JV for IMFA and POSCO

Indian Metals and Ferro Alloys (IMFA) has teamed up with POSCO to produce ferrochrome in India. IMFA entered into a joint venture with POSCO for its expansion program at the Orissa plant which will increase its current ferrochrome capacity of 240,000 tns/yr to 275,000 tns/yr. As a customer of IMFA for 10 years, the JV allows POSCO to purchase product in advance. A new 30 MVA furnace will be sectioned off into a wholly owned subsidiary of IMFA and POSCO will be offered a 24% stake in the subsidiary at a cost of USD 5 million. Currently IMFA’s capacity is generated from five furnaces in Orissa, however the company is in the process of commissioning another furnace, raising its capacity by another 35,000 tns/yr

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