IMFA, POSCO to build a ferrochrome JV

South Korea's POSCO, said on Thursday it had signed a deal with Indian Metals and Ferro Alloys (IMFA) to form a ferrochrome-producing joint venture.

The deal will help POSCO secure a stable supply of ferrochrome, a key component in stainless steel, as the firm imports 480,000 tonnes of the metal every year, POSCO said. Under the agreement, POSCO will hold a 24% share in the joint venture, which will run an electric furnace with an annual output capacity of 35,000 tonnes, and IMFA will control the remaining 76% stake. "We hope to closely cooperate with the IMFA in other projects such as the establishment of an intergrated mill in Orissa," Oh Chang-kwan, senior executive vice president of POSCO, was quoted as saying.