Ukrainian Ferroalloy Production Doubles

Ukrainian Ferroalloy Production Doubles

Ukraine doubled its ferroalloy output in the first seven months of this year, according to figures released by Ukrainian Ferroalloy Producers' Association.

Output for the period grew to 871,500 tonnes. Silicon manganese production grew 83.1 per cent to 573,700 tonnes, ferromanganese rose 260 per cent to 173,000 tonnes, ferrosilicon 45 output rose 71.7 per cent to 116,400 tonnes and manganese metal production was up 7.7 per cent to 8,400 tonnes.

The country’s largest producer, Nikopol Ferroalloy Works (NFW), raised silicon manganese production 65.8 per cent year-on-year in the seven months to 421,000 tonnes while ferromanganese production was up 460 per cent to 132,500 tonnes. Overall ferroalloy output at Nikopol rose 140 per cent year-on-year to 554,000 tonnes.

Zaporizhia Ferroalloy Works (ZFW) saw silicon manganese production more than double to 103,100 tonnes with output of ferrosilicon 45 rising 120 per cent to 33,800 tonnes. ZFW’s ferromanganese was up 64.4 per cent to 40,500 tonnes and manganese metal production rose 7.7 per cent to 8,400 tonnes. Total ferroalloy output at ZFW doubled to 185,800 tonnes.

The Stakhanov Ferroalloy Plant (SZF), doubled its total production to 131,700 tonnes, while the country's two manganese concentrate producers, the Ordzhonikidze and Marhanets mining and beneficiation plants, produced 846,500 tonnes of concentrate between them in January-July - more than double the production in the same period of last year.

Turkey's Ferroalloy Imports Fall 19 Per Cent In 2009

Turkey's ferroalloy imports fell by almost 19 percent in 2009. Total imports were 314,661 metric tons according to figures from the Turkish Statistical Institute (TUIK).

Ferromanganese imports were 46,760 metric tons, down 36.22 percent on 2008; ferrosilicon imports were 62,655 metric tons, down 14.54 percent; ferrosilicon-manganese imports were 193,324 metric tons, down 1.18 percent; and ferrochrome imports totalled 2,786 metric tons, down by 98.58 percent.

Ferroalloy imports from the CIS countries accounted for 77 percent of total ferroalloy imports, while imports from Europe constituted 9.6 percent and Asian countries 8.5 percent.

Ukraine To Investigate Ferroalloy Imports

The Ukrainian Interdepartmental Commission on International Trade is to investigate import the import of some ferroalloy products into Ukraine. Ferromanganese with a carbon content of more than two percent (excluding ferromanganese granules of more than 5 mm and with manganese content of more than 65 percent) and ferrosilicomanganese will be subject to the investigation regardless of origin.

The investigation has been requested by the Association of Ukrainian Ferroalloy Producers (UkrFA) and a number of ferroalloy producers including the Nikopol Ferroalloy Plant (NZF), the Zaporizhia Ferroalloy Plant and the Stakhanov Ferroalloy Plant (SFP).

In a statement released by the complainants Ukraine’s ferroalloy output decreased by 59 per cent in Q3 2009 compared to Q3 2008, however ferroalloy imports increased by 219 percent, while prices went down by 38 percent.

In 2009, Ukraine’s ferroalloy output decreased by 25.2 per cent against 2008 to 1.036 million mt, however ferroalloy imports increased by 5.4 times year on year to 103,350 mt. This included 58,940 mt of Ferrosilicomanganese imports were 58.940mt, up 4.3 times compared to 2008, ferromanganese imports were 35,600 mt - up 11.6 times - and ferrosilicon imports were 8,610 mt of ferrosilicon - up 4.1 times. Ukraine imports ferroalloys mainly from Russia, Kazakhstan, Georgia and China.

Turkey Imported 84 Per Cent More Ferroalloys In November

According to the customs statistics compiled by the Turkish Statistical Institute (TUIK), in November 2009 Turkey imported 32,837 metric tons of ferroalloys, increasing its imports of the products in question by 84.48 percent compared to October.

In November, of the various ferroalloys, the country's ferromanganese imports increased by 2.5 times, reaching 3,289 metric tons, ferrosilicon imports totaled 5,805 metric tons, rising by 43.48 percent, while ferrosilicomanganese imports amounted to 22,173 metric tons, up 89.32 percent, all compared to October.

Source: Steel Orbis

Ukraine Ferroalloy Production Down By A Quarter In 2009

According to the Association of Ukrainian Ferroalloy Producers (UkrFA), in 2009 Ukraine registered a 25.2 percent decrease year on year in its ferroalloys production to 1.036 million mt.

