Andhra Pradesh-based Indian ferrochrome maker Cronimet Alloys India has signed a memorandum of understanding (MoU) with JSL Stainless Steel for supply of high carbon ferrochrome lumps, according to media sources.
According to the MoU, JSL Stainless Ltd, a subsidiarly of OP Jindal Group, will purchase 24,000 mt of high carbon ferrochrome per year from Cronimet Alloys India Ltd. The agreement shall come into force from January 1, 2012, for a minimum period of 12 months.
Cronimet Alloys India is also engaged in setting up a 165,000 mt high carbon ferrochrome project at Kolathpangi in the state of Orissa, India. Two thirds of the project cost of $67 million will be financed by a consortium of banks including SBI, State Bank of Travancore, Central Bank of India and UCO Bank.
Cronimet Alloys India, formerly known GMR Ferro Alloys, is engaged in the manufacture of high carbon ferrochrome for use in the stainless steel industry. The company's production capacity is 25,000 mt of high silicon and low silicon ferrochrome.