Friday, January 16, 2009

XSTRATA-MERAFE CHROME VENTURE ANNOUNCES FURTHER FERROCHROME PRODUCTION CUTS

On 1 December 2008, the Xstrata-Merafe Chrome Venture (the “Venture”) announced the temporary suspension of a total of 11 ferrochrome furnaces, representing 906,000 tonnes of annual ferrochrome operating capacity. 

Subsequent to this, a further 6 furnaces have been suspended due to the market conditions. The total suspended ferrochrome production capacity represents 1.37 million tonnes or 80% of annual operating capacity.

The Venture will continue to monitor prevailing market conditions closely. No lay-offs are anticipated for permanent employees at the furnaces, enabling the Venture to return to capacity quickly and efficiently when market conditions allow.


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