Accordingly, in 2009, Ukraine's silicomanganese output decreased by 15.6 percent to 741,900 mt, its ferromanganese production went down by 64 percent to 129,400 mt, its ferrosilicon output increased by 7.4 percent to 150,300 mt, while its metallic manganese production went up by 75.6 percent to 15,100 mt, all compared to 2008.

SourcE: Stele Orbis

SAIL Subsidiary To Build New Chandrapur Furnace

Maharashtra Electrosmelt Ltd a SAIL subsidiary will invest INR 200 crore to set up a furnace with capacity of 42,000 tonnes per annum at its Chandrapur plant.

Maharashtra Electrosmelt sources said that "Its board has already cleared the expansion proposal and it has been sent to the sub committee of Steel Authority of India Ltd board for approval.”

Sources said that it would require an investment of around INR 200 crore and once it is cleared by the sub committee, global tenders would be floated for the purpose. It would take two years from the date of placement of the order to get the furnace commissioned. This furnace for the Chandrapur plant will have a capacity of 42,000 tonnes per annum for increasing production of silicomanganese.

Sources said that Maharashtra Electrosmelt at present supplies 50,000 tonnes of ferromanganese required by SAIL plants, besides meeting 40% demand for silicomanganese. Post expansion, MEL would be in a position to fulfill 70 per cent silicomanganese requirements by SAIL plants.

Sources further added that apart from capacity expansion, a 67.5 MW power plant has been proposed to be set up at Chandrapur by NSPCL a joint venture company of NTPC and SAIL to reduce MEL's dependence on external sources of electricity.

Sources said the proposal for a power plant is now at a preliminary stage. Currently, MEL has a power plant with 4.2 MW capacity which is fired by the gas generated in a blast furnace.

Source: Steel Guru/Business Standard

Output Down At Zaporozhye Ferroalloys Plant

During 11 months of 2009, Zaporozhye Ferroalloys Plant in Ukraine reduced its silicomanganese output by 54.6% to 102,400 tonnes, ferrosilicon (in recalculation to 45%) by 40.9% to 34,300 tonnes, ferromanganese by 46% to 47,500 tonnes. Production of metallic manganese increased by 58.1% to 13,600 tonnes.

In 2008 in comparison to 2007, ZFZ reduced its output by 21.4% to 386,200 tonnes, silicomanganese reduced by 29.9% to 227,100 tonnes, metallic manganese by 23% to 8,700 tonnes, ferrosilicon (in recalculation to 45%) by 14.5% to 60,400 tonnes, ferromanganese output increased by 5.5% to 90,000 tonnes.

The plant supplies 30% to 35% of its production to the local market, the rest goes for export to CIS, EU, Asia and Africa.

Source: Steel Guru

Steep Fall In Ukrainian Ferroally Production

According to the Association of Ukrainian Ferroalloy Producers, in January to October this year Ukraine registered a decreased of 41.5% YoY in ferroalloys production to 810,700 tonnes.

During the first ten months of 2009, Ukraine silicomanganese output decreased by 33.8%YoY to 582,000 tonnes, ferromanganese production went down by 72.6% YoY to 98,500 tonnes, ferrosilicon output dropped by 15.9% YoY to 117,800 tonnes while metallic manganese production increased by 44.2% YoY to 12,400 tonnes.

According to the preliminary data, in January to October this year the largest Ukrainian ferroalloy producer Nikopol Ferroalloy Plant reduced its ferroalloy output by 36%YoY to 520,700 tonnes including 463,400 tonnes of silicomanganese down by 16.6% YoY and 57,300 tonnes of ferromanganese down by 77.7% YoY. Since the beginning of the year, the plant has not produced any other ferroalloys.

Source: Steel Guru

$65 Million Manganese Smelter Planned For Indonesia

Two regional governments in East Nusa Tenggara (NTT) province have signed an agreement with consortium Mangan JSK International Co. Ltd and PT AGB Mining, to establish a Rp 650 billion (US$65.5 million) manganese smelter.

An email statement from the Energy and Mineral Resources Ministry said the NTT provincial government and the Kupang regency government had signed the agreement on Wednesday.

"The smelter will produce Ferro Manganese, Silicon Manganese and Ferro Nickel Chrome, among others," the statement said.

The products can be used for steel, batteries, ceramics and the production of chemicals. The plan will cover activities in surrounding regencies with a volume of about 1,000 tons a month, and a smelter construction with an installed capacity of 60,000 tons a year.

