Jun. 20, 2013
Sumitomo Corporation Planning to Invest in a Manganese Alloy Production Project in Malaysia
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura), Assmang Ltd. (Head Office: South Africa; Chairman: Desmond Sacco, “Assmang”), and China Steel Corporation (Head Office: Taiwan; Chairman: Jo-Chi Tsou; “China Steel”) have begun discussions in earnest regarding a planned equity participation in a manganese alloy production project in Sarawak, Malaysia (“the project”).
Located in Sarawak, Malaysia, where a stable and low-cost electricity supply is expected mainly due to the availability of hydropower generation, the project, once launched, will produce approximately 169,000 metric tons of manganese alloy for Asian and other neighboring markets annually. The construction work is scheduled to begin early 2014 and will be completed in 2016 when alloy production begins. Assmang, which already produces and sells manganese ore and manganese alloys in South Africa, will supply manganese ore for the project; China Steel will purchase approx. 30,000 tons/year of manganese alloys produced; and Sumitomo Corporation will coordinate the project and sell manganese alloy in specific markets.
Manganese alloys are mainly used for steel production to improve the strength, toughness, and wear resistance of steel. Demand for manganese steel alloy is expected to grow in the medium- to long-term as Asian economies continue growing in the future. Sumitomo Corporation, Assmang, and China Steel have completed a feasibility study of the project and will continue to discuss project details.
|About Assmang Ltd. :|
|Head office||:||Johannesburg, South Africa|
|Business||:||Production and sales of iron ore, manganese ore, chromium ore, and ferroalloy|
|Shareholders||:||African Rainbow Minerals Ltd.: 50%; Assore Ltd.: 50% (Sumitomo Corporation holds an approx. 17% stake in Assmang through its investment in Oresteel Investments (Proprietary) Ltd, the parent company of Assore Ltd. )|
|No. of employees||:||6,734|
|About China Steel Corporation:|
|Head office||:||Kaohsiung, Taiwan|
|Shareholders||:||Taiwanese government: 20%; others: 80%|
|No. of employees||:||9,814|
Corporate Communications Department,