Taiwans China Steel Corp. plans to spend $62.46 million
to acquire a 19-percent stake in Sakura Ferroalloys Sdn Bhd, a
project in the Malaysian state of Sarawak, the company said
The joint venture, led
by South African manganese ore and ferroalloys supplier Assmang
Ltd., will produce high-carbon ferromanganese and
silicomanganese, Kaohsiung-based China Steel said.
169,000-tonne-per-year project is scheduled to commence
operations in 2016.
China Steel has an
offtake allocation of 30,000 to 32,000 tonnes per year from the
project, which equates to one-third of the Taiwanese
groups annual consumption.
The investment will
allow the company to secure a stable supply of ferroalloys and
effectively reduce overall costs, China Steel said.
The investment is
subject to approvals from relevant government authorities,
according to China Steel, Taiwans largest integrated
China Steel posted a
net profit, attributable to the companys owners, of
NT$3.79 billion ($127 million) during the first quarter ended
March 31, in contrast to a net loss of NT$702.5 million a year
earlier, according to the companys latest financial
results. Including non-controlling interests, the net profit
was NT$4.88 billion ($162.6 million) vs. a year-earlier net
loss of NT$307.9 million.
A version of this
article was first published in AMM sister publication Steel