Xstrata to cut ferrochrome capacity by 20%
Total of 17 furnaces now suspended, 1.3 million metric tons of ferrochrome capacity cut
By Maria Varmazis -- Purchasing, 1/16/2009 9:50:00 PM
Zug, Switzerland-based Xstrata, which runs a joint ferrochrome venture with Merafe Resources, announced that it will cut production of the alloy to 80% of annual capacity. The joint venture cites weakened stainless steel demand as the reason for the cutbacks on ferrochrome, an alloy used in stainless steel production, which is forecast to drop 1% globally this year after falling 7% last year. In early December Xstrata announced it would shut down 11 furnaces because of low demand, and today's news adds an additional six furnaces to that tally. In total the furnace shutdowns will reducing total ferrochrome output by at least 1.37 million metric tons.
In a written statement, Xstrata and Merafe said they do not anticipate to cut labor, which will “[enable] the Venture to return to capacity quickly and efficiently when market conditions allow.”
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