Nippon Denko Starts SiMn Production at Tokushima Plant, Japan

Nippon Denko, Japanese ferroalloy maker, started silicomanganese (SiMn) production at Tokushima plant, Japan. Tokushima plant’s 2 electric furnaces had been specialized for high-carbon ferromanganese (FeMn) production though the plant had produced both SiMn and high-carbon FeMn until 1990s. The plant’s capacity is expected to become excess when domestic demand for high-carbon FeMn is decreasing along low crude steel output. In addition, Tokushima plant’s annual output capacity is scheduled to increase by 10% after completion of expansion works since 2008. Nippon Denko produces SiMn at Tokushima plant with spare capacity. The plant has already produced SiMn approximately 3,000 tonnes for January-June.

No.1 electric furnace of Tokushima plant is under seasonal repair from July to mid September. After the repair, the output capacity will expand by 10,000 tonnes per year. Tokushima plant’s total capacity will increase by 20,000 tonnes to 220,000 tonnes per annum, including no.2 electric furnace which completed expansion in 2008.

Tokushima plant’s high-carbon FeMn production was averagely 70% against the capacity for January-June. For July-September, the operation rate would become around 25% due to total suspension of no.1 electric furnace. Nippon Denko expects the operation rate returns to around 85% in and after October along the demand recovery. However, the capacity would still be excess.

Jinzhou Nichiden Ferroalloy, Nippon Denko’s previous subsidiary in China, had produced SiMn at approximately 40,000 tonnes per year and supplied the almost all to Japanese consumers including Nippon Steel. Nippon Denko assigned a large portion of the subsidiary’s shares to a third party of Hong Kong in June. Nippon Denko covers SiMn production at Tokushima plant to keep stable supply for Japanese users.