The Mangan consortium includes local and foreign companies: PT. AGB Mining, PT. Pusaka Pertambangan Mina, PT. Berkah Kencana Sakti, CV. Jasindo Utama and South Korea's J.S.K. International Co. Ltd

Source: Jakarta Post

China Reissues 51 Ferroalloy Export Licences

China's Ministry of Commerce has re-issued ferroalloy export licences to 51 enterprises for the first time after the introduction of the licence system. However, this is only an adjustment of export qualification. Lower export duties on ferroalloy products are still expected in the unforeseeable future.

MoC said in a circular on June 17th that the qualified 51 enterprises could apply to provincial-level departments for an export licence. The 51 enterprises include 44 enterprises for general trade, 2 for border trade, 3 in earthquake-hit regions, 1 recommended by western regions and 1 foreign-funded enterprise.

MoC introduced an export licence system last August in an attempt to strengthen ferroalloy export management. Enterprises much be qualified for industry admittance, exported more than 3,000 tonnes of FeMn, FeSi and SiMn in 2007, with products reaching domestic standard and winning ISO9000 certificate. The number of qualified enterprises in each province is also very limited.

Officials from the China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters told Shihua Financial Information that the 51 enterprises have been checked according to MoC regulations and declined to elaborate or make comment on whether ferroalloy export duty should be adjusted.

MoC has entrusted CCCMC and China Ferroalloys Industry Association with the initial examination of relevant enterprises and asked them for advices.

Mr Zhang Zengchan, assistant to the chairman of CFIA, revealed that China's ferroalloy exports collapsed between January and April as demand shrinks dramatically in the international market. He admitted CFIA has called for an adjustment in ferroalloy export policies several times since last December but in vain.

Besides the export licences, Chinese customers have hammered out floor prices for ferroalloy products. This would be equal to an export duty hike when market prices fall below the floor prices.

On the other hand, ferroalloy imports are increasing and that trend still continues. Analysis reports point out that imported resources now dominate domestic market. In May domestic Cr-series alloys markets remained firm but large amounts of imported FeCr flooded in, pressing domestic FeCr producers to suspend production and curbing domestic price rise.

Mr Zhang is not optimistic for the ferroalloy market in 2009. Given dull international demand, the impact brought by imports, an export duty adjustment and weak risk-resistance in China's fragmented ferroalloy sector, the ferroalloy market can hardly walk out of sluggish performance with modest fluctuations in this year.

Source: Steel Guru

Ruuki Buys Controlling Stake In Mogale Alloys

Ruukki South Africa, the South African subsidiary of Finnish industrial refining group Ruukki, has acquired an 84,9% stake in Mogale Alloys, in Krugersdorp, from JSE-listed commodities trading company Metmar for about R2-billion, it announced on Monday.

The subsidiary was planning to make further investments in South African minerals and metals operations, it noted in a statement, adding that it was particularly interested in minerals and alloys, with a focus on chrome and platinum processing.

The group, which was listed on the NasdaqOMX Helsinki, was also planning to make a secondary listing on the JSE during 2010, following the acquisition of South African interests, it said in a statement.

Black economic-empowerment partners would own the balance of Ruukki SA, which has been headed by CEO Alwyn Smit since 2008.

Of the purchase amount, R1,2-billion was payable immediately, with R1,125-billion going to the vendors and a further R75-million being paid into the Mogale Management Trust over five years.

The remaining R800-million would be financed by the vendors with R200-million to be repaid after a year and R600-million to be repaid over the next five years.

Mogale has four smelting furnaces and produces silico manganese, ferrochrome and stainless steel alloy, with a combined capacity of 100 000 t/y.

Smit said the Mogale acquisition was an ideal opportunity for Ruukki, both as a ferrochrome operation and as a base from which Ruukki could expand into platinum and other metals processing.

“As demand recovers, ferrochrome market prices are expected to outperform other minerals, owing to limited supply and growing demand. The Mogale transaction expands and diversifies Ruukki’s current Turkish and German minerals capabilities of special grade ferrochrome, and gives opportunities to utilise existing sales channels,” he commented.

Source: Mining Weekly

China Becomes Net Importer Of Ferroalloys

China became a net importer of ferroalloys in January and February, according to customs statistics. The country imported 242,211 tonnes of ferroalloys and exported 177,697 tonnes in the first two months of 2009.

