RN: Now that GAA has added another ferroalloy asset, does GAA plan to expand its existing plants and/or buy another facility? 

Korf: We are always evaluating opportunities to further solidify our position as one of the world’s leading manufacturers, suppliers and traders of ferroalloys. Our acquisition of GM is a prime example of this. As mentioned before, and similar to what we have done with our other portfolio companies, we plan to maximize GM’s growth potential by providing capital and other resources to streamline operations, achieve economies of scale, and improve customer service. At this time we don’t have any immediate plans to pursue other acquisitions as our energies are focused on realizing the full potential of our current businesses. That said, at GAA we keep a very close eye on industry developments. 

RN: GAA has direct control over more than 50% of the total US silicomanganese market, what are your plans now? 

Korf: Our plans are to continue to build upon the success we have achieved thus far. We are confident that our scale, industry expertise and access to capital will allow us to maintain our leadership position in the US. Furthermore, with the acquisition of GM we have positioned ourselves well to gain market share in other countries and secure new customers. We have a long-term outlook with a solid plan in place to achieve sustained growth and success. 

RN: How do GM’s costs compare with those of Felman Production? 

Korf: We do not break out pricing per plant. However, both businesses are run efficiently with the goal of maintaining a fully optimized cost structure. Through the acquisition of GM we gain full control of the Chiatura Manganese Mine, which should allow us to bring down costs at Felman Production over time. 

RM: Recently CC Metals and Alloys entered the commodity-grade 75% ferrosilicon market. Is it a long-term decision or just because demand for specialty grades were soft? 

Korf: CCMA has always been in 75% grade ferrosilicon market. 

RN: Does GAA plan to import any other ferroalloys, such as ferrosilicon or refined manganese alloys? 

Korf: We do not plan to import ferrosilicon as our subsidiary CC Metals & Alloys produces it. In regards to refined manganese alloys, our approach is based on customer demand so we look at things on a deal-to-deal basis. 

RN: Has GAA made any decisions about expansion or even contraction of its production facilities? 

Korf: As mentioned, the heart of our operating model is making continual, strategic investments in the companies we acquire. With this serving as our guiding principle, we can successfully maximize the inherent value of each entity. This is exactly how we plan to approach our relationship with GM—mobilizing assets and methodically infusing capital over an extended period to ensure that the facility has the infrastructure and resources necessary to complement GM’s talented staff. Whatever decisions we ultimately make, they are always designed to enhance the long-term potential of each business. 

RN: Does GAA plan to add any manganese ore assets to feed its smelters? 

Korf: We are always looking for the right opportunities to enhance operations and production capacity. However, we have no immediate plans to add complementary manganese ore assets as we like our current structure. Presently, our main focus is on maximizing the great potential we see in GM. We view GM as an integral component of GAA’s future success, providing us with the ability to grow our global footprint. 

RN: How does GAA view the US silicomanganese market and would it consider dumping or countervailing duties to stop some importers? 

Korf: We respectfully decline the opportunity to comment. 

RN: Will GAA oppose Ferroatlantica’s action to remove SiMn dumping duties on imports from Venezuela? 

Korf: We respectfully decline the opportunity to comment. 

RN: Is there anything you would like to add?

Korf: Our strategic acquisition of GM will provide a number of lasting, mutual benefits for GAA, GM and the country of Georgia. We view this transaction as an important step towards further establishing GAA’s position as one of the world’s leading manufacturers, suppliers and traders of ferroalloys.