CHICAGO Globe Specialty Metals Inc. has acquired South African silicon alloy producer Silicon Technology Pty Ltd. (Silitech).
The New York-based silicon metal and silicon-based alloys producer said Nov. 21 it expects to restart the idled facility, which includes two large electric-arc furnaces with combined annual production of 45,000 tonnes, in the second half of 2014. Globe, which did not disclose the purchase price, said it has a long-term power supply agreement in place and plans to invest $5 million to restart the operation.
The acquisition should boost Globes silicon alloy capacity by 30 percent and allow the company to supplement its existing operations in Argentina to increase sales in Europe, the Middle East and Asia, the company said.
Globes main Argentinean plant, in Mendoza, has two furnaces that produce calcium silicon and magnesium ferrosilicon, according to the companys website. The company also makes cored wire at a facility in San Luis, Argentina.
"The quality of the (Silitech) plant combined with South Africas deep tradition of ferroalloy production expands Globes growth internationally at a time when we believe the cycle is in the early stages of recovery worldwide," Globe executive chairman Alan Kestenbaum said in a statement.
The Silitech acquisition comes after Globe chief executive officer and chief operating officer Jeff Bradley said earlier this month that the company was seeing "a high level of deal flow," noting that Kestenbaum was spearheading acquisition efforts (amm.com, Nov. 5).
Globe will "continue to pursue growth opportunities," Kestenbaum said.