Global Ferronickel Holdings Inc. said it is buying 20 percent indirect stake in a China smelter.
The company did not divulge how much it is acquiring the stake but said Guangdong Century Tsingshan Nickel Industry Co. Ltd. (GCTN) a nickel alloy enterprise in China that operates one of the world’s advanced smelters.
GCTN uses a rotary kiln technology to produce about 28,000 tons of pure nickel annually.
“GCTN caters to customers in Guangdong’s Economic and Technological Development Zones and abroad,” Global Ferronickel said.
Global Ferronickel said it has signed the definitive agreement for the purchase, though GCTN mother company GHGC Holdings Ltd. (GHL), which owns 90 percent of GCTN.
“The acquisition is expected to create reliable and consistent synergies between Global Ferronickel as a nickel ore supplier and GCTN as a value-added processor, and support our ongoing diversification projects to boost profitability,” said Dante Bravo, Global Ferronickel president.
“This initiative will help manage risks, optimize value to stakeholders, and develop downstream integration of the value chain, he added.
Bravo said Global Ferronickel continues to pursue investments in high-growth firms and industries that can enhance operational and cost efficiencies. – Ruelle Castro
