NEW DELHI – Ferro Alloys Corporation Limited (FACOR) and Facor Alloys Limited (FAL), flagship Companies of the FACOR Group, one of India’s largest manufacturers of Ferro Alloys, signed annual contracts for supply of ferrochrome to Baosteel Resources Limited and Shanghai Tsingshang Mineral.
The agreement with the two major players in the steel sector in China positions FACOR Group as the preferred supplier of ferrochrome besides securing long-term supply contracts to the Company at price linked with benchmark price quarterly established between major South African suppliers and major Japanese buyers. This insulates FACOR and FAL from the risk of fluctuations in Spot market prices and secured export tonnage.
Commenting on the contract, Mr. R K Saraf, Chairman & Managing Director, Ferro Alloys Corporation said “We are delighted to sign the contracts with Baosteel and Tsingshang. This provides win-win situation to both the contracting parties on the back of boom in the steel industry the world over, which have brought us together. This also opens opportunities to the contracting parties for a bigger role in the ferrochrome and steel business in the near future. FACOR and FAL are, thus, poised to make substantial progress in the years to come.”
The FACOR Group is one of India’s largest manufacturers of Ferro Alloys with an annual production of 140,000 tons High Carbon Ferrochrome. The group has its Chrome Ore mines at Boula, Kathpal & Osthapal in Orissa.
The FACOR group has production facilities in the states of Andhra Pradesh, Maharashtra and Orissa. Further, while FACOR is in the process of commissioning the first phase of the 100 MW Captive Thermal Power Plant under its subsidiary Facor Power Limited, at Randia which, barring unforeseen circumstances, is likely to be commissioned by the first quarter of 2011, FAL, as part of its backward integration also in the process of setting up a 45 MW captive Thermal Power Plant at its plant site in Garividi, Andhra Pradesh.
Once commissioned, both the plants will ensure uninterrupted supply of electricity to their respective plants of the Company which shall also render competitiveness to our products in the domestic as well as the international market.
Also, besides the 100 MW power plant and FAL, as above, the Group is enhancing its capacities in the field of power generation and distribution and has drawn up plans for its foray into power sector through SPVs which offers tremendous growth opportunity in view of the demand-supply gap.