Chinese Asmare and EIA will establish JV on production of ferrochromium

/INTERFAX-CHINA, Shanghai, July 19, 2005/ - Asmare Iron & Steel company (Asmare) from Sindzian-Uigur autonomous region (SUAR, northern-western CPR) plans to establish JV on production of ferrochromium and stainless steel jointly with Kazakhstan Eurasian industrial association (EIA), Asmare general director Soun Daochen informed Interfax-China agency. According to his words, preliminary agreement with EIA, leading in Kazakhstan producer of concentrated chromium, has already been signed, the deal is planed to be completed in 2005. "Due to establishment of JV we will expand our existing capacities on ferrochromium production, and also will construct line on production of stainless steel", - announced S. Daochen. He also noted, that 70% of shares of planned JV will belong to EIA, and 30% - Asmare company. Asmare recently introduced in operation line on production of high-carbon ferrochromium with capacity 50 th. Tons in a year, having invested in this project 85 m. yuans ($10.27 m.). This allowed the company to become the biggest producer of ferrochromium in SUAR. Total capacities of CPR on ferrochromium production are 500 th. tons a year, specified S. Daochen. Chinese-Kazakhstan JV will deliver for needs of Asmare 70% of necessary concentrated chromium. The rest 30% will be delivered by the Xinjiang Nonferrous Metals Group company in exchange for counter delivery of alumina by Asmare company. General director of Asmare also informed, that Chinese company started construction of plant on production of 300 th. tons of coke in a year necessary to Asmare, as well as to established JV. Head-quarters of Asmare is situated in capital of SUAR - Urumchi, and its plant on ferrochromium production is placed in Alashankou at Chinese- Kazakhstan border. Thorough Alashankou also the only railroad passes, which connects CPR and Kazakhstan. EIA, which consists of Kazchrome, Sokolovsko-Sarbaiskoye ore mining and processing production unit JSC, Aluminium of Kazakhstan JSC, Eurasian energy corporation JSC, coal pit Shubarkol Komir JSC, is one of the main suppliers of concentrated chromium to leading Chinese producers of stainless steel, including Baosteel and TISCO corporations. [2005-07-19]