Nippon Denko Expands Low Phosphorous FeMn Output by 70%

Japanese leading ferroalloy maker, Nippon Denko will expand the output capacity of super low phosphorous ferromanganese by around 70% to around 30,000 tonnes per year at Tokushima plant by end of 2008 for 2 billion yen. The firm adds new electric furnace for the refining. The firm will increase the supply to group of Nippon Steel, which is the largest shareholder of Nippon Denko, when special steel demand increases and electrolytic manganese market keeps high. Nippon Denko improves the supply ability of the major items of manganese ferroalloy though a series of efforts including expansion of high carbon ferromanganese, pumping up of Chinese silicomanganese plant and cost cutting. The firm produces annual 18,000 tonnes of super low phosphorous ferromanganese with 90-91% of manganese from slug of high carbon ferromanganese through the original technology. The firm operates the facility at full capacity to meet the growing demand when Nippon Steel increases the special steel output and substitute demand increases for high priced electrolytic manganese. Nippon Denko will use more the slug and prepares for potential slug increase when the firm expands the ferromanganese output. Nippon Denko expands the no.2 electric furnace for high carbon ferromanganese to increase the output by 10,000 tonnes per year. The firm expands the total capacity by 20,000 tonnes to 220,000 tonnes by 2009 after the expansion of no.1 furnace. The firm increases the operation rate of Chinese silicomanganese plant to annualized 40,000 tonnes level and the firm increases the output to full capacity of 50,000 tonnes from 35,000 tonnes in 2007.