MIDLANDS-based ferro-chrome producer, Zimasco plans to upgrade and refurbish key plant in order to ramp-up production and take advantage of firming prices in the global stainless steel market.
Global ferro-chromo production is on the rebound after taking a knock from the world-wide economic crisis with the stainless steel market, a major user of ferro-chrome, showing signs of stabilising after high levels of stock build-up towards the end of last year.
Zimasco Chief Executive Officer Sydwell Jena says his company plans to increase production from the 69 000 tonnes recorded at the end of last year to about 162 000 by bringing one of the company’s furnaces back on line.
Jena said the company, now a subsidiary of China’s Sinosteel Corp, plans to eventually see increase to 230 000 tonnes per year as the metal’s price firms.
“Zimasco plans to increase production by upgrading furnace No 2 furnace when our capital allows it. This will increase operational capacity to 230,000 tonnes.
“Further expansion is also planned beyond the refurbishment of furnace No 2, although the extent is yet to be determined,” he said.
The Zimbabwe government disposed of its majority interest in Zimasco’s to Sinosteel and Jena says the tie-up has brought significant operational benefits for the company.
“New off-take agreements have been signed since Sinosteel Corp became the majority shareholder of Zimasco. This includes an off-take agreement with Sinosteel Raw Materials, a subsidiary of Sinosteel Corp.
“The association with Sinosteel allows Zimasco access to various logistical, marketing and financial facilities at competitive rates, as well as opening doors to major stainless steelmakers (our customers),” Jena said.
Zimasco sells 48 percent of its products to Europe, mainly in Germany, Italy, Spain and France, while 34 percent goes to China and Japan, and 18 percent to the US market.
Source: New Zimbabwe
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