The main reason is the much lower level of exports and, since price of high carbon ferrochrome produced in China is now higher than that produced in South Africa, India and Kazakhstan, the imports of high carbon ferrochrome into China have increased to a considerable extent. The price of ferrosilicon and silicon metal produced in China has remained competitive in the export market.

Higher raw materials costs and other cost increases to offset the enviornmental impact of production has led to an erosion of the cost advantages previously by China. As a result almost half of China's ferrochrome demand has to be satisfied by imports.

In addition, falling prices for ferrochrome in the western market along with a decreased demand has caused a trend to sell more ferrochrome into China.

The unit prices of ferrochrome imported into China in February of 2009 and calculated from the values cleared the customs were:

1. High carbon ferrochrome at 62.78 US Cents per lb of Cr CIF on Cr 65% base of Cr CIF on Cr 50% base

2. Low carbon ferrochrome at 93.5 US Cents per lb of Cr CIF on Cr 65% base.

In view of the facts that China imported considerable quantities of chrome ore at higher prices in 2008 the cost price to produce high carbon ferrochrome in China is estimated to be higher than 65 US Cents per lb Cr. Western suppliers are supposed to have taken the offensive to sell high carbon ferrochrome to China at lower prices than 60 US-Cents per lb. Cr CIF in February and March of 2009.

China imported silicomanganese at USD 871 per tonne of material CIF in February of 2009 and this price level is lower than that at which China exported silicomanganese produced by themselves. Chinese silicomanganese has been offered for Japan at USD 1,300 per metric ton CIF but when export duty of 20% and ocean freight are deducted from this CIF price, its FOB price comes to USD 1,050 per metric ton. Indian silicomanganese is currently being offered at USD 1,100 per tonne CIF Japan, which is USD 200 per ton lower than that of Chinese product.

South Africa, India and Kazakhstan are the countries producing raw materials for manganese-based and chrome-based ferroalloys and, in view of the depression in the markets at present, the matter in question is whether or not Chinese products are able to compete with those produced in the three countries as mentioned.

Source: Steel Guru

Chinese Ferromanganese Prices "Hit Bottom"

It is reported that despite a surge in China's domestic price of electrolytic manganese price, SiMn and FeMn markets remain weak. SiMn6517 is mainly quoted at CNY 6,600 to 7,000 per tonne and SiMn6014 is offered at CNY 5,500 to 5,900 per tonne. Prices now stands at CNY 6,600 to 6,800 per tonne for high carbon FeMn Mn 65% and 8,000 yuan/ton for medium carbon FeMn Mn75C2.0. Many alloy producers complain about dull sales as price has dived near cost line.

According to one Hunan-based producer, profit remains at some CNY 100 per tonne at the moment. The producer maintains production yet is worried about future market owing to stagnant sales and low purchase prices.

Many steelmakers offer purchase prices at no more than CNY 6,700 per tonne for high carbon FeMn Mn65%. FerMn market is unlikely to revive in a short term.

One SiMn producer in Guangxi has quoted SiMn6517 at CNY 6,600 per tonne, a level near to production cost. The producer is also pessimistic about the future market since demand is unlikely to rebound.

Market analysts believe that prices for SiMn and FeMn have dropped to the bottom and hence will not fall dramatically in coming days on any buoyancy in production costs.

Source: Steel Guru

China's Silicon Manganese Producers In A Dilemma

China's silicomanganese producers are sitting on thorns in March, given various negative factors such as steelmakers' cuts in purchasing prices and volumes, a fall in the price of imported Manganese ore, preferential electricity price removal and a dull export market. Many producers were ambitious to start full production after China's Lunar New Year but now face more production suspension. Those large-scale producers that hold high price manganese ore have no choice but to cut output.

FeMn65Si17 is now offered at CNY 7,200 to CNY 7,800 per tonne; FeMn60Si14, at CNY 6,200 to CNY 6,600 per tonne, down CNY 800 per tonne from their February levels. Export price stands at USD 1,100 per tonne to USD 1,400 per tonne and actual transaction prices stay even lower with thin deals.

BHP has axed its manganese ore price for China in the second quarter by 60%-65^ from 2008 level. 48% lump ore is quoted at over USD 6 per MTU; 43% small grain manganese ore, at USD 5.2 per MTU to USD 5.35 per MTU; 37% South African manganese carbonate ore, at USD 4.5 per MTU to USD 4.65 per MTU.

