Posco moots JV with IMFA for ferro chrome unit
Dec 20, 2010
Business Standard

Even as the South Korean steel major Posco faces an uphill task in taking forward its proposed 12 million tonne steel plant project in Odisha, it plans to join hands with a home grown firm Indian Metals & Ferro Alloys (IMFA) for a ferrochrome unit in the state.

According to sources, Posco will invest 5 million dollar towards holding 24 per cent stake in a new JV company with IMFA which will be in charge of running a 30 mega volt ampere (MVA) furnace to produce 35,000 tonne of high carbon ferrochrome per annum.

IMFA currently operates five furnaces to produce ferro chrome while the JV agreement will be for the sixth unit, said a company official. "IMFA recently commissioned the sixth unit and it will now be transferred to the new JV company where Posco will hold 24 per cent stake", said Subhrakant Panda, the Managing Director, IMFA.

Already broad agreement in this regard has been reached and only details have to be worked out. After that a formal JV agreement will be signed in January, Panda said.

He said, the new JV has nothing to do with the beleaguered Posco India project in Odisha as <br>the pact is with the parent South Korean firm.

IMFA, at present, has rolling long term agreement with Posco for supply of ferrochrome. "The JV, which will ensure assured offtake for us and guaranteed supply of ferrochrome for Posco, will only strengthen this commercial ties", he added.

IMFA plans to produce about 2,00,000 tonnes of ferro chrome this fiscal. It exports over 80 percent of its productions, mainly to China. The ferro chrome is used for making stainless steel.

Panda said, the demand for ferro chrome is expected to rise in next couple of years with new stainless steel plants coming up in the country. Depending on the market conditions, the company may focus on selling more of its production within the country in future, he added.

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