacity by 2009, said industry sources. The company has a capacity to manufacture 90,000 tpa ferrochrome.

All the companies are in the process of enhancing their chrome ore production. Some, like IMFA and Facor, are in talks with the Odisha government for further allocation of chrome ore mines. Domestic ferrochrome prices stands at Rs 35,000 a tonne and 60 to 64 cents a pound globally (one pound is equal to 0.45 kg).

For any information relating to IMFA Group or to enquire about a Press Release issued by us please contact:

Mr Kishore Mohan Mohanty
Bhubaneswar
email: kishoremohanty@imfa.in