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American Metal Market
AMM
July 8, 2014
By Daniel Fitzgerald

GAA shifting silicomanganese output

NEW YORK - Georgian American Alloys Inc. (GAA) will switch production at its Georgian Manganese LLC subsidiary to ferromanganese from silicomanganese due to the restart of subsidiary Felman Production LLC.

Georgian Manganese will switch production at three of the furnaces at the Zestafoni ferroalloy plant beginning in August, the Miami-based company said. As a result, Georgian Manganese will produce about 3,500 tons of ferromanganese per month and reduce silicomanganese production by around 3,000 tons per month.

"With Felman Production slated to resume production of silicomanganese in the coming weeks, the strategic shift at Georgian Manganese's Zestafoni ferroalloy plant serves to appropriately balance the amount of silicomanganese GAA brings to market," GAA chief executive officer Mordechai Korf said in a statement. "One of the many benefits of GAA's organizational structure is that we are able to make the necessary changes across our business to serve our customers.”

Felman has relied on silicomanganese imports to service U.S.-based customers since idling its New Haven, W.Va., plant in June 2013 (amm.com, June 28, 2013). Silicomanganese suppliers said last week that they expected GAA to reduce Georgian imports in light of the Felman restart to minimize any impact on spot pricing (amm.com, July 2).

Felman has already restarted one furnace at its New Haven facility, with plans to fully resume production by two of its three furnaces by the end of July (amm.com, July 1).

The Zestafoni plant produces about 180,000 tonnes of silicomanganese annually, which is sold internationally through fellow GAA subsidiary Felman Trading Inc. GAA, which acquired the Zestafoni plant in April 2013 (amm.com, April 22, 2013), recently idled one of the electric-arc furnaces at the Georgian plant to carry out "planned upgrades to the furnace aimed at increasing its efficiency" (amm.com, June 18)