May 17, 2013 07:20 PM Eastern Daylight Time 

Felman Production, LLC Announces Strategic Cost Reduction Measures

NEW HAVEN, W.Va.--(BUSINESS WIRE)--In an effort to reduce manufacturing costs and remain competitive in a challenging silicomanganese market, Felman Production, LLC (“Felman” or the “Company”) today announced it will temporarily shut down one of its three electric arc furnaces on May 31st. Furthermore, the Company announced it will reduce its workforce and overtime. Felman confirmed the decline in silicomanganese prices over the past several months combined with rising manufacturing costs, such as electricity, resulted in its decision to move forward with the changes.

 The temporary shutdown will allow Felman to conduct planned maintenance one furnace at a time. If economic conditions remain poor after the planned maintenance is complete at the end of September 2013, the Company confirmed it will leave one furnace idle until conditions improve. In regards to the workforce reductions, Felman has already eliminated several management and contract positions and anticipates temporary layoffs of union employees starting June 3, 2013. In addition to reducing labor costs, the Company is taking steps to increase efficiency and productivity, such as bringing its slag processing in-house.

Mordechai “Motti” Korf, Chief Executive Officer of Felman’s parent company, Georgian American Alloys, Inc. (“GAA”) commented, “Given the difficult business environment, we closely examined Felman’s cost structure and determined the changes were necessary to ensure the enterprise’s long-term viability. While reducing staff is always a difficult decision, our leaner organizational structure will allow us to better weather the challenges we are currently facing and help to increase efficiency. Our customers can rest assured that GAA maintains its commitment to its U.S. silicomanganese operations.”