Facor Group signs Annual Contract for Supply of Ferro Chrome with Baosteel Resources Co. Ltd. and Shanghai Tsingshan Mineral Co. Ltd. of China
SCRIP CODE: 500141 (FACOR) & 532656 (FAL)
New Delhi, 17th February, 2011: Ferro Alloys Corporation Limited (FACOR) and Facor Alloys Limited (FAL), flagship Companies of the FACOR Group, one of India's largest manufacturers of Ferro Alloys, signed Annual Contracts for Supply of Ferro Chrome to Baosteel Resources Limited and Shanghai Tsingshang Mineral.
The agreement with the two major players in Steel Sector in China positions FACOR Group as the preferred supplier of Ferro Chrome besides securing long-term supply contracts to the Company at price linked with benchmark price quarterly established between major South African Suppliers and major Japanese buyers. This insulates FACOR and FAL from the risk of fluctuations in Spot market prices and secured export tonnage.
Commenting on the contract, Mr. R K Saraf, Chairman & Managing Director, Ferro Alloys Corporation Limited said "We are delighted to sign the contracts with Baosteel and Tsingshang. This provides win-win situation to both the contracting parties on the back of boom in the steel industry the world over, which have brought us together. This also opens opportunity to the contracting parties for a bigger role in ferro chrome and steel business in the near future. FACOR and FAL are, thus, poised to make substantial progress in the years to come.
About the Baosteel Mineral Resources and Baosteel Group
Baosteel Resources Co. Ltd. ("Baosteel Resources" for short), wholly-funded subsidiary company of Baosteel Group was formed under strategic development requirements of "Specialization in steel industry, coordinated development and diversification in steel-related industries". With its predecessor as Baosteel Trade Co. Ltd., Baosteel Resources was founded on July 21, 2006 with registered capital of RMB 2.4 billion .
Focusing on global allocation of mineral resources, and devoted to providing quality products and value-added service to customers, Baosteel Resources has been pursuing all win cooperation in international scale and realization of integrated development in iron ore, coal, alloy, non-ferrous metal, stainless steel raw material, scrap steel and logistics businesses.
About Baosteel Group
Baosteel Group Corporation (hereinafter referred to as Baosteel), which is currently the most competitive iron and steel complex in China, is the global partner of the Shanghai Expo and the general supplier of steels for the big event. With business revenue of RMB 195.3 billion, total profit of RMB 14.9 billion, total assets of RMB 402 billion, net asset of RMB 243 billion, and totally 106,914 employees, the corporation ranked the 276th among the Fortune 500 in 2010, the sixth consecutive year for such honor it has received. In the same year, it was also the only Chinese enterprise that was awarded the title of "World's Most Admired Company". The total steel production of Baosteel was 38.87 million tons in 2009, ranked the 3rd among the steel enterprises all over the world.
About Shanghai Tsingshang Mineral Co. Ltd.
Tsingshang Mineral is a subsidiary company of Tsingshang Holding Group, specialized in various resource businesses, the main scope of Tsingshang Mineral covers a large scale of industrial resources, such as mineral products, steel products, nonferrous metal, mechanical equipment and electromechanical products. Recently, Tsingshang Mineral is mainly engaged in the development, procurement, distribution and service of stainless steel raw materials and mineral products, and has established a stable partnership with many world famous producers in Europe, U.S, Russia, India, and South Africa.
About the FACOR GROUP
The FACOR Group is one of India's largest manufacturers of Ferro Alloys with an annual production of 1,40,000 tons High Carbon Ferro Chrome. The group has its Chrome Ore mines at Boula, Kathpal & Osthapal in Orissa. The FACOR group has production facilities in the states of Andhra Pradesh, Maharashtra and Orissa. Further, while FACOR is in the process of commissioning the first phase of the 100 MW Captive Thermal Power Plant under its subsidiary Facor Power Limited, at Randia which, barring unforeseen circumstances, is likely to be commissioned by the first quarter of 2011, FAL, as part of its backward integration also in the process of setting up a 45 MW captive Thermal Power Plant at its plant site in Garividi, Andhra Pradesh. Once commissioned, both the plants will ensure uninterrupted supply of electricity to their respective plants of the Company which shall also render competitiveness to our products in the domestic as well as the international market.
Also, besides the 100 MW power plant and FAL, as above, the Group is enhancing its capacities in the field of power generation and distribution and has drawn up plans for its foray into power sector through SPVs which offers tremendous growth opportunity in view of the demand - supply gap. Accordingly, the Company is now moving forward in power generation business.
The group historically has believed in giving back to the society and therefore does a lot of CSR initiatives in and around its units.
For further information, you can visit our website : www.facorgroup.in