Traders at ports foresaw the manganese ore price drop. Now the price for 45% Australian lump ore stands at some CNY 52 per MTU falling by CNY 16 per MTU from its peak in February. Silicomanganese producers can save costs by approximately CNY 700 per tonne after their manganese ore price drop. However, silicomanganese price falls faster. Actual transaction price for FeMn65Si17 has declined by nearly CNY 1,000 per tonne within a month. Silicomanganese producers face another heavy loss after the one in last October.

The National Development and Reform Commission, State Electricity Regulatory Commission and National Energy Administration want to remove preferential electricity prices for energy-intensive industries. This will further push up silicomanganese production costs. On the other hand, the downstream steel price keeps falling, hence steelmakers have to reduce steel output, decreasing demand for silicomanganese. Besides, in view of volatile silicomanganese price, steelmakers remain cautious towards purchasing. Purchase prices in Mar have dived by CNY 700 to CNY 1,000 per tonne from the February level. A Hunan-based steelmaker is said to have settled the price at CNY 7,000 per tonne. Many steelmakers offer the price at some CNY 7,500 per tonne with limited purchasing volumes since they believe the silicomanganese price will slide further.

Source: Steel Guru
Against such a backdrop, silicomanganese producers have to resort to production cutback or suspension. As purchase prices have approached or even dropped below cost line, producers merely maintain regular customers. Further price drop, if there is any, will press producers to production suspension.

Chinese Ferromanganese Producers Continue To Struggle

Over twenty Chinese ferromanganese producers, representing more than two-thirds of the country's production gathered in Shanghai on February 25th to hold an industry conference.

There was pessimism regarding the global economy and a feeling that the world's major economies will not recover quickly from the financial crisis.

The Chinese producers face two difficulties: on the one hand, producers bought large amounts of manganese ore at a high price and stock levels of the ore are still high; on the other hand, even thought the manganese ore price has fallen, producers have yet to enjoy the low price and production costs have remain higher than sales prices.

Meanwhile steelmakers are squeezing purchasing costs and are delaying payments, triggering huge losses for ferromanganese producers.

Alloy stocks have dived after months of consumption. Only less than 50% of producers have maintained their production.

In the face of these conditions, producers should strengthen cooperation, struggle for preferential prices for manganese ore, ask the National Development and Reform Commission for relaxed policies through the ferroalloy association and strive for preferential electricity prices in local regions.

Producers agreed at the conference to control ferroalloy output, prevent 'blind' production, maintain moderate sales prices and enhance communication with steelmakers in order to win a mutual understanding.

Production costs now stands at over CNY 8,000 per tonne for silicomanganese, CNY 8,000 per tonne for 65 high carbon ferromanganese and CNY 10,500 per tonne for 78/20 medium carbon ferromanganese.

Source: Steel Guru

Chinese Silico-Manganese Falls Slightly

Reports from China suggest that the domestic silicomanganese price has fallen back slightly amid a falling imported manganese ore price while international buyers are driving down prices.

In the domestic market FeMn65Si17 is quoted at CNY 7,900 - 8,450 per tonne; FeMn60Si14, at CNY 6,800 - 7,200 per tonne. Export prices are USD 1,300 to 1,500 per tonne.

Silicomanganese producers are willing to modestly adjust prices downwards to a reasonable level. As steelmakers hammer out purchase prices, along with highly- priced manganese ore stockpiles, there is expected not to be a dramatic fall in price in the short term.

Transalloys To Cease Production

Production at the Transalloys manganese-ore smelting operation in South Africa is to cease for two months because of reduced current market demand, Afro Minerals Trading AG marketing manager Patrick Huber said on Monday.

Huber said that the reduced current market demand provided an ideal opportunity for Transalloys to close, so that essential maintenance and furnace rebuilds could be carried out, which were not possible while the plant was operational.

Eighty percent of Transalloys' silicomanganese and medium-carbon ferromanganese product is exported, involving the transport by road and rail of some 8,000 t of finished product a month to the ports of Richards Bay and Durban.

Huber said that the market situation would be continually assessed to ensure that stocks were available to satisfy customer requirements and to meet company commitments.

Transalloys, which produced mainly refined silicomanganese and medium-carbon ferromanganese alloys at Witbank, was bought from South Africa's Highveld Steel & Vanadium by the Renova group of Russia, headed by Viktor Vekselberg.

Two months was currently the best estimate of the duration of plant closure, and the essential maintenance referred to would include work on raw-material feeder systems, conveyors and cranes.

Huber said that those Transalloys employees who were not required for the maintenance programme, would be permitted to take leave for the two-month period, utilising accumulated leave. Any shortfall of leave days would be debited against future leave entitlements.

