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Felman looks to restart output at end of July

Keywords: Tags  Felman Production, New Haven plant, production restart, West Virginia Public Service Commission, Appalachian Power, APCo, silicomanganese, Daniel Fitzgerald

NEW YORK — Felman Production LLC will resume silicomanganese production by the end of July after reaching an electricity supply agreement with Appalachian Power Co. (APCo).

The company announced July 1 that it has reached a deal with APCo over a "market variable electrical rate" and would "immediately begin to resume plant operations" at its idled New Haven, W.Va., facility.

The company added that it plans to fully resume production in two of its three furnaces by the end of July.

"Our special rate provides us with the necessary flexibility to continue operating during periods of weak commodity prices, while ensuring that we pay more than 100 percent of variable costs over the life of the contract," Felman chief executive officer Mordechai Korf said in a statement.

Felman has been looking to restart the New Haven facility after the West Virginia Public Service Commission authorized a special electricity rate plan in April (, April 3).

The restart had been hampered by disagreements between Letart, W.Va.-based Felman and APCo over the structure of the new electrical rate agreement (, May 28), particularly regarding how discounts should be calculated.

However, APCo said in mid-June that the two companies were "nearing agreement" (, June 16).

Silicomanganese market participants have been closely monitoring Felman’s situation, with many expecting the return of the nation’s dominant producer to impact free-market spot pricing (, June 20).

Felman idled the New Haven plant in June 2013, citing "continuous challenging ferrosilicomanganese market conditions" (, June 28).

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