POSCO has entered into an agreement with Indian Metals & Ferro Alloys Ltd (IMFA) to establish a joint venture (JV) ferrochrome producing company. This will allow POSCO steady and economic access to main materials for its stainless steel production. As per the agreement, POSCO will own 24% of the company and IMFA will own 76% of the new company. Annual production of the new electric furnace at the IMFA factory in Chudwar, Orissa will be 35,000mt/yr. POSCO can purchase all ferrochrome produced from this furnace at low costs for 25 years and IMFA will procure chrome and electricity at low costs from its mines and electric power facilities, achieving profits from the joint company. IMFA will hold all rights to ferrochrome manufacturing and the operation of the company.
