Posco has entered into an agreement with Indian Metals & Ferro Alloys Ltd (IMFA), India`s largest ferrochrome manufacturing company, to establish a ferrochrome manufacturing company. The new venture will help allow the company to stably and

Ferrochrome, which offers great corrosion and heat resistance properties, is an essential raw material for the productions of stainless steel. Until now, Posco has been importing 480,000 tonnes of ferrochrome each year. In addition to the 60,000 tonnes of ferrochrome being provided by POSChrome, a joint ferrochrome company established in South Africa in 1996, Posco has secured an additional 35,000 tonnes contributing to the company’s efforts to self-supply raw materials.

economically secure its main raw materials for stainless steel production.

Posco and IMFA agreed to establish the company with shares of Posco 24% and IMFA 76%. Production will utilize the new 35,000 tonnes/year electric furnace completed this past November within the IMFA factory located in India’s Chudwar, Orissa.

Posco can purchase all ferrochrome produced through this new furnace at low costs for 25 years. IMFA will procure chrome and electricity at low costs from its mines and electric power facilities to achieve profits from this joint company. IMFA will hold all rights to ferrochrome manufacturing and operation of the company.

“I am glad that we are able to establish this joint company with IMFA which securely provides good quality ferrochrome,” commented Vice President Chang-gwan Oh at the joint ceremony. “I would like to also ask for close cooperation between the two companies regarding other investment projects of Posco in India such as the integrated steelworks in Orissa.”

India is fourth in terms of chrome mine deposits, following South Africa, Kazakhstan, and Zimbabwe. IMFA is India’s largest ferrochrome manufacturer, producing 150,000 tonnes annually.