Company Eramet: strategy on the Nickel market needs to change

Company Eramet of France summed up the first half of 2017. Focusing on the results the company representatives said about the upcoming changes in the strategy. In the near future the company will be increased to reduce cost. It is also planned to master the production of Nickel-containing cast iron. To date, Eramet is not involved in its production. His vision of the situation was voiced by the CEO of the company Kristel Bori. According to him, the market requires the Nickel-containing cast iron. Accordingly, the best option is to use the trend than to be outside it.

To master the production of new products the company plans in the framework of Weda Bay. This major project will be implemented in Indonesia. Production Eramet will deal jointly with the Chinese company Tsingshan. Manufacturer of stainless steel in June of this year bought a controlling stake in the producing field. Start of production of Nickel pig iron is scheduled for 2020. If the operation of the enterprise will be successful, the French company plans to increase output of Nickel. If you count the volume of production of pure Nickel, the annual rate should reach 88000 tons. For comparison — last year production amounted to 55,000 tons.

It is worth noting that in the first half of 2017, losses of Nickel Eramet plot has reached 104 million EURO. In the same period last year the figure amounted to 89 million EURO. The company was able to repay the shortfall income received due to the supply of manganese products. The result was operating income of 256 million EURO received for six months. The global price of Nickel has increased in 2016. However, it did not rise above the cost of the main units of the Eramet Nickel company in New Caledonia.