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[ferro-alloys.com] FerroChrome Furnaces Limited seeks to be the biggest maker of a specialist form of the alloy for the auto and aviation industries as soon three years after the closely held South African company starts output.

FerroChrome Furnaces will start production of low and medium carbon ferrochrome at Rustenburg, northwest of Johannesburg, in January and targets output of 300,000 tonnes a year by the end of 2014. It seeks production capacity of 420,000 tonnes within 2 years.

Mr Alibek Issaev 50% shareholder said that we aim to corner the low and medium carbon ferrochrome supply markets during the next two to three years and if that means a price war to achieve market share we are ready to do battle and we have the resources to do so.

According to the US Geological Survey, South Africa was the largest producer of chrome ore and ferrochrome in 2011. The alloy is produced mostly in a higher carbon format and used largely as a feedstock for stainless steel. Producers in the country, like Glencore Xstrata Plc and International Ferro Metals Limited agreed to output cutbacks in the last two years due to power shortages.

Eurasian Natural Resources Corporation made 138,000 tonnes of low and medium carbon ferrochrome in 2012 compared with 1.2 million tonnes of the high carbon grade.