POSCO buys 24% stake in an IMFA unit

POSCO is going ahead with its ferrochrome JV plans with the IMFA Group, which is scheduled to operational by the end of the current quarter. POSCO will have a 24% stake for USD 5 million in a subsidiary of the Indian Metals & Ferro Alloys Limited, which will produce around 35,000tns of ferrochrome alloy a year. IMFA, which commissioned its newest and sixth furnace in September 2010, is breaking it off into a subsidiary in which POSCO is buying a stake. POSCO will purchase the entire ferrochrome output from the furnace for 25 years, with prices to be determined every quarter. The company has also signed a five year deal with IMFA for the supply of 50,000tns of ferrochrome.

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