Background of the Project: In recent years, the steel industry of the country flourishes. In 2005, the demand for ferrosilicon in the steel industry was around 1.57 million tons; and in 2004, the ferrosilicon consumed in magnesium metal industry was roughly 470,000 tons and the demand in other industries, such as castings industry, chemical industry, and other metal production industries also approximated to 100,000 tons. With the further development of the steel industry and the magnesium metal industry, the need for ferrosilicon will surely rise; at the same time, ferrosilicon of China, as one of the exports for earning foreign currency, accounts for a larger proportion in the world with greater regional advantages and priority in price. The international demand is large. Judging from both the domestic and foreign markets, in the recent one or two years, the consumption within the country reached 1.7 million tons by and large; export volume one million tons; and the gross demand 2.7 to 3 million tons. During 1998 to 2005, the exertion rate of ferrosilicon production capacity downed sharply owning to the deficient electric power supply and transmission, which actually played a decisive role in ferrosilicon production. The production of many small-sized ferroalloy plants was limited or even stopped. However, thanks to advantaged conditions, the electric power and raw materials supply of Jiuquan Iron and Steel (Group) Co., Ltd. needed in producing ferrosilicon was secured. As a result, the advantages in the aspect of cost were obvious and accordingly, the market competition was, is and will remain strong.             

Investment Budgetary Estimate: gross investment: 143 million Yuan. 

Construction Content and Scale: to construct an electric furnace plant and corresponding fume cleaning and auxiliary facilities with the production capacity of producing 100,000 tons of ferrosilicon per year. The construction content mainly consists of the high voltage switchyard, circulating water system, electric furnace plant, and fume cleaning system. The designed production capacity of 75% ferrosilicon is 100,000 tons/year; and that of silicon micropowder is 20,000 tons/year.

Economic Benefits Estimation: The yearly sales income will be 510 million Yuan; profits 87.62 million Yuan, after the project finished.

Progression of the Project: The project feasibility study report has been finished.

Mode of Cooperation: join venture or cooperative.

Contact: Zhao Guanshe

Tel: 0937-6226160