Japan Metals & Chemicals Co Limited has acquired Brazil’s Bozel Mineracao SA and France’s Bozel Europe SAS. The Japanese firm announced the complete takeover of the two companies last week, effectively making them its wholly owned subsidiaries. These companies have been engaged in the production and sale of calcium silicon used as a raw material for steel production as well as various kinds of cored wire

The Brazil firm, Bozel Brazil, controlled three 21,000 KVA electric furnaces in Minas Gerais State of Brazil and has been producing 30,000 tons per annum of Calcium Silicon for the sales to Europe, the USA and Asian region. With the tightening of electricity supply in countries such as China, South Africa amongst others, the stabilization of supply situation of electricity in Brazil is expected to turn the Latin America’s biggest economy into the most stable country on supply of electricity.

Japan Metals & Chemicals Co was the biggest producer of ferroalloys in Japan but had to stop production due to bankruptcy. The Japanese firm is currently recovering from its bankruptcy. The firm was hard hit by the global economic recession, with the production of steel slightly declining at the time.

However, Japan Metals & Chemicals Co has revived as a producer of ferroalloys by means of having acquired overseas assets and, at the same time, has developed the route in Brazil to produce and supply silicon based ferroalloys, which consume large volumes of electric power for its production, through the acquisition of two enterprises as mentioned above.

Japan Metals & Chemicals Co did not reveal the amount involved in the two transactions. But analysts have put the amount at more than 1 billion Yen for the two assets.

The Brazilian firm is one of the foremost, leading global producers of Calcium Silicon. The Bozel Group has shared roughly 40 per cent of the world consumption of Calcium Silicon and Wire. In addition to the markets in Europe, the USA and the Asian region, Brazil is one of the BRISC countries and is expected to develop its economy further.

Japan Metals & Chemicals Co is building up a strong base in Brazil to produce and sell ferroalloys in a bid to expand its business and attain growth. The strategy is aimed at taking advantage of the well performing Brazilian economy, with favorable forecast growth rates.

24 February 2011