Erdos EJM Manganese to Expand SiMn Output

Inner Mongolia Erdos EJM Manganese Alloy, which is silicomanganese making joint venture of Chinese ferroalloy major, Erdos Electrical Power & Metallurgical, JFE Steel and Mitsui & Co., plans to produce 70,000 tonnes of silicomanganese in 2007. The operation will reach full capacity soon after the launch in July 2006. The joint venture tries to make money for the year to December 2007 eyeing double expansion depending on the demand. The joint venture produces around 5,600 tonnes in March, which is near annualized 70,000 tonnes, and has produced 35,000 tonnes since the start of the operation. The profitability was breakeven with 4,500 tonnes in January, which represented 70% of the capacity. The firm is likely to keep profitable under higher market price.JFE Steel founded the silicomanganese quality is stable after JFE Steel accepted a ship for Fukuyama of West Japan works and Keihin of East Japan works each. JFE Steel plans to purchase 50,000 tonnes of products from the joint venture in fiscal 2007 started April along with the higher utilization to secure the most of the requirement of annual 80,000 tonnes. Erdos Electrical Power & Metallurgical controls 51% of the venture with 24.5% share by JFE Steel and Mitsui & Co. each. The joint venture has 75,000 tonnes of annual output capacity with two closed 25,500 kilovolt ampere electric furnaces. The joint venture with stat of the art facility and environmental facility has high quality and cost competitiveness by making use of low cost electricity from Erdos Electrical Power & Metallurgical, JFE Steel’s technology and support by Mitsui & Co.