American Metal Market & Metal Bulletin
AMM
June 19, 2014
By Daniel Fitzgerald

GAA to cut back production at silicomanganese division

NEW YORK - Georgian American Alloys Inc. (GAA) will cut silicomanganese output at its Georgian Manganese LLC unit in Georgia by 2,500 tonnes per month, with subsidiary Felman Production LLC preparing to return to production soon.

Zestafoni-based Georgian Manganese, "a leading producer and exporter of silicomanganese to the United States," has idled one of the electric-arc furnaces at its Zestafoni ferroalloys plant for "an indefinite period of time" effective June 1, GAA said, adding that Georgian Manganese's silicomanganese output will be reduced by about 2,500 tons per month.

"The planned shutdown reflects a continuation of our strategy to improve production methods and modernize equipment to increase operational efficiency and enhance our competitive position over the long-term," Georgian Manganese director Velvel Lozynskyy said in a statement.

The Zestafoni plant produces about 180,000 tonnes of silicomanganese annually, which is sold internationally through fellow GAA subsidiary Felman Trading Inc., Miami.

The company has been forced to rely more on imports to service the U.S. silicomanganese market after Felman Production's New Haven, W.Va., plant was idled in 2013 (amm.com, June 28).

Felman is negotiating a new power contract that would allow it to restart the New Haven plant, with a deal expected soon (amm.com, June 16). Felman produces about 105,000 tonnes of silicomanganese annually at the 190-acre facility.