Renova had planned to build an additional smelting factory at Coega, but owing to the current poor market conditions and power-supply uncertainty, the company currently has the project on hold.

Source: Mining Weekly

US Ferroalloy Market Close To Bottoming Out

There are signs that the US bulk ferroalloys market may be close to bottoming out after large falls in the fourth quarter of 2008. But market participants said that trading volume on the spot market was minimal and there was a dearth of inquiries for long term contracts among steel mills.

This came against the backdrop of news that ArcelorMittal will take an electric arc furnace out of production at its Canadian plant in Hamilton, Ontario next week for the remainder of the first quarter. Traders were uncertain as to what effect this would have on ferroalloys demand, as a company spokesman said that production was being transferred to a nearby basic oxygen furnace. But they said it would mean a reduction in ferrous scrap requirements.

An assessment by Platts for high-carbon ferrochrome widened to 75 to 85 cents per pound FOB Pittsburgh from 84 to 86 cents a week earlier. Several participants said they believed that high carbon ferrochrome prices may be close to finding a price floor, even though it was the high carbon price that came under pressure this week, while low carbon prices were unchanged. Last week, traders and producers were indicating the possibility of imports of European low carbon ferrochrome, which would continue to keep downward pressure on US low carbon prices, due to a steadier dollar and weak market conditions in Europe.

The Platts survet reported a price for high carbon 78% Mn ferromanganese price unchanged at USD 1,375 to USD 1,400 per long tonne, though one consumer said that he believed the next business was likely to be concluded at closer to USD 1,300. He said that "After a few weeks of that no business, I'm sure somebody will be only too happy to sell it at USD 1,300 or less. I could see it going to USD 1,200."

Meanwhile, some traders put the market at 47 to 50 cents per pound. The Platts assessment for 2% C silicomanganese rose to 47 to 49 cents per pound Wednesday from 45 to 47 cents per pound a week earlier.

Source: Steel Guru, Platts

Chinese Ferroalloy Prices Rise On Increased Demand

Reports from China suggest that domestic prices of bulk ferroalloys have rebounded with an increase in spot purchases from steel mills since the start of the month. This is partly in order to strengthen cash flow prior to the start of the Lunar New Year holiday on 26 January.

The current price of Chinese silicomanganese is CNY8,000 to CNY 8,500 per tonne and the export price for Japan has risen by USD 100 per tonne to USD 1,450 to 1,500 per tonne CIF. The price of high carbon ferromanganese prevailing in China's domestic market is CNY 8,300 to 8,500 per tonne and that of medium carbon ferromanganese is CNY 10,600 per tonne.

The price of Chinese ferrosilicon bottomed out in late December. Since the start of 2009 Chinese ferrosilicon is now being offered at USD 1,120 to 1,150 per tonne CIF Japan, having risen further from USD 1,000 CIF at the end December of 2008. A lower price than USD 1,000 per tonne for silicomanganese in the middle of December has now disappeared from the market.

Major producers of ferrosilicon in China decided in December to set a benchmark price of USD 1,090 per tonne FOB as a target for export business.

Sources: Steel Guru, MySteel

Eramet To Idle US Furnaces

The French ferroalloy producer, Eramet, has announced job losses of 110 employees at its Eramet Marietta facility in Ohio.

This follows a reduction in market demand, the company said, in the light of a continuing global economic downturn and what has been called the worst steel market in recent history.

The company's Special Products Division will be 'indefinitely idled' in March 2009, a silicomanganese furnace will be idled for 60 days in early March and one of its two ferromanganese furnaces for 90 days in May.

Pending market recovery and final funding approval from corporate headquarters in Paris, the company said it plans to rebuild the ferromanganese furnace to improve operational efficiency and environmental performance during its idling.

Employees who meet set company service criteria are being offered a voluntary termination package to enhance basic severance and layoff allowances.

"It is always difficult to make choices that have such an impact on the lives of our employees; however, after evaluating many alternatives, under the circumstances of such a dismal economy this was the best course of action to ensure the long-term viability of Eramet Marietta," CEO Frank Bjorklund said in a statement.

Eramet spokeswoman Joy Frank-Collins said the company's biggest customers include AK Steel, U.S. Steel, and Arcelor Mittal, steel companies that have been idling furnaces and laying off employees since the fourth quarter of 2007.

"We also provide metal and manganese that goes into steel for the automotive industry. That has certainly had an effect. It's almost a trickle down situation," Frank-Collins said.


Source: Marietta Register