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Company «Chuo Denki Kogyo» and «Nippon Denko»: Strength in unity

Not a sin to follow someone else's example, if such an action would lead to good results. That «Chuo Denki Kogyo» and «Nippon Denko», Japanese ferroalloy companies decided to act like their own customers. A case in point is a question of «Sumitomo Metal Industries» and «Nippon Steel», the union of which occurred in October of 2013. As for the producers, the «Chuo Denki Kogyo» and «Nippon Denko» decided to become a single entity by July 1, 2014. a combination of several factors has served as the main impetus for this step. Here all the rising cost of raw materials, and lower prices for goods, and an increase in the electrical energy costs …

The final result of the merger and the exchange of shares will be the new organization, which will be renamed from «Nippon Denko» in «Shin Nippon Denko». Shares will also be exchanged at the rate of 1 share «Chuo Denki Kogyo» on 1,15 «Nippon Denko».

The merger is carried out in order to improve efficiency as the optimization of the system and procurement processes. Company «Chuo Denki Kogyo» produce silicomanganese and ferromanganese, «Nippon Denko» also produces ferromanganese. Both companies together made up 50% of the production of all the Japanese market.

In spite of its own production in Japan by the end of last year imported high-carbon ferromanganese in an amount of more than 9939 tons. The main share of supply accounted for South Korea and is about 5520 tons, India — about 1405 tons, Australia — about 1501 tons, and South Africa — approximately 1512 tonnes.

The number of imported low-carbon ferromanganese was about 230 tonnes by the end of 2013 (the supplier is South Korea) and 20 tons from Vietnam. In terms of the end of October 2013 feed imports amounted to 10,023 tonnes, most of which falls again, South Korea.

Also in Japan is imported ferrosilicon, a large part of the supply attributable to China and Russia. Just over 365 thousand. Tonnes of ferrosilicon with silicon content was imported in the ten months since the beginning of 2013 more than 55% and more than 1 210 tonnes with a silicon content less than 55%. The main supplier of silicomanganese in 2013 was India, Kazakhstan and Vietnam, high-carbon ferrochrome is imported mainly from Kazakhstan and the Republic of South Africa, ferrosilicochrome almost all imported to Japan from Kazakhstan, ferronickel — from New Caledonia.

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