NEW YORK Felman
Production LLC has ceased operations at its New Haven, W.Va.,
facility for three months due to "continuous challenging
ferrosilicomanganese market conditions," the company said June
The company had
already idled one of three electric-arc furnaces at the site
this spring and started reducing its workforce in response to
declining silicomanganese prices and rising manufacturing costs
amm.com, May 20).
"Since the economic
and market conditions continue to deteriorate, the decision to
cease operations of all of its three furnaces immediately was
difficult, but inevitable. Within the next two months, Felman
plans to reevaluate market conditions to determine whether
operations will resume earlier or if the plant will remain
closed for an additional period of time," the company
Despite the shutdown, Felman expects to meet its long-term
contract sales commitments during this period, a company
spokesman told AMM.
"However, current market conditions are unsustainable and
shipments in excess of contractual commitments will not be
available until improvements are seen," the spokesman said.
in-house slag processing unit will remain operational, it
Felman, a wholly-owned
subsidiary of Miami-based Georgian American Alloys Inc. (GAA),
said it has notified its 211 employees of the closure, as well
as vendors and customers affected by the move.
"While no layoffs are
expected during the first two months of closure in compliance
with laws and ongoing maintenance activities, the company
anticipates working with the appropriate state and union
officials to facilitate unemployment and other related benefits
for those employees impacted by the decision to keep the plant
closed for a longer period of time," the company said.
currently trading within a range of 52 to 53 cents per pound,
according to AMMs most recent assessment, though
there were reports of unconfirmed transactions below 50 cents
per pound (
amm.com, June 28). Prices have dropped steadily
from a range of 73 to 79 cents per pound in March 2012.
"While it pains us to
make this very difficult decision, after exploring a variety of
options, we concluded it is no longer economically viable to
operate in the current market environment," GAA chief executive
officer Mordechai Korf said in a statement.
produces about 105,000 tonnes of silicomanganese annually at
its 190-acre facility in New Haven.
GAA also owns Miami-based Felman Trading Inc. and Calvert
City, Ky.-based CC Metals & Alloys LLC. The company
recently acquired European companies Georgian Manganese LLC and
Vartsikhe 2005 LLC to bolster its silicomanganese operations
amm.com, April 22).