Inner Mongolia Erdos EJM to Double SiMn Output in 2009

Inner Mongolia Erdos EJM Manganese Alloys, a joint venture company by JFE Steel, Mitsui Corporation and Erdos Electric Power & Metallurgical to produce ferroalloy, plans to double silicon-manganese production to over 140,000 tonnes per annum in 2009 from 2008. New 2 electric furnaces started operation at the beginning of this year and currently reached full production. The JV company newly started SiMn sales to domestic market as well as existent ferrosilicon sales to JFE Group in Japan and domestic customers.

The JV company finished construction of new 2 electric furnaces in November 2008. The firm now has 4 electric furnaces with total capacity at 150,000 tonnes per year. However, the firm waited to start the operation of new electric furnaces due to economy deterioration in late 2008.

The JV company had supplied SiMn wholly to JFE Group in the first phase with 2 electric furnaces. The company planned to expand the sales to Chinese market in the second phase with new electric furnaces.

In china, ferroalloy production capacity maintains surplus. Many small-middle size makers are suspending ferroalloy plants when domestic crude steel output and the export keep low. On the other hand, Inner Mongolia Erdos EJM keeps high production thanks to its strong distribution network supported by Erdos Electric Power & Metallurgical Group and its bargaining power with background of Japanese high technology.