Pacific Metals to Seek New Offshore FeNi Buyers

Aomori based ferronickel maker, Pacific Metals tries to expand the export for developing countries including China and India. The firm develops new customers to stabilize the operation with up and down of output by current customers of offshore stainless makers, which represent 60% of the sales. The firm also seeks opportunity to get mining interests to improve the procurement. The firm halved the ferronickel sales to 5,000 tonnes in July-September 2007 from April-June due to major output reduction by stainless makers. The sales improve to 7,000 tonnes in October-December and to 9,000 tonnes in January-March but the firm has trouble to stabilize the operation with the major up and down. The firm tries to seek new customers when South Korean major buyer shifts to own production in 2009. The firm tries to develop Indian market when stainless makers expand the output capacity in the country. The firm expanded the output capacity by 10% to 44,000 tonnes in 2007. The firm purchases the nickel ore from Philippines and Indonesia. The firm tries to seek new resources by exploration activity. The purchased ore grade is getting lower to level with 2.15% of nickel content. The firm tries to develop technology to utilize the low grade ore through new test plant.